Use of Flexible Work Arrangements October 15 2014 2 Introduction and definition Introduction The 2014 Workplace Flexibility Survey was administered by the Society for Human Resource Management SHRM to identify the prevalence and types of flexible work arrangements ID: 677682
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Slide1
SHRM Survey Findings: 2014 Workplace Flexibility—Strategic Use of Flexible Work Arrangements
October 15, 2014Slide2
2
Introduction and definition
Introduction
The 2014 Workplace Flexibility Survey was administered by the Society for Human Resource Management (SHRM) to identify the prevalence and types of flexible work arrangements (
FWAs) organizations offer. The survey also examined employee use of these programs, metrics/analytics on FWAs, success factors, the impact of these programs on both employees and employers, and challenges associated with FWAs. The following topics are included in the two-part series titled “2014 Workplace Flexibility”:Part 1: Overview of Flexible Work Arrangements Part 2: Strategic Use of Flexible Work Arrangements DefinitionFlexible work arrangements, also known as workplace flexibility, or Workflex, are a dynamic partnership between employers and employees that defines how, when and where work gets done in ways that work for everyone involved (including families, clients and other stakeholders).
2014 Workplace Flexibility Survey—Strategic Use of Flexible Work Arrangements ©SHRM 2014Slide3
Establishing Methods to Measure the Impact of FWAs
Many
organizations have not
established any
methods to measure the impact of FWAs.Recruitment and Retention: Among the responding organizations that offered at least one type of FWA, two-thirds or more had not established any methods to measure the effect of FWAs on turnover, hiring costs and employee intent to stay and had no plans to do so in the future (66%-76%). One-fifth or less (13%-21%) had established methods to measure the impact of FWAs on these organizational outcomes
.
Employee Experience: About three-fifths to two-thirds of organizations had not established any methods to measure the effect of FWAs on performance appraisals, employee attitudes, employee engagement, and employee health and wellness (56%-67%). One-fifth to one-third (21%-31%) of organizations had established methods to measure the effect on these outcomes.Organizational Success: Two-thirds to four-fifths of responding organizations had not established any methods to measure the effect of FWAs on business continuity, health care costs, overall profits or revenue, organizational brand identify, employee diversity and inclusion, and real estate costs (69%-83%). One-quarter (24%) of organizations established methods to measure the effect on business continuity and less than one-fifth (11%-18%) established these methods for the other organizational success outcomes.
3
Key findings
2014 Workplace Flexibility Survey—Strategic Use of Flexible Work Arrangements ©SHRM 2014
Note: Results are based on responding organizations that offered at least one type of FWA.Slide4
Methods to Measure the Effect of FWAs on Organizational
Outcomes
The vast majority (92%) of responding organizations that offered at least one type of FWA had not established a method to measure its return on investment (ROI).
More than
four-fifths (83%) had not established a method to measure the effect of FWAs on organizational and employee performance (other than ROI).Usefulness of Methods/Processes to Help Organizations Implement a Measurement PlanMore than one-half (55%-60%) of responding organizations that offered at least one type of FWA indicated an industry standard on what data to collect, industry benchmarks to evaluate levels of success and an industry standard on how to analyze the data would be useful/very useful in helping
the
organization implement a process to measure the impact of FWAs.About one-half (46%-48%) indicated HR analytics software designed to analyze this type of data, and metrics and analytics training for staff would be useful/very useful; 41% reported HR analytics software designed to store the data would be useful/very useful.Importance of Various Factors to the Success of FWAsTwo-thirds or more (68%-83%) of responding organizations that offered at least one type of FWA indicated eight out of 16 factors were “very important” in contributing to the success of FWAs. These factors included support/buy-in from top management, commitment from employees to make it work and a supportive organizational culture, among others. About one-third indicated two factors were somewhat unimportant or not at all important to the success of
FWAs: employees from all levels
using FWAs and the policy/practice/program being gradually implemented (e.g., piloted with a small group) (31% and 35%, respectively).
2014 Workplace Flexibility Survey—Strategic Use of Flexible Work Arrangements ©SHRM 2014
4
Key findings (continued)
Note: Results are based on responding organizations that offered at least one type of FWA.Slide5
Impact of FWAs
The majority of organizations indicated that
FWAs
have had a positive impact on certain factors.
Recruitment and Retention: The majority (52%-75%) of responding organizations that offered at least one type of FWA indicated FWA options had a positive impact on retaining employees, attracting employees and turnover; about one-third (36%) indicated the same for the impact on hiring costs. Employee Experience: The majority (52%-84%) indicated FWA options had a positive impact on the quality of employees’ personal/family lives, employee morale/job satisfaction/ engagement, employee job autonomy and employee health and wellness; about one-third indicated the same for the impact on performance appraisals (36%) and employee career attainment/progression (32%).Organizational
Success:
The majority (52%-72%) of responding organizations that offered at least one type of FWA indicated FWA options had a positive impact on employee commitment to the organization, overall company culture and the company’s public image of being an employer of choice; about one-third indicated the same for the impact on ROI (35%) and supporting corporate social responsibility practices (30%). 5Key findings (continued)2014 Workplace Flexibility Survey—Strategic Use of Flexible Work Arrangements ©SHRM 2014
Note: Results are based on responding organizations that offered at least one type of FWA.Slide6
Individuals/Groups Involved in FWAs
Design:
About one-half (52%-54%) of responding organizations
that
offered at least one type of FWA indicated top management and those in an HR function/role (including CHRO) were involved in the design of FWAs at their organization “to a large extent;” just 13% indicated the same for line managers/supervisors.Implementation: About one-half (52%) indicated those in an HR function/role (including CHRO) were involved in the implementation of FWAs at their organization “to a large extent;” about one-third (31%-36%) indicated the same for top management and line managers/supervisors.Evaluation/Measurement: More than one-third (38%) indicated those in an HR function/role (including CHRO) were involved in the
evaluation/measurement of
FWAs at their organization “to a large extent;” about one-quarter (27%) indicated the same for top management and just 17% for line managers/supervisors.2014 Workplace Flexibility Survey—Strategic Use of Flexible Work Arrangements ©SHRM 20146Key findings (continued)
Note: Results are based on responding organizations that offered at least one type of FWA.Slide7
Many organizations that offered at least one type of FWA had not
established methods to measure the
effect of FWAs.
This may
be because it is difficult to link measurements to other initiatives, or it may indicate lack of experience in working with FWA metrics. Experts in both FWAs and HR metrics often advise organizations to choose a few key metrics of particular interest to their business leaders and focus on these metrics first; they can then build on these metrics and add additional measurements over time. See www.shrm.org, www.whenworkworks.org and www.hrcosting.com for resources for measuring the impact of FWAs.Not understanding the impact of FWA initiatives makes it more difficult to maximize their success. An important first step is to establish the main goal(s) of any FWA initiative. Once goals are articulated, it is much simpler to identify the metrics that can best demonstrate a program’s success. Common examples of factors to measure are employee absence, turnover
,
productivity, attitudes/morale, and health and wellness.As more organizations develop their FWA metrics, similarities in approaches could lead to informal industry standards. Meanwhile, more formal initiatives such as those spearheaded by SHRM, the American National Standards Institute (ANSI) and the International Organization of Standardization (ISO), could lead to the establishment of professional HR standards on FWA metrics.Because HR professionals report that many factors play a role in the success of FWA initiatives, the complexity of implementing these initiatives and ensuring their success cannot be underestimated. HR professionals and organizational leaders must therefore be thoughtful about their FWA strategies and consider multiple contributing factors when executing their strategies.2014 Workplace Flexibility Survey—Strategic Use of Flexible Work Arrangements ©SHRM 20147What do these findings mean for the HR profession?Slide8
The
HR professionals in
this research made a
strong case for
FWAs because of the positive impact on recruitment and retention, employee discipline, productivity, morale, the quality of employees’ work and their personal lives, health, and organizational success overall. These reported positive effects, along with relatively low reported negative effects, suggest that adopting these initiatives could benefit many organizations.Among the responding organizations that indicated they offered at least one type of FWA, top management and HR were generally involved in the design of FWAs at their organizations, but more organizations may benefit from getting line managers more closely involved in designing their FWA strategies.2014 Workplace Flexibility Survey—Strategic Use of Flexible Work Arrangements ©SHRM 20148What do these findings mean for the HR profession? (continued)Slide9
2014 Workplace Flexibility Survey—Strategic Use of Flexible Work Arrangements ©SHRM 2014
9
Methods
to
Measure the
Effect of
FWAsSlide10
Established method(s) to measure the e
ffect of FWAs on
recruitment and retention
10
Note: n = 246-250. Percentages are of those organizations that indicated they offered at least one type of FWA. Respondents who responded “don't know” were excluded from this analysis. Percentages may not total 100% due to rounding.
2014 Workplace Flexibility Survey—Strategic Use of Flexible Work Arrangements ©SHRM 2014Slide11
Established method(s) to measure the effect
of
FWAs
on
employee discipline2014 Workplace Flexibility Survey—Strategic Use of Flexible Work Arrangements ©SHRM 201411Note: n = 241-249. Percentages are of those organizations that indicated they offered at least one type of FWA. Respondents who
responded “don't know”
were excluded from this analysis. Percentages may not total 100% due to rounding. Slide12
Established method(s) to measure the effect
of
FWAs
on
employee excellence2014 Workplace Flexibility Survey—Strategic Use of Flexible Work Arrangements ©SHRM 201412Note: n = 233-249. Percentages are of those organizations
that indicated
they offered at least one type of FWA. Respondents who responded “don't know” were excluded from this analysis. Percentages may not total 100% due to rounding. Slide13
Established method(s) to measure the effect
of
FWAs
on
employee experience2014 Workplace Flexibility Survey—Strategic Use of Flexible Work Arrangements ©SHRM 201413Note: n = 233-245. Percentages are of those organizations
that indicated
they offered at least one type of FWA. Respondents who responded “don't know” were excluded from this analysis. Percentages may not total 100% due to rounding. Slide14
Established method(s) to measure the effect of FWAs on
organizational
s
uccess
2014 Workplace Flexibility Survey—Strategic Use of Flexible Work Arrangements ©SHRM 201414organization is able to continue delivery of products/services)
Note: n = 210-223. Percentages are of those organizations that indicated they offered at least one type of FWA. Respondents who responded “don't know” were excluded from this analysis. Percentages may not total 100% due to rounding. Slide15
Established method(s) to measure the ROI of
FWAs
and their effect on
organizational and employee performance2014 Workplace Flexibility Survey—Strategic Use of Flexible Work Arrangements ©SHRM 201415
Has your organization established a
method to measure the return on investment (ROI) of the FWA program?
n = 189
Has your organization established some other method(s) to measure the effect of
FWAs
on organizational and employee performance?
n = 187
Note: Percentages are of those organizations that indicated they offered at least one type of FWA. Respondents who responded “don't know” were excluded from this analysis. Slide16
How useful would the following items be to help your
organization
implement a measurement plan
?
2014 Workplace Flexibility Survey—Strategic Use of Flexible Work Arrangements ©SHRM 201416
Note: n = 195-200. Percentages are of those organizations that indicated they offered at least one type of FWA. Percentages may not total 100% due to rounding. Slide17
2014 Workplace Flexibility Survey—Strategic Use of Flexible Work Arrangements ©SHRM 2014
17
Impact of
FWAsSlide18
How important is
each of the following factors to the success of
FWAs
at your organization
?2014 Workplace Flexibility Survey—Strategic Use of Flexible Work Arrangements ©SHRM 201418Very importantSomewhat importantSomewhat unimportant/ Not at all important
Support/buy-in from top management (e.g., executive level, c-suite)
83%15%3%Commitment from employees to make it work (e.g., following the rules of policy)77%
19%
4%
Support/buy-in from employees’ line managers/supervisors
77%
18%
6%
Suitability of
the
job
for flexible work (e.g., receptionist)
76%
19%
5%
Supportive organizational culture
75%
22%
4%
Business needs allow for FWAs
72%
22%
6%
Employee understanding
of
how policy/practice/program works
69%
25%
6%
Success with managing employees with
FWA
options
(
e.g., schedules and work)
68%
27%
5%
Note: n = 149-155. Percentages are of those organizations that indicated they offered at least one type of FWA. Percentages may not total 100% due to rounding. Slide19
Very
important
Somewhat
important
Somewhat unimportant/ Not at all importantEmployee interest in/knowledge of policy/practice/program60%
32
%8%Organizational consistency in policy/practice/program implementation (e.g., not left solely to discretion of line manager/supervisor)56%
38
%
6
%
Policy/practice/program is well established
53%
29%
18%
Organizational consensus on policy/practice/program design
47
%
39
%
14%
Alignment of other workplace policies to support
FWAs
(
e.g., streamlined approval processes for changes)
41
%
43
%
16%
Encouragement by organization to participate in
FWAs
39
%
39
%
22%
Employees from all levels (i.e., executive through individual contributors)
use the FWAs
program
31
%
38
%
31%
Policy/practice/program was gradually implemented
(
e.g.,
piloted
with a small group)
28
%
38
%
35%
How important
is
each of the following factors to the success of
FWAs
at your organization
? (continued)
2014 Workplace Flexibility Survey—Strategic Use of Flexible Work Arrangements ©SHRM 2014
19
Note: n = 149-155. Percentages are of those organizations that indicated they offered at least one type of FWA. Percentages may not total 100% due to rounding. Slide20
What type of impact, negative or positive, have FWA
options had on
recruitment and retention
?2014 Workplace Flexibility Survey—Strategic Use of Flexible Work Arrangements ©SHRM 201420
Note: n = 149-185. Percentages are of those organizations that indicated they offered at least one type of FWA. Respondents who responded “don't know” were excluded from this analysis. Percentages may not total 100% due to rounding.
2%4%Slide21
What type of impact, negative or positive, have FWA
options had on
employee discipline
?2014 Workplace Flexibility Survey—Strategic Use of Flexible Work Arrangements ©SHRM 201421
Note: n = 141-163. Percentages are of those organizations that indicated they offered at least one type of FWA. Respondents who responded “don't know” were excluded from this analysis. Percentages may not total 100% due to rounding. Slide22
What type of impact, negative or positive, have FWA
options had on
employee excellence
?2014 Workplace Flexibility Survey—Strategic Use of Flexible Work Arrangements ©SHRM 201422
Note: n = 149-176. Percentages are of those organizations that indicated they offered at least one type of FWA. Respondents who responded “don't know” were excluded from this analysis. Percentages may not total 100% due to rounding. Slide23
What type of impact, negative or positive, have FWA
options had on
employee experience
?2014 Workplace Flexibility Survey—Strategic Use of Flexible Work Arrangements ©SHRM 201423
Note: n = 149-176. Percentages are of those organizations who indicated they offered at least one type of FWA. Respondents who indicated "Don't know” were excluded from this analysis. Percentages may not total 100% due to rounding. Slide24
What type of impact, negative or positive, have FWA
options had on
organizational success
?2014 Workplace Flexibility Survey—Strategic Use of Flexible Work Arrangements ©SHRM 201424
Note: n = 117-171. Percentages are of those organizations that indicated they offered at least one type of FWA. Respondents who responded “don't know” were excluded from this analysis. Percentages may not total 100% due to rounding. Slide25
2014 Workplace Flexibility Survey—Strategic Use of Flexible Work Arrangements ©SHRM 2014
25
Design, Implementation and Evaluation/Measurement of FWAsSlide26
To what extent are/were the following individuals/groups involved in the design
of
FWAs
at your organization?2014 Workplace Flexibility Survey—Strategic Use of Flexible Work Arrangements ©SHRM 201426
Note: n = 206-209. Percentages are of those organizations that indicated they offered at least one type of FWA. Percentages may not total 100% due to rounding. Slide27
To what extent are/were the following individuals/groups involved in the implementation
of FWAs
at your organization
?
2014 Workplace Flexibility Survey—Strategic Use of Flexible Work Arrangements ©SHRM 201427
Note: n = 205-209. Percentages are of those organizations that indicated they offered at least one type of FWA. Percentages may not total 100% due to rounding. Slide28
To what extent are/were the following individuals/groups involved in the evaluation/measurement
of FWAs
at your organization
?2014 Workplace Flexibility Survey—Strategic Use of Flexible Work Arrangements ©SHRM 201428
Note: n = 198-206. Percentages are of those organizations that indicated they offered at least one type of FWA. Percentages may not total 100% due to rounding. Slide29
2014 Workplace Flexibility Survey—Strategic Use of Flexible Work Arrangements ©SHRM 2014
29
DemographicsSlide30
Demographics: Organization industry
2014 Workplace Flexibility Survey—Strategic Use of Flexible Work Arrangements ©SHRM 2014
30
Note: n = 373. Percentages do not total 100% due to multiple response options.
PercentageManufacturing22%Professional, scientific and technical services
18%
Health care and social assistance13%Finance and insurance12%Government agencies7%Educational services
6%
Transportation and warehousing
5%
Utilities
5%
Construction
4%
Accommodation and food services
3%
Administrative and support, and waste management and remediation services
3
%Slide31
Demographics: Organization industry (continued)
2014 Workplace Flexibility Survey—Strategic Use of Flexible Work Arrangements ©SHRM 2014
31
Note: n = 373. Percentages do not total 100% due to multiple response options.
PercentageMining, quarrying, and oil and gas extraction3%Retail trade
3%
Agriculture, forestry, fishing and hunting2%Arts, entertainment and recreation2%Information2%Real estate and rental and leasing
2%
Religious, grant-making, civic, professional and similar organizations
2%
Wholesale trade
2%
Repair and maintenance
1%
Personal and laundry services
<1%
Other industry
12%Slide32
Demographics: Organization sector
32
n = 366
2014 Workplace Flexibility Survey—Strategic Use of Flexible Work Arrangements ©SHRM 2014Slide33
Demographics: Organization staff size
33
n = 360
2014 Workplace Flexibility Survey—Strategic Use of Flexible Work Arrangements ©SHRM 2014Slide34
n = 367
Demographics: Other
2014 Workplace Flexibility Survey—Strategic Use of Flexible Work Arrangements ©SHRM 2014
34
U.S.-based operations only77%Multinational operations23%
Single-unit organization: An organization in which the location and the organization are one and the same.
35%Multi-unit organization: An organization that has more than one location.65%Multi-unit headquarters determines HR policies and practices50%Each work location determines HR policies and practices
7%
A combination of both the work location and the multi-unit headquarters determines HR policies and practices
43%
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 = 370
n = 245
Corporate (companywide)
67%
Business unit/division
15%
Facility/location
18%
n = 245
What is the HR
department/function for which you responded throughout
this survey?Slide35
35
Response rate = 12%
525 HR professionals from a randomly selected sample of SHRM’s membership participated in this survey
Margin of error +/- 4%
Survey fielded April-June 2014Survey MethodologySHRM Survey Findings: 2014 Workplace Flexibility—Strategic Use of Flexible Work Arrangements2014 Workplace Flexibility Survey—Strategic Use of Flexible Work Arrangements ©SHRM 2014Slide36
For more survey/poll findings, visit shrm.org/surveys
For more information about
SHRM’s
Customized Research Services, visit
shrm.org/customizedresearchFollow us on Twitter @SHRM_Research2014 Workplace Flexibility Survey—Strategic Use of Flexible Work Arrangements ©SHRM 201436About SHRM ResearchProject lead:Karen Wessels, researcher, SHRM Research Project contributors: Evren Esen, director, Survey Programs, SHRM ResearchYan Dong, Survey Research Center, SHRM Research
Copy editor:
Katya Scanlan, SHRM Knowledge CenterSlide37
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
.
37
About SHRM2014 Workplace Flexibility Survey—Strategic Use of Flexible Work Arrangements ©SHRM 2014