Flexibility Works!

1. How and why to incorporate workplace flexibility into your culture! Flexibility Works!     July 16, 2014

2. Workplace Flexibility • Current State • While large percentages of employers report that they have at least some workplace flexibility, the number of options is usually limited and they are typically not available to the entire workforce.

3. Workplace Flexibility • Current State • Women without children would rather have more free time than make more money (68%) • Even more than those with children (62%). • About 40 percent of professional men work more than 50 hours per week. • Of these, 80% would like to work fewer hours. • 1 out of 5 employees care for elderly parents, • A number that could increase to almost half of the workforce over the next several years. • By 2025, Gen Y employees, now in their 20s, will grow to represent 75 percent of the workforce. • For this emerging generation, work life fit is valued more than compensation, growth or skill development. • Technology is an enabler for workplace flexibility • Widespread availability of smartphones • Increased access to wireless technology • Advent of videoconferencing

4. Why Workplace Flexibility … Why Now? • Your workforce is changing and your workplace has to adapt

5. Why Workplace Flexibility … Why Now? • Workplace Flexibility is Good Talent Strategy • A Broader Talent Pool • If talent doesn’t need to be in the office, your talent pool is suddenly national even global - not local or even regional. • Buy In • When talented employees decide to work from home three days a week, they are making a serious commitment to the organization. Instead of working for you, they are working with you. • Higher Morale • Studies show that organizations that offer workplace flexibility have less absenteeism and turnover, and higher levels of engagement and productivity. • Value Added • Truly engaged employees don’t leave the job behind when they’re off the clock. They carry their work and current projects with them 24/7.

6. Workplace Flexibility is….Smart HR Strategy • Should be seen as a strategic move NOT an employee Benefit • Progressive companies have an easier time attracting and retaining talent • Affects employee productivity, your real estate footprint, energy use and other determinants of the bottom line. • Giving people more control over when and where they work tends to also drive a greater focus on results and accountability. 1 • The average company pays between $12,000 and $15,000 per employee in facility cost, yet 30% to 40% of physical workspaces are vacant at any given moment on a regular business day. 1 • Traffic jams cost Americans in urban areas an estimated 4.2 billion hours that flexible workers can convert into productive time.1 Source: Deloitte – “Workplace Flexibility – Take Control of Letting Go”

7. Workplace Flexibility… • Everybody Wins • People • Planet • Profits

8. What is Workplace Flexibility? • A business strategy that allows workers to make choices about core aspects of their work related to: • Time – when and how long work is performed; • Place – where work is performed, and/or • Task – the specific tasks that are performed

9. Types of Flexible Work Arrangements • The Right Fit for your Organization, Culture and Workforce

10. Workplace Flexibility Prevalence • Teleworking, flex time and part-time schedules continue to top the list. Source: WAW Survey on Workplace Flexibility (2013)

11. Flexible Work Arrangements – Obstacles/Barriers • Real or perceived • Employee • A ‘face time’ culture • Excessive workload • Manager skepticism • Customer demands • Fear of negative career consequences • Employer • Concern over abuse of ‘policies’ • Reactions of customers/clients • Difficulties with supervising employees whom aren’t ‘present’ • Loss of productivity • Treating employees equally

12. Flexible Work Arrangements - Obstacles • The Debate

13. Legal Considerations • Legal risks can be mitigated by having comprehensive policies, procedures and agreements in place. • Company Property • Are employees using their own personal computer/smartphone? What happens if the property is lost, stolen or damaged? • Security and Confidentially • Consider requiring locked cabinets and frequently changing passwords. • Have your IT department ensure the employees’ home offices use secure connections. • Wage and Hour Issues • Ensure proper payment for all time worked including: • Overtime, waiting time, meals/break periods, etc. • Workers Compensation • What happens if an employee sustains an injury while working from home? Employers have a duty to create safe working environments regardless of whether the employee is in the office or working from home. • Consider performing regular site visits to ensure there are no safety hazards • Consider requiring employees to designate a particular area as a home office • Out of State Issues • If employees are located in a different state than where the employer is located, certain tax, leave and other laws may be applicable.

14. Making Workplace Flexibility Work • Flexible work will benefit your business and your people if it is part of your organization's • cultural DNA. But that won't happen if: • Telework, flexible hours, compressed workweeks and reduced schedules are stand-alone, uncoordinated "programs.” • HR develops flexible work policies and the technology group rolls out products in isolation. • "Flexibility" refers to the toolkit on the HR website that no one knows about or how to use. • Work flexibility is not part of an employee's everyday or potential long-term career path. 

15. Keys to building a flexible workplace

16. Building a Flexible Workplace World at Work – How to Implement a Compressed Workweek – October 2013

17. 1. Gather Data • Discover the current state of flexible work in your business and Create a shared vision of what flexibility will look like for people and the business • Needs assessment - Recognize that work life fit is an issue for everyone, not just woman and parents. • Solicit input during staff meetings • Conduct focus groups • Gather information via staff surveys (i.e. engagement, exit interviews, etc.) • Understanding your options • Remote work/telecommuting • Flexible work hours • Compressed workweek • Job Sharing • Etc.

18. 2. Frame your Business Case Financial/Operational Customers • Reduce regretted turnover rate • Increase sales • Increase productivity • Increase efficiency • Reduce (specific) costs • Improve customer satisfaction • Retain the best (most profitable) customers Employees Society • Recruit and retain the best talent • Improve employee engagement • Advance progress on a pressing societal need • Provide stewardship for the environment

19. Building the Business Case • Proof is in the pudding • 75 percent work more hours because of flexible work schedules • (work whenever and wherever they want) • 79 percent report increased productivity and 78 percent report increased efficiency • 64 percent reported improved work/life balance • 51 percent felt more relaxed because of flexible work World at Work – Survey on Workplace Flexibility - 2011

21. Business Case • Through telecommuting, Aetna has cut 2.7 million square feet of office space at $29 a square foot, for about $78 million in cost savings a year including utilities, housekeeping, mail service and document shredding. • In February 2010, remote work policies saved over $150 million over the five snow closures in December 2009 and February 2010 http://www.reuters.com/article/2013/03/01/us-yahoo-telecommuting-aetna-idUSBRE92006820130301 http://www.whitehouse.gov/files/documents/100331-cea-economics-workplace-flexibility.pdf

22. Bottom Line Business Results • Employees are Happier and Healthier • July 2011, survey by Staples Inc. of telecommuters • 25% reduction in stress • 28% increase in happiness • 80% = better work/life fit • 76% = put in extra time + more loyal

23. Bottom Line Business Results • Workflex is a key recruitment and retention tool • 2013 Workplace Flexibility Survey • 45% of workers would be willing to give up some percentage of their salaries in exchange for more workflex. • Workers 18 - 35 would give up 14% of their salary for more flexibility at work!

24. Building the Business Case • A video walking you through all the things to cement your business case • Why workplace flexibility is essential to ongoing business success. • http://www.youtube.com/watch?v=WUz2hH_T1nE

25. 3. Customize your Workflex Program • Remember, Flex is MORE than just Telecommuting • Flex Time & Place • Regular or short-notice flex time • Compressed workweeks • Telecommuting • Flex Careers • Sabbaticals • Dialing careers up & down • Phased retirement • Reduced Time • Part-time & part-year work • Time Off • Paid vacations & sick leave • Time off for caregiving • Choices in Managing Time • Self-scheduling & shift trading

26. Customize your Workflex Program • One size does NOT fit all Consider: • Needs of the business • Nature of the positions • Individual work style – technology available • Department restrictions/limitations • Individual performance • Starting with a pilot • Whether you need informal or formal policies • Program should respond to • the diverse needs of employees • business and operations • scalability To reflect different work environments, union representation, job suitability, etc.

27. Flexible Work Arrangements • Telecommuting/Remote Work - #1 Workflex Arrangement • To maintain high levels of productivity, collaborative technology must work consistently, invisibly and seamlessly. • Security is the one of the largest and most immediate workplace challenges.

28. Flexible Work Arrangements • Telecommuting/Remote Work • Gain control by enabling anytime, anywhere access instead of restricting usage • Support collaboration and mobile workers with communication tools • Address security proactively • Employ self service where possible • Implement desktop virtualization as an option

29. 4. Develop a tailored strategy that gets you from your current state to your vision • Include key stakeholders and make them champions/advocates of the program • Obtain senior management commitment where they take personal, visible action to support and sustain flexible ways of working. • Position flexibility as a business strategy, not personal accommodation or entitlement. • Make HR the facilitator of the program not the owner. • Engage management across different functional areas when developing the program.

30. 5. Overcome Resistance to Workflex

31. Build Readiness across the Organization to embrace strategic flexibility • Starting with your Managers • Have managers take the “flexibility challenge” • Identify the organizations/departments most pressing issues and concerns and consider how flexible work can be part of the answers • Identify the organization’s strengths and opportunities, and imagine how flexible work can help enhance these. • Enabling your Managers • Dedicate time and resources to training managers about the benefits of flexibility • Provide them with the skills, tools and capabilities they need to successfully lead flexible teams.

32. 6. Implement for Success • Engage people across functions • Design implementation plan • Brand flexibility initiatives and link to business imperatives • Implement flexibility universally, adapting policies and approaches to each location if necessary • Develop communication materials • Actively communicate flexibility options and approach • Invest in training • Provide training, guidance and tools to manager, employees and HR

33. Implement for Success • Provide support to middle managers and hold them accountable • Determine metrics to judge success • Create continuous feedback loop

34. Best Practice Example • What is a Flexible Work Arrangement • Benefits of Flexible Work Arrangements • Proposal Guidelines • Optimal Conditions for Flexible Work Arrangements • Common Challenges of Flexible Work Arrangements

35. In Closing - Keys to Success (summarized) • Let data support and determine your decision • A detailed analysis including data points such as attendance (badge swipes), travel and vacation days and commuting needs will uncover opportunities that are not always self-evident. • Build the business case with key stakeholders • Working with a core team of primary stakeholders across multiple disciplines, including corporate real estate, facilities management, technology support, environmental sustainability, human resources and others will ensure that the business case and the implementation plan are balanced and positioned for success. • Secure executive management endorsement and support • Buy-in at the top level of the organization will set a clear direction for implementation and expectations for success. This includes leading by example. • Develop a clear communication plan • Ensuring employees know what’s happening and why, and having ample opportunities to raise concerns and ask questions is crucial for the implementation to go smoothly and to maintain productivity. • Cultivate strategic partnerships – • Involve ‘line’ management and others in the development of your program/strategy, you’ll gain forward-thinking insights and buy in from an important portion of your population.

36. Keys to Success (summarized) • Invest in flexible, robust technology infrastructure • Having technology systems in place that create a plug-and-play environment supports both the implementation and ongoing maintenance of the program, and makes it easy for employees to work in the most flexible way possible while staying connected to their teams. • Never underestimate the human element • Transitioning employees  – executives and managers too – who have been accustomed to traditional hard, wall offices or assigned cubicles to a flexible work environment requires a significant amount of change management. • Know your organizational/global culture • Know your corporate culture and your local culture. • Expect the program to evolve over time to meet changing company needs -  • The program must be rigid enough to maintain balance and continue to achieve the original goals and objectives, but flexible enough to respond to the changing space requirements of a dynamic workforce.

37. Resources to Help You www.familiesandwork.org

39. Willis Human Capital Practice At Willis we understand the risk our clients face related to Human Capital, and what sets Willis apart is our value added solutions that focus on reducing human capital risk – beyond benefits. • Broker and Consultant • Program renewals and marketing • Carrier selection and implementation • Plan Design and open enrollment • Data Analytics • Subject Matter Expertise • Communications • Health Outcomes (Wellness) • HR Partner • National Legal and Reporting Group (NLRG) • Reporting and Analytics Contact your local office for more information on our Human Capital Practice