New Trends in Employee Compensation: Work â€“ Life Balance

New Trends in Employee Compensation: Work – Life Balance

Laura Drew, CEIC, CIJSEDirector of Education, CDI

October 17, 2009

Educate • Connect • Empower

What We’ll Cover Today

Work-Life Balance in the Workplace: The Compensation Trend to Watch

Why this trend is here to stayWomen in the WorkforceThe Global EconomyEnvironmental Awareness

Connect the Dots


What Work-Life Balance Encompasses

Why companies across the globe are beginning to embrace the concept

How HR Departments are educating companies on leveraging Work-Life Balance to their benefit


The Importance of Work-Life Balance in the American, Canadian, and European Workplace.

Flexibility in the Workplace:Paid Time OffTelecommutingShortened Work WeeksFlexible Work Schedules


Relevancy to the Career Professional

Relevancy to the Job Seeker

Strategies for the Career Professional

Strategies for the Job Seeker

Conclusions and Recommendations

What is Work – Life Balance

Work-Life balance is the idea that it is possible to meet both career and

home responsibilities, without sacrificing one for the other.

Reasons For This Trend

Women in the Workforce

Global Economy

Environmental Awareness


The rise of women in the workforce is one of the biggest factors in the shift of compensation philosophy.


• In 2009, women will surpass men in the workforce.

• During a recession, women lose fewer jobs than men.

• Women earn 57% of the Bachelor’s degrees in the United States.

Source: Womenomics, by Claire Shipman & Katty Kay


• 78% of couples in this country are dual income earners.

• 63% of women believe they don’t have enough time for their spouses or partners.

• 74% of women say they don’t have enough time for their children.



Bottom Line?• Half of the women in the workforce want

fewer hours.• Half would change their work schedules.• More than half would trade money for a

day off.• Three-quarters want flexible work options.


Global Economy

• In 2005, Thomas Friedman wrote the bestseller, The World is Flat. What Friedman means by “flat” is “connected”:

– the lowering of trade restrictions– the ease in political barriers– the technical advances

of the digital revolution.

Global Economy

All of these events and innovations have made it possible to do business, instantaneously, with anyone on the

planet.


There is greater awareness than ever before of the impact that:

• pollution • global warming• conservation

have on the environment.


Governments around the world are regulating how companies use

energy, fining industries who pollute, and rewarding corporations for responsible practices, such as

conservation.

Connecting the Dots

So what do

• Women In The Workforce• Global Economy• Environmental Awareness

have to do with Work – Life Balance?

Connecting the Dots

Work – Life Balance Encompasses:

• Flexible Work Schedules• Reduced Work Schedules• Telecommuting• Job Sharing• Sabbaticals• Shortened Work Weeks.

According to the World At Work Journal…

Connecting the Dots

This helps Companies:

• Reduce Labor Costs• Improve Work Flow planning• Expand Client Service• Leverage Technology• Reduce Real-Estate Overhead• Increase Environmental Sustainability• Improve Disaster Preparedness• Lower Health-Care Costs.

Connecting the Dots

Companies and their HR departments are realizing the strategic and

economic edge that addressing work – life issues can give them in the competition to attract and keep

employees.

Total Rewards

World At WorkTotal Rewards Model

Total Rewards Model used with written consent by WorldAtWork.org

Total Rewards

According to WorldAtWork.org, Total Rewards is “all of the tools available to the

employer that may be used to attract, motivate, and retain employees.

It includes everything the employee perceives to be of value resulting from the

employment relationship.”

Total Rewards

Companies may not have caught on to the official terminology yet, but most are practicing some version of Total

Rewards.

Total Rewards

A key component to the Total Rewards Strategy is Work–Life Balance.

Total Rewards

Work-Life Balanceis not a trend that is going away.

In the next decade, focus on Work-Life Balance will move from compensation

“perk” to standard benefit.

Connecting the Dots

Employees, both men and women at all levels, want the flexibility to manage

their work and their lives to meet their needs while still meeting the needs of

the organization.

Flexibility in the Workforce

This 2007 Work + Fit Life Reality Survey shows how important work–life balance is to our workforce.

Flexibility in the WorkforceIn the same 2007 Work + Fit Life Reality Survey over half of Americans polled believe there should be legislation to protect work-life balance.

Source: http://www.worklifefit.com/pdf/wlf_realitycheck_summ09.pdf

Flexibility in the WorkforceUSA

• Nearly every state in the U.S has proposed legislation that addresses the time resources and time mismatches experienced by working families, specifically including:

– Flexible Scheduling– Part Time Work– Telecommuting– Family Leave– Phased Retirement.

Flexibility in the WorkforceCanada

Work-Life Balance is not just an American concern.

As stated by Human Resources and Social Development Canada (HRSDC) on their "Work-Life Balance in Canadian Workplaces" web site:

"Work-life balance programs and practices can benefit an organization's bottom line while at the same time, provide other indirect benefits both to employees and employers. While some of these benefits might be more tangible and quantifiable than others, they nonetheless can contribute to significant positive organizational gain. Many businesses are already seeing the benefits for themselves.“

[Source: http://www.hrsdc.gc.ca/en/lp/spila/wlb/08benefits_costs.shtml]

Flexibility in the WorkforceCanada

Canadian Human Resources organizations, have also discovered the benefits of utilizing Work-

Life programs in their hiring and retention:• Attracts new employees • Helps to retain staff • Builds diversity in skills and personnel • Improves morale • Reduces sickness and absenteeism • Enhances working relationships between colleagues • Encourages employees to show more initiative and teamwork • Increases levels of production and satisfaction• Decreases stress and burn-out.

Source: http://www.hrsdc.gc.ca/en/lp/spila/wlb/08benefits_costs.shtml

Flexibility in the WorkforceEurope

Work-Life Balance is not just a North American concern.

The most recent European Conditions Survey, conducted in 2005, covered all 27 European Union Member States plus Croatia, Turkey, Switzerland and Norway.

The Survey asked: ‘Do your working hours fit in with your family or social commitments outside work?’

Source: http://www.eurofound.europa.eu/ewco/surveys/index.htm

European Working Conditions Survey

Broken down by country, the data shows considerable variation, from 11% dissatisfaction with work–life balance in Norway and Austria to over 40% in Greece.

Work-Life Balance is a global concern.

Flexibility is KeyAround the world, employees want the flexibility:

• to do more than just work during their workday (paid time off )

• to decide where they physically work (telecommuting)

• to work longer hours in fewer days (4 day work week).

• or have the flexibility to set their own hours (flexible work hours).

Paid Time OffJobseekers are forever admonished not to ask about vacation during the job interview. But this is changing. Many hiring managers are now raising the topic themselves. “Time off” goes well beyond vacation and sick days. Many employers are offering employees:

• Paid Sabbaticals• Paid Hours for Volunteer Work

Job seekers want flexibility in regards to time off, thus being paid to not be in the office (or working) is a growing compensation benefit.

Telecommuting

Less than a decade ago, working from home was considered a luxury limited to a select few.

Even in the age of laptops and the internet, employers have historically been wary of letting employees work from somewhere other than the office.

Today is a very different story.

Telecommuting

More and more companies are utilizing telecommuting to attract international candidates.

• A computer programmer based in San Francisco can now work for a software company headquartered in Sweden.

• An architect in London can work for a firm in Brazil.

There are fewer and fewer limitations on where one works.

Telecommuting

Telecommuting has another added benefit to companies, which in turn means more telecommuting opportunities for job seekers.

With the ever growing energy crisis, companies are being encouraged, be it through government tax incentives or reducing their own bottom lines, to use less energy.

TelecommutingTechnical support centers that just five years ago would have used 3 floors of an office building, now keep a small staff in minimum space, while the rest of the company works from computers at home.

Companies worldwide are saving millions in rent, parking, and energy usage.

This in turn reduces the number of commuters and power use, which in turn helps the environment.

Telecommuting

Telecommuting is a win-win for both employers and employees.

In the next decade, telecommuting will very likely be the norm, not the

exception.

Shortened Work Weeks

When working from home is not an option, there is another perk that is almost as popular. Everyone loves a 3-day weekend, so it is no wonder that a 4-day work week is popular.

Just as with telecommuting, allowing employees the flexibility to work four days instead of five has benefits for all involved.

Shortened Work WeeksThe summer of 2007, oil was at over $140 a barrel, which meant the doubling, even tripling of energy costs for consumers.

To ease the strain on employees and reduce their own costs, Brevard University in Florida instituted the 4-day work week.

Employees worked four, ten hour days.

On Friday, the administrative building was closed for business.

Shortened Work Weeks

Not only was this hugely popular with staffers, but the university was able to save $267,000 in energy costs, allowing them to hire ten full time faculty members for the next year.

As energy prices continue to fluctuate, shortened work weeks may soon become more commonplace.

Flexible Work SchedulesThe concept of flexible work hours is different from a 4-day work week.

It is not limited to a 4-day work week (though many choose the 4-day work week as their flexible option).

Flexible work hours can be working a 10am – 7pm shift, while co-workers may lead a typical 9 to 5 schedule.

It could be taking a longer lunch once a week and making up the time later.

Flexible Work Schedules

This is not a new or exclusive trend by any means, but now it has an official name, “flexible work hours”, and employers are using it to woo job seekers.

Flexibility is popular because today’s workforce puts a premium on balancing work life and home life.

Relevancy to Job Seekers

• There is more to a compensation package than salary and health insurance.

• It is important to evaluate more than just monetary needs. Choose a compensation package that best fits both work and home life.

• Seek out companies that promote the types of work-life balance that you find appealing.

Relevancy to Career Professionals• Coaches: assist clients determine all of their

compensation needs and options.

• Job Search Experts: apply your expertise to helping clients navigate the tricky process of finding companies that match their compensation needs.

• Resume Writers: create resumes that truly help showcase a clients’ match to key positions in target companies. When a client is zeroing in on particular benefits, this limits the application pool. The resume is critical in ensuring an interview.

Strategies for Job Seekers

• The willingness to accept work-place flexibility in lieu of a larger salary can be an excellent bargaining chip, especially in a downturn economy. Even companies who do not historically embrace the work-life balance concept are opening up to ideas that attract and retain a quality workforce.

• Not every job will offer flexibility. You need to know what is a higher priority for you – salary or flexibility.

Strategies for Career Professionals

Career Professionals need to help Clients understand the importance of defining exactly

what it is the client wants and to prioritize accordingly.

What matters most: Salary, Flexibility, a Particular job, a Specific Company – a client who knows

what he/she wants is in a much better position to either negotiate or to seek out, specific openings.

Conclusions

With changes in the economic climate and companies competing for quality applicants, it is vital that we help our clients evaluate ALL of the choices (not just salary) before them to make educated decisions about employment compensation.

Speaker Information

Laura Drew, CEIC, CIJSE

Carolina Career CoachPhone: 919-762-8099E-mail: [email protected]: www.CarolinaCareerCoach.com

Educate • Connect • Empower

Documents

New Trends in Employee Compensation: Work â€“ Life Balance