Workplace Flexibility: The Next Imperative for Business Success and HR Leadership Nancy Conway Field Services Director March, 2013 Business Leaders are Now Flex Fans “Perhaps the most important reason that work flexibility is a business imperative is because it produces better business results… specifically, by engaging and retaining the talented people who produce the high-quality work and competitive advantage.” “So where can we go from here -- we or any business? In my view, just as far as the flexibility of our thinking can take us.” Sharon L. Allen 2003-2011 Board Chair Deloitte LLP 2 Today’s Agenda 1) What is Workplace Flexibility? 2) Why is it So Critical Today? 3) Why is it a Business Imperative? 4) HR Leadership and Flexibility Strategies 5) Case Studies 6) SHRM/FWI Partnership When Work Works 3 What is Workplace Flexibility ? 4 What is Workplace Flexibility? Workplace flexibility is a way to define how, when and where work gets done and how careers are organized. It is essential that flexibility work for both the employer and the employees to be effective. Flex-Time Flex-Careers • Traditional flextime • Daily flextime • Compressed work week • Sabbaticals • Options for moving on and off the “fast track” Reduced Time Flex Place • Part-time work • Part-year work • Telecommuting on an occasional or regular basis Flex-Leaves Phased Retirement • Arrangement for employee • • • • Time off during the workday Time off for personal illness Paid time off to care for children Parental Leave/ Elder Care nearing retirement age to work reduced hours to transition into full-time retirement 5 Effective Workplaces Workflex = Perk Workflex = Effective Workplace 6 Why is it So Critical Today? Work-Life Fit is Complicated • Time Famine • Increasing eldercare responsibilities • Dual-earner families • More male work-life conflict • Diverse, multi-generational workforce 7 Why is it So Critical Today? Challenge: Time famine According to FWI and Princeton University research, employees are increasingly experiencing a feeling of “time famine” or “not enough hours in the day” 8 Why is it So Critical Today? Challenge: Increasing eldercare responsibilities 2011 Metlife Study 20% US adults provide care to a parent Lost wages, pension, and Social Security benefits Average losses $324,000 - women $284,000 - men Care givers aged 50+ “fair” or “poor” health 9 Why is it So Critical Today? Challenge: More dual-earner couples Dual-earner couples • 79% in 2008 • 66% in 1977 US Workforce • 50% female • Mothers primary breadwinners: 4 in 10 families 2006 • women earned 58% bachelor’s degrees • 60% of all master’s degrees 10 Why is it So Critical Today? Challenge: More work-life conflict among fathers Percentage of fathers and mothers in dual-earner couples reporting work-life conflict (1977-2008) Sources: 1977 QES, 2008 NSCW, FWI 11 Why is it So Critical Today? Challenge: Diverse, multi-generational workforce US workforce aging 40+ 68% in 2008 39% in 1977 4 generations: Traditionalists Baby Boomers Generation X Generation Y (Millennials) ??? million Baby Boomers reached 65 Workforce entrants lack basic skills 12 Why is it a Business Imperative? 1) Employees are Happier, Healthier July 2011, survey by Staples Inc. of telecommuters 25% reduction in stress 28% increase in happiness 80% = better work/life balance 76% = put in extra time + more loyal 13 Why is it a Business Imperative? 2) Employees are more productive, engaged SHRM 2009 survey of HR professionals 67% = impacted job satisfaction and engagement 32% = increased employee productivity 42% = absenteeism decreased 14 Why is it a Business Imperative? 2) Employees are more productive, engaged 15 Why is it a Business Imperative? 2) Employees are more productive, engaged 16 Why is it a Business Imperative? 3) It is a key recruitment, retention tool August, 2010, SHRM-EIU survey: C-suite executives - two biggest challenges in next ten years: 1. Retaining and rewarding the best people 2. Attracting the best people Best strategy to address this challenge: 60% = “creating flexible workplaces” 17 Why is it a Business Imperative? 3) It is a key recruitment, retention tool 18 Why is it a Business Imperative? 4) It helps the bottom line Cost of hiring/training new employees: 1.5 times employee’s salary Reducing turnover by 200 employees: $30 million in savings 19 HR Leadership and Strategies HR must take the lead on flexibility "Flexibility is not an accommodation or favor, it's the linchpin. People have two things to give: their talent and their time. Flexibility is the equalizer that allows the talent we develop to deliver superior performance. HR is in a position to provide the advice that will help leaders to win.“ -- Ted Childs, Principal of Ted Childs LLC 20 HR Strategies and Leadership FWI 2012 National Study of Employers: Organizations increased options for when and where employees may work Employers reduced options on how much time employees may work Flex time with changing starting and quitting times rose = 66% in 2005 to 77% in 2012 Employees allowed to return to work gradually after childbirth or adoption decreased = 86% in 2005 to 73% in 2012 Access study at: www.familiesandwork.org 21 HR Leadership and Strategies Challenge: Resistance to flexibility 22 HR Leadership and Strategies 10 HR Strategies for Success 1. Recruit top management as flex champions 2. Position flexibility as a business strategy 3. Make the business case, focusing on ROI 4. Develop flexibility for all 5. Build management support 23 HR Leadership and Strategies 10 HR Strategies for Success 6. Listen to what employees say works best 7. Develop clear guidelines 8. Incent managers to support workflex 9. Track metrics 10.Communicate 24 Case Study #1 – gDiapers Direct-to-Consumer Retail Diaper Business Portland, OR – 18 employees www.gdiapers.com Twitter: @gDiapers 25 Case Study #2 – TURCK Inc. Manufacturing and Product Development Twin Cities, MN – 167 employees www.turck.com Twitter: @TurckInc For Hourly Jobs, White-Collar Perks Factories and Other Employers Seek to Offer Workers More Control of Schedules Wall Street Journal Oct. 3, 2011 T.C. Worley for The Wall Street Journal 26 Case Study #3 – Bon Secours Medical Services Richmond, VA -- 12,000 Employees in the U.S. www.bonsecours.com 27 SHRM / FWI Partnership www.whenworkworks.org Program to educate employers locally about business benefits of flex through community partners Share research and employer best practices Recognize exemplary employers through the Sloan Award for Excellence in Workplace Effectiveness and Flexibility 28 When Work Works Guide to Bold New Ideas Joint guide with best practices by winners of the Sloan Awards for Excellence in Workplace Effectiveness and Flexibility Features 262 unique employers (450 worksites) of all sizes and industries Available through the SHRMStore at http://shrmstore.shrm.org/ Use promo code WFP-12 to get 10% off the price of the Guide 29 SHRM Workplace Flexibility Resources Workplace Flexibility Resource Page at www.shrm.org 30 Summary and Take-aways 1) Workplace flexibility is a way to define how, when and where work gets done and how careers are organized 2) Flexibility is more critical today because of complicated work/life fit and other new challenges 3) Flexible workplaces are a business imperative because they help the bottom line by promoting happier, healthier, more engaged, and more productive employees 4) Follow ten key HR strategies to develop and implement successful flexibility programs 5) Learn from best practices cases studies 6) Take advantage of SHRM and SHRM/FWI flexible workplace support resources 31 Final Message “All of us want and need engaged employees – the ones who have an understanding of what must be done to add value to an organization. Workplace psychologists assure us that such engagement doesn’t come from a need to comply. It grows from a freedom to choose.” “That spells what’s next – a flexible workplace. Together with FWI, we’ll help you get there.” --Hank Jackson, SHRM President & CEO March, 2011 issue of HR Magazine 32 Continue the Conversation Continue the Conversation #workflex @SHRMNancyConway #SHRM 33 Questions? Nancy Conway, SPHR North Central Field Services Director (IA, MN, ND, NE, SD, WI) nancy.conway@shrm.org 703-535-6455 3900 Old Cheney Rd, #201-313 Lincoln, NE 68516 Twitter: @SHRMNancyConway 34