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Flexible Work Arrangements Modeler                  Concept and Framework Definition                      Zinnov          ...
CONTENTSI. STRATEGIC IMPORTANCE OF FLEXIBLE WORK ARRANGEMENTS ......... 2II. THE FWA MODELER: AN INTRODUCTION ...............
I. Strategic Importance of Flexible Work ArrangementsFlexible work schedules are alternative approaches towards work that ...
For such reasons flexibility attracts young minds that have enormous innovative potential andprefer autonomy at work. Simi...
Figure 1: Flexible Work Solutions - ParametersIII. The FWA ModelerIn order to make the most of flexible work solutions, it...
for every 1000 employee in an organization. The modeler is equipped with key metrics acrossparameters based on which an im...
Sick Leave Savings FrameworkWorkplace flexibility extends greater work-life balance reducing stress and resulting in fewer...
Environment Savings FrameworkFlexible work schedules address the current issue of global concern around environment,reduce...
IV. Zinnov’s FWA Solutions OfferingsZinnov follows a collaborative and consultative approach to build a model that best fi...
About ZinnovFounded in 2002, Zinnov – meaning Zeal in innovation - is a leading management consultingcompany providing ser...
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Flexible Work Arrangements Modeler

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Flexible Work Arrangements Modeler

  1. 1. Flexible Work Arrangements Modeler Concept and Framework Definition Zinnov www.zinnov.com info@zinnov.com Zinnov Confidential. No part of this report may be circulated, quoted, or reproducedwithout prior written approval from Zinnov
  2. 2. CONTENTSI. STRATEGIC IMPORTANCE OF FLEXIBLE WORK ARRANGEMENTS ......... 2II. THE FWA MODELER: AN INTRODUCTION ................................................... 3III. THE FWA MODELER ...................................................................................... 4Recruitment Savings Framework ............................................................................................................... 5Sick Leave Savings Framework .................................................................................................................. 6Environment Savings Framework .............................................................................................................. 7IV. ZINNOV’S FWA SOLUTIONS OFFERINGS ................................................... 8Benefits of the FWA Modeler ...................................................................................................................... 8Zinnov Confidential. No part of this report may be circulated, quoted, or reproduced without prior writtenapproval from Zinnov 1
  3. 3. I. Strategic Importance of Flexible Work ArrangementsFlexible work schedules are alternative approaches towards work that include unorthodox workhours, locations and job profiles. Today, with thegrowth of new geographically disperse markets and To imbue work withever-increasing competition it is imperative for passion and to drawcompanies to accelerate innovation and optimize savings by ensuring employee engagementproductivity to stay ahead of the curve. To a large and optimizingdegree, this is determined by employee empowerment, innovation andmotivation, satisfaction and retention. The new HR productivitystrategy of flexible work arrangements looks atmaximizing employee engagement and thereby promoting innovation by affording flexibility inworkplace.Our interviews with employees and HR professionals from over 40 companies about practicingflexibility reveals that there is an increasing call for flexible solutions such as work from home oneday a week, part time, and even full remote work. We also gathered that the idea of flexibility isundermined by some wrong notions having their rationale in the success of the industrialrevolution. So, the ensuing belief that a bunch of smart people in an office equipped with correcttools will produce. But as we understand now, growth and innovation, far from being mechanicalphenomena, are driven by genuine passion and inspiration which should be cultivated to put fortha powerful business case.Let us take a comprehensive look at the multivalent benefits of FWA. Our research shows thatflexibility contributes considerably towards better work-life balance of employees which is held atpriority by the young and upcoming working population. This in turn imparts the three-foldadvantage of higher job satisfaction, greater productivity and lower attrition. Higher jobsatisfaction comes from a sense of good balance between work and life. This contributes towardsdecreased stress levels and therefore fewer sick leaves. Flexibility solutions therefore enhanceproductivity and efficiency by giving employees the freedom to choose their most productive worktime. While this implies reduced healthcare costs for the employee, it extends the benefits ofbusiness continuity, reduced attrition, replacement and facilities cost for the employer.Zinnov Confidential. No part of this report may be circulated, quoted, or reproduced without prior writtenapproval from Zinnov 2
  4. 4. For such reasons flexibility attracts young minds that have enormous innovative potential andprefer autonomy at work. Similarly flexibility provides asupporting environment to women who are crucial to any Environmental benefitsbusiness, and is reported to have reduced attrition post of reduced fuelmaternity leave. In addition to financial savings realized consumption, reduced carbon emission andfrom reduced attrition, replacement, healthcare and lesser number of cars onfacilities costs FWA finds current relevance from its the roadpositive environmental and societal impact. Suchadvantages when translated into financial gains make ahuge difference given the tough times and hence the need to optimize resources, cut down oncosts and step up the innovative potential.II. The FWA Modeler: An IntroductionThis document defines the Flexible Work Arrangements Modeler, which is a tool for globalorganizations to assess and measure the effectiveness of implementing Flexible Work Options totheir business model.With the economic downturn and global organizations facing tough competition, there has been aparadigm shift in the new US workplace in terms of outlook. The focus now is on output asopposed to face time, control on work as opposed to total control over work and processes,empowering as opposed to delegating with the spotlight on innovation and inclusive workenvironment. Flexible work arrangements is a key HR strategy that helps organizations strugglingto juggle growth, profitability, sustainability goals, diversity goals as well as maintain employeeengagement. The FWA modeler is a framework that helps organizations quantify their dollargains across each impact parameter and thereby estimate the gains of applying FWA on theirbusiness model. These parameters fall under four broad impact areas.  Employer Impact  Employee Impact  Environment Impact  Society ImpactThis document also looks at some of the vital parameters across which the impact ofimplementing FWS can be calculated. Figure 1 gives a view of the parameters across the fourbroad areas impacted from alternative work schedules.Zinnov Confidential. No part of this report may be circulated, quoted, or reproduced without prior writtenapproval from Zinnov 3
  5. 5. Figure 1: Flexible Work Solutions - ParametersIII. The FWA ModelerIn order to make the most of flexible work solutions, itis essential for global organizations to estimate the The Modeler helps in establishing, trackingeffectiveness of this strategy across parameters and and periodicallyalign it in accordance with their business model to reviewing the prescriptsderive greater value at an optimal cost. The FWA of Alternative Workmodeler is a framework for organizations to identify Arrangementstheir parametric financial gain from implementingworkplace flexibility. The web-based modeler, for instance, can quantify gains across parametersZinnov Confidential. No part of this report may be circulated, quoted, or reproduced without prior writtenapproval from Zinnov 4
  6. 6. for every 1000 employee in an organization. The modeler is equipped with key metrics acrossparameters based on which an impact analysis can be done.Recruitment Savings FrameworkFrom our research and case study of organizations for savings from reduced attrition andreplacement costs, we arrived at the assumption that FWS affords an average reduction of 40percent in attrition and a reduction of 150 percent on employee replacement cost. Our impactanalysis encapsulates the variations in a best case and a worst case scenario to enable a moreprecise and comparative view of the impact. This is applied to the company variables to arrive atthe savings derived after implementing FWA. Figure 2 is a snapshot of the impact analysis.Figure 3 gives an illustrative view of the recruitment savings framework. Figure 2: An Illustration of the Impact Analysis Figure 3: Recruitment Savings FrameworkZinnov Confidential. No part of this report may be circulated, quoted, or reproduced without prior writtenapproval from Zinnov 5
  7. 7. Sick Leave Savings FrameworkWorkplace flexibility extends greater work-life balance reducing stress and resulting in fewer sickleaves. The sick leave savings unit of the modeler operates on the same lines. Our industryresearch on stress brought forth some interesting data regarding stress related losses and costs.Over one million workers are out with stress everyday which implies a huge loss to the industry.Stress which costs the US business USD 200-300 billion annually brings down productivity and isthe foremost cause of increased absenteeism. In its The cost of a day’s sickeffort to combat this, a telecom giant reported a 63 leave is approximately apercent reduction in sick leave by implementing FWA day’s cost to thewhile a department stores chain recorded a 33 percent company.reduction in sick leave by adopting flexibility. Based on An employee will avail all the sick leave allotted inassumptions from research, we arrived at the premise a yearthat there is a 50 percent reduction in sick leave due toFWS. The impact analysis chart derived from this figurerepresents 60 percent reduction as ‘best case’ and 40 percent as ‘worst case’. This data alongwith the company variable and our data derived from modeling generated the impact analysis interms of savings per 1000 middle level employees. Figure 4 is an illustrative snapshot of the SickLeave Savings Framework. Figure 4: Sick Leave Savings FrameworkZinnov Confidential. No part of this report may be circulated, quoted, or reproduced without prior writtenapproval from Zinnov 6
  8. 8. Environment Savings FrameworkFlexible work schedules address the current issue of global concern around environment,reduced carbon emission and reduced fuel costs. Options like telecommuting and work fromhome reduce employee commuting and cut down on fuel costs in addition to contributing towardsreduced carbon emission. Staggered shifts and compressed work schedules save the trouble ofundertaking trips at peak hours. Industry study brings out concerning figures. A leading telecomorganization reported saving 64 kms per employee per day and the study of a top UStransportation institute indicated that over 6 billion gallons of fuel was wasted in 1996 due totraffic congestion.The assumption derived from research shows the average distance traveled per employee perday as 40 miles, the corresponding fuel cost as USD 3 and the mileage per gallon as 20.Relevant figures applied to the modeler indicated that flexible work practices could realize a totalannual saving of USD 3,456 per employee, per year due to fuel. Figure 5 is an illustrativesnapshot of the modeler.. Figure 5: Reduced Fuel Cost Savings FrameworkZinnov Confidential. No part of this report may be circulated, quoted, or reproduced without prior writtenapproval from Zinnov 7
  9. 9. IV. Zinnov’s FWA Solutions OfferingsZinnov follows a collaborative and consultative approach to build a model that best fits theclient’s immediate and long-term needs. Our flexible work arrangements modeling solutions helpour clients measure the benefits of deploying flexible work models in their workforce before theymake a financial commitment. Our flexible workforce solutions offering is targeted to acompany’s individual workforce scenario and its potential Return on Investment (ROI)implications. Zinnov specializes in helping its clients identify and target these particular issues.Using a combination of research, modeling and analytics, Zinnov works with its clients to outlinethe problem, identify key contributing factors, analyze the data and develop possibleresolutions. Zinnov uses sophisticated spreadsheets and modeling tools to illustrate for clientsthe cost-benefit of each scenario, enabling its clients to evaluate each flexible workforce solutionbefore they make significant and potentially costly changes to their workforce.Benefits of the FWA Modeler  FWA modeler helps to understand how the flexible work schedule is functioning in an organization.  It is a self assessment framework for companies that when applied to organizational variables gives a precise view of the benefits of alternative work schedules.  It acts as a ready model for tracking savings from time to time by applying the relevant figures.  The modeler helps in developing policies aligned to job categories suitable for FWA  It helps in drawing up schedules in keeping with client demands  The inferences drawn from the modeler help to determine whether flexible work hours, telecommuting, compressed work schedules or part-time would best serve the business model.Zinnov Confidential. No part of this report may be circulated, quoted, or reproduced without prior writtenapproval from Zinnov 8
  10. 10. About ZinnovFounded in 2002, Zinnov – meaning Zeal in innovation - is a leading management consultingcompany providing services in the area of Offshore Advisory, Market Expansion and HumanCapital Optimization to Fortune 1000 companies. They work collectively with clients to tackleprevailing Organizational challenges by analyzing the changing dynamics, improvingperformance, and building institutional capability. The services delivered to their clients throughadvanced reasoning and analytical techniques, provides solutions that help in integratingOrganizational vision, business definition & processes.Web: www.zinnov.comEmail: info@zinnov.com Zinnov21, Waterway Ave, 69 "Prathiba Complex",Suite 300 4th A Cross,The Woodlands Koramangala Ind. Layout, 5th Block,TX – 77380 Koramangala Bangalore – 560095Phone: +1-281-362-2773 Phone: +91-80-41127926/7575 N. Pastoria Ave Vatika Business Centre,Suite J 2nd Floor, Block B,Sunnyvale 1st India Place, M.G Road,CA – 94085 Gurgaon – 122002Phone: +1-408-716-8432 Phone: +91-124- 4028888Zinnov Confidential. No part of this report may be circulated, quoted, or reproduced without prior writtenapproval from Zinnov 9

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