2014 workplace flexibility_survey_strategic_use_of_fw_as_ks

SHRM Survey Findings: 2014 Workplace Flexibility—
Strategic Use of Flexible Work Arrangements
October 15, 2014

2
Introduction and definition
Introduction
The 2014 Workplace Flexibility Survey was administered by the Society for Human Resource
Management (SHRM) to identify the prevalence and types of flexible work arrangements
(FWAs) organizations offer. The survey also examined employee use of these programs,
metrics/analytics on FWAs, success factors, the impact of these programs on both employees
and employers, and challenges associated with FWAs.
The following topics are included in the two-part series titled “2014 Workplace Flexibility”:
 Part 1: Overview of Flexible Work Arrangements
 Part 2: Strategic Use of Flexible Work Arrangements
Definition
Flexible work arrangements, also known as workplace flexibility, or Workflex, are a dynamic
partnership between employers and employees that defines how, when and where work gets
done in ways that work for everyone involved (including families, clients and other
stakeholders).
2014 Workplace Flexibility Survey—Strategic Use of Flexible Work Arrangements ©SHRM 2014

Establishing Methods to Measure the Impact of FWAs
• Many organizations have not established any methods to measure the impact of FWAs.
» Recruitment and Retention: Among the responding organizations that offered at least one type
of FWA, two-thirds or more had not established any methods to measure the effect of FWAs
on turnover, hiring costs and employee intent to stay and had no plans to do so in the future
(66%-76%). One-fifth or less (13%-21%) had established methods to measure the impact of
FWAs on these organizational outcomes.
» Employee Experience: About three-fifths to two-thirds of organizations had not established any
methods to measure the effect of FWAs on performance appraisals, employee attitudes,
employee engagement, and employee health and wellness (56%-67%). One-fifth to one-third
(21%-31%) of organizations had established methods to measure the effect on these
outcomes.
» Organizational Success: Two-thirds to four-fifths of responding organizations had not
established any methods to measure the effect of FWAs on business continuity, health care
costs, overall profits or revenue, organizational brand identify, employee diversity and
inclusion, and real estate costs (69%-83%). One-quarter (24%) of organizations established
methods to measure the effect on business continuity and less than one-fifth (11%-18%)
established these methods for the other organizational success outcomes.
3
Key findings
Note: Results are based on responding organizations that offered at least one type of FWA.

Key findings (continued)
Methods to Measure the Effect of FWAs on Organizational Outcomes
• The vast majority (92%) of responding organizations that offered at least one type of FWA had not
established a method to measure its return on investment (ROI).
» More than four-fifths (83%) had not established a method to measure the effect of FWAs on
organizational and employee performance (other than ROI).
Usefulness of Methods/Processes to Help Organizations Implement a Measurement Plan
• More than one-half (55%-60%) of responding organizations that offered at least one type of FWA
indicated an industry standard on what data to collect, industry benchmarks to evaluate levels of
success and an industry standard on how to analyze the data would be useful/very useful in helping
the organization implement a process to measure the impact of FWAs.
» About one-half (46%-48%) indicated HR analytics software designed to analyze this type of
data, and metrics and analytics training for staff would be useful/very useful; 41% reported
HR analytics software designed to store the data would be useful/very useful.
Importance of Various Factors to the Success of FWAs
• Two-thirds or more (68%-83%) of responding organizations that offered at least one type of FWA
indicated eight out of 16 factors were “very important” in contributing to the success of FWAs.
These factors included support/buy-in from top management, commitment from employees to make
it work and a supportive organizational culture, among others.
» About one-third indicated two factors were somewhat unimportant or not at all important to
the success of FWAs: employees from all levels using FWAs and the
policy/practice/program being gradually implemented (e.g., piloted with a small group) (31%
and 35%, respectively).
2014 Workplace Flexibility Survey—Strategic Use of Flexible Work Arrangements ©SHRM 2014 4

Impact of FWAs
• The majority of organizations indicated that FWAs have had a positive impact on certain factors.
» Recruitment and Retention: The majority (52%-75%) of responding organizations that offered
at least one type of FWA indicated FWA options had a positive impact on retaining
employees, attracting employees and turnover; about one-third (36%) indicated the same for
the impact on hiring costs.
» Employee Experience: The majority (52%-84%) indicated FWA options had a positive impact
on the quality of employees’ personal/family lives, employee morale/job satisfaction/
engagement, employee job autonomy and employee health and wellness; about one-third
indicated the same for the impact on performance appraisals (36%) and employee career
attainment/progression (32%).
» Organizational Success: The majority (52%-72%) of responding organizations that offered at
least one type of FWA indicated FWA options had a positive impact on employee commitment
to the organization, overall company culture and the company’s public image of being an
employer of choice; about one-third indicated the same for the impact on ROI (35%) and
supporting corporate social responsibility practices (30%).
5

Individuals/Groups Involved in FWAs
• Design: About one-half (52%-54%) of responding organizations that offered at least one type of
FWA indicated top management and those in an HR function/role (including CHRO) were involved
in the design of FWAs at their organization “to a large extent;” just 13% indicated the same for line
managers/supervisors.
• Implementation: About one-half (52%) indicated those in an HR function/role (including CHRO)
were involved in the implementation of FWAs at their organization “to a large extent;” about one-third
(31%-36%) indicated the same for top management and line managers/supervisors.
• Evaluation/Measurement: More than one-third (38%) indicated those in an HR function/role
(including CHRO) were involved in the evaluation/measurement of FWAs at their organization “to a
large extent;” about one-quarter (27%) indicated the same for top management and just 17% for
line managers/supervisors.

What do these findings mean for the HR profession?
• Many organizations that offered at least one type of FWA had not established methods to measure
the effect of FWAs. This may be because it is difficult to link measurements to other initiatives, or it
may indicate lack of experience in working with FWA metrics. Experts in both FWAs and HR metrics
often advise organizations to choose a few key metrics of particular interest to their business
leaders and focus on these metrics first; they can then build on these metrics and add additional
measurements over time. See www.shrm.org, www.whenworkworks.org and www.hrcosting.com for
resources for measuring the impact of FWAs.
• Not understanding the impact of FWA initiatives makes it more difficult to maximize their success.
An important first step is to establish the main goal(s) of any FWA initiative. Once goals are
articulated, it is much simpler to identify the metrics that can best demonstrate a program’s
success. Common examples of factors to measure are employee absence, turnover, productivity,
attitudes/morale, and health and wellness.
• As more organizations develop their FWA metrics, similarities in approaches could lead to informal
industry standards. Meanwhile, more formal initiatives such as those spearheaded by SHRM, the
American National Standards Institute (ANSI) and the International Organization of Standardization
(ISO), could lead to the establishment of professional HR standards on FWA metrics.
• Because HR professionals report that many factors play a role in the success of FWA initiatives, the
complexity of implementing these initiatives and ensuring their success cannot be underestimated.
HR professionals and organizational leaders must therefore be thoughtful about their FWA
strategies and consider multiple contributing factors when executing their strategies.

What do these findings mean for the HR profession?
(continued)
• The HR professionals in this research made a strong case for FWAs because of the positive impact
on recruitment and retention, employee discipline, productivity, morale, the quality of employees’
work and their personal lives, health, and organizational success overall. These reported positive
effects, along with relatively low reported negative effects, suggest that adopting these initiatives
could benefit many organizations.
• Among the responding organizations that indicated they offered at least one type of FWA, top
management and HR were generally involved in the design of FWAs at their organizations, but
more organizations may benefit from getting line managers more closely involved in designing their
FWA strategies.

Methods to Measure the Effect of FWAs

Established method(s) to measure the effect of FWAs on
recruitment and retention
No, but we have a
clear plan for doing so
in the near future
10
Turnover
Hiring costs
(e.g., for an employee who
resigns to take a position
at an organization that
offers FWAs/workflex)
Employee intent to stay
21%
13%
13%
14%
11%
14%
66%
76%
73%
Yes
No, and we do not
have a clear plan for
doing so in the near
future
Note: n = 246-250. Percentages are of those organizations that indicated they offered at least one type of FWA. Respondents who responded “don't
know” were excluded from this analysis. Percentages may not total 100% due to rounding.

employee discipline
Absenteeism
Administration of
workplace discipline
(e.g., number of
disciplinary actions)
Compliance with safety
procedures
24%
22%
21%
11%
9%
7%
65%
69%
71%
Yes
No, but we have a
in the near future
No, and we do not
future

employee excellence
Productivity
Client/customer service
Client/customer
satisfaction
Employee creativity
27%
27%
26%
12%
12%
10%
10%
8%
61%
63%
64%
80%
Yes
No, but we have a
in the near future
No, and we do not
future

employee experience
Performance appraisals
Employee attitudes
(e.g., job satisfaction,
commitment, morale)
Employee engagement
Employee health and
wellness
31%
30%
27%
21%
8%
14%
15%
12%
60%
56%
59%
67%
Yes
No, but we have a
in the near future
No, and we do not
future

organizational success
Business continuity (i.e.,
Health care costs
Overall profits or revenue
Organizational brand
identity
Employee diversity and
inclusion
Real estate costs
24%
18%
16%
14%
14%
11%
8%
8%
7%
8%
7%
6%
69%
74%
77%
78%
79%
83%
Yes
No, but we have a
in the near future
No, and we do not
future
organization is able to continue
delivery of products/services)

Established method(s) to measure the ROI of FWAs and their effect on
organizational and employee performance
Has your organization established a
method to measure the return on
investment (ROI) of the FWA program?
Has your organization established some
other method(s) to measure the effect of
FWAs on organizational and employee
performance?
2%
6%
92%
Yes
No, but we have a
clear plan for doing
so in the near future
No, and we do not
future
n = 189
9%
8%
83%
n = 187
Note: Percentages are of those organizations that indicated they offered at least one type of FWA. Respondents who responded “don't know” were
excluded from this analysis.

How useful would the following items be to help your organization
implement a measurement plan?
Industry standard on what
data to collect
Industry benchmarks to
evaluate levels of success
Industry standard on how to
analyze the data
HR analytics software designed
to analyze the data (e.g., automated calculations
based on industry standards)
Metrics and analytics
training for staff
HR analytics software designed
to store the data (e.g., databases with relevant
fields and input options)
21%
19%
17%
15%
14%
13%
39%
41%
38%
31%
34%
28%
30%
27%
28%
28%
31%
31%
10%
14%
16%
26%
21%
28%
Very useful Useful Somewhat useful Not at all useful
Note: n = 195-200. Percentages are of those organizations that indicated they offered at least one type of FWA. Percentages may not total 100% due to
rounding.

Impact of FWAs

How important is each of the following factors to the success of FWAs at
your organization?
Very
importan
t
Somewha
t
important
Somewhat
unimportant
/
Not at all
important
Support/buy-in from top management (e.g., executive level, c-suite) 83% 15% 3%
Commitment from employees to make it work
(e.g., following the rules of policy)
77% 19% 4%
Support/buy-in from employees’ line managers/supervisors 77% 18% 6%
Suitability of the job for flexible work (e.g., receptionist) 76% 19% 5%
Supportive organizational culture 75% 22% 4%
Business needs allow for FWAs 72% 22% 6%
Employee understanding of how policy/practice/program works 69% 25% 6%
Success with managing employees with FWA options
(e.g., schedules and work)
68% 27% 5%
rounding.

How important is each of the following factors to the success of FWAs at
your organization? (continued)
Very
importan
t
Somewha
t
important
Somewhat
unimportant
/
Not at all
important
Employee interest in/knowledge of policy/practice/program 60% 32% 8%
Organizational consistency in policy/practice/program implementation
(e.g., not left solely to discretion of line manager/supervisor)
56% 38% 6%
Policy/practice/program is well established 53% 29% 18%
Organizational consensus on policy/practice/program design 47% 39% 14%
Alignment of other workplace policies to support FWAs
(e.g., streamlined approval processes for changes)
41% 43% 16%
Encouragement by organization to participate in FWAs 39% 39% 22%
Employees from all levels (i.e., executive through individual
contributors) use the FWAs program
31% 38% 31%
Policy/practice/program was gradually implemented
(e.g., piloted with a small group)
28% 38% 35%
rounding.

What type of impact, negative or positive, have FWA
options had on recruitment and retention?
Retaining employees
Attracting employees
Turnover
Hiring costs (e.g., when an employee
resigns to take a position at an
organization that offers FWAs/workflex)
75%
61%
52%
36%
22%
37%
42%
59%
6%
5%
4%
2%
Positive/somewhat positive impact Neutral impact Negative/Somewhat negative impact

options had on employee discipline?
Employee absenteeism rates
Administration of workplace discipline
(e.g., number of disciplinary actions)
Compliance with safety procedures
56%
30%
18%
35%
63%
82%
9%
8%
1%
Positive/Somewhat positive impact Neutral impact Negative/Somewhat negative impact

options had on employee excellence?
Employee intent to stay
Employee productivity
The quality of employees' work
Customer/client service
Employee creativity
Customer/client satisfaction
74%
67%
59%
50%
46%
43%
23%
29%
39%
46%
52%
54%
2%
4%
2%
4%
3%
3%

options had on employee experience?
The quality of employees' personal/family lives
Employee morale/job satisfaction/engagement
Employee job autonomy
Employee health and wellness
Performance appraisals
Employee career attainment/progression
84%
80%
56%
52%
36%
32%
14%
15%
44%
46%
62%
65%
2%
5%
1%
2%
2%
4%
Note: n = 149-176. Percentages are of those organizations who indicated they offered at least one type of FWA. Respondents who indicated "Don't

options had on organizational success?
Employee commitment to organization
Overall company culture
Public image of being an employer of choice
Return on investment
Supporting corporate social responsibility (CSR) practices
Supporting a 'green' workplace philosophy/practice
Organizational brand identify
Promoting employee diversity
Perception of fairness among employees without…
Real estate costs
Health care costs
Overall profits or revenue
72%
63%
52%
35%
30%
29%
28%
23%
22%
20%
19%
19%
28%
34%
47%
65%
70%
71%
70%
77%
50%
79%
80%
81%
1%
3%
1%
0%
0%
0%
1%
28%
0%
1%
2%
1%

Design, Implementation and
Evaluation/Measurement of FWAs

To what extent are/were the following individuals/groups involved in the
design of FWAs at your organization?
Top management (e.g., executive
level,…
HR function/role (including CHRO)
Line managers/supervisors
Nonmanagement employees
Consultant, HR vendor or other third
party
52%
54%
13%
4%
5%
29%
18%
31%
10%
6%
19%
28%
56%
85%
89%
To a large extent To a moderate extent To a small extent/Not at all
rounding.

implementation of FWAs at your organization?
level,
other c-suite)
party
52%
36%
31%
3%
18%
27%
30%
5%
31%
37%
39%
92%
rounding.

evaluation/measurement of FWAs at your organization?
level,…
Nonmanagement employees
party
38%
27%
17%
3%
4%
17%
21%
26%
9%
6%
44%
51%
57%
88%
91%
rounding.

Demographics

Demographics: Organization industry
Manufacturing 22%
Professional, scientific and technical services 18%
Health care and social assistance 13%
Finance and insurance 12%
Government agencies 7%
Educational services 6%
Transportation and warehousing 5%
Utilities 5%
Construction 4%
Accommodation and food services 3%
Administrative and support, and waste management and remediation services 3%
Note: n = 373. Percentages do not total 100% due to multiple response options.
Percentage

Demographics: Organization industry (continued)
Mining, quarrying, and oil and gas extraction 3%
Retail trade 3%
Agriculture, forestry, fishing and hunting 2%
Arts, entertainment and recreation 2%
Information 2%
Real estate and rental and leasing 2%
Religious, grant-making, civic, professional and similar organizations 2%
Wholesale trade 2%
Repair and maintenance 1%
Personal and laundry services <1%
Other industry 12%
Note: n = 373. Percentages do not total 100% due to multiple response options.
Percentage

Demographics: Organization sector
32
n = 366
16%
52%
22%
8%
2%
Publicly owned for-profit
Privately owned for-profit
Nonprofit organization
Government agency
Other

Demographics: Organization staff size
33
n = 360
31%
34%
20%
12%
3%
1 to 99 employees
100 to 499 employees
500 to 2,499 employees
2,500 to 24,999 employees
25,000 or more employees

Does your organization have U.S.-based
operations (business units) only, or does it
operate multinationally?
U.S.-based operations only 77%
Multinational operations 23%
n = 367
Demographics: Other
Is your organization a single-unit organization or a
multi-unit organization?
Single-unit organization: An organization in
which the location and the organization are
one and the same.
35%
Multi-unit organization: An organization that
has more than one location.
65%
n = 370
For multi-unit organizations, are HR policies and practices
determined by the multi-unit headquarters, by each work
location or by both?
Multi-unit headquarters determines HR
policies and practices
50%
Each work location determines HR policies
and practices
7%
A combination of both the work location and
the multi-unit headquarters determines HR
policies and practices
43%
n = 245
What is the HR department/function for
which you responded throughout this
survey?
Corporate (companywide) 67%
Business unit/division 15%
Facility/location 18%
n = 245

SHRM Survey Findings: 2014 Workplace Flexibility—
Strategic Use of Flexible Work Arrangements
Survey Methodology
• Response rate = 12%
• 525 HR professionals from a randomly selected sample of SHRM’s membership participated in this
35
survey
• Margin of error +/- 4%
• Survey fielded April-June 2014

About SHRM Research
For more survey/poll findings, visit shrm.org/surveys
For more information about SHRM’s Customized Research Services, visit
shrm.org/customizedresearch
Follow us on Twitter @SHRM_Research
Project lead:
Karen Wessels, researcher, SHRM Research
Project contributors:
Evren Esen, director, Survey Programs, SHRM Research
Yan Dong, Survey Research Center, SHRM Research
Copy editor:
Katya Scanlan, SHRM Knowledge Center

Founded in 1948, the Society for Human Resource Management (SHRM) is the
world’s largest HR membership organization devoted to human resource management.
Representing more than 275,000 members in over 160 countries, the Society is the
leading provider of resources to serve the needs of HR professionals and advance the
professional practice of human resource management. SHRM has more than 575
affiliated chapters within the United States and subsidiary offices in China, India and
United Arab Emirates. Visit us at shrm.org.
37
About SHRM

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