Modern organizations require worker flexibility. Core workers have fulltime jobs with benefits. Contingent workers are those who work based on the needs and efficiency of the organization and are easily dismissed when the organization no longer needs their services. They actually help protect jobs of core workers, as a result.
Flexible work hours give employees control over the starting and ending times of their day – when they do their work. Core time means that everyone is onsite at the organization – perhaps 11 am – 2 pm. Flextime means that employees can work outside the organization before 11 am and after 2 pm. Core time allows staff to schedule meetings or trainings, knowing everyone will be on site.
Students will have various responses to each questions. Some type of “virtual leadership” will probably be necessary – maybe a rotating leader position. The virtual team will probably be selected much as any other team would be selected – based on skills, expertise, ability to collaborate, etc. The accountability is crucial when not face to face. They may email drafts of their work – one person circulates their draft and all edit or provide feedback, etc.
Compensating flexible workforce
Compensating Flexible Workforce: Contingent Employees and Flexible Work SchedulesDr. G C Mohanta, BE(Mech), MSc(Engg), MBA, PhD(Mgt) Professor
Job Sharing 2 or more part-timers perform 1 job Reduces costs Increases flexibility Maintains productivity levels May increase morale & loyalty
Temporary Workers Fill in for core employees Help ease high demand periods Help determine future employment needs May be assessed for a core position Don’t receive company benefits
Leased Employee Arrangements Lease company does all HRM functions Fees either % of payroll, or % per employee Employees work for contract duration Food service, security, building maintenance, administration
Rise In Use Of Contingent Worker Economic recessions International competition From manufacturing to service More females in workforce
Service Divisions Transportation Communication Public utilities Wholesale trade Retail trade Government
Federal Compensation Guidelines ERISA (Employee Retirement Income Security Act) NLRA (National Labour Relations Act) ADA (Americans with Disabilities Act) ADEA (Age Discrimination in Employment Act) Title VII of 1964 Civil Rights Act - outlawed major forms of discrimination against blacks & women including racial segregation FLSA (Fair Labour Standards Act ) - established minimum wage, guaranteed ’time and a half’ for overtime, prohibited employment of minors COBRA (Consolidated Omnibus Budget Reconciliation Act ) - workers and their families can choose to continue group health benefits during voluntary or involuntary job loss/reduction in hours worked/transition between jobs/ death/divorce FMLA (Family and Medical Leave Act) – employees can take unpaid, job- protected leave for specified family & medical reasons with continuation of group health insurance coverage
Wage Comparisons in 2004 Group F-T P-TManagement & Professional $30.38 $23.79 Production 14.62 8.92 Service 10.26 7.57 Overall Average $19.05 $10.17
Benefits Offered In 2004 % of CompaniesType Offering BenefitsPaid time-off 25%Medical insurance 11%Retirement 20%
Leased Workers’ Benefits Leasing company is legal employer In 2001, average wage was $19.75 Leasing & hiring companies responsible for discretionary benefits Covered by safe harbor rules
Safe Harbor Rules Leased employees covered by leasing company’s pension plan Nonintegrated employer contribution rate of 10% Full & immediate participation in vesting Leased employees less than 20% of non-highly paid workforce
Independent Contractors Freelancers & consultants Companies not responsible for Federal Taxes FLSA Overtime or Minimum Wage Workers’ Compensation ERISA, FMLA, NLRA, ADA, Title VII of Civil Rights Act Economic reality test Right to work test
Economic Reality Test Extent a worker controls methods & results The control a company has on worker’s earnings Importance of worker’s service to the company Initiative or skill level required Permanency, exclusivity, or length of assignment Worker’s investment in materials or equipment
Right To Control Test IRC test to determine workers’ independence 20 Considerations, including: Hiring, training, supervising, firing Hours Services Compensation Equipment, materials, location
Flexible Work Schedules Flextime Compressed work weeks Telecommuting
Flextime Set weekly not daily hours May have to work core hours Possible employer benefits Lower tardiness & absenteeism Higher productivity Extended business hours Possible employer drawbacks Increased overhead costs Coordination problems
Compressed Workweeks Example: 40 hours in 3 - 4 days Possible benefits Can promote recruitment and retention Can reduce commuting time Can allow more family time
Telecommuting Employees work on-site & off-site Constant direct contact with other employees Possible benefits Same as with flextime Possible disadvantages Less direct employee interactions Makes performance appraisals difficult
Telecommuting Arrangements Satellite work centers Neighborhood work centers Nomadic executive office Work off-site and/or on-site Temporary or permanently
HR Issues in the New Workplace Temporary Employees In opening years of the 21st century, largest employer in U.S. was a temporary employment agency, Manpower, Inc. Temporary Employees do everything from data entry to interim CEO Contingent workers = people who work for an organization, but not on a permanent or full-time basis, including temporary placements, contracted professionals, or leased employees30
HR Issues in the New Workplace Technology Telecommuting and virtual teams are related trends Telecommuting = using computers and telecommunications equipment to perform work from home or another remote location Work anywhere - wireless Internet devices, laptops, cell phones, fax machines Extreme telecommuting = people live nd work in countries far away from the organization’s physical location31
HR Issues in the New Workplace Work-Life Balance Telecommuting is one way organizations help employees lead more balanced lives Flexible scheduling important in today’s workplace – 27% of workforce/flexible hours Broad Work-Life Balance initiatives – critical retention strategy – on-site gym & childcare, paid leaves & sabbaticals32
HR Issues in the New Workplace Downsizing Downsizing = intentional, planned reduction in the size of a company’s workforce Managers can smooth the downsizing process Regularly communicating with employees Providing them with as much information as possible Providing assistance to workers who will lose their jobs Using training and development for remaining employees33
The Flexible WorkforceCore workers Fulltime workersContingent workers Part time employees Contract / Outsourced workers Temporary workers Interns
Flexible SchedulesFlexible work hoursCore timeFlextimeCompressed work weeksTelecommuting
CaseEveryone telecommutes at your firm. All work is done invirtual teams of four. Divide up into groups of four andrespond to the following questions: How will you organize your team? Do you need a virtual leader? How will you select your virtual team? How will you hold team members accountable?