Change, Challenge, and Competence

HRM 3150 Spring 2006

Work/Life Balance
Professor Craig W. Fontaine

Work/Life Statistics
According to the US Department of Labor- 72% of absenteeism is due to child-care related issues Approximately 42% of workers will provide some form of elder care by 2002-Families and Work Institute 57% of the class of 1999 graduating business students in 11 countries said that attaining work/life balance is their top career goal-PricewaterhouseCoopers survey 2000 When asked what their number one concern was about their career in 2002, 32%of respondents said work/life balance. This was followed by job security at 22% and competitive salary at 18%-Office Team Specialized Administrative Staffing Survey 2002

*According to the Center for Ethical Business Cultures

The Facts of Overwork

From 1970 to 2000 American managers are working an additional month per year Today nearly 1.8 million managers work 49 or more hours per week (40% of men; 20% of women) Top executives are working 50-70 hours per week Month of Work

Percent of Male and Female Managers by Time Commitment to Work

50
41.2 28.6 28.6 Male Female 11.0 4.4

Percent of Sample

40 30 20 10 0
20.9 25.9

39.5

Fewer than 40 hours per week

40-50 hours per week

51-60 hours per week

Greater than 60 hours per week

Conflicts Between Family and Work.

Workers experienced more conflict when there is a child in the home who is under 18. Managerial staff experienced greater conflict, than skilled or semi skilled workers. Among full-time workers men reported greater conflict than women, even when actual hours of work are taken into account. The highest levels of conflict were found in managerial men who have children under 18.

Work Patterns Women with Children

76% of women returned to work in a manner consistent with the intention they held during pregnancy. 14% had intended to work but did not. 10% had intended to work FT but worked PT.

20

40

60

<4 0, n ok id s s< 4

kid kid s4 -1 2 s> 12 kid s ou to fh om e >4 0, no ki ds

kid

Percentage Report Role Conflict

husband wife

10

20

30

40

50

co up le< 40 ,n ok id s k id s< 4 k id s4 -1 2 kid s> 12 om e

kid s co up le> 40 ,n ok id s ou to fh

Percentage Reporting being under Time Pressure

wife

husband

Husbands View Perferred Work Hours Change

4 2 0 -2 -4 -6 -8 -10 husband wife

<40,NK kids<4 kids4-12 kids>12 KOH >40

Wifes View Perferred Work Hours Change

kid s4 -1 2 kid s> 12 kid s ou to fh >4 om 0, no e kid s <4 0, no kid s kid s< 4

0 -2 -4 -6 -8 -10

husband w if e

Work/Life Balance and Organizational Culture

Organizational Culture is the single biggest driver of Work/Life Balance Programs HRM practices are a manifestation of Organizational Culture
Values Strategies

Good management practices are associated with better WLB

3.6 Management Quality 3.5 3.4 3.3 3.2 3.1 3 2.9 Very Low Low Average High Very High W ork-Life Balance in Firm
Source: Firm survey, raw data, 525 Firms

A Shift in Focus
From
Standardization Monetary rewards Top-down Work-primary Time management

To
Customization Total rewards Employee-driven Dual-focus worker Energy management

Individual flexible work Workplace flexibility arrangements (as a team sport)

What people want from their Jobs

Reasonably demanding work with some variety Opportunity to learn Some decision making Social support and recognition Significance & meaning Some desirable future
Job design principles At the level of the individual Respect Contribution to product Quantity & quality - feedback results quickly Meaningful whole task A whole job - plan, do, evaluate Variety Optimum cycle times At the level of the group? Whole, meaningful task Set standards, feedback on results Ways of discussing jobs Attractive future possibilities

What Makes a Good Job

Creating Meaningful Workplaces (Job Design) Providing Flexible Work Arrangements Designing Work Space

Hackman & Oldhams Job Characteristics Model

Core Dimensions Psychological States
Meaningfulness of work Responsibility for outcomes Feedback Knowledge of results

Outcomes

Skill variety Task identity Task significance Autonomy

High

intrinsic motivation job performance job satisfaction

Low
absenteeism & turnover

Hackman-Oldham Job Diagnostic Survey (JDS) http://homepages.wmich.edu/~mallakl/surveys/jds.htm

Job Design: Creating Meaningful Jobs

Job Rotation The periodic shifting of a worker from one task to another. Reduces boredom and increases motivation through diversifying the employees activities. Job Enlargement The horizontal expansion of jobs. Attacks the lack of diversity in overspecialized jobs; does little to instill challenge or meaningfulness to a workers activities. Job Enrichment The vertical expansion of jobs.
Employee does a complete activity

Expands the employees freedom and independence, increases responsibility, and provides feedback.

Flexible Work Options

Full-time work
Flextime Compressed workweek Telecommuting (more Later)

Less than full-time work

Regular part-time Job sharing Phased return from leave

Telecommuting is
A flexible work arrangement that conveys respect to all employees A practice that provides evidence of managements willingness to try new practices to support employees work-life balance A creative example of paying attention to employees as people, not just as employees

Telecommuting is also
A practice that challenges some traditional assumptions about where and when work should be done A practice that requires that support be provided to managers to teach them management styles that work with telecommuters A practice that requires that a certain level of trust exists between employees and management in order to be successfully implemented in a department or organization

Employee Responses to Flexible Work Arrangements

94 percent are very satisfied with their work arrangements 70 percent reported less stress 81 percent said they were more effective at balancing work and their outside lives 48 percent use flex work to deal with family responsibilities and child and/or elder care 36 percent said they would leave the company if flex work were not available 78 percent said their opportunities for advancement were the same or better than when they worked a traditional schedule

Managers Responses to Flexible Work Arrangements

63 percent would highly recommend flex work arrangements. 37 percent reported that flex work led to an increase in employee efficiency

Flexibility Must Be Taught

Training for HR, managers and employees
Employee checklist: Am I a good candidate for telework? Performance manager checklist: Am I appropriately prepared to manage a flexible workforce? HR manager checklist: Am I prepared to help mediate, link/develop appropriate systems and make workplace flexibility succeed?

Workspace Considerations
Office size
Previously size was linked to status More recently, less office space for individuals, more for groups and teams to meet

Office arrangement
Desk arrangement significantly influences interaction

Privacy
Caves vs. cubes

Hotelling
Shared office space, with no individual offices or desks

Feng Shui
Ancient Chinese system for arranging a persons surroundings so they are in harmony and balance with nature Possible considerations
Office location and layout Desk position Water Plants and flowers Reflections

Does it work? Tends to make people feel comfortable, and increases satisfaction

Business Case for Flexibility

Research documents a strong positive relationship between flexibility and productivity Key driver of retention Major contribution to motivation Top performers are the most interested Employers of choice have significantly better financial outcomes

Business Benefits
Productivity
Caliber of Employees Quality Products & Services Innovation & RiskTaking

Costs
Turnover Costs Resistance to Change Health-Care Costs

Result: Increased Productivity, Loyalty & Profitability

The CIPD Future of Work research: profits per employee increase with the use of HR practices
4000

Profit per employee ()

3000

2000

1000 0 to 4 5 to 7 8 to 10 11+

Number of HR practices
Source: FoW (N=297)

People management and development practices have the biggest influence on company performance
18% 16% 14% 12% 10% 17% 17%

Percentage of variation in change in company performance accounted for by managerial practices

8% 6% 4% 2% 0% Profitability HRM 2%

8% 6% 3% 1% 1% 1% 1% Productivity Quality Technology R&D

Strategy

Voluntary Turnover 100 Best vs. Industry Average

VOLUNTARY TURNOVER CALCULATION:
55 50 45 40 35 30 25 20 15 10 5 0

49

Voluntary Turnover

Number of full time voluntary separations over the past year (excluding retirements) divided by the number of full time employees

33 26 20 16 10 5 13 11 8 20 15 10 18 17

il s itals Hot els cturing Ret a rtation ials i ce ess irel Mater l Serv Hosp fa W spo ch/ ld ing anci a a nu ra n e M T hT ui ice/ Fin /Hig tion/ B e rv r c ute al S st ri mp onstru u Co C Ind

100 Best

Industry Average

Fortune 100 Best v. Stock Market

1998-2001
18.20% 10.97%

5.70%

5.31%

Top 50

Bottom 50

Fortune 100 Best

Frank Russell Company, 2002

S&P 500

Russell 3000

Market

Fortune 100 Best vs. Stock Market

1998-2002
9.86%

4.86%

Top 50 -0.56% -0.71%

Bottom 50

Fortune 100 Best

S&P500

Russell 3000

Market
Source: Frank Russell Company, 2003

Flexible Work Arrangements at General Mills

Performance is measured by results, not physical presence (face time). The same opportunity is offered for everyone (all have access to a consistent application process and general framework that leads to situation-specific decisions). Decisions about a request are businessbased and reason blind. Managers are not to focus on the reason why an employee wants a particular schedule but on the way the employee will work and the impact on business results.

General Mills
Employees lives are complex - employees need to access quality of life resources at work as well as needing flexible schedules and time away from work Provides opportunities for work-life balance to help employees remain engaged and energized while working Return to company comes in additional innovation, creativity and productivity employees provide because they are respected and engaged One plant has developed a Work at Home network that meets regularly to share learnings, talk about key issues and assemble a "start up from home guide A Flexibility Task Force was charged with developing the formal flexibility policy - the company has moved from 24% of the workforce taking advantage of some type of flexible arrangement three years ago to more than 50% taking advantage of a flexible arrangement today

Working Smart at Intuit

Employees are measured on what they produce, not when and where Programs are characterized by a belief that offices can exist without walls and without time clocks Telecommuting policy
keeps cars off the road, reduces stress, and enables employees to meet family commitments

Other work/life programs include part-time schedules, and flexible work arrangements

Working Smart by the Numbers

Approximately 64% of the workforce can take advantage of flex time schedules Approximately 61% of employees have remote access capabilities At the managers discretion job sharing and compressed workweeks are provided Intuit experienced approximately 9% voluntary employee turnover in 2003 compared with a tech industry average of approximately 16%

Ernst and Young

E&Y embraces flexibility, and encourages people to work where and when they choose, Individuals can make the decision of how they will get their work completed All professionals have laptop computers, access to the Ernst & Young network from anywhere and 24 hour-a-day technical support 30% of employees telework on a routine basis, with another 20% teleworking on an occasional basis Formal teleworkers can receive a printer/copier /fax/scanner machine provided by the firm in addition to extra phone lines The total number of FWAs for 2003 is at 2,300, with an increase in men on FWAs. Men now make up 21% up from 13% last year.

Ernst and Young Support Programs

To encourage the use of FWAs eligibility for full-time benefits is offered to all people working 20 hours or more so a shortened work week does not lead to a reduction in benefits Two firm-wide electronic databases support the use of FWAs
The FWA Database presents the stories of current FWA users to help inspire others to pursue a flexible work arrangement (currently 600 profiles are available including profiles of admin support professionals) The FWA Roadmap is available to help people create their own customized flexible roadmap proposal to discuss with a supervisor or HR person Within the FWA Roadmap program a Common Myths sectin provides answers to questions about challenges, eligibility, duration, commitment, promotions, assignments, compensation, teaming, communications, fairness and equity, and supervision.

Astra Zeneca
Encourage smarter and more focused work practices Respect employees time and their lives outside of work Value diversity Focus on results rather than face time and do not equate long hours with commitment Make business decisions with people in mind

Flexibility at Astra Zeneca

AstraZeneca offers Flexible Work Arrangements (FWA) to support and help employees manage their commitments both inside and outside the workplace. Currently AstraZeneca employees utilize: Flextime-- Employees work a full-time schedule but vary their workday start and end times around the companys core hours of 9:30 AM to 2:30 PM. Compressed Work Week (including Flexible Fridays)-- Available year-round, employees work a full time schedule in less than five full days per week.. Part-time-- A part-time employee is any employee who works less than the regular full-time (37.5 hours per week) work week schedule. Job Sharing-- Two employees share one regular, budgeted, full-time position. Teleworking-- Teleworking enables employees to engage in office-type work at home or at another work site instead of at their designated office locations for one or more days each week. Teleworking utilizes advanced networking technology to connect employees with their work databases, supervisors, other AstraZeneca employees and their internal or external customers. The company outfits their core telecommuting population with dedicated T1 Internet lines and state of the art equipment in their home offices. Teleworking Training for both employees and their managers is a required element of the program

Common Themes
A vision of the workplace that includes flexibility is articulated by senior management A strategy exists to design and promote flexible work arrangements FWAs are seen as a retention tool Resources are provided to employees as well as managers, who are also trusted to be able to use FWAs appropriately Positive publicity is used to spread the word and encourage participation Evaluation of the use of FWAs occurs regularly

Everything is Interrelated
Strong linkage to other HR and business systems
Total rewards strategy Performance management Human resource information systems Absenteeism, headcount and other relevant policies and practices