SHRM Survey Findings: 2014 Workplace Flexibility—Overview of Flexible Work Arrangements
October 15, 2014
2014 Workplace Flexibility Survey—Overview of Flexible Work Arrangements ©SHRM 2014 2
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).
Introduction and definition
3
• 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%).
Key findings
2014 Workplace Flexibility Survey—Overview of Flexible Work Arrangements ©SHRM 2014
2014 Workplace Flexibility Survey—Overview of Flexible Work Arrangements ©SHRM 2014 4
• 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)
2014 Workplace Flexibility Survey—Overview of Flexible Work Arrangements ©SHRM 2014 5
• 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)
2014 Workplace Flexibility Survey—Overview of Flexible Work Arrangements ©SHRM 2014 6
• 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.
What do these findings mean for the HR profession?
2014 Workplace Flexibility Survey—Overview of Flexible Work Arrangements ©SHRM 2014 7
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)
2014 Workplace Flexibility Survey—Overview of Flexible Work Arrangements ©SHRM 2014 8
Organizational FWAs
2014 Workplace Flexibility Survey—Overview of Flexible Work Arrangements ©SHRM 2014 9
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 and part-time work (n = 156)
Telecommuting from other locations (e.g., from home) 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.
2014 Workplace Flexibility Survey—Overview of Flexible Work Arrangements ©SHRM 2014 10
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 as needed 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
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.
2014 Workplace Flexibility Survey—Overview of Flexible Work Arrangements ©SHRM 2014 11
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.
Paid time off for volunteer work (n = 92)
Unpaid time off for volunteer work (n = 54)
Break arrangements (n = 54)
Transition period part-time (n = 78)
Flex time, present during "core hours" (n = 120)
Compressed workweek (n = 115)
Part-time/reduced hours schedules (n = 113)
Sabbaticals (n = 68)
Transitioning between full-time and part-time work (n = 65)
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
2014 Workplace Flexibility Survey—Overview of Flexible Work Arrangements ©SHRM 2014 12
To which employees are the following FWA options available? (continued)
Flex time, no “core hours” (n = 64)
Shift arrangements (n = 41)
Shift flexibility (n = 51)
Phased retirement (n = 35)
Telecommuting from other locations on an as needed basis (n = 108)
Job-sharing (n = 46)
Telecommuting from a satellite location (n = 115)
Telecommuting from other locations (e.g., from home) 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.
2014 Workplace Flexibility Survey—Overview of Flexible Work Arrangements ©SHRM 2014 13
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.
Sabbaticals (n = 42)
Compressed workweek (n = 52)
Transition period part-time (n = 38)
Transitioning between full-time and part-time work (n = 33)
Part-time/reduced hours schedules (n = 62)
Telecommuting from other locations on a regular basis (n = 66)
Telecommuting from a satellite location (n = 40)
Telecommuting from other locations on an as needed basis (n = 34)
Paid time off for volunteer work (n = 61)
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%
7%
4%
2%
12%
11%
2%
3%
2%
5%
5%
3%
11%
0% 1-25% 26-50% 51-75% 76-99% 100%
0%
0%
0%0%
0%0%
0%
0%
0%
2014 Workplace Flexibility Survey—Overview of Flexible Work Arrangements ©SHRM 2014 14
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. “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?
Compressed workweek (n = 103)
Flex time, present during “core hours” (n = 109)
Phased retirement (n = 27)
Paid time off for volunteer work (n = 81)
Telecommuting from other locations on an as needed basis (n = 94)
Transition period part-time (n = 64)
Flex time, no “core hours” (n = 49)
Telecommuting from other locations on a 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%
3%
Very successful Somewhat successful Neither Somewhat unsuccessful/Not at all successful
2014 Workplace Flexibility Survey—Overview of Flexible Work Arrangements ©SHRM 2014 15
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. “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)
Unpaid time off for volunteer work (n = 41)
Job-sharing (n = 35)
Break arrangements (n = 42)
Transitioning between full-time and part-time work (n = 50)
Sabbaticals (n = 52)
Shift arrangements (n = 26)
Shift flexibility (n = 39)
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
2014 Workplace Flexibility Survey—Overview of Flexible Work Arrangements ©SHRM 2014 16
n = 211 n = 208
while on the job (e.g., informally from colleagues, formally from management)?
during the recruitment or interview process?
during orientation/onboarding upon joining the organization?
50%
30%
19%
How do employees learn about FWAs at your organization?
From their line manager/supervisor
From employee handbook or policy and procedures manual
From HR staff
From other formal organizational communications
From co-workers
From top management
Other
27%
18%
15%
14%
12%
9%
4%
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.
2014 Workplace Flexibility Survey—Overview of Flexible Work Arrangements ©SHRM 2014 17
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.
2014 Workplace Flexibility Survey—Overview of Flexible Work Arrangements ©SHRM 2014 18
Support for work-life fit
My organization provides employees with the support and flexibility needed to balance/ manage their work and personal life responsibilities
Top management (e.g., executive level, c-suite) in my organization supports employees' efforts to balance/manage their work and personal life responsibilities
Line managers/supervisors in my organization support employees' efforts to balance/ manage their work and personal life responsibilities
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.
2014 Workplace Flexibility Survey—Overview of Flexible Work Arrangements ©SHRM 2014 19
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 organization who 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)
2014 Workplace Flexibility Survey—Overview of Flexible Work Arrangements ©SHRM 2014 20
Telecommuting
2014 Workplace Flexibility Survey—Overview of Flexible Work Arrangements ©SHRM 2014 21
Productivity
Absenteeism rates
26%
5%
67%
62%
8%
32%
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?
Series1
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.
2014 Workplace Flexibility Survey—Overview of Flexible Work Arrangements ©SHRM 2014 22
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 telecommuters
37%
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 telecommute
23%
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.
2014 Workplace Flexibility Survey—Overview of Flexible Work Arrangements ©SHRM 2014 23
The Future of FWAs and Telecommuting
2014 Workplace Flexibility Survey—Overview of Flexible Work Arrangements ©SHRM 2014 24
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 be more commonplace for organizations in general than they are today
In the next five years, telecommuting will be more commonplace for organizations in general than it is today
In the next five years, a larger proportion of the workforce at my organization will have FWAs/workflex options available
In the next five years, a larger proportion of the workforce 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
2014 Workplace Flexibility Survey—Overview of Flexible Work Arrangements ©SHRM 2014 25
Demographics
26
Demographics: Organization industry
Note: n = 373. Percentages do not total 100% due to multiple response options.
2014 Workplace Flexibility Survey—Overview of Flexible Work Arrangements ©SHRM 2014
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%
27
Demographics: Organization industry
Note: n = 373. Percentages do not total 100% due to multiple response options.
2014 Workplace Flexibility Survey—Overview of Flexible Work Arrangements ©SHRM 2014
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%
28
Demographics: Organization sector
n = 366.
Publicly owned for-profit
Privately owned for-profit
Nonprofit organization
Government agency
Other
16%
52%
22%
8%
2%
2014 Workplace Flexibility Survey—Overview of Flexible Work Arrangements ©SHRM 2014
29
Demographics: Organization staff size
n = 360
1 to 99 employees
100 to 499 employees
500 to 2,499 employees
2,500 to 24,999 employees
25,000 or more employees
31%
34%
20%
12%
3%
2014 Workplace Flexibility Survey—Overview of Flexible Work Arrangements ©SHRM 2014
2014 Workplace Flexibility Survey—Overview of Flexible Work Arrangements ©SHRM 2014 30
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 practices
50%
Each work location determines HR policies and practices
7%
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
2014 Workplace Flexibility Survey—Overview of Flexible Work Arrangements ©SHRM 2014
2014 Workplace Flexibility Survey—Overview of Flexible Work Arrangements ©SHRM 2014 32
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
2014 Workplace Flexibility Survey—Overview of Flexible Work Arrangements ©SHRM 2014 33
Founded in 1948, the Society for Human Resource Management (SHRM) is the world’s largest HR membership organization devoted to human resource management. Representing more than 275,000 members in over 160 countries, the Society is the leading provider of resources to serve the needs of HR professionals and advance the professional practice of human resource management. SHRM has more than 575 affiliated chapters within the United States and subsidiary offices in China, India and United Arab Emirates. Visit us at shrm.org.
About SHRM