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ADP Europe at Work - A Vision on Working Time

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Legal diversity of working time appears to be one of the most critical issues for European HR Managers.

Legal diversity of working time appears to be one of the most critical issues for European HR Managers.

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  • 1. E U R O P E A T W O R K A ViSion on #2 working time JANUARY 08 Legal diversity of working time appears to be one of the most critical issues for European HR managers. Good or bad news? According to renowned experts, most of the answers will be found well beyond statistics: within companies… and households! gerhard Bosch Lionel Prud’homme chris Brewster Professor of sociology and eMea Human resources Vice-President Professor of international Hr Management, Director of the institute at carlson Wagonlit travel university of reading and school of for Work and skills at the Leadership, change and Hr Management university of Duisburg-essen (Henley). Director of Henley’s Hr centre of excellence "Working time distribution "go out into the field and at the household level is behave like workplace "i’m not at all sure we can a key factor" ethnologists!" trust the statistics" Page 2 Page 4 Page 6 Jours facts and figures p. 8-9 An ADP publication Heures
  • 2. WOrKiNg tiMe Gerhard Bosch Working time distribution at the household level is a key factor Gerhard Bosch, Professor of Sociology and working time, room given to Director of the Institute for Work and Skills at the University part-time work and flexibility. These three factors combine of Duisburg-Essen, focuses on households and the in a number of different ways distribution of working time between men and women and across Europe. When you look at how things are done from asks whether we are moving from the male breadwinner north to south and from west to east, you find as many models model to a more egalitarian two part-time jobs model. as there are points on the compass, plus an intermediate europe at work: You say that can social policies reverse model represented by Germany, observing couples gives a better the trends? France, Belgium and the idea of local working time practices They play a decisive role. There Netherlands. across europe than reading are far more women working european directives. are you being full-time in France and Belgium The Scandinavian model, which serious? than in Germany because they I think is the most interesting, Gerhard Bosch: Let’s take three can put their children in nursery encourages full-time work for couples. The first in Oslo, the schools and crèches – full- everyone and distributes the “ second in London and the third time. Many German women work between men and women. in Madrid. We’ll ask them all the same question: who I don’t think we should be the breadwinner? “Both spouses equally”, the Scandinavians reply. “Both spouses”, the Brits also reply. But the husband will earn will harmonise “ social practices more than his wife. The difference between the sexes by decree becomes more pronounced Gerhard Bosch, south of the Pyrenees and Professor of Sociology the Alps, where the wife and Director of the traditionally stays at home. Institute for Work and Skills at the University How much does economic of Duisburg-Essen development contribute to working time practices? stay at home, and many who The economic factor is decisive, choose to work give up on the Working hours are reasonable but it interacts with institutions idea of having children; this is and employees are rarely forced and culture. In Portugal, for undoubtedly one reason why to do overtime and go home instance, economic constraints Germany’s birth rate is falling. late. But full-time work can resulting from the colonial wars of be adapted to suit individual the 1970s pushed women into the Local working time legislation circumstances. When there are workforce. The fact that women’s still differs widely in spite of children – or elderly parents – pay is lower in Great Britain is european directives. How do we to be taken care of, workers go another reason why husbands make heads or tails of it all? part-time or even stop working work more than their wives. By looking at three factors: for as long as needed. This 2
  • 3. practice is becoming more and more common among men as the equal sharing of full-time work between men and women, >> well as women. high flexibility and extensive gerhard Bosch is Professor The southern model is the childcare facilities. In spite of opposite. Being the family’s sole their economic tribulations, of sociology and since 2007, breadwinner, the husband will these transition countries are is also Director of the institute often do small undeclared jobs currently closest to the for Work and skills at the on top of his already long official Scandinavian model. university of Duisburg-essen. working hours. If his wife also He is specialized in labour works, she will often do likewise. all these models have their market policy, working time, There is little room for part-time limits. each of the categories you employment policy and training. work in the south; even less room describe allows exceptions… for flexibility. Of course. These models He has written many books, constitute frameworks that must articles and is often invited to Between these two extremes, the not overshadow other specific radio broadcasts. gerhard Bosch continental model seems to be factors. Childcare facilities and is currently working on dynamics faced with contradictions. The school hours vary extremely of national employment models working week is short and people widely between France and as well as european comparison retire early, but what seems to Germany, for example. Even of "low-skill" jobs. have been forgotten is services though these two countries have for families, in Germany in enough in common to belong to particular. As for flexibility… it’s the same model, their inhabitants some of his publications… harder to reduce one’s hours and have different mentalities. We saw go back to full-time work later this in a recent study of women g. Bosch: "european employment models under pressure to change", 28th in Düsseldorf and Lyons than in working part-time in superstores. conference of the international Working Copenhagen and Oslo! Whereas This study, conducted in Great Party on Labour Market segmentation the Scandinavians have opted for Britain, Germany and France, iWPLMs / Lest, university of Marseilles, aix-en-Provence, france , 04.07.2007 flexibility throughout their lives, revealed a French exception: the the “continentals” have gambled controversial notion of only being g. Bosch, "Working time and on work-sharing of weekly hours allowed to work part-time is the standard employment relationship" in Decent working time: new trends, and ended up with the highest purely French. Another example new issues, J.-Y. Boulin, M. Lallement, unemployment rates in Europe! is Portugal, where the southern J.-c. Messenger, f. Michon, (eds.), geneva: cultural models predominate and internat. Labour Office, p. 41-64, 2006 What should we make of the yet work is shared between men g. Bosch, H. Bielenski, a. Wagner, British and irish models in this and women, just like in Finland! "Working time preferences in sixteen european countries", europ. foundation context? for the improvement of Living and These two countries are much social europe has been set in Working conditions, Dublin, 2002 more open to women working motion. Will Brussels’ directives g. Bosch, s. Lehndorff, "Working-time than the southern countries. But and regulations succeed in reduction and employment: experiences men’s salaries are higher and a harmonising our working time in europe and economic policy third of men earn even more by practices? recommendations" in Cambridge journal of economics 25, p. 209-243, 2001 doing overtime, working up to I don’t think we will harmonise 48 or 49 hours per week. In social practices by decree. This g. Bosch, "Working time: from redistribution to modernization" this system, part-time work will happen slowly as people’s in Changing labour markets in Europe: of women is the corollary of mentalities and outlooks on the role of institutions and policies, overtime of men. life gradually converge and P. auer (ed.), 2001, p. 55-115 Lastly, of course, there are as institutions like childcare the eastern countries that develop. The male full-time/ recently joined the EU. This female part-time combination is “transition” model comprises a transitional form between the both a long working week single male breadwinner model and early retirement, which and more egalitarian modes. was widespread following the And the two full-time jobs model collapse of the communist could evolve towards one in system. But from the communist which both spouses have period this model has retained part-time jobs. eXPert 3
  • 4. WOrKiNg tiMe Working hours at Carlson Wagonl The advantage of sma C ould it be that statutory working hours are more important in an ideological debate than in HRMs’ everyday experience? When Lionel arrangements Prud’homme, EMEA HR VP at Carlson Wagonlit Travel, decides to build a productivity model, he aligns the ten When the wage bill represents the main cost compon countries in which his 11,000 European do statutory working hours significantly affect profit employees work on a “single grid”, a median Full Time Equivalent, that makes differences centre productivity? With agencies in 22 European vanish. So the question is no longer whether people work longer in the UK, France or countries and nearly 1,034 "business centres" staffe Germany, but how many transactions by 30 to 200 people, Carlson Wagonlit Travel is analy staff members complete in a given time. “You simply need to travel abroad to see its business model. "Performance is not driven by na that national practices do not necessarily legislation, claims Lionel Prud’homme, EMEA HR VP, follow the letter of the law ”, notes the expert. “There are obvious signs, in business "but rather by best management practices. “ districts and on the street, which contradict the official figures. We see in particular that French executives work longer hours than most of their European counterparts.” Local m So the business model of the company act as is built by measuring everyone using the in the n same yardstick. The main aim is for the service sector to catch up with industry in corpora terms of value analysis. And to do so Lionel Prud’homme had no hesitation in making use of a powerful tool, HR Intelligence, extracting HR data from payroll systems. Lionel Pru EMEA Hum But the analysis is economic rather than Vice-Presi managerial. Certainly, CWT will be able Wagonlit T to compare productivity in different countries and see whether an Italian signs more contracts per hour than a Spaniard or a Latvian. CWT will be able to set up its new Like workplace ethnologists “business centres” in the most favourable Lionel Prud’homme’s advice to CWT’s regions, because its activity is increasingly local HRDs is to “go out into the field and scattered and decentralised. It will even behave like workplace ethnologists ”. Team be able to rank the performance of these efficiency on a daily basis stems more centres, which employ 30 to 200 people in from arrangements between individuals small teams of five or six providing services than from following rules to the letter. The to clients. But what measures can be based mainly female workforce is not unfamiliar on these data with regard to management? with this adaptable, inventive, empirical “Everything except technocratic measures ”, approach, which is more conducive to explains Lionel Prud’homme, who finding solutions than creating conflicts and understands that statistics cannot be productive rather than complicated. “I have corrected by issuing decrees. “The key to observed different types of people ”, notes corporate success lies in reaching the best our ethnologist HR VP. “Women who arrive compromise between targeting profits and at 8 o’clock, women who arrive at 8:30, and caring for the staff.” so on until 10 o’clock. These habits stem 4
  • 5. lit Travel all-scale nent, from both the age of their children and of them that time clocks should be the sequential nature of our processes. reintroduced. “Worst of all ”, objects the The women who arrive later take over HR VP, picking up on Chris Brewster’s idea from the others.” without quoting it (see interview page 6). “With time clocks your value-added no longer ed Is this freedom to make small arrangements matters; all that’s counted is your hours.” ysing self-regulating, without any risk of affecting Simpler and based more on trust, declarative productivity or fairness? Of course not! Local solutions seem to be better... ational managers keep a watchful eye on a number of general limits and act as mediators in Hence, in the privacy of each company, the name of corporate values. The vital issue away from the debates and statistics, of part-time working falls within this limited working hours are the result of a certain margin for manoeuvre. “For example, it way of doing business together. And what would be impossible to conduct our business the workplace ethnologist discovers at if nobody worked on Wednesdays.” The Carlson Wagonlit Travel is a culture of travel managers “ mediators name of rule is binding for everyone and guarantees equality for all. But requests are handled on a case-by-case basis, with always the intension of seeking solutions to difficult situations. “Our role as HRM is to mediate unstintingly,” and the universally accepted rule that a client must never be left stuck at an airport. Of course, HR Intelligence will soon help defining productivity standards. But the HRM will examine managers’ profiles rather than ate values stresses Lionel Prud’homme. “By doing so, national legislation to explain differences we are able to show the managers what we between two business platforms. expect of them, and strike the right balance between our duty to sustain our economic ud’homme, performance and fulfil our social role.” man Resources Carlson Wagonlit Travel ident at Carlson annualised hours and no time clock? Travel An issue of much more general importance with over 40 million on and offline to everyone, annualised hours, will provide transactions annually, Carlson wagonlit a subject for discussion between social travel is the second largest travel manage- partners. The business travel market ment company in the world and is number one obviously goes through slack periods and in europe, the Asia-Pacific region and Latin busy periods. So why not vary working America. Cwt is specialized in business hours accordingly over the year? Obviously travel management and employs more the first obstacle is childcare, which is more developed in some countries than in others than 22,000 people in almost (see interview with Gerhard Bosch page 2), 150 countries. in 2007, Cwt wholly- and families are rarely able to find a flexible owned operations and joint ventures solution. “If I have to, I’ll set up a legal advice generated USD20.5 billion in annual sales. hotline to accompany the annualisation of nannies’ working hours! ” suggests Lionel Prud’homme. He fully meant his suggestion, but it wasn’t taken seriously… Second obstacle, the trade unions doubt the company’s ability to clock time fairly, hence the surprising recommendation from some PrACtiCeS 5
  • 6. WOrKiNg tiMe Chris Brewster Working time and productivity: beyond the figures! After having conducted extensive international HRM evidence is that the United research, worked closely with many organisations States is not a highly productive country on a per hour basis, but in all sectors, and published some twenty books because they work longer hours and over a hundred articles, Chris Brewster now takes time than we do in Europe, they make up for that. to stand back. Looking beyond the figures and studies, he are corporate cultures more shares his realistic vision on working time with us. influential than local ones? HR managers manage the europe at work: the aDP Hr countries, people generally are in people within their company, atlas shows wide differences in the office a lot longer than they and far away from the local working times across europe. think they are. I think probably national averages! As well are they reflected in productivity? what you’ve got is a much more as the national culture, there Chris Brewster: I am not at all accurate recording of time in the is an organisational culture sure we can trust the evidence north of Europe, and a rather overlay here. For example, that we’ve got. For example, most more casual recording of time in Sweden people are very European studies show that the in the south of Europe, which mature about their working British working time is longer tends to emphasize the one and hours arrangements; if they than anywhere else in Europe. underplay the other. have promised to be home at “ “ Countries that do longer hours are less productive Chris Brewster, Professor of International Human Resource Management and Director of Henley’s HR Centre of Excellence But anybody who has already Do the less productive countries 6 o’clock, then they make sure worked in Southern Europe could work less? they are home at 6 o’clock. have observed that people work Absolutely not! The countries But even in Sweden, there are extremely long hours, very late that work longer hours are the organisations where people into the evening. OK, they may less productive countries. So, in work extremely long hours. take quite long lunch breaks, a sense, they are making up for Thus, HR Managers have to but often those breaks are spent lower productivity per hour by understand the national culture with colleagues, discussing just doing more hours. That but be much more aware of work issues anyway. In all sorts applies, incidentally, to the their immediate organisational of organisations in all sorts of United States as well. The culture. 6
  • 7. What is best for a company: long hours with low productivity or… serving customers in a shop, productivity is less of an issue >> From a managerial point of than just making sure a shop chris Brewster is Professor view, in many ways it’s actually opens at the right time. cheaper to get people to work But it does not really matter of international Human resource long hours than to invest in when people do the work if they Management at the university of new technologies. But more or are manufacturing something reading and at the school less the same amount of work or creating an advertising of Leadership, change and gets done in each organisation! campaign. The people at the Hr Management of Henley A few years ago, one of my receiving end really don’t care (uK) and Director of Henley’s doctoral students did a research when you did it. Hr centre of excellence. He project on productivity, with matched groups of organisations From a Human Resource has conducted numerous as different as engineering Management point of view, the research projects in the field of companies and police forces. difficulty there is to make each international and comparative Some of these organisations of those people feel that they are HrM. He also founded and were working more efficiently being treated in a fair and is a special advisor to the for a shorter number of hours, equitable manner. So, when I go international and ongoing whereas others were working into companies, what I find is cranet, conducting researches less efficiently, but for longer rules on working time being hours. And we saw very similar applied to people for whom now in over 40 countries. things in France, incidentally, working hours are actually chris Brewster published when the 35-hour week was much less important than some twenty books and over a introduced there. productivity and what they hundred articles. currently, he produce. Nobody gains very is notably undertaking work on Part-time work is a good way to much from that process. For decrease working time. is it also a these people, it is seen as a kind convergence of Hr practices good way to increase productivity? of dictatorial imposition on their across countries. Employees like it, but freedom to come and go and employers also like it. get the job done as they wish. We know there is now some And, particularly for some of some of his publications… fairly serious research that says the people. the issue is: “Are we c. Brewster and O. tregaskis, "converging or diverging? part-time workers tend to be being paid for the number of a comparative analysis of trends in more productive. If you’re only customers we can get in or are contingent employment practice in europe in the office for four hours we paid just to turn up and over a decade", Journal of International Business Studies 37, (forthcoming) a day, you spend less time sit here? ” c. Brewster, "comparative HrM: european having coffee and talking to views and perspectives", International your friends and it’s much What is the main issue today for Journal of Human Resource Management, easier to concentrate and get european Hr Managers? 18:5, May 2007, p. 769-787 on with your work. That’s Most HRMs want to standardise c. Brewster, P. sparrow and particularly the case where jobs everything around the world g. Vernon, International Human Resource Management, 2nd edition, 2007, London, are repetitive. So with part-time because they don’t want to be uK, chartered institute of Personal work, you get people who are at running everything on a kind Development, p. 230 their fast early pace. of free-for-all basis, where c. Brewster, "a european perspective on everybody is reinventing the HrM", European Journal of International Management, Volume 1, Number 3, 2007, is it always useful to check the wheel every time. But they now p. 239-259 working time? also have to be sensitive to local Productivity and working legislations, local cultures, and time can be unrelated. You local business requirements. In have to differentiate between all sorts of areas of International organisations and, within Human Resource Management organisations, you have to that’s a key issue for working differentiate between tasks. time management in particular. There will be some tasks for which working time is extremely important. If you’re eXPert 7
  • 8. facts & figures Actual working time: average annual hours worked per person FI 1,666 NO 1,360 SE 1,587 DK 1,551 Annual hours worked per person < 1,500 hrs IE 1,500 - 1,600 1,638 NL UK 1,367 PL 1,600 - 1,700 1,672 1,994 DE 1,700 - 1,800 BE 1,435 1,900 - 2,000 1,534 CZ LU 2,200 > 2,000 hrs 1,557 SK Not available 1,791 AT HU No country in the range FR 1,636 1,800 - 1,900 1,535 1,994 Source: OECD 2006 – Annual hours per person 2004, 2005 (11) IT 1,791 PT ES 1,685 GR 1,775 2,053 Did you know? • 2005 annual working time in: • The maximum weekly working time (including United States: 1,809 hours overtime) of 48 hours, as set by the EU, is the basic rule in many countries – such as Denmark, Japan: 1,802 hours France, Germany, Hungary, Ireland, Luxembourg, Canada: 1,737 hours. Norway and the UK. 8
  • 9. facts & figures Actual working time: usual hours worked per week, full time Heures Source: European Communities Eurostat 2006 – Usual hours per week 2005 (2) Collectively agreed working time: days off and annual hours Jours Jours de congés Jours fériés Congé annuel Temps de travail annuel contractuel Heures Source: European Foundation for the Improvement of Living and Working Conditions 2006 – Collectively agreed working time 2005 (17) 9
  • 10. www.agence-arca.com To receive ADP HR European Atlas, please contact: atlas.europe@europe.adp.com © ADP Europe - January 2008 www.europe.adp.com ® HR Services