1. Flexible Workforce Strategies in a Tough Economy
Flex-Options Roundtables, Summer 2009
Overview
As part of its Flex-Options project, the Women’s Bureau, Region V invited employers in
the Chicago area to participate in two roundtables entitled “Flexible Workforce Strategies
in a Tough Economy.” The goal was to better understand how Chicago-area businesses
are using flexible work strategies to manage their workforce in a difficult economy.
Summary of Findings
1. Companies are using flexibility to improve satisfaction and morale in a tough
economy.
Rather than cutting back on flexible work programs, companies are turning to flexible
work strategies to improve employee engagement and retain top performers.
· Large companies are dusting off old policies and breathing new life into them with
internal communication efforts to build awareness and retain high performers.
· Many companies who’ve never had flexible work policies are adding them.
· Small companies, who’ve built their flexible workplaces organically, are reluctant
to formalize policies for fear of losing their culture.
2. Flex arrangements are being used in conjunction with cost cutting measures
Many companies have instituted wage freezes and other cost-cutting measures related to
compensation. Many times those cuts have been expressed as four day work weeks, part-
time, or unpaid sabbaticals. They’re satisfied that these strategies have helped them
avoid taking drastic measures like (additional) layoffs. When asked about long term
expectations, opinions are mixed. Some companies expect to revert back to the policies
they had before the downturn. Others expect to accommodate requests to maintain flex
arrangements even after the recovery.
3. Telecommuting programs are gaining popularity in effort to reduce costs.
A number of companies have moved to telecommuting programs in an effort to reduce
real estate, and utility costs. With the goal of making them cost-neutral, companies are
charting their own course when it comes to whether to purchase PDAs, reimburse for
internet connectivity, provide laptops, VOIP systems, etc. Technology is helping build
transparency and visibility within dispersed work teams.
4. Interest in flex for non-exempt and union employees is high.
Companies are increasingly interested in providing flex for non-exempt and union
employees. They’re looking for approaches, contract language and best practices to
support their efforts.
2. 5. Companies are developing a contingent workforce to handle work fluctuations
In order to manage workload fluctuations, avoid hiring full-time workers, and cut costs at
the same time, companies are developing a bench of temporary and contract workers.
6. Companies are seeking best practices and advice for flexible work solutions.
Organizations are searching for detailed information and practical advice on how to
successfully communicate and manage flexible work. They recognize the value, but
don’t always know the best way to implement, manage and overcome the organizational
resistance they encounter.
7. Organizations are using survey tools to understand employee mindsets.
Understanding that morale and engagement may have taken a hit this year, many
companies are conducting surveys to better understand the mindset of their employees
and develop new flex programs to reduce turnover during the recovery.
8. Companies are reacting to state and federal changes in flex legislation.
With the passing of statewide, flex-related laws in Minneapolis, Colorado, and elsewhere
(and the anticipation of many more), companies that do business across multiple states
are considering the impact. One company, for example, is thinking about simplifying
their policy to offer Colorado’s family leave law to all employees despite what state they
live in.
9. The execution of flex programs is very inconsistent.
The execution of flex programs differs across (and within) different organizations. Some
flex arrangements are formal, some are informal. Some companies have policies, some
don’t. Some companies track flex program use, others don’t. Some companies have
internal networks in place to communicate and educate employees on programs, others
don’t. Accommodation is still a very prevalent strategy, and so availability varies based
on department, manager, etc.
3. 10. Challenges to flex programs remain.
Companies cite a number of challenges to the success and expansion of their flexible
work programs. They acknowledge that commitment to flex must “come from the top”
and dedicate a lot of time and effort to working with managers to overcome resistance.
Challenges include:
• Generational differences and expectations about flexible work
• Lack of uniformity within the company; some departments/managers offer, some
don’t
• Training managers to manage flex teams
• Gaining momentum for change in a large organization
• Management mindset that employees are stuck here, so we don’t need to do
anything Employees are afraid to ask for a flexible work schedule for fear of
repercussions
• Moving beyond the reason an employee is requesting flex
• Legal aspects of flex for non-exempt employees
Kyra Cavanaugh
President, Life Meets Work
847-825-5691
kcavanaugh@lifemeetswork.com
