Creating a Flexible and Inclusive Work Culture to Drive Employee Engagement Employee Onboarding & Engagement Conference Human Capital Institute October 26, 2009 Judi C. Casey Alfred P. Sloan Work and Family Research Network Boston College Amy Munichiello Inclusiveness Strategy Consultant Ernst & Young, LLP

Agenda Judi’s agenda What are flexible work arrangements? Why is flexibility a business imperative? How has the economy impacted flexibility? What are the business benefits? How do you create a flexible culture? What are the links to engagement? Amy’s agenda FWAs begin as a program The evolution into culture change Flexibility is demanded across generations An enabler of inclusive leadership What do we expect from our people? What does engagement feel like?

Judi’s agenda

What are flexible work arrangements?

Why is flexibility a business imperative?

How has the economy impacted flexibility?

What are the business benefits?

How do you create a flexible culture?

What are the links to engagement?

Amy’s agenda

FWAs begin as a program

The evolution into culture change

Flexibility is demanded across generations

An enabler of inclusive leadership

What do we expect from our people?

What does engagement feel like?

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

“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.”

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

“ 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.”

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

“ 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).”

FWA Metrics and Statistics Everyone wants FWA Nearly 80% of workers say they would like to have more flexible work options and would use them if there were no negative consequences at work. Families and Work Institute, 2004 79% of companies allow some employees to use FWA 37% of companies allow all or most employees to use FWA (Galinsky, Bond, & Sakai, 2008) Not for every job or employee Must meet business needs More common among professional staff Must achieve performance expectations % of Workforce using FWA Beers, T. (2000). Flexible schedules and shift work: Replacing the ‘9 to 5’ workday? Monthly Labor Review, 123(6), p. 33.

Everyone wants FWA

Nearly 80% of workers say they would like to have more flexible work options and would use them if there were no negative consequences at work. Families and Work Institute, 2004

79% of companies allow some employees to use FWA

37% of companies allow all or most employees to use FWA

(Galinsky, Bond, & Sakai, 2008)

Not for every job or employee

Must meet business needs

More common among professional staff

Must achieve performance expectations

Why is flexibility a business imperative? Constant change is the norm Resilience is a differentiator Must be nimble and responsive in any type of economy How individuals, leaders and organizations can contribute FWA are a strategic business imperative in any economy Down Economy Alternative to Layoffs and Rehiring No/Low-Cost Strategy Support Employees Reduce Stress Up Economy Recruitment Retention Employer of Choice

Constant change is the norm

Resilience is a differentiator

Must be nimble and responsive in any type of economy

How individuals, leaders and organizations can contribute

FWA are a strategic business imperative in any economy

Down Economy

Alternative to Layoffs and Rehiring

No/Low-Cost Strategy

Support Employees

Reduce Stress

Up Economy

Recruitment

Retention

Employer of Choice

Business benefits of FWA

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

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.

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.

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.

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.

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.

How has the economy impacted flexibility? Report from Families and Work Institute: The Impact of the Recession on Employers (July 2009) 81% maintaining the workplace flexibility they offer 13% increasing the workplace flexibility they offer 57% giving employees some or a lot of say about the schedules they now work “ Some employers report that they have tried to find ways to improve morale and to bring fun into the workplace during these trying times.” “ Perhaps they view flexibility as affecting employee engagement.” Families and Work Institute Eli Lilly Press Release (September 2009) Eliminating the compressed work option Insure that more employees are on site during core work hours Lilly has been viewed as a leader in flexible work arrangements Eli Lilly

Report from Families and Work Institute: The Impact of the Recession on Employers (July 2009)

81% maintaining the workplace flexibility they offer

13% increasing the workplace flexibility they offer

57% giving employees some or a lot of say about the schedules they now work

“ Some employers report that they have tried to find ways to improve morale and to bring fun into the workplace during these trying times.”

“ Perhaps they view flexibility as affecting employee engagement.”

Families and Work Institute

Eli Lilly Press Release (September 2009)

Eliminating the compressed work option

Insure that more employees are on site during core work hours

Lilly has been viewed as a leader in flexible work arrangements

Eli Lilly

How has the economy impacted flexibility? Working Mother Magazine Best 100 Companies 2009 “ On average, companies are cutting their flexibility policies, but those most committed to “best practices” like flex-time, telecommuting, job sharing and on-site lactation rooms, were holding fast. “ According to Carol Evans, CEO of Working Mother Magazine

Working Mother Magazine Best 100

Companies 2009

“ On average, companies are cutting their flexibility policies, but those most committed to “best practices” like flex-time, telecommuting, job sharing and on-site lactation rooms, were holding fast. “

According to Carol Evans, CEO of Working Mother Magazine

Creating a culture of flexibility Educate senior leaders, middle and line managers, and employees about how flexibility can help them to achieve their business goals Get buy-in and commitment at all levels Make middle and line managers accountable (raise-dependent) for creating a work environment where employees can thrive at work/home Help managers to manage important business outcomes v. face time Ask employees how flexibility would help them to accomplish their work goals Try a “pilot” program

Educate senior leaders, middle and line managers, and employees about how flexibility can help them to achieve their business goals

Get buy-in and commitment at all levels

Make middle and line managers accountable (raise-dependent) for creating a work environment where employees can thrive at work/home

Help managers to manage important business outcomes v. face time

Ask employees how flexibility would help them to accomplish their work goals

Try a “pilot” program

Creating a culture of flexibility Train managers and co-workers about how to implement and sustain FWA Don’t use different standards to evaluate and promote employees working flexibly Encourage communication about how work will get done and the “rules of the game” Use metrics and evaluation to demonstrate impacts, make improvements and re-measure

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

Don’t use different standards to evaluate and promote employees working flexibly

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

Use metrics and evaluation to demonstrate impacts, make improvements and re-measure

Flexibility and engagement How does flexibility influence engagement? “ Having access to the flexibility needed to fulfill work and personal needs was found to be predictive of: Greater employee engagement Lower perceptions of work overload Better physical health and mental health Greater satisfaction with work-family balance.” Center on Aging and Work, Issue Brief 19, January 2009 Engagement is one thing that you can influence in a down economy.

How does flexibility influence engagement?

“ Having access to the flexibility needed to fulfill work and personal needs was found to be predictive of:

Greater employee engagement

Lower perceptions of work overload

Better physical health and mental health

Greater satisfaction with work-family balance.”

Center on Aging and Work, Issue Brief 19, January 2009

Flexibility and engagement Creating a flexible workplace contributes to employee engagement Engaged employees care more deeply about customers their team the organization Engaged employees less likely to take unfair advantage of their colleagues -> offer them more control over their own flexibility. Greater flexibility enhances levels of mutual respect -> fuels greater engagement allowing even more flexibility. Creates a model for workplace flexibility.

Creating a flexible workplace contributes to employee engagement

Engaged employees care more deeply about

customers

their team

the organization

Engaged employees less likely to take unfair advantage of their colleagues -> offer them more control over their own flexibility.

Greater flexibility enhances levels of mutual respect -> fuels greater engagement allowing even more flexibility.

Creates a model for workplace flexibility.

Flexibility and engagement cont. What does it take to create truly flexible workplace? Training and development programs Culture of mutual respect Shared performance measures Range of flexible working policies Fairhurst, D. (2007). A balanced model for sustainable workplace flexibility: the case of McDonald's, Development and Learning in Organizations 21(4), 16-19.

What does it take to create truly flexible workplace?

Training and development programs

Culture of mutual respect

Shared performance measures

Range of flexible working policies

Fairhurst, D. (2007). A balanced model for sustainable workplace flexibility: the case of McDonald's, Development and Learning in Organizations 21(4), 16-19.

Sloan Network Resources on Flexible Work Fact Sheet on Flexible Work Schedules ; Effective Workplace Series on Flexible Work Schedules Workplace Flexibility Case Studies Topic Page Free monthly newsletter on work-family issues from the Sloan Network The Sloan Network Work and Family blog

Fact Sheet on Flexible Work Schedules ; Effective Workplace Series on Flexible Work Schedules

Workplace Flexibility Case Studies

Topic Page

Free monthly newsletter on work-family issues from the Sloan Network

The Sloan Network Work and Family blog

Other Great Resources on Flexibility Business Impacts of Flexibility: An Imperative for Expansion, A Report by Corporate Voices for Working Families Flexibility and ROI: Asking the Right Questions, FlexPaths Aequus Partners Flexibility Portal The impact of the Recession on Employers Workplace flexibility: Findings from the Age & Generations Study

Business Impacts of Flexibility: An Imperative for Expansion, A Report by Corporate Voices for Working Families

Flexibility and ROI: Asking the Right Questions, FlexPaths

Aequus Partners Flexibility Portal

The impact of the Recession on Employers

Workplace flexibility: Findings from the Age & Generations Study

Need more information? Questions? Judi Casey: [email_address]