Flexible Work Schedules Impac Essay, Research Paper

Executive Summary

For years, workers have been searching for a way to balance their personal and professional lives. Finally, companies have implemented a solution for this problem, flexible work schedules. The impact flexible work schedule s have had on organizations have been quite positive, benefiting both the employer and the employee. Such benefits include increase in productivity, employee retention, motivation, and a decrease in absenteeism, tardiness, stress, and turnovers. Companies that have successfully adopted this method include Hewlett-Packard, Baxter International, Nabisco, and Dupont, among others.

Flexible Work Schedules Impact on Organizations

For decades, the workweek of nine-to-five, Monday to Friday, has remained unvarying for millions of workers. Balancing both a personal and a professional life has proven to be very stressful. Many companies have sought out different methods of dealing with this problem, not only to benefit the employee, but also the company. The most implemented method is known as flexible work schedules (also referred to as flextime, flexible hours, flexible work arrangements, flexible options, job-sharing, compressed work weeks, flexplace, telecommuting, flexible scheduling, and flexible time schedules), which permit flexible starting and quitting times within limits set by management. This paper will explain the benefits of flextime; uncover the reality behind various myths; and present company cases where flextime has been successful.

Reality Behind the Myths

Employee Control

The mayor concern of flexible work schedules for almost every manager is not having control over their employees. In other words, if the employee is at home, how will the manager know he/she is working? Sandra Sullivan, founder of Flex-It, a Southington, Conn., consulting firm, asks these managers, How do you know they re productive now? (Capowsky, 1996, p. 15). When confronted with this question, most managers really have no idea. Managers believe that they are controlling their employee s work just by being able to see their bodies, but they aren t controlling their productivity. Rupert, from Rodgers and Associates , proposes something he calls managing by results, which suggests, managers need to learn to control the outcome of work as opposed to rigidly controlling where, when and how work gets done (Capowsky, 1996, p. 15). Managers must learn to accept the idea of flexible work arrangements. Sullivan goes as far to suggest that these arrangements make managers better at their jobs. She says, The industrial-age management style is based on oversight. The information-age style is based on achievement. Managers are forecasting; they are being proactive rather than reactive (Capwosky, 1996, pp. 15-16).

Employee Productivity

Fallacies about the productivity of employees are customary in many organizations. Managers believe that flexible work options will reduce their employee s output, and cut the company s profits. A recent survey, sponsored by the American Institute of Certified Public Accountants (AICPA), found that CPAs on flex become more efficient with their time and, because they are grateful for the arrangement, work harder (Dreike Almer & Kaplan, 2000). These findings are supported by various comments from CPAs, such as:

My responsibilities did not decrease. I am allowed to work on a schedule with fewer hours, but there is no coverage for the hours I am not here. People on flexible time at my firm are still expected to do the work of a full-time employee (Dreike Almer & Kaplan, 2000, p. 18).

Most managers who have implemented any kind of alternative work option say employees will become more responsible and more productive if you give them responsibility for their own performance and productivity (Capowsky, 1996). Other surveys, conducted by several companies after implementing flexible work options, conclude that employees are more committed, are more dedicated to the company and work even harder (Capowsky, 1996).

Employee Retention

Employee retention is very important for organizations. If employees come and go, companies would have to invest too much money in training them time and time again. Do flexible work arrangements really improve employee retention? Some managers are still skeptical. The AICPA survey proved that these arrangements work. More than 80 percent of the CPAs surveyed, reported that if their flexible work arrangement had not been approved, they would have left the firm (Dreike Almer & Kaplan, 2000). Thus, contrary to the myth, flexible work arrangements appear to be an effective retention tool for firms.

Customer Service

Myths of customer service deterioration tend to surge in the decision of flex implementation. For companies to attract and keep customers, they must provide an exclusive, unmatchable customer service. This would explain such a concern other this issue, but actually, if well planned out, having alternative work options can ensure that there is continues coverage even up to 24 hours a day (Capowsky, 1996). Moreover, there are ways to schedule more employees to be available during the busiest hours, without forcing the company to hire additional staff that is not necessary at other times (Capowsky, 1996). An important factor to consider when concerned with customer service and flextime is the size of the company and the number of employees with the arrangement. Rodgers and Associates Rupert states, Coverage won t amount to much if you only have two people out of 500 employees working a flexible arrangement. If you have a large number of people working flexibly, you have a more fluid character to your workforce (Copawsky, 1996, pp. 16-17).

Communication

The uneasiness of not being able to communicate with someone, be it your boss or an employee, is somewhat reasonable. This uneasiness appears to be a fear of change, which is inevitable in this modern age, when technology is so advanced. With flexible work arrangement, we may not be able to walk into someone s office at any moment and find them there, but we will know when and how we can reach them. In fact, Kwasha Lipton s, Karol L. Rose points out, Getting employees to stop working becomes more of a problem when they have more flexibility. When does one turn off the computer, the phone, the fax? These become the new issues (Capowsky, 1996, pp.17-18).

Benefits

Employer

Flexible work scheduling offers the employer several extremely alluring benefits. Such benefits include giving the employer an edge in recruiting new employees while also retaining, hard to find, qualified employees. Mike Kingsnorth, Monterey Wastewater Treatment Facility, operations and maintenance manager, says:

We have a very low rate of attrition. The average employee has been here 15 years or better. As far as utilities go, here in the North Florida area everyone wants to work for this company. Resumes are always piling up at the door, and people call all the time looking for a job (Rice, 2000, p 64).

A major benefit that organizations would be more than happy about is the increase in productivity and profit. The reasons for increased productivity and profit under flextime include the following:

Short-term absences are reduced as flextime gives employees more control over their schedules, allowing them to take care of personal business outside of their working hours; tardiness is reduced, since the work day begins when the employee arrives; morning coffee talk is reduced due to the staggered hours, resulting in quicker start times; employees will work during their most productive hours, either early in the morning or late in the evening; workers become more job focused, concentrating on the task before them rather than the actual time logged in the office; businesses can offer more flexible service to their customers/clients who may prefer early morning or late evening hours; and workflow is improved as supervisors are forced to communicate daily assignments and projects to subordinates to compensate for the times they are not in the office together (Gill, 1998, p. 70).

Productivity and profit can also increase since flextime results in less employee burnout and lower turnover rates (Burke, 2000).

Flexible work schedules provide a cost-effective way for companies to be competitive, since they do not add costs. For example, a company can reduce cost by cutting overtime. When engaging in flextime, employees agree on a specific schedule, thus overtime is no longer needed because there are different employees working at different hours. Finally, companies also benefit by complying and promoting environmental issues. For instance, acting in accordance with the Clean Air Act of 1964 and its amendments. By allowing their employees to work at home, less cars are used, thus air pollution is reduced.

Employee

Employers are not the only ones who benefit with these types of arrangements; employees receive a great amount of benefits as well. Flextime allows employees to set their own work pace, resulting in renewed enthusiasm, dedication, and even enjoyment of work. The Business Research Lab, a market research firm, says flexible scheduling makes for happier and more loyal employees (Rice, 2000, p. 62). Also, they are able to fit family, community, and social commitments into their schedules without jeopardizing work hours. This gives employees a number of opportunities, such as continuing with their education, going to doctor s appointments, spending more time with their children, and relaxing. Workingwomen can take advantage of flextime by being able to continue their professional career, and at the same time raising a family. As a result of allowing work arrangements employees can avoid heavy traffic and lengthy commute time, which will ultimately reduce stress. More importantly, flexible schedules offer employees a better balance between their jobs and their personal lives. As Dudley Bane, a senior consultant at Benefit Consultants Northwest, says, It gives wholeness to people (Burke, 2000, p. A14).

Company Cases

Hewlett-Packard Co.

Hewlett-Packard (H-P) is considered the pioneer of flexibility, an idea instituted in 1972 (Capowsky, 1996). It even has a work/life vision: to create an environment that encourages employees and managers to work together to achieve common company objectives for business success, while creating opportunities for balancing work with other life activities (Capowsky, 1996, pp.13-14). According to Jerry Cashman, work options program manager, H-P supports flexibility throughout the organization through open communication, including a guide to help employees choose work schedule options, management training, videotapes, an employee newsletter, even an on-line electronic tool (Capowsky, 1996, p. 14).

In a current situation, Hewlett-Packard ran into some customer service problems triggered by competitive pressure. Work moved to after normal business hours, so overtime was dramatically increasing, says Ron Kegle, West Geography manager for the Americas customer service and support unit (Verespej, 2000, p. 25). Another problem was that people were transferring out of the unit because of the high probability of working after hours and on weekends. Implementing a flexible work schedule solved the problem. In consequence, Kegle says:

We reduced overtime 36 percent and we were able to accommodate a growth in customer needs that was occurring at the same time without having to add more people. We had the proper staff. We just didn t utilize it properly because we had the traditional 8-to-5 mentality (Verespej, 2000, p. 25).

Without flextime, Hewlett-Packard would of probably fallen in debt.

Baxter International

In May 1997 Baxter International launched an alternative work arrangement that allows employees to propose different ways to get their done including telecommuting, compressed work weeks, job sharing, and flexible hours (Reese, 2000). Baxter supplies its employees with a seven-step guideline in order to help them design their proposals. They are asked to consider everything from their technological needs to making arrangement for responding to an in-office page while they are at home. The hallmark of Baxter s program is that the company never asks an employee s motives for structuring an alternative work arrangement (Reese, 2000). It does not matter whether a prospective telecommuter wants to be closer to a child s school or just does not like making a morning commute. Alice Campbell, director of work-life initiatives, says that the reason for doing this is:

We wanted to take the value judgment out of this, because one person s reasons for wanting to use an alternative arrangement shouldn t be considered better than another s. The decision should be based on business factors. The reasons for wanting to do this should be irrelevant (Reese, 2000, p. 72).

The efficiency of Baxter s work program is better exemplified at Baxter Exports, where 25 of the 72 employees take advantage of alternative work arrangements. Griffith Lewis, vice president of logistics, states, It makes managing different, but it doesn t make it harder, and it s definitely worth it (Reese, 2000, p. 72). He goes on saying, The program pays off in boosted morale, effective recruiting, better stress management, and increased productivity (Reese, 2000, p. 72).

Nabisco Biscuit Co.

At Nabisco Biscuit Co., the real push to institute flexible work options began in 1993, when the company conducted an employee work-life survey ( Stretching out, 1996). Michael Mardy, Vice President of finance states, More than 95 percent of our employees said they wanted more options in balancing their professional and personal lives ( Stretching out, 1996, p. 19). Similar to Baxter International, Nabisco produced internal guidebooks to help management and employees develop and evaluate their options. The employee guidebook suggests schedules for specific needs, and it tells employees to be aware of the impact flexible schedules may have on their co-workers and supervisors. The managers guidebook helps managers understand the range of options available. They also receive training so they can set clear policies and give employees accurate information. Employees at Nabisco can start anywhere from 7:00 a.m. to 10:00 a.m. In addition, one of the departments in this company set up all of its employees with computers at home, to save space.

National Association of Insurance Commissioners (NAIC)

Through a series of informal staff meetings, employee comments led to the conclusion that the traditionally structured work environment at the National Association of Insurance Commissioners (NAIC) was partially responsible for employees looking elsewhere for work. From there on the NAIC made a commitment to offer all staff members a menu of flexible work options supported by up-to-date technology. The work options that were put into place included telecommuting, compressed work schedules, flextime, infants in the workplace, business casual attire, a number of recognition programs, and a better communication system (Weatherford, 1999). Catherine J. Weatherford, Executive Vice President, states, The programs have proved to be low in cost and highly successful in reducing our turnover rate and in keeping valued employees (Weatherford, 1999, p. 40).

In two and a half years, the NAIC has not lost a single telecommuting employee to turnover. Which option has had the most success? Nearly 80 percent of the employees have chosen to participate either in flextime or compressed schedules. Weatherford says, The compressed schedule program is the most popular benefit we offer and has contributed the most to NAIC s reduction in turnover. Happily, we ve seen no noticeable reduction in productivity nor any other significant problems (Weatherford, 1999, p. 41). Flexible work arrangements have reestablished the NAIC as a highly effective organization. Weatherford ends with the following statement:

For obvious reasons, employees and managers are extremely motivated to find ways to make this program work. Fortunately, members have not voiced complaints-due in part because the departments are often staffed during the longer hours reflected in the expanded workdays required for employees to meet their required work schedules. Finally, there is no cost impact to this option (Weatherford, 1999, pp. 41-42).

Conclusion

Flexible work schedules have obviously caused a great impact in organizations. When employees have more control over their lives, when they have a say in when, where, and how they get their work done, and when they are given the opportunity to balance their work and personal lives, they become more, loyal, more committed, more motivated, less stressed, and most of all, more productive. Times are changing, and if more companies do not embrace this concept, they will be keeping their head in the sand.

References

Burke, A. (2000). Flexible work schedules give wholeness to people. Journal of Business, 15(6), A14.

Capowsky, G. (1996). The joy of flex. Management Review, 85(3), 12-18.

Dreike Almer, E. & Kaplan S. E. (2000). Myths and realities of flexible work arrangements. The CPA Journal, 70(4), 14-20.

Gill, B. (1998). Flextime benefits employees and employers. American Printer, 220(5), 70.

Reese, S. (2000). Working around the clock. Business and Health, 18(4), 71-72.

Rice, J. (2000). Flexibility in the workplace. Water Environment & Technology, 12(1), 62-64.

Stretching out the clock. (1996). Financial Executive, 12(1), 17-23.

Verespej, M. A. (2000). Flexible schedules benefit all. Industry Week, 249(13), 25.

Weatherford, C. J. (1999). Putting flexible work options to the test. Association Management, 51(12), 39-43.

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