Ellen Galinsky National Human Services Assembly August 19, 2008 Making Your Organization an Employer of Choice— Bold Ideas for the Caring Workplace

Part I What Do We Know About Low-Wage, Low-Income Employees 2

3 Definitions We define low-wage employees as those whose earnings fall in the bottom 25% of the earnings distribution, which is less than $9.73 per hour in 2005 dollars We define low-income families as those whose total annual income from all sources falls below 200% of (2 times) the federal poverty threshold — $39,612 for a two-parent family with two dependent children in 2005 Source: Supporting Entry-Level, Hourly Employees Research Brief No. 1, 2006

4 Definitions Over half (54%) of low-wage employees live in low-income households 12 to 13 million employees meet this definition at the time the last National Study of the Changing Workforce was conducted This is not a static category. For example, low- wage employees living in middle-income families at or above 200% of the federal poverty level can easily slip into low-income status Source: Supporting Entry-Level, Hourly Employees Research Brief No. 1, 2006

5 Demographic Comparisons: Age and Gender Most low-wage and –income employees are not teenagers, though they are disproportionately younger than more advantaged employees Low-wage and –income employees are almost equally likely to be men (48%) as women (52%) 70% of low-wage and –income women are the sole wage earners in their families Source: Supporting Entry-Level, Hourly Employees Research Brief No. 1, 2006

6 Demographic Comparisons: Marital Status and Parental Status More than two in five low-wage and –income employees (42%) are married or living in committed, long-term relationships — despite the fact that more than half are less than 30 years old While 14% of all low-wage and –income employees are single parents, 86% are not The proportion of single parents rises to 25% among women Source: Supporting Entry-Level, Hourly Employees Research Brief No. 1, 2006

7 Demographic Comparisons: Race/Ethnicity and Immigrant Status The majority (57%) of low-wage and –income employees are white and non-Hispanic Only one in five low-wage and –income employees (21%) is an immigrant Source: Supporting Entry-Level, Hourly Employees Research Brief No. 1, 2006

8 Demographic Comparisons: Education Levels Only 3% of low-wage and –income employees have a 4-year college degree or more Source: Supporting Entry-Level, Hourly Employees Research Brief No. 1, 2006

9 Employment Status: Years in Labor Force Low-wage and –income employees have been in the labor force for fewer years than other employees Source: Supporting Entry-Level, Hourly Employees Research Brief No. 1, 2006

10 Employment Status: Size of Employers 36% of low-wage and –income employees work for employers with fewer than 25 employees Source: Supporting Entry-Level, Hourly Employees Research Brief No. 1, 2006

11 Access to Benefits Source: Supporting Entry-Level, Hourly Employees Research Brief No. 1, 2006 This group has limited access to benefits

12 Access to Flexibility Source: Supporting Entry-Level, Hourly Employees Research Brief No. 3, 2006 Access to flexibility is uneven

13 Access to Flexibility (continued) Source: Supporting Entry-Level, Hourly Employees Research Brief No. 1, 2006

14 Access to Flexibility (continued) Source: Supporting Entry-Level, Hourly Employees Research Brief No. 1, 2006

15 Part II Why Employers Are Concerned About Creating Effective Workplaces

16 The Economy Is Changing It has shifted from an industrial to a knowledge and service base It is fast paced and fiercely competitive It is global and 24/7 Source: 2004 When Work Works

17 The Demographics of the Workforce Have Changed — with Four Generations Now Working Together Matures ( )  Between the ages of Baby Boomers ( )  Between the ages of Generation X ( )  Between the ages of Generation Y ( )  Between the ages of Source: 2004 Generation & Gender in the Workplace

18 The Demographics of the Workforce Have Changed Over the Past 25 Years (from 1977 to 2002) There are more women (from 42% to 49%) There are more people of color (from 12% to 21%) There are more employees over 40 years old (from 35% to 56%) Sources: 1977 QES and 2002 NSCW

19 Work Has Changed Over the Past 25 Years Work is more demanding and hectic Technology is blurring the lines between work and non-work times There is an expectation of instant responses and many interruptions: 56% of employees often or very often have these problems Sources: 1977 QES, 2002 NSCW and Overwork in America 2005

20 Family Life Has Changed Over the Past 25 Years There are more dual-earner couples (from 66% to 78%) More employees have elder care responsibilities (currently 35%) More men are involved in the care of their children — from 24% to 30% take as much or more responsibility for the care of their children as their wives, according to their wives Sources: 1977 QES and 2002 NSCW

21 Source: 2002 NSCW Today in the U.S., Among All Employees… 39% are not fully engaged in their jobs 54% are less than fully satisfied with their jobs 38% are somewhat or very likely to make a concerted effort to find a new job in the coming year 33% are exhibiting one or more symptoms of clinical depression 46% of men and 41% of women are experiencing some or a lot of conflict in their work and family life

22 Meet the changing workforce and workplace dynamics Increase employee commitment and engagement Improve retention Improve mental health and productivity of employees Continue to meet organizational goals and objectives Employers Are Looking for New Ways to Make Work “Work” — to Create More Effective Workplaces Source: 2004 When Work Works

23 Families and Work Institute Has Identified Six Research-Based Criteria for an Effective Workplace for Employees in General 1.Providing job autonomy 2.Creating learning opportunities and challenges on the job — where employees can grow, learn and advance 3.Developing environments where supervisors support employees in being successful on the job Source: 2004 When Work Works

24 4.Developing environments where coworkers support each other for job success 5.Involving employees in management decision making 6.Creating flexible workplaces Criteria (continued) Source: 2004 When Work Works

25 There Are Positive Outcomes for Employees in Effective Workplaces 81% 18 Job Satisfaction L M H % 15 3 Engagement L M H 77% 14 9 Retention L M H 36% 49 Mental Health L M H Sources: 2002 NSCW, 2004 When Work Works

26 What Is an Effective Workplace for Low-Wage Low-Income Populations?

27 We Expanded the Definition of an Effective Workplace Source: Supporting Entry-Level, Hourly Employees Research Brief No. 2, 2006

28 Comparing the Impact of an Effective Workplace Source: Supporting Entry-Level, Hourly Employees Research Brief No. 2, 2006

29 Comparing the Impact of an Effective Workplace Source: Supporting Entry-Level, Hourly Employees Research Brief No. 2, 2006

30 Overall, the characteristics of effective workplaces are significantly associated with positive outcomes — in most instances — for the workforce as a whole An effective workplace, however, makes a bigger difference in a number of ways for low-wage and –income employees than their higher wage counterparts Overall Findings Source: Supporting Entry-Level, Hourly Employees Research Brief No. 2, 2006

31 FWI’s 2008 National Study of Employers is the most comprehensive and far-reaching study of practices, policies, programs, and benefits provided by U.S. employers It is nationally representative of employers with 50 or more employees and provides trend data on changes over the past 10 years In this study, we examined the predictors of employers most likely to provide flexibility, care giving leaves, and child and elder care services — and two predictors consistently emerged: being a non profit and having more racial and ethnic diversity in top positions! New Findings from the 2008 NSE Source: Supporting Entry-Level, Hourly Employees Research Brief No. 2, 2006

32 Part III Turning Research into Action: When Work Works

33 1.See your effort in stages from changing awareness to changing behavior to engaging people in action 2.Know how people see your issue before you begin 3.Know what you want people to do 4.Messages are critical –Unexpected messages have stopping power –Spell out the costs of not taking action as well as the benefits of change –Project into the future –There should be different messages for different groups Eight Lessons for Creating Change that Lasts Source: Galinsky, 2008, Eight Lessons of Public Engagement

34 5. Unexpected messengers also make a difference 6. Target the people who have the power to bring about change — recognize, connect and assist them 7. Take advantage of opportunities as they arise 8. Detail expected outcomes, assess results and make change Source: Galinsky, 2008, Eight Lessons of Public Engagement Eight Lessons for Creating Change that Lasts (continued)