1. SHRM Survey Findings: Employee Benefits in California— Flexible Work Arrangements April 23, 2014

2. This is part two of a series of SHRM survey findings examining employee benefits in the workplace of California organizations. The following topics are included in the six-part series titled Employee Benefits in California:  Part 1: Wellness initiatives  Part 2: Flexible work arrangements  Part 3: Health care  Part 4: Leveraging benefits to retain employees  Part 5: Leveraging benefits to recruit employees  Part 6: Communicating benefits Employee Benefits in California—Flexible Work Arrangements ©SHRM 20142 Introduction

3. For the purpose of this survey, flexible work arrangements or flex work may include full- or part-time telecommuting, flexible scheduling, compressed workweeks, etc. Employee Benefits in California—Flexible Work Arrangements ©SHRM 20143 Definition

4. Do organizations offer flexible work arrangements to their employees? Fifty-eight percent of California organizations reported they offer flexible work arrangements to their employees. Among the organizations that provide these benefits, approximately two-fifths (42%) indicated the majority of their employees (more than half) are allowed to take advantage of these benefits. In 2012, by how much did employee participation in flexible work arrangements increase? Similar to organizations nationwide (33%), about one-third (30%) of California organizations reported that employee participation in flexible work arrangements increased since 2011. Employee Benefits in California—Flexible Work Arrangements ©SHRM 20144 Key Findings California

5. The numbers are rising for flexible work arrangements—the percentage of employers that participate in this benefit increased from 2012, and more organizations offer flex work to a broader scope of their payroll. This trend is in line with workers’ increased desire to manage their own time and better balance their work with their responsibilities out of the office. Separate SHRM studies have shown that many workers rate “the balance of work/life issues” as an integral factor in job satisfaction, and flexible work arrangements can offer a cost-effective means of delivering that balance. Other research by the Families and Work Institute revealed that an increasing number of men have expressed a need for flexible work to better balance their jobs and family responsibilities—proof that demand for such arrangements spans a broad segment of the workforce. Comparable to the overall U.S. organizations’ population, California organizations are on par or close to national averages regarding trends in flexible work arrangements. California is about the same in actual participation (58% of employers, compared with 57% nationally), and flexible work arrangements are available to a majority of organizations’ workers at a rate that is approximately the same in California (42%, compared with 45% nationally). Employee Benefits in California—Flexible Work Arrangements ©SHRM 20145 What do these findings mean for the HR profession?

6. Does your organization provide employees with the option to use flexible work arrangements? Employee Benefits in California—Flexible Work Arrangements ©SHRM 20146 Note: Respondents who answered “not sure” were excluded from this analysis.

7. Are the majority (more than half) of employees at your organization allowed to use flexible work arrangements? Employee Benefits in California—Flexible Work Arrangements ©SHRM 20147 Note: Only respondents whose organizations provided flexible work arrangements were asked this question. Respondents who answered “not sure” were excluded from this analysis.

8. How did employee participation in your organization’s flexible work change last year compared with the year before? Employee Benefits in California—Flexible Work Arrangements ©SHRM 20148 Note: Only respondents whose organizations provided flexible work arrangements were asked this question. Respondents who answered “not sure” were excluded from this analysis.

9. Does your organization monitor employee participation rates in its flexible work arrangements? Employee Benefits in California—Flexible Work Arrangements ©SHRM 20149 Note: Only respondents whose organizations provided flexible work arrangements were asked this question. Respondents who answered “not sure” were excluded from this analysis.

10. Demographics Employee Benefits in California—Flexible Work Arrangements ©SHRM 201410

11. Employee Benefits in California—Flexible Work Arrangements ©SHRM 201411 Demographics: Organization Staff Size n = 310

12. Employee Benefits in California—Flexible Work Arrangements ©SHRM 201412 Demographics: Organization Sector Note: n = 322. Percentages do not equal 100% due to rounding.

13. Percentage Professional, scientific and technical services24% Health care and social assistance13% Manufacturing12% Finance and insurance10% Government agencies8% Educational services8% Transportation and warehousing7% Retail trade7% Whole trade6% Real estate and rental and leasing5% Accommodation and food services4% Administrative and support and waste management and remediation services4% Construction4% Information4% Utilities4% Religious, grantmaking, civic, professional and similar organizations3% Mining2% Arts, entertainment and recreation2% Repair and maintenance2% Agriculture, forestry, fishing and hunting2% Personal and laundry services1% Other9% 13Employee Benefits in California—Flexible Work Arrangements ©SHRM 2014 Demographics: Organization Industry Note: n = 328. Percentages do not equal 100% due to multiple response options.

14. Employee Benefits in California—Flexible Work Arrangements ©SHRM 201414 Demographics: Other U.S.-based operations only79% Multinational operations21% Single-unit organization: An organization in which the location and the organization are one and the same. 30% Multi-unit organization: An organization that has more than one location. 70% Multi-unit headquarters determines HR policies and practices. 59% Each work location determines HR policies and practices. 5% A combination of both the work location and the multi-unit headquarters determines HR policies and practices. 37% Is your organization a single-unit organization or a multi-unit organization? For multi-unit organizations, are HR policies and practices determined by the multi-unit headquarters, by each work location or by both? Does your organization have U.S.-based operations (business units) only, or does it operate multinationally? n = 324 n = 325 Note: n = 234. Percentages do not equal 100% due to rounding. Corporate (company-wide)78% Business unit/division15% Facility/location16% Note: n = 234. Percentages do not equal 100% due to rounding. What is the HR department/function for which you responded throughout this survey?

15. SHRM Survey Findings: Employee Benefits in California—Flexible Work Arrangements Response rate = 13% 373 HR professionals in California organizations from a randomly selected sample of SHRM’s membership participated in this survey Margin of error +/- 5% Survey fielded May 3-June 7, 2013 Survey Methodology Employee Benefits in California—Flexible Work Arrangements ©SHRM 201415

16. Workplace Flexibility Resource Page Work Life Fit Resource Page Alternative Work Schedules Resource Page Creating an Effective Flexible Work Environment Managing Workplace Flexibility in California Employee Benefits in California—Flexible Work Arrangements ©SHRM 201416 Additional SHRM Resources

17. About SHRM Research For more survey/poll findings, visit www.shrm.org/surveyswww.shrm.org/surveys For more information about SHRM’s Customized Research Services, visit www.shrm.org/customizedresearchwww.shrm.org/customizedresearch Follow us on Twitter @SHRM_Research@SHRM_Research Project leaders: Christina Lee, researcher, SHRM Research Yan Dong, SHRM Research Project contributors: Alexander Alonso, Ph.D., SPHR, vice president, SHRM Research Evren Esen, director, Survey Research Center, SHRM Research Copy editor: Katya Scanlan, SHRM Knowledge Center 17Employee Benefits in California—Flexible Work Arrangements ©SHRM 2014

18. About SHRM 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.shrm.org 18Employee Benefits in California—Flexible Work Arrangements ©SHRM 2014