1. FLEXIBLE WORK: PERCEPTIONS & REALITIES
FINDINGS FROM THE FLEX PATHS -LINKED IN VIRTUAL THINK TANKS
DECEMBER 2010

2. December 2010
BACKGROUND
FlexPaths, a global leader in flexible working solutions, and LinkedIn, the next-generation
business networking and recruitment-solutions provider, conducted six online Think Tank
sessions with 45 CEOs, senior HR professionals, and Workspace decision makers.
Participation was real-time, and the discussion centered on the practical realities of
managing workers in the “new normal” of a global agile work culture. The sessions were
moderated by Digital-MR, a holistic digital market research specialist.
Of the 45 participants in the Think Tanks:
• 24 were Managing Directors or CEOs (mostly from companies with 200-700
employees)
• 16 were senior Human Resources leaders (mostly from companies with over 1,000
employees)
• 5 were senior Workspace/Property leaders (mostly from companies with over
1,000 employees)
• Roughly 60% were based in the US, 30% were based in the UK, and 10% were
based in other countries, including Spain, Argentina, El Salvador, and India.
• Some were just starting to think about formalizing flexible work policies, whereas
others were operating far along the continuum, with flexible work options being
utilized by a significant proportion of the employee population.
The groups were designed to be comprised of peers in terms of leadership level as well
as company size, and to span multiple industries. The goal was to enable the
participants to brainstorm together, to exchange ideas and best practices, and to simply
collaborate around a topic of mutual interest.
Discussions among the Think Tank groups focused on seven themes:
• Defining Flexible Work
• Drivers for Embracing Flexible Work
• Predicting the Future
• Barriers and Obstacles
• Regulatory and Legal Landscape
• Measuring Success
• Software as a Facilitator
Ultimately, it was clear that the companies of all shapes and sizes, across many industries,
want to make their workforces more flexible, but that there are a wide variety of (mostly
cultural) obstacles to be overcome first.
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3. December 2010
DEFINING FLEXIBLE WORK
While there wasn’t clear consensus among participants about how to simply define
“flexible work”, most gravitated to a range of broad definitions that included:
• Flexibility Around “When” – allowing workers to work
non-traditional hours and/or create compressed
workweeks where 40 hours are ‘compressed’ into less
“I think of flexible
than 5 days a week or 80 hours into less than 10 days bi-
work as allowing the
weekly.
change of focus to
• Flexibility Around “Where” – enabling workers to be the customer and
productive outside a main office some or all of the time, away from the
including telework, remote office and hub office/factory
arrangements, as well as work from cafes, airports, etc. arrangement of work.
Every employee
• Flexibility Around “How Much” – utilizing workers needs a customer –
through reduced work hours, job-sharing, seasonality,
an internal one or an
“right-sizing” according to business cycles, offering
external one.”
sabbaticals, etc.
George Weathersby,
• Flexibility Around “How” – flexibility around the
CEO
employment agreement, using contract and freelance
YPO International
workers.
Very few of the CEOs, who were generally running mid-sized
companies, had formal flexible work policies in place, but most
of those who did not, planned to, particularly in the UK where they were conscious of
legislation around flexible work. All of the HR and Workspace leaders from large
not a single
companies had some form of flexible work policy in place, but
participant felt that his or her company was “there yet” when it came to
taking full advantage of flexible work.
DRIVERS FOR EMBRACING FLEXIBLE WORK
Amongst both CEOs and senior HR professionals, attracting and retaining top
talent was high on the list of reasons for embracing flexible work. Several remarked
upon how saving even a couple of high-performers from leaving had more
than paid for their flexible work initiatives. Interestingly, several CEOs remarked
they were already being driven to incorporate more flexibility into role descriptions in
order to attract the best Generation Y talent. Others were particularly focused on
customer service, and the potential for more engaged workers (given more flexibility in
their work) to better deliver to customers. Surprisingly, very few outside of the
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4. December 2010
Workspace leaders cited the reduction of office space or carbon footprint as
major drivers. It is not clear why this was the case, given how much focus large players
are putting on both issues. We can only guess that neither is an issue that is truly at the
top of mid-market CEOs’ agendas, and that within larger organizations, HR leaders are
more focused on HR specifically, leaving physical space and environmental impact to
other areas of the organization.
Some CEOs saw flexible work as an obligation (forced by legislation, demanded by
employees, and or/necessitated by the economic crisis), whereas others, and all of the
HR and Workspace leaders, tended to view it as an opportunity, remarking on higher
productivity, the ability to attract higher-quality employees, and significant
improvements in staff engagement and loyalty.
One Managing Director significantly influenced her
peer group by telling the story of how she used “[Embracing flexible work]
has already made us more
flexible work options to “right-size” her
competitive. It’s probably
business in 2009, saving $1.5m in payroll
the thing I am most proud of
without cutting any jobs. The result was an in my career so far.”
operating margin over 20% (in the consulting industry),
very high staff morale, and low staff turnover. At the Keryn James,
end of the year, some employees chose to remain Managing Director
with their flexible work arrangements, and others UK & Ireland
(particularly younger people) asked if they could have
ERM
the opportunity to take unpaid leave again in the
future.
PREDICTING THE FUTURE
When asked for their visions of the workforce of
2015, the majority of participants expected
significant increases in the proportion of their
Food for Thought: workforces that would be engaging in flexible
work, some forecasting as high as 80% or their
What needs to happen to
working population, but most predicting about
move 50-80% of your
workforce to flexible work
50%. Most participants struggled to say what
proportion of workers were on flexible
by 2015?
arrangements today, and those who could
generally cited numbers around 25%. The
majority of CEOs acknowledged that embracing
flexible work would be important to remaining competitive.
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5. December 2010
Most of the HR and workspace leaders were of the view that flexible working will
move from an exception basis to business as usual. Several stressed
frustration with the idea that there needed to be structure around
arrangements for flexible work (inflexible flexibility?) and
pointed out the paradox, but they also acknowledged that
significant culture change is required to get from today’s
“Flexibility will just be
“normal” to tomorrow’s “normal,” while avoiding a division
the way work is
of internal cultures, and that that would require some
structure as well as the ability to collect data. Some done.”
participants were already making headway, but all felt that
Stephan Klaschka,
obstacles remained to be overcome and that education
Director, Business
and support for managers - around not only why a Support Americas
flexible workforce is worth having and how to facilitate it, Boehringer Ingelheim
but on the competencies of managing dispersed, global
Pharmaceuticals
teams day to day, would be key to that.
BARRIERS AND OBSTACLES
MISUNDERSTANDINGS & MISCONCEPTIONS
Many of the CEO participants originally thought of flexible work only in terms of “less”
work, and hadn’t considered full-time contractors as falling into the flexible category at
all. Several CEOs entered the conversation with the perception that “flexible working is
for mothers” or even “for slackers who want an easy life.” Some felt that flexible work
was something that was generally not requested by high performers. Others disagreed
and pointed out that they were seeing younger employees, in particular, demanding
flexible work. Some of the HR leaders pointed out that their employee data showed that
flexible work was desired by a wide range of workers, including high performers, and a
lack of requests from men and/or high performers may often be the result of a culture
where employees are afraid that requesting flexible work will jeopardize
their career opportunities.
FEAR OF LOST CONTROL AND LACK OF TRUST
It was clear that fear of loss of control is a major obstacle to companies embracing
flexible work as a business strategy. The notion of “If I can’t see them, how do I
know they are working?” was raised repeatedly in the discussion. There was also
recognized discomfort with forcing managers to work differently. The senior HR
participants remarked repeatedly upon how fear of change amongst managers was a
major obstacle to the success of flexible work initiatives, and how buy-in from
leadership along with education and support for managers are crucial factors in
overcoming it.
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6. December 2010
UNEQUAL TREATMENT
Some CEOs were concerned about setting precedents, particularly in companies
where the majority of workers have customer-facing or
factory-based roles, which are not necessarily well-
suited to location-independent work. However, it was
“We need to work out
acknowledged that different roles (knowledge-based
the complexity of
jobs, for example) could be done flexibly without it
treating everyone
impacting roles that are less well-suited, provided that
differently.”
the company’s policy is clear with regard to
Tim Pointer, each role and reasons for approval or denial of a
Head of HR flexible work application are well-documented and
Pentland Brands non-discriminatory. Another common concern across
groups was that flexible workers might end up being
treated differently to the rest of staff, creating two
separate cultures. The consensus was that rather than try
to distinguish flexible workers as a separate breed, all workers should be educated
and supported, whether or not flexible work was relevant to their specific role, as
cultural acceptance would be key to success.
MANAGING ISOLATION AND LOSS OF TEAM SPIRIT
Both CEOs and senior HR professionals were concerned about the potential loss of team
spirit that may arise from colleagues not working the same physical space and time. At
least one participant had already developed an employee resource group to enable
flexible workers to come together and others were considering use of work “hubs” to
provide places where teleworkers could engage with others. All of the participants
agreed that technology, ranging from telecommunications to social networking tools,
was key to enabling managers and teammates to collaborate, but all agreed that
face-to-face time, in some quantity, is immensely important.
REGULATORY AND LEGAL LANDSCAPE
The majority of Think Tank participants, across all six groups, were representing businesses
that operate in more than one country. Most CEOs (outside of those with headquarters
in California – see box inset on following page) were not familiar with the regulatory,
legislative and legal issues associated with flexible working.
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7. December 2010
In US states where daily overtime is required (such as California or Alaska, and
possibly, Nevada), an employee who works less than full-time may still be
entitled to overtime pay if the employee works more than 8 hours in a given
day. An employee may be entitled to daily overtime premiums if the
employee works more than 10 hours in a given day at a mill or factory in
certain states (such as Oregon), or works more than 12 hours in a day or more
than 12 continuous hours in certain states (such as Colorado).
“Mitigate or Litigate: Flexible Working and Legal Exposure,” Forthcoming, 2011
The UK HR leaders were more likely to be aware of local legislation, which gives workers
the statutory right to request a flexible work arrangement if they have parental or adult
dependent care responsibilities. The current UK government has pledged to extend this
right to all workers, regardless of care duties. US HR and Workspace leaders were aware
of the Obama administration’s support for flexible work initiatives and were “watching
this space” for regulatory movement.
MEASURING SUCCESS
All of the participants said that their companies reward
“The challenge of
results, rather than time in the office, but fewer than
flexible working is
expected could point to the actual measures used to monitor
knowing how well
the effectiveness of their workforces outside of the obvious sales
and profit numbers. They did, however, acknowledge that employees are
achieving their
setting clear goals and performance metrics would be
key to cutting through the cultural barrier to flexible work that mission - it is not
exists in an organization where physical presence is valued, if about the elements of
not directly rewarded. the flexibility.”
Those who were operating formal flexible work initiatives had George Weathersby
few metrics in place to measure any improvement in return on CEO
human capital that may be being realized as a result. Several YPO International
HR leaders commented that they were struggling
to
measure informal (occasional) flexible working and
therefore to track utilization accurately, and that they would like
the ability to collect these data, in order to substantiate the
business case for flexible work on an ongoing basis.
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8. December 2010
THE WAY AHEAD
Without exception, all participants agreed that buy-in from senior leadership is crucial to
the success of a flexible work initiative. With that in hand, companies need to:
Send a Consistent, Legally-Compliant Message
• Create clear and well-thought-out and legally-compliant flexible work policies.
• Communicate those policies, along with internal case studies that recognize
successful flexible work practices, to all staff, in a place where they are sure to
find it and in a way that will resonate with them.
Educate to Keep the Focus on Results
• Educate individuals about how to create a results-
“Execution of flexible
oriented business case for a flexible work proposal.
work is hugely
• Educate managers thoroughly about why the dependent upon
company is engaging in flexible work, how to leverage manager capability.”
it as an asset, and how to manage flexible workers in a
way that allows them more freedom without sacrificing Alix Hughes,
results, for example by setting and monitoring clear Diversity Program
work deliverables. Manager
Microsoft
Simplify the Process
• Enroll all employees – not just those with formal flexible
work arrangements – in a work style, the same way employees are enrolled in
medical, pension and other programs. There is no need to create separate
cultures if flexible work is just treated as “part of how we do business.”
• Make the administrative process for enrollment as automated, as straight-
forward, and as flexible as possible.
Measure Return on Investment
• By enrolling all employees and automating the process, detailed reporting on the
true utilization of different types of flexible work is possible, and can be used to
make decisions around physical space requirements, as well as correlated with
measures of productivity, staff turnover, etc. to prove the return on investment.
Leverage Technology and Redefine “Face Time”
• Arm all employees with the tools they need to collaborate both on- and off-site,
and provide them with opportunities and spaces to meet face-to-face.
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9. December 2010
SOFTWARE AS A FACILITATOR
Participants in the Think Tanks recognized various ways for software to help in the process
of moving to and facilitating the day-to-day functioning of a flexible workforce. Specific
areas cited included:
• Centralizing and communicating policies and information in a simple and
engaging way
• Offering on-demand e-learning courses and tools for managers, employees and
HR alike
• Automating the workflow around filing and approving flexible work
arrangements, in real time, to reduce admin burden
• Measuring different aspects of flexible work utilization and reporting on
productivity and other measures of ROI
• Helping managers to set goals for teams and individuals and monitor progress as
well as who is working when and where
• Allowing colleagues to collaborate across space and time using video, audio
and instant messaging, both at their desks and using mobile devices
• Existing “in the cloud” but Interfacing with other internal systems
CONCLUSIONS
The Think Tank sessions were virtual peer group knowledge exchanges, and as such, they
served as a powerful mechanism for participants across companies, industries, and
geographies to collaborate on the subject of flexible work. The feedback from the
experience was overwhelmingly positive. The participants felt they gained knowledge
and insight from sharing ideas and perspectives with peers across industries and
geographies, a clear demonstration of the value of this sort of virtual collaboration.
The majority of participants expected to see dramatic increases in flexible work over the
next five years (anticipating that 50-80% of their employees would be working flexibly),
driven largely by the need to attract and retain superior talent. And yet they also
recognized that their organizations have a long way to go to overcome the current
skepticism, develop manager capability at managing flexibly, and create the
infrastructure and systems for this ‘new normal’ – including how to confidently measure
performance in a virtual asynchronous environment. They recognized that the cultural
change that is required will not necessarily happen overnight.
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10. December 2010
Several participants had compelling stories and data to support the progress of their
efforts toward a fully flexible working culture that were inspiring to the others. Many
(particularly CEOs) who joined the conversation with significant skepticism came away
with modified views and remarked on intentions to put some of what they learned to
work. On that basis, and on what we learned as observers, we look forward to extending
the series in future, to enable the participants to continue their conversations and to
provide others with the same opportunity.
F OR M ORE I NFORMATION about the FlexPaths-LinkedIn Virtual Think Tanks on
Flexible Work, or to participate in future sessions, please contact Clare Flynn Levy on
clare.flynnlevy@flexpaths.com.
A BOUT F LEX P ATHS LLC
FlexPaths®, a certified women-owned business founded in 2005, is a leading provider of
web-based and consultative flexible working solutions for corporations, governments and
people seeking employment in organizations that have a flexible working culture.
http://www.flexemployer.com
A BOUT L INKED I N
LinkedIn is the world’s largest professional network with over 80 million members and
growing rapidly. LinkedIn connects you to your trusted contacts and helps you exchange
knowledge, ideas, and opportunities with a broader network of professionals.
http://www.linkedin.com
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