FLEXIBILITY WORKS! How and why to incorporate workplace flexibility into your culture! July 16, 2014

FLEXIBILITY WORKS!

How and why to incorporate workplace flexibilityHow and why to incorporate workplace flexibility

into your culture!into your culture!

July 16, 2014

Workplace Flexibility

■ While large percentages of employers report that they have at least some workplace flexibility, the number of options is usually limited and they are typically not available to the entire workforce.

Current State

Workplace Flexibility | 2

Workplace Flexibility

Women without children would rather have more free time than make more money (68%)

Even more than those with children (62%).

About 40 percent of professional men work more than 50 hours per week.

Of these, 80% would like to work fewer hours.

1 out of 5 employees care for elderly parents, A number that could increase to almost half of the workforce

over the next several years.

By 2025, Gen Y employees, now in their 20s, will grow to represent 75 percent of the workforce.

For this emerging generation, work life fit is valued more than compensation, growth or skill development.

Technology is an enabler for workplace flexibility Widespread availability of smartphones Increased access to wireless technology Advent of videoconferencing

Current State


Why Workplace Flexibility … Why Now?Your workforce is changing and your workplace has to adapt


Why Workplace Flexibility … Why Now?

A Broader Talent Pool If talent doesn’t need to be in the office, your talent pool is suddenly national even global - not local or even regional.

Buy In When talented employees decide to work from home three days a week, they are making a serious commitment to

the organization. Instead of working for you, they are working with you.

Higher Morale Studies show that organizations that offer workplace flexibility have less absenteeism and turnover, and higher levels

of engagement and productivity.

Value Added Truly engaged employees don’t leave the job behind when they’re off the clock. They carry their work and current

projects with them 24/7.

Workplace Flexibility is Good Talent Strategy


Workplace Flexibility is….Smart HR Strategy

■ Progressive companies have an easier time attracting and retaining talent

■ Affects employee productivity, your real estate footprint, energy use and other determinants of the bottom line. • Giving people more control over when and where they work tends to also drive a greater focus on results and accountability. 1

• The average company pays between $12,000 and $15,000 per employee in facility cost, yet 30% to 40% of physical workspaces are vacant at any given moment on a regular business day. 1

• Traffic jams cost Americans in urban areas an estimated 4.2 billion hours that flexible workers can convert into productive time.1

Should be seen as a strategic move NOT an employee Benefit

Workplace Flexibility | 6Source:Deloitte – “Workplace Flexibility – Take Control of Letting Go”

Workplace Flexibility…

People

Planet

Profits

Everybody Wins


What is Workplace Flexibility?

A business strategy that allows workers to make choices about core aspects of their work related to:

■ Time – when and how long work is performed;

■ Place – where work is performed, and/or

■ Task – the specific tasks that are performed


Types of Flexible Work ArrangementsThe Right Fit for your Organization, Culture and Workforce


Flex Time A schedule that permits employees to choose their starting and quitting times -within limits set by management. Requires a standard number of hours during a five-day week within a given time period. Usually features core hours when all employees must be present.

Compressed work schedule

A full-time schedule that enables employees to work fewer than five days a week. Among the schedules used are four 10-hour days, three 12-hour days and nine workdays totaling 80 hours, with an extra day off every other week.

Telecommuting An option that allows regular employees to work at home or from another location all or part of the time, often linked to the office electronically by computers, fax machines and telephones.

Regular part time

Voluntary, less than full-time work that includes the same degree of job security available to regular full-time workers. Other privileges may also be included on a prorated basis. In some cases, benefits may be provided as well.

Job sharing A form of regular, part-time employment where two part-time employees voluntarily share one full-time position, with salary and benefits prorated.

FLEX CAREERS

Phased retirement

A program that allows older employees to retire gradually by reducing their full-time commitment over a set period of years without negatively impacting their retirement benefits.

Leaves and sabbaticals.

Authorized periods of time away from work without loss of employment rights. Paid or unpaid leaves are usually extended for family, health care, education or leisure time. Sabbaticals are usually paid and occur on a regular basis, in addition to vacation time.

Workplace Flexibility PrevalenceTeleworking, flex time and part-time schedules continue to top the list.

Workplace Flexibility | 10Source:WAW Survey on Workplace Flexibility (2013)

Flexible Work Arrangements – Obstacles/Barriers

Employee

■A ‘face time’ culture

■Excessive workload

■Manager skepticism

■Customer demands

■Fear of negative career consequences

Employer

■Concern over abuse of ‘policies’

■Reactions of customers/clients

■Difficulties with supervising employees whom aren’t ‘present’

■Loss of productivity

■Treating employees equally

Real or perceived


Flexible Work Arrangements - ObstaclesThe Debate


Flexibility sets us apart.With the Millennials coming in full force, being flexible will be essential to attracting that talent.

Flexibility only goes so far.If flexibility becomes the new norm, it will cease to be a competitive advantage.

We’re positioning ourselves for the future.Leadership development is a big issue for companies today. Gen Y and the Millennials are “fluent” in online collaboration and communication, so are perfectly poised to become future leaders of what will surely be a flexible workforce.

Facebook can’t replace face time.FWAs will reduce the leadership talent pool by reducing young employees’ exposure to dealing with people directly. Culturally, many struggle with feeling connected, thus establishing relationships is more difficult without the personal touch/face time.

It’s about more than just attracting talent; it’s about staying up and running.Flexibility is a strategic move that supports continuity of operations in the event that people can’t get to work (i.e., natural disasters, personal emergencies, huge traffic jams, etc.).

Up and running, maybe, but how productively?The value of “energy in the room” when a crisis occurs could be lost, which could negatively impact operations. What about the ability to virtually collaborate and spontaneously brainstorm?

We have the technology; why not use it?Not being flexible feels backward. The digital (some say post digital) era has removed many of the technological issues that used to inhibit flexibility—including data security.

We all know security can be an issue.How many companies have been in the news because of security breaches? No matter how many policies we make or training we give about the risks of data loss or security breaches, it all comes down to the workforce exercising good data management skills.

It frees us from time and distance constraints.Virtual teams can outperform traditional teams by: (1) enlisting the best talent from any location; (2) reducing project cycle time by shrewd use of a "follow the sun" schedule (i.e., a global team in Boston can work during the day and leave a “to do” list for their Shanghai counterparts to work on while they sleep and vice versa); and (3) tapping diverse input, especially from individuals who work closest to customers in overseas markets.

It’s harder to manage and doesn’t work for everyone.If the workforce is not prepared to work more virtually, it’s the managers who tend to feel the pain. They become the glue that coordinates individual activities across the team. Often they can come to resent the extra burden, while employees view flexibility as an entitlement.

Legal Considerations

■ Company Property

• Are employees using their own personal computer/smartphone? What happens if the property is lost, stolen or damaged?

■ Security and Confidentially

• Consider requiring locked cabinets and frequently changing passwords.

• Have your IT department ensure the employees’ home offices use secure connections.

■ Wage and Hour Issues

• Ensure proper payment for all time worked including:• Overtime, waiting time, meals/break periods, etc.

■ Workers Compensation

• What happens if an employee sustains an injury while working from home? Employers have a duty to create safe working environments regardless of whether the employee is in the office or working from home.

• Consider performing regular site visits to ensure there are no safety hazards• Consider requiring employees to designate a particular area as a home office

■ Out of State Issues

• If employees are located in a different state than where the employer is located, certain tax, leave and other laws may be applicable.

Legal risks can be mitigated by having comprehensive policies, procedures and agreements in place.


Making Workplace Flexibility Work

Telework, flexible hours, compressed workweeks and reduced schedules are stand-alone, uncoordinated "programs.”

HR develops flexible work policies and the technology group rolls out products in isolation.

"Flexibility" refers to the toolkit on the HR website that no one knows about or how to use.

Work flexibility is not part of an employee's everyday or potential long-term career path.

Flexible work will benefit your business and your people if it is part of your organization's

cultural DNA. But that won't happen if:


KEYS TO BUILDING A FLEXIBLE WORKPLACE


Building a Flexible Workplace

Workplace Flexibility | 16World at Work – How to Implement a Compressed Workweek – October 2013

1. Gather Data

Needs assessment - Recognize that work life fit is an issue for everyone, not just woman and parents.

■ Solicit input during staff meetings

■ Conduct focus groups

■ Gather information via staff surveys (i.e. engagement, exit interviews, etc.)

Understanding your options

■ Remote work/telecommuting

■ Flexible work hours

■ Compressed workweek

■ Job Sharing

■ Etc.

Discover the current state of flexible work in your business and Create a shared vision of what flexibility will look like for people and the business


2. Frame your Business Case


Financial/Operational Customers

■ Reduce regretted turnover rate

■ Increase sales

■ Increase productivity

■ Increase efficiency

■ Reduce (specific) costs

■ Improve customer satisfaction

■ Retain the best (most profitable) customers

Employees Society

■ Recruit and retain the best talent

■ Improve employee engagement

■ Advance progress on a pressing societal need

■ Provide stewardship for the environment

Building the Business Case

■ 75 percent work more hours because of flexible work schedules

(work whenever and wherever they want)

■ 79 percent report increased productivity and 78 percent report increased efficiency

■ 64 percent reported improved work/life balance

■ 51 percent felt more relaxed because of flexible work

Proof is in the pudding

Workplace Flexibility | 19World at Work – Survey on Workplace Flexibility - 2011


Business Case

■ Through telecommuting, Aetna has cut 2.7 million square feet of office space at $29 a square foot, for about $78 million in cost savings a year including utilities, housekeeping, mail service and document shredding.

■ In February 2010, remote work policies saved over $150 million over the five snow closures in December 2009 and February 2010


http://www.reuters.com/article/2013/03/01/us-yahoo-telecommuting-aetna-idUSBRE92006820130301 http://www.whitehouse.gov/files/documents/100331-cea-economics-workplace-flexibility.pdf

Bottom Line Business Results

July 2011, survey by Staples Inc. of telecommuters

■ 25% reduction in stress

■ 28% increase in happiness

■ 80% = better work/life fit

■ 76% = put in extra time + more loyal

Employees are Happier and Healthier


Bottom Line Business Results

2013 Workplace Flexibility Survey

■ 45% of workers would be willing to give up some percentage of their salaries in exchange for more workflex.

■ Workers 18 - 35 would give up 14% of their salary for more flexibility at work!

Workflex is a key recruitment and retention tool


Why workplace flexibility is essential to ongoing business success.

http://www.youtube.com/watch?v=WUz2hH_T1nE

Building the Business CaseA video walking you through all the things to cement your business case


http://www.youtube.com/watch?v=WUz2hH_T1nE

3. Customize your Workflex Program

Flex Time & Place ■ Regular or short-notice flex time

■ Compressed workweeks

■ Telecommuting

Flex Careers ■ Sabbaticals

■ Dialing careers up & down

■ Phased retirement

Reduced Time ■ Part-time & part-year work

Time Off ■ Paid vacations & sick leave

■ Time off for caregiving

Choices in Managing Time ■ Self-scheduling & shift trading

Remember, Flex is MORE than just Telecommuting


Customize your Workflex Program

Program should respond to

■ the diverse needs of employees

■ business and operations

■ scalability To reflect different work environments, union representation, job suitability, etc.

One size does NOT fit all


Consider: ■ Needs of the business

■ Nature of the positions

■ Individual work style – technology available

■ Department restrictions/limitations

■ Individual performance

■ Starting with a pilot

■ Whether you need informal or formal policies

Flexible Work Arrangements

■ To maintain high levels of productivity, collaborative technology must work consistently, invisibly and seamlessly.

■ Security is the one of the largest and most immediate workplace challenges.

Telecommuting/Remote Work - #1 Workflex Arrangement


Flexible Work Arrangements

■ Gain control by enabling anytime, anywhere access instead of restricting usage

■ Support collaboration and mobile workers with communication tools

■ Address security proactively

■ Employ self service where possible

■ Implement desktop virtualization as an option

Telecommuting/Remote Work


4. Develop a tailored strategy that gets you from your current state to your vision

Obtain senior management commitment where they take personal, visible action to support and sustain flexible ways of working.

Position flexibility as a business strategy, not personal accommodation or entitlement.

Make HR the facilitator of the program not the owner.

Engage management across different functional areas when developing the program.

Include key stakeholders and make them champions/advocates of the program


5. Overcome Resistance to Workflex


Build Readiness across the Organization to embrace strategic flexibility

Have managers take the “flexibility challenge”

■Identify the organizations/departments most pressing issues and concerns and consider how flexible work can be part of the answers

■Identify the organization’s strengths and opportunities, and imagine how flexible work can help enhance these.

Enabling your Managers

■Dedicate time and resources to training managers about the benefits of flexibility

■Provide them with the skills, tools and capabilities they need to successfully lead flexible teams.

Starting with your Managers


6. Implement for Success

1.Engage people across functions

2.Design implementation plan

Brand flexibility initiatives and link to business imperatives

Implement flexibility universally, adapting policies and approaches to each location if necessary

3.Develop communication materials

Actively communicate flexibility options and approach

4.Invest in training

Provide training, guidance and tools to manager, employees and HR


Implement for Success

5.Provide support to middle managers and hold them accountable

6.Determine metrics to judge success

7.Create continuous feedback loop


Best Practice Example

■ What is a Flexible Work Arrangement

■ Benefits of Flexible Work Arrangements

■ Proposal Guidelines

■ Optimal Conditions for Flexible Work Arrangements

■ Common Challenges of Flexible Work Arrangements


In Closing - Keys to Success (summarized)

■ Let data support and determine your decision

• A detailed analysis including data points such as attendance (badge swipes), travel and vacation days and commuting needs will uncover opportunities that are not always self-evident.

■ Build the business case with key stakeholders

• Working with a core team of primary stakeholders across multiple disciplines, including corporate real estate, facilities management, technology support, environmental sustainability, human resources and others will ensure that the business case and the implementation plan are balanced and positioned for success.

■ Secure executive management endorsement and support

• Buy-in at the top level of the organization will set a clear direction for implementation and expectations for success. This includes leading by example.

■ Develop a clear communication plan

• Ensuring employees know what’s happening and why, and having ample opportunities to raise concerns and ask questions is crucial for the implementation to go smoothly and to maintain productivity.

■ Cultivate strategic partnerships –

• Involve ‘line’ management and others in the development of your program/strategy, you’ll gain forward-thinking insights and buy in from an important portion of your population.


Keys to Success (summarized)

■ Invest in flexible, robust technology infrastructure

• Having technology systems in place that create a plug-and-play environment supports both the implementation and ongoing maintenance of the program, and makes it easy for employees to work in the most flexible way possible while staying connected to their teams.

■ Never underestimate the human element

• Transitioning employees – executives and managers too – who have been accustomed to traditional hard, wall offices or assigned cubicles to a flexible work environment requires a significant amount of change management.

■ Know your organizational/global culture

• Know your corporate culture and your local culture.

■ Expect the program to evolve over time to meet changing company needs -

• The program must be rigid enough to maintain balance and continue to achieve the original goals and objectives, but flexible enough to respond to the changing space requirements of a dynamic workforce.


Resources to Help You


www.familiesandwork.org

http://www.familiesandwork.org/


Willis Human Capital Practice

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•Reporting and Analytics


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human capital risk – beyond benefits.

Contact your local office for more information on our Human Capital Practice

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FLEXIBILITY WORKS! How and why to incorporate workplace flexibility into your culture! July 16, 2014