Diversity

Needs, values and priorities of employees and employers have changed dramatically over the last decade. On all rungs of the corporate ladder, men and women are seeking new ways to manage the time they spend working so they can spend more time living. In the boardrooms, executives are seeking ways to attract - and retain - the best employees so they can continue to survive and thrive in a highly competitive global economy.

Interestingly enough, solutions to the changing needs and priorities of both groups are being found in the same place: flexible work arrangements are proving to be a win-win strategy in today's leading-edge organizations.

The 1990's have witnessed dramatic change in the attitude of corporate America regarding flexible work arrangements. Once used as an ad hoc response to individual employees' needs, companies have begun to realize they can use flexibility as a cost-effective strategy to accomplish business goals. According to the Bureau of Labor Statistics, more than half of US workers work other than a 5-day, 40-hour week and nationwide, about 12 million full-time workers have flexible work schedules. In a 1998 Families and Work Institute Business Work/Life Study, most of the 1000 participating companies reported that FWAs had a positive return on investment (46%) or were cost neutral (36%), while only 18% believed the costs of FWAs outweighed the benefits.

Many companies are beginning to recognize the value of workplace flexibility, and see it as the way work needs to be done in an information age. A 1991 Catalyst study found that since 1989, most of the 70 participating large companies had expanded the number of employees using flexible work arrangements and had formalized their initiatives. Many organizations have experimented with flexible work arrangements with positive results.

There are several aspects of flexible work arrangements:

FlexTime: Allows employees to take advantage of a range of starting and ending times for the work day.

FlexPlace (or Telecommuting): Enables employees to work from a different location - such as home or another facility. For this arrangement to be successful, the employee must demonstrate an ability to work independently. Job responsibilities must also allow for the employee to spend time away from the office. The amount of time worked off site can vary, from a few hours a week to a full five day work week schedule.

Compressed Work Schedule: Enables employees to perform their full-time job in less than a customary work week. Examples of compressed work schedules could include: working four days out of a customary five-day week, or working nine days out of ten in a two-week schedule. For this arrangement to be successful, the employee must have the stamina to work long hours.

Job Sharing: An option that allows two people to share the responsibilities of one full-time position. This option often comes into play when a company wishes to keep valued employees who seek reduced hours but holds a job requiring full-time coverage.

It may be possible to create a flexible work arrangement using a combination of options (i.e., an employee may be able to work a compressed work schedule and also one day from home). Also, some flexible work arrangements might be initiated by individual employees, a group or work unit, or the manager might suggest that for business reasons a particular option be implemented. Whatever the arrangement, Human Resources should be consulted to provide practical advice and ensure consistency.

Research and experience has documented that:

Flexibility protects the company's investment in good workers.

When a company loses good employees, it not only loses the investment it has made in that individual, it also incurs additional costs of downtime and recruitment. The changing values and priorities of the workforce have made quality of life an important issue. There is strong evidence that companies can retain good workers by offering flexibility.

Flexibility helps gain a recruitment edge in a tight labor market.

How workers feel is more important to employers in a tight labor market. Today, workers who have the skills and competencies many employers are seeking place high value on having personal time available and control over when they take it. In order to attract those workers, organizations are being forced to change. Much of that change focuses around issues of time. Advertising the availability of flexible work arrangements like job sharing, flextime or telecommuting increases the number and quality of candidates that respond.

Flexibility may improve the link between employee satisfaction and customer satisfaction.

More and more companies have been measuring the link between employee satisfaction and the bottom line and finding that employee attitudes drive customer service satisfaction and revenue.

Flexibility reduces office space and overhead expenses.

Working off-site, in less expensive satellite centers or in shared office space (such as a -"virtual office" or a "hotel" facility) can reduce the need for high-priced office space. Extending hours through compressed work scheduling, job sharing and part-time employees also means expanded use of expensive equipment, providing a greater return on investment.

Flexibility improves coverage.

Flexible schedules and new forms of part-time work let companies redesign schedules for positions or work units that need broader or more intensive coverage. By overlapping their schedules, job sharers can provide double coverage during peak periods of activity. A combination of full and part-time employees will give employers more staffing options, particularly if the workflow or demand for service is uneven.

Flexibility helps upgrade and expand employee skills.

Allowing a full-time employee to reduce his/her work schedule can provide another employee with an opportunity to work in that job part-time and learn new skills. Sabbaticals help enrich a worker's skill level by providing opportunities for cross-training or on-going education. For example, at American Savings and Loan in Palo Alto, CA, a vice president of human resources opted to job share with a lower-level employee who will eventually move up to VP status.

Flexibility