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Overview: Ideally,
work/life balance programs support diversity and are effective recruitment and
retention tools. Trouble is, many companies don't deliver.
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Takeouts:
- Work-life strategies have not
just hit the corporate mainstream - they have become a driver toward competitive
advantage in an ever tightening employment market.
-
Even the most progressive approach to work-life strategies will fail without strong
commitment from management and a culture that accepts and supports the fact that
there's more to life than work.
- Not
implementing work-life strategies can add significant additional costs in staff
turnover, occupational health and safety and general performance levels.
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In just a few short years,
work/life balance has moved from a management buzzword to one of the major human
resource issues of the early 21st century. To maintain a competitive advantage,
businesses will need to work harder to attract and retain quality staff. Australia's
ageing population is already creating a critical skills shortage in many industries
that will only deepen as the baby boomer generation reaches retirement. Changing
demographics within the employment market - including greater numbers of working
mothers, mature workers and certain minority groups - is forcing companies to
deliver family-friendly strategies and offer flexible conditions for an increasingly
diverse workforce.
Despite the attention
given to the creation of work/life programs by many organisations in recent years,
the majority of employees today are still failing to reap the benefits of a balanced
professional and personal life.
Many work/life programs currently lack true business grounding, are frequently
at odds with corporate culture, and are often viewed by employees as add-ons and
concessions targeted primarily at women. Defining
the Balance The concept of work/life
balance has shifted significantly in recent times. Originally, 'balance' meant
devoting equal time to paid and unpaid roles, with a particular emphasis on family.
Recent studies have expanded the meaning to include the level of satisfaction
with and psychological commitment to work and non-work roles.
This broader understanding of 'balance' now incorporates aspects such as study,
volunteering, exercise or the significant increase in more senior workers involved
in 'eldercare'.
What is clear is that the absence
of balance tends to create conflict between work and non-work roles, where staff
are unable to adequately fulfil their commitments in either or both spheres. When
unresolved, this conflict leads to lower productivity and commitment, absenteeism
and resignation. To minimise this conflict, many companies are now offering benefits
and programs under the three broad categories of flexible work, specialised leave
and dependant care benefits.
However, many of the underlying cultural issues are still not very well addressed
, resulting in numerous programs not achieving their desired objectives. Why
Do Work/Life Balance Programs Fail to Deliver? (i)
Leadership and Corporate Culture A
successful work/life strategy requires the commitment of senior executives, which
then cascades through the organisation to all levels of management. Those at the
top must be aware of and accept the importance of family issues and demonstrate
strong support for work/life programs. A
lack of managerial support often undermines work/life programs by discouraging
employees' efforts to balance their lives. Supervisors can send negative signals
to their employees around the use of flexible benefits, or fail to model appropriate
balance in their own lives, thus setting a default cultural standard which is
not family-friendly. The challenge
in moving the work/life balance issue from rhetoric to reality is one of leadership.
Renewed commitment and courage on the part of business leaders is required to
consciously create organisational cultures which embody new values. These cultures
are the key to keeping and motivating a productive, multi-skilled workforce. Companies
that truly entrench the initiatives into their culture typically integrate family
support into the business itself. At Hewlett Packard, for example, every business
unit's annual review must identify work/life issues and develop action plans.
One outcome of this initiative was that financial managers developed activity
rescheduling and 'work from home' IT support to overcome peak period bottlenecks.
(ii) Perceived Career Disadvantages Many
organisations today offer programs like part-time work, flexitime and telecommuting,
but often the corporate culture identifies those that utilise such programs as
less committed to their job. If there is a general perception among staff that
working long hours is essential for career advancement, and that visibility equals
productivity, this can undermine attempts to promote work/life balance. Employees
who adopt flexible work practices can sometimes be seen as lacking in ambition
or commitment and overlooked for promotion. If a person indicates a desire for
a part-time job, he or she may be viewed as no longer interested in professional
growth and opportunity. Some staff who use flexible arrangements have reportedly
experienced 'family-friendly backlash' or resentment from co-workers. (iii)
'One Size' Fits All Historically,
work/life programs have revolved around flexible working conditions for women,
with part-time work, maternity leave, job sharing and shorter working days increasingly
common. The uptake of alternative work options by men has tended to be extremely
low. This is due in part to organisational pressure and the traditional expectation
in both the business world and wider community that men are the main breadwinners
of the family unit. For business with
substantial numbers of administrative, maintenance or customer-facing employees,
offering flexible working conditions can be problematic. Where the hours of work
are customer-driven, organisations face limitations on flexibility for employees,
but this is when family-friendly programs such as child care would be of most
benefit. Sydney's Star City Casino's 24 hour child care centre is one notable
positive example. The facility is directly credited with contributing to the lowest
staff turnover rate of any casino in Australia. It
must also be noted that not everyone wants work/life balance. Some employees state
that they are happy to work long hours and take fewer holidays, believing this
will fast-track their career advancement.
Furthermore, according to a 2004 Harris Interactive survey, at least 30% of employed
adults give up holiday time they have earned (iv)
Return on Investment A critical
element in implementing a work/life strategy is to objectively highlight the impact
of a people-friendly work environment on profits. However, measuring the return
on investment in work/life programs can be difficult. There
are two areas where work/life programs can positively impact the bottom line:
1. Affect on recruitment and retention:
Staff turnover is a major issue for many businesses because of the costs of hiring
and training new personnel, as well as the resulting loss of intellectual capital
and customer defections. Ernst & Young estimate the cost of turnover in client
service roles averages 150% of a departing employee's annual salary.
The provision of flexible work options
can result in a substantial reduction in staff turnover. In 1999, when Westpac
introduced six week maternity leave for the first time, resignations while on
leave dropped from 40.6% to 17.9%.
When both employers and employees see work/life balance as a priority, people
are more likely to commit and stay with the organisation. 2.
Impact on productivity and commitment:
The provision of work/life programs
may also benefit profitability indirectly by increasing worker productivity. High
levels of job satisfaction often results in less absenteeism and greater levels
of commitment. A US survey has demonstrated the strong relationship between employee
commitment and return to shareholders, finding that companies with highly committed
employees achieved a 112% return to shareholders over three years, compared with
a 76% return for companies with low employee commitment. Conclusion
The need to provide flexible work
options has never been greater, and will become a critical challenge for Australian
business in the future. A shrinking and increasingly diverse workforce will drive
employers of choice to be more family-friendly so that employees can achieve greater
balance between their personal and professional lives. But even the most progressive
approach will fail without strong commitment from management, a culture that supports
a family-friendly environment, and recognition of the positive impact that flexibility
can have on a company's bottom line. Only when these barriers are removed will
the promised work/life balance become reality for Australian workers.
References:
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About Regent Recruitment
Regent Recruitment is a recruitment consultancy that assists leading Australian
employers to attract and retain talented staff on a contract, temporary or permanent
basis. Whether we are filling one permanent role or recruiting contract staff
for a 400-seat call centre, we deliver an exceptional recruitment service.
Unlike other recruitment consultancies, Regent
Recruitment is unique in that it combines the capabilities of a large-scale multinational
recruitment operation with exceptional service levels typically only associated
with small boutique agencies.
How
can we assist you?
We would welcome the opportunity to have a confidential
meeting to discuss your staffing needs in more detail. If
you are interested, in the first instance please call Howard Mereine, General
Manager, on (03) 9909 7150 or e-mail Howard at hmereine@regentrecruitment.com.au. We
look forward to speaking with you.
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This article was licenced by Regent Recruitment for the Regent
Recruitment client newsletter.
Written by Victoria Small, and edited by Paul Quinn, Quinntessential Marketing
Consulting Pty Ltd.
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