Workplace Flexibility: The Next Imperative for Business Success and HR Leadership Nancy Conway Field Services Director March, 2013

2 Business Leaders are Now Flex Fans “Perhaps the most important reason that work flexibility is a business imperative is because it produces better business results… specifically, by engaging and retaining the talented people who produce the high-quality work and competitive advantage.” “So where can we go from here -- we or any business? In my view, just as far as the flexibility of our thinking can take us.” Sharon L. Allen Board Chair Deloitte LLP

3 Today’s Agenda 1 ) What is Workplace Flexibility? 2) Why is it So Critical Today? 3)Why is it a Business Imperative? 4)HR Leadership and Flexibility Strategies 5)Case Studies 6) SHRM/FWI Partnership When Work Works

4 What is Workplace Flexibility ?

5 Workplace flexibility is a way to define how, when and where work gets done and how careers are organized. It is essential that flexibility work for both the employer and the employees to be effective. Flex-Time Traditional flextime Daily flextime Compressed work week Flex-Careers Sabbaticals Options for moving on and off the “fast track” Reduced Time Part-time work Part-year work Flex Place Telecommuting on an occasional or regular basis Flex-Leaves Time off during the workday Time off for personal illness Paid time off to care for children Parental Leave/ Elder Care Phased Retirement Arrangement for employee nearing retirement age to work reduced hours to transition into full-time retirement

6 Effective Workplaces Workflex = Perk Workflex = Effective Workplace

7 Why is it So Critical Today? Work-Life Fit is Complicated Time Famine Increasing eldercare responsibilities Dual-earner families More male work-life conflict Diverse, multi-generational workforce

8 Why is it So Critical Today? Challenge: Time famine According to FWI and Princeton University research, employees are increasingly experiencing a feeling of “time famine” or “not enough hours in the day”

9 Why is it So Critical Today? Challenge: Increasing eldercare responsibilities 2011 Metlife Study 20% US adults provide care to a parent Lost wages, pension, and Social Security benefits Average losses $324,000 - women $284,000 - men Care givers aged 50+ “fair” or “poor” health

10 Why is it So Critical Today? Challenge: More dual-earner couples Dual-earner couples 79% in % in 1977 US Workforce 50% female Mothers primary breadwinners: 4 in 10 families 2006 women earned 58% bachelor’s degrees 60% of all master’s degrees

11 Why is it So Critical Today? Challenge: More work-life conflict among fathers Percentage of fathers and mothers in dual-earner couples reporting work-life conflict ( ) Sources: 1977 QES, 2008 NSCW, FWI

12 Why is it So Critical Today? Challenge: Diverse, multi-generational workforce US workforce aging % in % in generations: Traditionalists Baby Boomers Generation X Generation Y (Millennials) ??? million Baby Boomers reached 65 Workforce entrants lack basic skills

13 Why is it a Business Imperative? 1) Employees are Happier, Healthier  25% reduction in stress  28% increase in happiness  80% = better work/life balance  76% = put in extra time + more loyal July 2011, survey by Staples Inc. of telecommuters

14 Why is it a Business Imperative? 2) Employees are more productive, engaged SHRM 2009 survey of HR professionals  67% = impacted job satisfaction and engagement  32% = increased employee productivity  42% = absenteeism decreased

15 Why is it a Business Imperative? 2) Employees are more productive, engaged

16 Why is it a Business Imperative? 2) Employees are more productive, engaged

17 Why is it a Business Imperative? August, 2010, SHRM-EIU survey: C-suite executives - two biggest challenges in next ten years: 1. Retaining and rewarding the best people 2. Attracting the best people 3) It is a key recruitment, retention tool Best strategy to address this challenge: 60% = “creating flexible workplaces”

18 Why is it a Business Imperative? 3) It is a key recruitment, retention tool

19 Why is it a Business Imperative? Cost of hiring/training new employees: 1.5 times employee’s salary Reducing turnover by 200 employees: $30 million in savings 4) It helps the bottom line

20 HR Leadership and Strategies HR must take the lead on flexibility "Flexibility is not an accommodation or favor, it's the linchpin. People have two things to give: their talent and their time. Flexibility is the equalizer that allows the talent we develop to deliver superior performance. HR is in a position to provide the advice that will help leaders to win.“ -- Ted Childs, Principal of Ted Childs LLC

21 HR Strategies and Leadership FWI 2012 National Study of Employers: Organizations increased options for when and where employees may work Employers reduced options on how much time employees may work Flex time with changing starting and quitting times rose = 66% in 2005 to 77% in 2012 Employees allowed to return to work gradually after childbirth or adoption decreased = 86% in 2005 to 73% in 2012 Access study at:

22 HR Leadership and Strategies Challenge: Resistance to flexibility

23 HR Leadership and Strategies 10 HR Strategies for Success 1.Recruit top management as flex champions 2.Position flexibility as a business strategy 3.Make the business case, focusing on ROI 4. Develop flexibility for all 5.Build management support

24 HR Leadership and Strategies 10 HR Strategies for Success 6.Listen to what employees say works best 7.Develop clear guidelines 8.Incent managers to support workflex 9.Track metrics 10.Communicate

25 Case Study #1 – gDiapers Direct-to-Consumer Retail Diaper Business Portland, OR – 18 employees

26 Case Study #2 – TURCK Inc. Manufacturing and Product Development Twin Cities, MN – 167 employees For Hourly Jobs, White-Collar Perks Factories and Other Employers Seek to Offer Workers More Control of Schedules Wall Street Journal Oct. 3, 2011 T.C. Worley for The Wall Street Journal

27 Case Study #3 – Bon Secours Medical Services Richmond, VA -- 12,000 Employees in the U.S.

28 SHRM / FWI Partnership  Program to educate employers locally about business benefits of flex through community partners  Share research and employer best practices  Recognize exemplary employers through the Sloan Award for Excellence in Workplace Effectiveness and Flexibility

29 When Work Works Guide to Bold New Ideas  Joint guide with best practices by winners of the Sloan Awards for Excellence in Workplace Effectiveness and Flexibility  Features 262 unique employers (450 worksites) of all sizes and industries  Available through the SHRMStore at  Use promo code WFP-12 to get 10% off the price of the Guide

30 SHRM Workplace Flexibility Resources Workplace Flexibility Resource Page at

31 Summary and Take-aways 1)Workplace flexibility is a way to define how, when and where work gets done and how careers are organized 2)Flexibility is more critical today because of complicated work/life fit and other new challenges 3)Flexible workplaces are a business imperative because they help the bottom line by promoting happier, healthier, more engaged, and more productive employees 4)Follow ten key HR strategies to develop and implement successful flexibility programs 5)Learn from best practices cases studies 6)Take advantage of SHRM and SHRM/FWI flexible workplace support resources

32 Final Message “ All of us want and need engaged employees – the ones who have an understanding of what must be done to add value to an organization. Workplace psychologists assure us that such engagement doesn’t come from a need to comply. It grows from a freedom to choose.” “That spells what’s next – a flexible workplace. Together with FWI, we’ll help you get there.” --Hank Jackson, SHRM President & CEO March, 2011 issue of HR Magazine

33 Continue the Conversation #workflex SHRMNancyConway Continue the Conversation

34 Questions? Nancy Conway, SPHR North Central Field Services Director (IA, MN, ND, NE, SD, WI) Old Cheney Rd, # Lincoln, NE