2014 workplace flexibility_survey_overview of fw_as

SHRM Survey Findings: 2014 Workplace Flexibility—

Overview of Flexible Work Arrangements

October 15, 2014

Introduction

The 2014 Workplace Flexibility Survey was administered by the Society for Human Resource Management (SHRM) to identify the prevalence and types of flexible work arrangements (FWAs) organizations offer. The survey also examined employee use of these programs, metrics/analytics on FWAs, success factors, the impact of these programs on both employees and employers, and challenges associated with FWAs.

The following topics are included in the two-part series titled “2014 Workplace Flexibility”:

Part 1: Overview of Flexible Work Arrangements

Part 2: Strategic Use of Flexible Work Arrangements

Definition

Flexible work arrangements, also known as workplace flexibility, or workflex, are a dynamic partnership between employers and employees that defines how, when and where work gets done in ways that work for everyone involved (including families, clients and other stakeholders).

2014 Workplace Flexibility Survey—Overview of Flexible Work Arrangements ©SHRM 2014 2

Introduction and definition

• Flexible work arrangements (FWAs) offered to employees: Among responding organizations that

offered FWAs, about one-half offered sabbaticals, paid time off for volunteer work and part-

time/reduced hour schedules on a formal basis (54%, 51% and 46%, respectively); other FWAs (16

out of 19 examined in the survey) were more likely to be offered on an informal basis (44%-71%).

• FWAs’ availability to employees: Among responding organizations that offered FWAs, more than

one-half reported that the following FWAs were available to “all or most employees”: paid time off

for volunteer work (82%), unpaid time off for volunteer work (72%), break arrangements (61%), a

transition period (part-time) after a major life event (58%) and flex time with “core hours” (54%).

• Use of FWAs: Responding organizations were most likely to report that only 1%-25% of their

eligible workforce used each of the FWAs offered.

• Success of FWAs: Among the responding organizations that offered each type of FWA, at least

four-fifths reported 13 out of 17 FWAs were somewhat or very successful (80%-92%).

» The remaining four FWAs which less than 80% of respondents found to be somewhat or very

successful were unpaid time off for volunteer work (78%), phased retirement (74%), shift

arrangements (73%), and sabbaticals (66%).

3

Key findings

2014 Workplace Flexibility Survey—Overview of Flexible Work Arrangements ©SHRM 2014

• Informing employees about an organization’s FWA offerings: About one-quarter (27%) of

responding organizations that offered at least one type of FWA indicated employees most often

learned about their organization’s FWA options from their line manager/supervisor, 18% from an

employee handbook or policy and procedures manual, and 15% from HR staff.

» One-half (50%) indicated employees typically learned about FWAs options while on the job,

30% during the recruitment or interview process, and 19% during orientation/onboarding.

• Requests for FWAs: One-third (32%) of responding organizations indicated requests for FWAs at

their organization had increased in the past 12 months; just 3% indicated these requests had

decreased.

• Support for work-life fit: The majority (73%-79%) of responding organizations that offered at least

one type of FWAs agreed or strongly agreed that their organization supported work-life fit.

» Four-fifths (80%) indicated supervisors were encouraged to assess employees’ performance

by what they accomplish and not just by “face-time.”

• The impact of telecommuting: Two-fifths (39%) of responding organizations indicated they offered

employees the option to telecommute.

» Among those organizations that offered employees the option to telecommute, one-quarter

(26%) indicated the productivity of employees who were previously 100% onsite increased;

one-third (32%) indicated absenteeism rates had decreased.


Key findings (continued)

• Managing/measuring productivity of telecommuters: About one-half (48%) of responding

organizations that offered telecommuting indicated they managed/measured productivity of

telecommuters based on their responsiveness (e.g., how quickly they responded to e-mails or

returned phone calls); 43% indicated line managers/supervisors established specific

goals/parameters with the telecommuting employee.

• Changes in FWAs and telecommuting over the next five years: When asked about changes over

the next five years, the vast majority of responding organizations indicated it was somewhat or very

likely that FWAs and telecommuting would be more commonplace in five years (89% and 83%,

respectively).

» About one-half (48%) indicated it was somewhat or very likely that FWAs would be available

to a larger proportion of their organization’s workforce in five years; just 39% indicated it was

somewhat or very likely that a larger proportion of their organization’s workforce would be

telecommuting.


Key findings (continued)


• Over the past decade, research by the Families and Work Institute (FWI) shows that FWAs are an

important part of an effective workplace because of their positive impact on engagement, job

satisfaction, retention and employee health.1 Thus, organizations that are able to offer FWAs are likely

to enjoy a competitive advantage.

• Studies show that U.S. workers, while generally having fewer vacation days than their counterparts in

other developed countries, are more likely to leave unused vacation days on the table for a number of

reasons, such as workload, job security fears and workplace culture. Similar factors may influence

how and when eligible employees use FWAs their organizations offer.2

• Low utilization of many FWAs points to potential organizational cultural barriers that prevent uptake

among employees. HR professionals will therefore need to learn more about when and why

employees use FWAs to fully understand the impact and potential of FWA options.

• The high reported success rates of several FWAs, such as unpaid time off for volunteer work and

sabbaticals, indicate that more organizations may benefit from offering these options.

• Because employees are most likely to learn about FWA options on the job, the role of managers is

clearly central to the success of FWA programs. HR must work closely with managers to inform them

about what FWA options are available, why they are being offered and how they benefit the

organization. Training managers on how to administer FWAs is also vital.

1Families and Work Institute. (2008). 2008 National Study of the Changing Workforce. Retrieved from http://www.whenworkworks.org/be-

effective/resources/national-study-of-the-changing-workforce. 2U.S. Travel Association. (2014). Overwhelmed America: Why Don't We Use Our Paid Time Off. Retrieved from http://traveleffect.com/sites/traveleffect.com

/files/OverwhelmedAmerica_FullReport_FINAL_0.pdf. The study found that 40% of American workers will leave paid vacation days unused.

6

What do these findings mean for the HR profession?

http://www.whenworkworks.org/be-effective/resources/national-study-of-the-changing-workforce

http://traveleffect.com/sites/traveleffect.com/files/OverwhelmedAmerica_FullReport_FINAL_0.pdf

3 Kapur, S. (2013, Sept. 25). Today's Young People Aren't Ambitious, Care Less About Their Jobs, And Want More Vacation [SURVEY]. Business Insider.

Retrieved from http://www.businessinsider.com/millenials-are-less-career-ambitious-2013-9#ixzz3CjQkFrjn.

• The importance of managers as role models must not be underestimated. If managers

themselves never use FWAs, it sends an unspoken message to employees that discourages

the use of FWAs overall.

• HR professionals foresee a future where telecommuting and other FWA options are more

prevalent. This, along with increased expectations of workplace flexibility among employees,

especially those in the Millennial generation, will mean that organizations that do not offer

these options may be at a disadvantage when it comes to recruiting, retention and employer

branding efforts.3


What do these findings mean for the HR profession?

(continued)

http://www.businessinsider.com/millenials-are-less-career-ambitious-2013-9#ixzz3CjQkFrjn


Organizational FWAs

Which of the following FWA options does your organization formally or

informally offer to any of its employees?


Sabbaticals (n = 122)

Paid time off for volunteer work (n = 171)

Part-time/reduced hours schedules (n = 215)

Compressed workweek (n = 218)

Job-sharing (n = 118)

Part-year work (n = 85)

Flex time, present during “core hours” (n = 276)

Transitioning between full-time andpart-time work (n = 156)

Telecommuting from other locations (e.g., fromhome) on a regular basis (n = 311)

Shift arrangements (n = 100)

54%

51%

46%

40%

33%

33%

30%

29%

28%

26%

37%

43%

41%

44%

54%

56%

52%

53%

47%

53%

9%

6%

13%

17%

13%

11%

18%

17%

25%

21%

Formal Informal A mix of formal and informal

Note: Percentages are of those organizations that indicated they offered each type of FWA. Respondents who responded “don't know” were excluded

from this analysis. Percentages may not total 100% due to rounding.

Which of the following FWA options does your organization formally or

informally offer to any of its employees? (continued)


Unpaid time off for volunteer work (n = 182)

Transition period after major life event (n = 232)

Flex time, no “core hours” (n = 162)

Telecommuting from a satellite location (n = 232)

Shift flexibility (n = 144)

Phased retirement (n = 135)

Break arrangements (n = 193)

Telecommuting from other locations on an asneeded basis (n = 349)

Alternating location (n = 95)

26%

25%

24%

23%

20%

20%

16%

13%

12%

66%

63%

57%

46%

59%

71%

66%

66%

64%

8%

13%

19%

31%

21%

9%

18%

21%

24%

Formal Informal A mix of formal and informal


from this analysis. Percentages may not total 100% due to rounding.

To which employees are the following FWA options available?


Note: Percentages are of those organizations that indicated they offered each type of FWA. “Alternating location” and “Part-year work” were not reportable

(NR) due to a low response count (n < 30). Percentages may not total 100% due to rounding.




Transition period part-time (n = 78)

Flex time, present during "core hours" (n = 120)


Part-time/reduced hours schedules (n = 113)



82%

72%

61%

58%

54%

41%

41%

40%

35%

18%

28%

39%

42%

46%

59%

59%

60%

65%

All or most employees Some or select employees

To which employees are the following FWA options available?

(continued)






Telecommuting from other locations on an asneeded basis (n = 108)



Telecommuting from other locations (e.g., fromhome) on a regular basis (n = 152)

34%

32%

31%

29%

25%

22%

18%

16%

66%

68%

69%

71%

75%

78%

82%

84%

All or most employees Some or select employees

Note: Percentages are of those organizations that indicated they offered each type of FWA. “Alternating location” and “part-year work” were not reportable

(NR) due to a low response count (n < 30). Percentages may not total 100% due to rounding.

Approximately what percentage of your location's eligible workforce

uses each of the following FWA options?


Note: Percentages are of those organizations that indicated they offered each type of FWA. “Alternating location,” “flex time, no core hours,” “job-

sharing,” “shift flexibility,” “break arrangements,” “shift arrangements,” “part-year work,” “phased retirement” and “unpaid time off for volunteer work”

were not reportable (NR) due to a low response count (n < 30). Percentages may not total 100% due to rounding.





Part-time/reduced hours schedules(n = 62)

Telecommuting from other locations ona regular basis (n = 66)


Telecommuting from other locationson an as needed basis (n = 34)


Flex time, present during "core hours"(n = 37)

17%

10%

8%

6%

3%

3%

3%

3%

2%

60%

44%

79%

79%

77%

70%

78%

74%

46%

46%

10%

29%

5%

9%

11%

17%

5%

12%

18%

24%

7%

12%

5%

6%

7%

5%

10%

12%

20%

8%

2%

3%

2%

5%

5%

3%

11%

7%

4%

2%

12%

11%

0% 1-25% 26-50% 51-75% 76-99% 100%

0%

0%

0%0%

0%0%

0%

0%

0%


from this analysis. “Telecommuting from an alternate location,” ”shift arrangements” and “part-year work” were not reportable (NR) due to a low

response count (n < 30). Percentages may not total 100% due to rounding.

How would you rate the success (positive outcomes for all involved

stakeholders) of each of the following FWA options at your organization?



Flex time, present during “core hours” (n = 109)



Telecommuting from other locations onan as needed basis (n = 94)



Telecommuting from other locations ona regular basis (n = 135)

61%

61%

59%

56%

55%

55%

53%

53%

30%

29%

15%

32%

31%

31%

39%

36%

6%

6%

26%

10%

12%

9%

8%

8%

3%

4%

0%

2…

2…

5%

0%

3%

Very successful Somewhat successful Neither Somewhat unsuccessful/Not at all successful


from this analysis. “Telecommuting from an alternate location,” ”shift arrangements” and “part-year work” were not reportable (NR) due to a low

response count (n < 30). Percentages may not total 100% due to rounding.

How would you rate the success (positive outcomes for all involved

stakeholders) of each of the following FWA options at your organization?

(continued)


Telecommuting from a satellite location(n = 99)

Part-time/reduced hours schedules(n = 96)








49%

49%

49%

43%

40%

40%

37%

35%

31%

33%

32%

29%

37%

43%

40%

29%

38%

56%

15%

15%

17%

14%

14%

16%

29%

27%

8%

2%

4%

5%

6%

2%

4%

6%

0%

5…

Very successful Somewhat successful Neither Somewhat unsuccessful/Not at all successful

n = 211 n = 208

50%

30%

19%

while on the job(e.g., informally from colleagues,

formally from management)?

during the recruitment orinterview process?

during orientation/onboardingupon joining the organization?

How do employees learn about FWAs at your organization?


27%

18%

15%

14%

12%

9%

4%

From their line manager/supervisor

From employee handbook orpolicy and procedures manual

From HR staff

From other formal organizationalcommunications

From co-workers

From top management

Other

Do employees typically learn about

FWA options…

Through which method/source do

employees most often learn about the

organization's FWA options?

Note: Percentages are of those organizations that indicated they offered each type of FWA. Percentages may not total 100% due to rounding.

In the past 12 months, have requests for FWAs at your organization

increased, stayed the same or decreased?


32%

65%

3%

Increased

Stayed the same

Decreased

Note: n = 302. Percentages are of those organizations that indicated they offered each type of FWA.

Support for work-life fit


My organization provides employees with thesupport and flexibility needed to balance/

manage their work and personal liferesponsibilities

Top management (e.g., executive level, c-suite) in my organization supports

employees' efforts to balance/manage theirwork and personal life responsibilities

Line managers/supervisors in myorganization support employees' efforts to

balance/ manage their work and personal liferesponsibilities

30%

30%

26%

48%

43%

53%

16%

20%

17%

5%

7%

4%

Strongly agree Somewhat agree Somewhat disagree Strongly disagree

Note: n = 304-306. Percentages are of those organizations that indicated they offered each type of FWA. Percentages may not total 100% due to

rounding.


Supervisors are encouraged to assess employees’ performance by what employees accomplish, and not just by “face-time,” that is, the number of hours they

spend at the workplace

Management rewards those within the organizationwho support effective flexible work arrangements

40%

5%

40%

24%

15%

32%

6%

39%

Very true Somewhat true Not very true Not at all true

Note: n = 235-288. Percentages are of those organizations that indicated they offered each type of FWA. Percentages may not total 100% due to

rounding.

Support for work-life fit (continued)


Telecommuting

Productivity

Absenteeism rates

26%

5%

67%

62%

8%

32%

Increased Remained the same Decreased

Telecommuting prevalence and impact on productivity and absenteeism


In general, have productivity and absenteeism rates of telecommuting employees who were

previously working 100% onsite increased, remained the same or decreased since these employees

started telecommuting?

Yes, 39%

Does your organization offer employees the option to telecommute?

n = 367

n = 90-91

Note: Respondents who responded “don't know” were excluded from this analysis. Percentages for “productivity” and “absenteeism rates” are of those

organizations that indicated they offered their employees the option to telecommute. Percentages may not total 100% due to rounding.

Percent

Responsiveness of employee (e.g., how quickly employee responds to e-mails, returns

phone calls)48%

Line manager/supervisor establishes specific goals/parameters with the employee 43%

On the honor system; there is no standard mechanism in place to manage/measure

productivity for telecommuters37%

Our standard methods for measuring productivity are effective for both telecommuters

and on-site employees 36%

Employee records time worked on a timesheet or other logging system 34%

Employee reports progress against assigned tasks on a scheduled basis 26%

Organization is still working out how to manage/measure productivity for employees when

they telecommute23%

Organization monitors employees via software (e.g., software that tracks and records

computer behavior)9%

Other 3%

In general, how is productivity of employees at your organization

managed/measured when they telecommute?


Note: n = 141. Percentages are of those organizations that indicated they offered their employees the option to telecommute. Percentages do not total

100% due to multiple response options.


The Future of FWAs and Telecommuting

In your opinion, what is the likelihood that the following will occur?


Note: n = 363-366. Percentages may not total 100% due to rounding.

In the next five years, FWAs/workflex options will bemore commonplace for organizations in general than

they are today

In the next five years, telecommuting will be morecommonplace for organizations in general than it is

today

In the next five years, a larger proportion of theworkforce at my organization will have FWAs/workflex

options available

In the next five years, a larger proportion of theworkforce at my organization will be telecommuting

than today

39%

35%

12%

9%

50%

48%

36%

30%

6%

10%

31%

26%

5%

8%

21%

35%

Very likely Somewhat likely Somewhat unlikely Not at all likely


Demographics

Demographics: Organization industry

26

Note: n = 373. Percentages do not total 100% due to multiple response options.


Industry Percentage

Manufacturing 22%

Professional, scientific and technical services 18%

Health care and social assistance 13%

Finance and insurance 12%

Government agencies 7%

Educational services 6%

Transportation and warehousing 5%

Utilities 5%

Construction 4%

Accommodation and food services 3%

Administrative and support, and waste management and remediation services 3%

Demographics: Organization industry

27

Note: n = 373. Percentages do not total 100% due to multiple response options.


Industry Percentage

Mining, quarrying, and oil and gas extraction 3%

Retail trade 3%

Agriculture, forestry, fishing and hunting 2%

Arts, entertainment and recreation 2%

Information 2%

Real estate and rental and leasing 2%

Religious, grant-making, civic, professional and similar organizations 2%

Wholesale trade 2%

Repair and maintenance 1%

Personal and laundry services <1%

Other industry 12%

Demographics: Organization sector

28

n = 366.

16%

52%

22%

8%

2%

Publicly owned for-profit

Privately owned for-profit

Nonprofit organization

Government agency

Other


Demographics: Organization staff size

29

n = 360

31%

34%

20%

12%

3%

1 to 99 employees

100 to 499 employees

500 to 2,499 employees

2,500 to 24,999 employees

25,000 or more employees


n = 367

Demographics: Other


U.S.-based operations only 77%

Multinational operations 23%

Single-unit organization: An organization in

which the location and the organization are

one and the same.

35%

Multi-unit organization: An organization that

has more than one location.65%

Multi-unit headquarters determines HR

policies and practices50%

Each work location determines HR policies

and practices7%

A combination of both the work location and

the multi-unit headquarters determines HR

policies and practices

43%

Is your organization a single-unit organization or a

multi-unit organization?

For multi-unit organizations, are HR policies and practices

determined by the multi-unit headquarters, by each work

location or by both?

Does your organization have U.S.-based

operations (business units) only, or does it

operate multinationally?

n = 370

n = 245

Corporate (companywide) 67%

Business unit/division 15%

Facility/location 18%

n = 245

What is the HR department/function for

which you responded throughout this

survey?

31

• Response rate = 12%

• 525 HR professionals from a randomly selected sample of SHRM’s membership participated in this

survey

• Margin of error +/- 4%

• Survey fielded April-June 2014

Survey Methodology

SHRM Survey Findings: 2014 Workplace Flexibility—

Overview of Flexible Work Arrangements


For more survey/poll findings, visit shrm.org/surveys

For more information about SHRM’s Customized Research Services, visit

shrm.org/customizedresearch

Follow us on Twitter @SHRM_Research


About SHRM Research

Project lead:

Karen Wessels, researcher, SHRM Research

Project contributors:

Evren Esen, director, Survey Programs, SHRM Research

Yan Dong, Survey Research Center, SHRM Research

Copy editor:

Katya Scanlan, SHRM Knowledge Center

http://www.shrm.org/surveys

http://www.shrm.org/customizedresearch

http://twitter.com/SHRM_Research

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2014 workplace flexibility_survey_overview of fw_as