Attraction and Retention Series A focus on people and business Flexible work practices: framework Resource document 1 Issue 2 November 2008 Table of contents Introduction .................................................................................................... 3 Background..................................................................................................................... 3 Strategic Intent of Kit ..................................................................................................... 3 Business Outcome and Project Links .......................................................................... 3 Further Consultation ...................................................................................................... 4 Framework..................................................................................................... 4 Workforce Management Strategy.................................................................................. 4 Enabling Client Service and Balancing Work and Other Life Commitments ............ 4 Human Resource Information and Work Environment Survey Data .......................... 5 Minimum Obligatory Human Resource Information (MOHRI) ................................................... 5 Queensland Public Agency Staff Survey (QPASS) .................................................................. 5 Workforce Planning ........................................................................................................ 5 Option Examples, Descriptions and Indicative Benefits ................................. 6 Telecommuting ............................................................................................................... 6 Job Sharing ..................................................................................................................... 6 Aggregated/ Averaging ordinary hours of work .......................................................... 6 Part-Time Employment Arrangements ......................................................................... 6 Part-Year Employment ................................................................................................... 6 Career Break Schemes / Sabbatical schemes ............................................................. 6 Flexible Shift Arrangements .......................................................................................... 6 Initial Checklist ............................................................................................... 7 WHY ................................................................................................................................. 7 WHEN .............................................................................................................................. 7 WHO ................................................................................................................................. 7 WHAT ............................................................................................................................... 7 HOW ................................................................................................................................. 7 Conclusion ..................................................................................................... 8 Flexible work practices: framework 2 Introduction Flexible Work Practices (FWP) are concerned with how, where and when work is done. As work and workplaces become more diverse, employers and employees are examining different and more flexible ways of organising work. The recognition of a need for a FWP framework that links people management with strategic direction to enable improved business outcomes is paramount in delivering responsive government services. FWP foster work environments that support flexibility and accessibility for its workforce. Background For a number of years the government has supported the public sector to explore more flexible ways of undertaking work. FWP are aimed at developing a framework that balances the interests of organisations, clients and employees requirements, and the ‘government as employer’. FWP offers departments ways in which to deliver responsive government. A number of options are available to agencies seeking to provide a more flexible workplace. These options include: Telecommuting Job Sharing Aggregated / Averaging ordinary hours of work Part-time employment options Part-year employment Career Break Schemes / Sabbatical schemes Flexible shift arrangements Development and implementation of suitable flexible work practices is an individual activity in that each case is different or has different elements to it. Solutions are generally not immediately obvious and implementing flexible work practices requires management and employees to develop solutions co-operatively. (Refer to references in Resource Document 4) Strategic Intent of Kit The strategic intent of this FWP kit is to facilitate the delivery of excellence in products and services that delivers responsive government for its current and future communities. By fostering workplace environments that support flexibility and accessibility, organisations are better placed to achieve business outcomes that meet changing client expectations through a capable, diverse and motivated workforce. Such flexibility also assists individual employees to better balance their work and other life commitments. Business Outcome and Project Links FWP are linked to an organisation’s strategic direction through effective leadership, people management and service excellence. This involves links with business outcomes, projects and issues such as the effective delivery of services, the attraction and retention of clients and employees, successful workforce planning, the ability to manage diversity and the ability to provide accessibility. Flexible work practices: framework 3 Further Consultation Although organisations are responsible for determining and implementing the FWP that best suit their needs, the Public Service Commission (PSC) in partnership with other relevant areas of the public sector will consult with organisations and relevant stakeholders as required on FWP policy, strategy advice and implementation. Framework Workforce Management Strategy FWP fits within a strategic framework for workforce management that supports effective business outcomes. This focus involves leadership, capability and the creation of an organisational climate that enables the provision of excellence in service delivery. Such a focus involves managing changing expectations, diversity and the creation of a culture of continuous improvement and a work environment where people feel valued. Enabling Client Service and Balancing Work and Other Life Commitments Attraction, retention, absenteeism, and workforce planning are related issues within the work environment that are significant to business outcomes. The implementation of various FWP has the potential to play an important role in this context. Relevant FWP have the potential to enable excellence in client service, while also enabling individuals to better balance work and other life commitments in an ever changing and demanding environment. For example, absenteeism, turnover, knowledge and skills loss may be reduced by the FWP of telecommuting, job sharing and part-year employment. Such practices may enable people to be employed or remain in employment from a remote location, balance family commitments rather than take a full day off, return to work from parental or other leave, or remain in employment for a longer period than first envisaged prior to retirement. FWP will not suit all situations, and will not be applicable to everyone in the same way. Different practices will be required for different organisational requirements, client expectations and individual employee needs at different times. What may be required for one set of circumstances will not be necessary for another, therefore, a FWP offered to some will not be suitable for everyone from either an organisational or individual perspective. For implementation to be effective, FWP need to be viewed in a holistic manner and seen not only as employee benefits but also as a management tool that has the potential to deliver benefits for business and individuals. In addition, FWP should not be viewed as a right without regard to organisational viability nor should such practices be regarded as an obligation that can be imposed by an organisation. Any change to an individual’s established arrangement needs to be discussed and agreed between the organisation and the employee. Flexible work practices: framework 4 Human Resource Information and Work Environment Survey Data When considering FWP options, strategies and implementation plans, human resource information and workforce survey data is valuable as it enables situational analysis, diagnosis and therefore informed planning for current and future needs. The whole of government Minimum Obligatory Human Resource Information (MOHRI) is one system that can provided valuable workforce information. Systems such as SAP and other internal agency systems also produce workforce information. Minimum Obligatory Human Resource Information (MOHRI) The MOHRI data provides information on the Queensland Public Service (QPS) as a whole and organisations within the service on an individual basis. For example, workforce statistics gathered from MOHRI data identifies an ageing workforce where around 29 per cent of the workforce are over the age of 50, 45 per cent are over the age of 45 and 7 per cent are under the age of 25 (February 2007 MOHRI). The data above provides context to determining what might be appropriate flexible work practices to address ageing workforce issues. Queensland Public Agency Staff Survey (QPASS) Human resource information is linked to the work environment, staff satisfaction, and relevant FWP. In 1997, government endorsed the use of QPASS or an alternative tool to measure organisational climate and morale in the QPS. Such surveys measure aspects of organisational climate such as morale, leadership, recognition and professional growth. The PSC worked in collaboration with many QPS organisations to demonstrate the links between organisational climate and business outcomes, and various strategies have been implemented for effective change to assist achievement of business outcomes. The impact of FWP can also be evaluated in part by the analysis and integration of human resource information and work environment survey data in addition to focus group results and other measurements. QPASS and other organisational climate tools are still widely used across the sector. Workforce Planning Once initial investigation has provided relevant human resource and work environment data, workforce planning is important as it enables assessment of requirements in order for suitable current and longer term solutions to be developed and implemented inclusive of appropriate FWP. Effective workforce planning and management enables FWP to remain relevant, effective and responsive to changing business, community and individual needs. For example, loss of intellectual capital may be brought about through retirement due to an ageing workforce with a negative impact upon service delivery, particularly when also associated with factors of low attraction and/or high turnover. The implementation of relevant FWP may assist in such situations as these practices provide alternative options to traditional, full-time, 9 to 5 employment. For instance, job sharing, part-year employment and flexible shift arrangements will assist as such practices enable people to remain in employment longer rather than retire, attract people who may go elsewhere if flexibility is not available, and encourage retention when work and other commitments vary. FWP, therefore, provides alternative options when planning for current and future workforce needs in a world of changing expectations. Flexible work practices: framework 5 Option Examples, Descriptions and Indicative Benefits The following are examples only, other FWP may be relevant at different times (see Resource Document 2). Item Description Indicative benefits (community, organisational, individual) Telecommuting Telecommuting is a flexible work practice encompassing the performance of work outside of the central workplace using telecommunications to replace part, or all, of the physical journey to work. (see ‘Telecommuting Discussion Paper’, ‘Application and Management Kit’, and ‘FWP Discussion Paper’ distributed in 1998 for issues, implementation and management strategies) Job Sharing is a voluntary arrangement whereby one job is shared between part-time employees. May assist with a number of situations such as employment in a remote location, deadline achievements and retention of an employee with a disability. Job Sharing Aggregated/ Averaging ordinary hours of work Part-Time Employment Arrangements Average ordinary hours of work over a cycle with differential daily and weekly hours. For example, in a 4-week work cycle an employee may work 45 hours in one week and 30 hours the next, provided that the total standard ordinary hours for the work cycle are worked. Normal overtime arrangements/penalty rates only apply for the hours worked in excess of the agreed hours of duty. Part-time employment is work that involves less than the full-time weekly hours of duty prescribed by the applicable award, industrial agreement or certified agreement. Part-Year Employment Part-year employment offers employees a number of weeks/months unpaid leave per year, or extra leave for proportionate salary may be relevant depending upon requirements and organisational viability. Career Break Schemes / Sabbatical schemes Employees able to avail themselves of significant periods of leave. In some cases leave may be granted without pay or arrangements put in place to allow employees to receive proportionate salary for a period of time with the remaining salary paid during the period of leave. Involves the consideration of extending, altering and/or revising current shift arrangements. For example, extending working hours for a shift, staggered starts and finish times. Flexible Shift Arrangements Flexible work practices: framework Enables people to meet work and other life commitments. May also facilitate retention rather than turnover. Facilitates excellence in service delivery during peak periods. Enables individuals to balance other life commitments such as family or local community requirements. Facilitates attraction and retention of people if they are able to work part-time and meet other commitments such as study, elder or childcare needs. Enables continued employment and service at peak periods such as on a seasonal basis. May also reduce loss of intellectual capital. For example, part-year employment as an option to turnover or fulltime retirement. Retention versus turnover encouraged by extended periods of leave for various reasons such as study, travel, parental, personal and professional development etc. Assists individual and organisational flexibility, as client requirements may not need everyone at work at the same time. 6 Initial Checklist Please use the following checklist to initially assess organisational and individual needs, to determine if the implementation of relevant FWP will assist. Workforce analysis and planning will then be required to diagnose requirements, specific FWP solutions and implementation strategies (see Framework section of this Kit re Human Resource Information and Work Environment Survey Data). Yes No WHY To provide pro-active solutions to an environment of shifting demographics and changing client and employee expectations eg diversity, accessibility. Ageing workforce High absenteeism High turnover Low attraction Low retention Changing client expectations Changing employee requirements Need to provide a geographic/timeframe spread of services WHEN To effectively implement FWP to better balance organisational requirements and individual needs. Workforce planning projections suggest practice change Clients want different services Clients require delivery changes Prospective employees seek a variety of work practices Current employees require greater ability to balance commitments to remain WHO To match organisational and individual needs. Employee may retire early and organisation wants to retain knowledge and skills. Employee considering resignation due to partner relocation or other life commitments such as community, study or family responsibilities and organisation wants to retain. Employee wants to return to work but requires more balance to meet work and other life commitments. Organisation wants to attract individual’s knowledge and skills but person requires less traditional work practices. Individual able to provide services in peak periods and/or in remote locations. WHAT To deliver high quality services in situations of peak periods, potential intellectual capital loss, and attraction competition and to better balance work and other life commitments. Telecommuting Job Sharing Aggregated / Averaging ordinary hours of work Part-Time Employment Part-Year Employment Career Break Schemes / Sabbatical Schemes Flexible Shift Arrangements HOW To effectively analyse and plan implementation to best fit business outcomes. Assess and link to strategic direction Link to business planning and business outcomes Link to changing government requirements, client and employee expectations Analyse turnover and absenteeism costs Versus attraction and retention savings Provide project proposal with outcomes focus and milestone plan TOTAL Flexible work practices: framework 7 Conclusion By fostering work environments that support flexibility and accessibility, organisations are better placed to achieve business outcomes that meet changing client expectations through a capable, diverse and motivated workforce. FWP are therefore linked to the strategic direction of organisations through effective leadership, people and diversity management, and service excellence. Support for such an approach to flexibility is provided in various industrial instruments such as the core and other certified agreements. The strategic intent of this FWP kit is to facilitate the delivery of high quality products and services that support the economic and social development of the state for both its current and future communities, inclusive of individual employees that need to better balance their work and other life commitments. When considering FWP options, strategies, and implementation plans human resource information and work environment survey data is significant for effective assessment and change management. Such surveys measure aspects of organisational climate such as leadership and morale. Attraction, retention, absenteeism, workforce planning and the work environment are elements significant to business outcomes that implementation of various FWP are likely to assist. For example, attraction and retention may be increased and knowledge loss reduced by the implementation of practices like telecommuting, job sharing and part-year employment as such options increase both organisational and individual flexibility and accessibility. Such practices will enable organisations to better balance client expectations and requirements while also enabling individuals to balance work and other life commitments in an ever changing and demanding environment. Assessment of the need for FWP is required (see Initial Checklist section in this kit), which should be informed through analysis of organisational specific human resource information and work environment data. Such analysis will enable a more detailed diagnosis of specific needs, solutions, and strategies. In addition, some evaluation of the impact of FWP is also possible by analysis of such information and survey data. The FWP options and strategies detailed in Resource Document 2 are examples only and other FWP may be relevant at different times depending on the relevant legislation and industrial instruments such as awards and certified agreements. Organisations are responsible for determining and implementing the FWP that best suit the organisation and its employees' needs. However PSC will assist organisations where possible with the relevant diagnosis, consultation and implementation of FWP. Flexible work practices: framework 8