A presentation from the Sloan Work And Family Research Network about Flexible Work Arrangements by Judi Casey. This presentation outlines the benefits and pitfalls of implementing a flexible work arrangement at your company including real-life examples.

1. Flexible Work Arrangements: A Strategic Business Imperative in Any EconomyFebruary 2009 Judi C. Casey Alfred P. Sloan Work and Family Research Network at Boston College

2. Agenda

3. Why a strategic business imperative? Constant change is the norm Resilience is a differentiator Must be nimble and responsive in any economy How individuals, leaders and organizations contribute FWA are a strategic business imperative in any economy

4. What are flexible work arrangements? “Flexible Work Arrangements alter the time and/or place that work is conducted. FWA provide flexibility in the: Scheduling of hours worked and arrangements regarding overtime, predictable scheduling, and shift and break schedules; Amount of hours worked; and Place of work.” Workplace Flexibility 2010

5. What are flexible work arrangements? “The Sloan National Initiative also includes in their definition of workplace flexibility: The ability to have career flexibility with multiple points for entry, exit and reentry into the workforce; and The ability to address unexpected and ongoing personal and family needs.” Workplace Flexibility 2010

6. Common flexible work arrangements “Compressed Work Week: A work schedule that condenses one or more standard workweeks into fewer, longer days. (9/80) Flextime: A work schedule with variable starting and ending times, within limits set by one’s manager. Employees still work the same number of scheduled hours as they would under a traditional arrangement. (7 am-3pm or 10 am-6pm) Job-Sharing: An arrangement in which two or more part-time (or occasional) employees share the responsibilities of one full-time job at a pro-rated salary. Part-time Work: A work schedule that is less than full-time but is at least half of the regularly scheduled full-time workweek. Personal or Family Leaves: A block of time off while retaining one’s job. These leaves may be paid or unpaid. Telecommuting: …regularly work at home or at an alternative worksite during part or all of a work schedule (in office M/W/F, remote work T/Th).” MIT

8. 79% of companies allow some employees to use FWA

10. More common among professional staff

11. Must achieve performance expectationsBeers, Thomas. (2000). Flexible schedules and shift work: replacing the ‘9 to 5’ workday? Monthly Labor Review 123(6), p. 33.

12. Business benefits of FWA

13. Business benefits of FWA: Data 96% report that flexibility influences their decision to stay at the company; 73% say that flexibility is “very important” in that decision, and 23% say that it’s “somewhat important.” Employees who use flexible work arrangements scored, on average, 30% lower on stress and burnout. Bank branches with flexible work arrangements had retention rates 50% higher than other branches. Corporate Voices for Working Families with WFD Consulting

14. Business benefits of FWA: Data 73% of employees with high availability of flexible work arrangements reported that there was a high likelihood that they would stay with their current employer for the next year. Bond, J.T., Thompson, C., Galinsky, E. & Prottas,D. (2003). Highlights of the 2002 national study of the changing workforce. New York: Families and Work Institute. Studies indicate that the availability and use of flexibility and other work-family policies is associated with higher commitment, job satisfaction, loyalty, and lower intention to turnover. Kossek, E., Lautsch, B., & Eaton, S. (2006). Telecommuting, control, and boundary management: Correlates of policy use and practice, job control, and work-family effectiveness. Journal of Vocational Behavior.68(2), 347-367.

15. Business benefits of FWA: Data Organizations with higher employee satisfaction report larger than average annual returns to investors. “…with respect to flexibility programs that enable workers to work from home, if the proportion of employees working from home increases by one percentage point, the firm’s profit rate increases by an additional six-tenths of one percent. For the average firm included in this sample, this equates to a profit increase of approximately $84 million.” Meyer, C.S., Mukerjee, S., & Sestero, A. (2001). Work-family benefits: Which ones maximize profits? Journal of Managerial Issues 13(1), p. 40.

16. General obstacles to implementation Nature of work Managers perceptions and abilities Culture of workplace and how work is done Employee concerns

19. Help managers to measure important business outcomes

20. Try a “pilot” program

21. Train managers and co-workers about how flexibility can help them to achieve their business goals

22. Train managers and co-workers about how to implement and sustain FWA

23. Encourage communication about how work will get done and the “rules of the game”

25. Reward performance versus face time

26. Ask employees and work teams how they could integrate FWA into their jobs/teams

27. Offer FWA as a way to support employees and provide relief from heavy workloads and stress

29. Best practices and examples FedEx cut salaries of senior executives and salaried-exempt employees by 5 to 20%, a $600 million savings. Brandeis University requested that faculty members give up 1% of their salary, and 30% have volunteered. Cisco ordered a four-day year-end shutdown. Instead of a severance package, Cisco Systems offered the 8,500 employees it laid off in April, a third of their salaries, all benefits, and stock-option awards while working for one year at a not-for-profit group already associated with the company.

30. Best practices and examples In Atlanta, an expected budget shortfall of $60 million meant that 4,600 city employees had their weekly hours and pay cut by 10%. During their layoffs, founder Charles Schwab and his wife created a $10 million educational fund for these workers. The fund covers as much as $20,000 worth of tuition over two years at accredited academic institutions for re-training and new skill development.

31. Best practices and examples Megavolt (Springfield, MO) moved to a "shared work program" of three 10-hour days a week. While workers keep their jobs, the lost 10 hours each week is enough for them to be eligible for state unemployment benefits in Missouri. In 1984, the Maryland General Assemblyestablished the Work Sharing Unemployment Insurance Program. This voluntary program provides employers with an alternative to layoffs. The principle behind Work Sharing is simple; instead of laying off a percentage of the work force to cut costs, an employer can reduce workers' hours by the same percentage and keep the entire work force on the job. 16 states allow workers with reduced schedules to collect unemployment

32. One last thing Carefully consider the impact of your recession driven strategies on employee morale, productivity and loyalty in the long run. “So, as recession-inspired actions cross your desk, be sure to evaluate them not only for their bottom line impact today, but also know their impact on your employees and their level of engagement for tomorrow.” Allbusiness.com

33. Conclusion FWA can help you to achieve your business goals FWA offer a wide range of business benefits FWA provide an alternative to layoffs Research data documents the significant ROI of FWA Obstacles exist but can be overcome

34. Conclusion FWA can help you to achieve your business goals FWA offer a wide range of business benefits FWA provide an alternative to layoffs Research data documents the significant ROI of FWA Obstacles exist but can be overcome

35. Resources http://wfnetwork.bc.edu/template.php?name=shrm

37. Need more information?Questions? Contact: Judi C. Casey, Director 617-552-2866 caseyjt@bc.edu http://wfnetwork.bc.edu