Workplace Flexibility - Research Paper Example

Workplace Flexibility Introduction Flexibility has emerged as one of the most sought-after benefit for employees (Flexpaths 2004, p Flexibility pertain to how an employer and an employee makes changes as how the work is to be perform to accomplish both personal and organizational needs according to Flexpaths 2004, p.1). Research indicate that flexibility is one of the strategies used by many companies and organizations for improving the productivity of their workers, which also help in cutting various costs resulting into profits (Goudswaard, Dhodit, Vergeer and Oeiji 2010, p.13-15). In addition, research also indicates that failure to provide for workplace flexibility may be detrimental to an organization since it may result in increased cost associated with health care, turnover, quality and legal fees and overhead. This paper will examine the concept of workplace flexibility as applied in contemporary organizations. It will also examine whether the concept is just a convenient post-industrial ideologies and whether it offers much to employees, as well. Flexibility is a workplace concept regarding how an employer and an employee makes changes to when, where and how work is supposed to be done so as to meet both personal and organizational needs (Flexpaths 2004, p.1). It is, therefore, a way of making the organizational and individual needs by making changes to the time schedule for work. There are quite a number of flexible working modes that an organization can offer to its workers to help them meet their personal needs and those of the organization. One of the forms on ensuring flexibility in an organization is through part-time work arrangement (Boulin et al. 2006). Part-time work arrangement involves working for fewer hours than the normal working hours. For instance, if an organization has eight-hour standard working hours, then an organization may opt to allow some of its employees to work for say morning hours and are released from afternoon hours when others are to pick up. Others may involve giving employees a chance to work for three days a week or two weeks per month and so on (Boulin et al. 2006). The other form of flexible working time is provision of leaves. Leave has been found to be greatly important to many employees irrespective profession. It involves allowing employees some time to rest from work. This may take the form of parental leave, study leave, family care leave, and cultural leaves among others. The leave may either be payable or non-payable depending on the various factors. However, a majority of employees prefer being offered a payable leave (Chung 2011). The flexibility may also take the form of part year employment commonly referred to as purchased leave. This type of leave usually involves an employee being given more resting time such as a two-month leave and averaging their 48 weeks remuneration on a 52 weeks calendar year. Variable year employment is another form of flexibility used by certain organizations. This form involves altering employees working time throughout depending on the demand of the job. This may involve calling an employee when there is enough work to be done and releasing them when there is no enough work within the organization to be done (Folkard and Tucker 2003, p.95-98). The other forms of flexibility are those that relates to where employees wok. In this case, an organization may opt to allow employees to work from the comfort of their houses as opposed to the office setting. This form of working schedule is referred to us as teleworking. Under this working arrangement, an employee makes be allowed to work either on full-time or part-time basis. The other that falls within this category is working remotely. Research indicates that some organizations allows their employees to work at different places, which at the employees convenience (Gareis and Korte 2002). The last forms of flexibility are those related to how employees perform their duties. One such is job sharing, which may involve at least two people sharing full-time job on a regular basis. For instance, a given piece of work may be done by two people by diving the work schedule among themselves, say for example, one week each on alternating terms until the job is completed. Other forms in this category include phased retirements and annualized hours (Goudswaard et al. 2009). Human resource specialists argue that flexibility offers benefits to both an employee and an employer. The benefits that are likely to accrue to an employer that practices work time flexibility include reduced labor turnover, reduced operating costs, increased productivity, and lower health care and legal fees. For an employee, flexibility may help them in reconciling work and private life. This is a clear show that the flexibility of work time is not just a convenient post-industrial ideology but is also for the benefit of the employee, as well (Grover and Crooker 1995, p.271-273). As earlier stated, one area where flexibility has been found to be of substantial benefit to an organization is in reducing labor turnover. Chung (2011) noted that workers who are not at ease with their work and family obligations are more likely to leave their jobs in comparison to those enjoying their work. This implies that companies should always put measures aimed at improving working conditions with the aim of eliminating conflicts at work that are likely to making employees quite their jobs. Flexibility is one such strategy that many companies have adopted as a way of saving turnover incidence. This was evident when Ernst & Young, one of the main consultancy firms experienced significant savings on turnover related issue by introducing a flexible human capital cultures (Evans 2001). It is reported that the company used to suffer huge losses due to frequent labor turnovers from employees who leave the firm in short notice. For instance, Ernst & Young is reported to have saved over $17 million in turnover-related overheads in 1997-1998 fiscal years, by introducing a flexible work schedule and culture, which allowed its employees to work simultaneously (Evans 2001). In this regard, flexibility enhanced workers retention and client satisfaction since now employee began working with a lot of passion and dedication. For instance, the company managed to retain more than 65% of its workers who had earlier on been contemplating leaving the firm before the introduction of flexible work schedule according to Chung (2011). Such turnover-related costs have also avoided by other companies such as Coring, Aetna Life and Casualty and Kodak (Igbaria and Guimaraes 1999, p.148). Corning, for instance, is reported to have saved over $2 million that would have been lost because of turnover when it introduced flexible working time in the organization. In this case, the company is reported to have introduced the part-time and job sharing in the company according to Eeckelaert et. al. (2012). Aetna Life and casualty are reported to have saved more than $1 million but introducing the part-time working plan and family leave according to Johnson (1995). Kodak also reduced its turnover rate among women by 10% by amending its maternity leave policy for women as noted by National Report on Work & family (1991). What is evident is than when an employee quits his or her job, company’s productivity is affected right from the time he or she leaves employment up the time of replacement. Even after recruiting another employee, time would still be lost trying to carry out induction for the employee to fit into the system. This process also adds more to the cost, which could have otherwise been saved by ensuring that employees are satisfied in their job by introducing the flexible working culture (European Commission 2010). Flexibility has also been found to assist in reducing heath care costs in an organization, particularly health insurance cost (Dex and Scheibl 1999, p.22-25). Research indicates that flexible human capital approaches help in reducing health costs considerably, especially when workers are satisfied with their work and have a high sense of control. It is reported that many employees who experience work conflicts are prone to depression and stress, which only increases health care expenses. Nevertheless, flexible work schedule reduces stress, which in turn reduces health care costs (European Commission 1997). Research shows that employees who are suffering from depression incur health care costs up to 70% more than normal employees while those suffering employment-related stress incur health care costs of 46% compared to satisfied employs. Lack of proper working policies has also been cited as a leading cause of burnout among many employees. However, a survey on US corporations reveals that flexible scheduling of duties reduces the degree of burnout among employees by close to 40%. Research also reveals that flexible scheduling of working time reduces facility costs considerably (Chung, Kerkhofs and Ester 2007). For instance, findings show that working remotely or telecommuting reduces facility costs significantly as was evident in Ernst & Young (Eurofound 2011). In this regard, Ernst & Young reveals that it was able to reduce its facility costs significantly which improved its profitability after introducing the virtual work policy and encouraging its employees to work remotely or telecommute. To implement the policy, the company provided a desk to its employees in case of need if they lived near the office (Eurofound 2011). In the end, the company was able to cut down its facility cost by over $40 million according to Costa et al. (2003). AT & T Company is also reported to have saved over $80 million by shutting down its offices in 1994 and encouraging its employees to work remotely. Flexibility is an effective way of reducing overhead costs in an organization (Häusser et al 2010, p.23-24). This, in turn, results in increased profitability and reduces wastage. This is because a satisfied employee tends to be more keen and productive on their job, as opposed to those in conflict with their work. Tennessee National Corporation is one example of a company that has reduced much of its overhead costs since it introduced a flexible human capital approach to the company (Eurofound 2009). For instance, the company is said to have delegated much of managerial responsibilities and rewards to its employees. The rewards included among other things paid leave and bonus scheme system and part-time working schedule (Caruso et al. 2004). Merk, an American company also managed to reduce overtime in its working plan and broadened flexible working plan something that helped greatly in reducing overhead costs to the company resulting in improved profitability according to Hill et al. (1998, p.667). Research also shows that flexible scheduling of work has not only been of great benefit to the employers but also to the employees. One of the main benefits cited by a majority of employees is that flexibility help the in reconciling their work and family obligations (Jamal 2004, p. 113-114). In this regard, they cite that as much as they work for their employers, they also have some other obligations which they are required to attend to sometimes immediately after work. This sometimes results in a lot of stress and family conflicts in case the responsibility is not attended to because of too much work in the office (Eurofound 2010). As such, employees find working part time or teleworking schedules and job sharing very useful in their life. This is because flexibilities in work times allow them time to attend to their families and other obligations out of work (CEEP, ETUC, UEAPME, UNICE 2008). Flexibility is also linked to productivity and quality according to International Labor Office (2007). For instance, research indicates that employees who believe that work is a cause of problems in their personal lives are less productive and makes a lot of mistakes, which only translates to a cost (Golden 2012). Poor quality comes in because of lack of concentration at work especially when they only do the work for the sake of it, knowing that its adds no good to their lives (Brun and Milczarek 2007). However, flexible work schedule have been found to increase the level of job satisfaction among employees thereby improving the quality of their work and productivity. When an employee is satisfied, certainly they would not suffer from psychological stress and depression, which is risky top their lives as far as healthiness is concerned (Akerstedt and Wright 2009, p.257). Working part-time, or teleworking and job sharing good for their health, because these gives them some time to rest, which is good for their health. Psychologists have found that too much of work is dangerous for workers health. In this regard, they argue that people who work for long hours are likely to experience disease such as depression, sleeping problems, stress, and high blood pressure more (Blok and Looze 2011, 222-225). In addition, they tend to be less sociable and are likely to commit suicide more than those who have flexible work schedules. This is because those who work too much without rest are more likely to be under a lot of pressure, which generates conflict at the workplace and in family life (European Commission 2007). Because of this, many employees have favored being given some time off or long leaves to take a rest, as this help them to relieve themselves from the psychological stress associated work thereby improving their health. Conclusion Flexibility has become a very useful park being sought for by employees in the world today. It is evident from the study that flexibility is not just a convenient post-industrial ideologies used to benefit only the companies, but also to employees. This is because it enables the workers to have time to reconcile their work and family responsibility. Others live leaves also help them health wise because by taking leaves, they get relieved from psychological stress associated with jobs. The benefits on the side of the company are also many since flexibility helps in reducing and eliminating turnover costs, overhead costs, legal costs, health cost and improving the quality of work thereby improving productivity References Akerstedt, T., & Wright, K.P. 2009, “Sleep loss and fatigue in shift work and shift work disorder,” Sleep Med Clin, Vol. 4, No. 2, pp. 257-271. Blok, M.M., & Looze, M.P. 2011, ‘What id the evidence for less shift work tolerance in older workers?’ Ergonomics, Vol. 54, No. 3, pp. 221-232. Boulin, J.Y., Lallement, M., Messenger, J., & Michon, F., (eds.) 2006, Decent working time: new trends, new issues. ILO, Geneva, viewed 7 November, 2012 http://www.ilo.org/global/publications/ilo-bookstore/order-online/books/WCMS_071859/lang--en/index.htm Brun, E. & Milczarek, M. 2007, Expert forecast on emerging psychosocial risks related to occupational safety and health, European Agency for Safety and Health at Work, Bilbao. Caruso, C.C., Hitchcock, E.M., Dick, R.B., Russo, J.M., and Schimt, J.M. 2004, Overtime and extended work shifts: Recent findings on illnesses, injuries and health behaviors, Department of Health and Human Services, National Institute for Occupational Safety and Health (NIOSH), Cincinnati, US, viewed 7 November, 2012 http://www.cdc.gov/niosh/docs/2004-143/ CEEP, ETUC, UEAPME, UNICE 2008, Reconciliation of professional, private and family life: Progress report, [S.l.]. Chung, H. 2011, The varying company performance outcomes of working-time flexibility practices across 13 sectors in 21 European countries using the European Establishment Survey (2004/2005), Paper presented at the expert meeting, ‘Organization of working-time: implications for productivity’, Eurofound, Dublin, viewed 7 November, 2012 http://www.eurofound.europa.eu/docs/events/2011/workingtime/chung_paper.pdf Chung, H., Kerkhofs, M. & Ester, P. 2007, Working time flexibility in European companies, Establishment Survey on Working Time 2004–2005, Eurofound, Dublin, viewed 7 November, 2012 http://www.eurofound.europa.eu/publications/htmlfiles/ef0739.htm Costa, G., Akerstedt, T., Nachreiner, F., Frings-Dresen, M., Folkard, S., Gadbois, C., Gartner, J., Grzech-Sukalo, H., Harma, M. & Kandolin, I. 2003, SALTSA: As Time Goes by – Flexible Work Times, Health and Well-Being, National Institute for Working Life, Stockholm. Dex, S. & Scheibl, F. 1999, Business Performance and Family-Friendly Policies, Journal of General Management, Vol. 24, No. 4, pp. 22-37. Eeckelaert, L., Dhondt, S., Oeij, P., Pot, F., Nicolescu, G.I., Webster, J. & Elsler, D. 2012, Review of workplace innovation and its relation with occupational safety and health, European Agency for Safety and Health at Work, Bilbao. European Commission 1997, Partnership for a new organization of work: Green Paper, Document drawn up on the basis of COM (97) 128 final, Office for Official Publications of the European Communities, Luxembourg, Bulletin of the European Union, 1997, Supplement 4/97. European Commission 2010, Study to support an impact assessment on further action at European level regarding Directive 2003/88/EC and the evolution of working time organization, Deloitte Consulting, Diegem. European Commission 2007, Towards Common Principles of Flexicurity: More and better jobs through flexibility and security, Office for Official Publications of the European Communities, Luxembourg. Eurofound 2009, Comparative analysis of working time in the European Union, Dublin, viewed 7 November, 2012 http://www.eurofound.europa.eu/ewco/studies/tn0803046s/tn0803046s.htm Eurofound 2011, Reconciliation of work, private and family life in the European Union, Eurofound, Dublin. Eurofound 2010, Working time developments – 2009, Eurofound, Dublin, viewed 7 November, 2012 http://www.eurofound.europa.eu/eiro/studies/tn1004039s/tn1004039s.htm Evans, J.M. 2001, Firms’ Contribution to the Reconciliation between Work and Family Life, Labour Market and Social Policy Occasional Paper No.48, OECD, Paris. Flexpaths 2004, The impact of flexibility on organizational performance. Davies-Black Publishing. Folkard, S. & Tucker, P. 2003, ‘Shift work, safety and productivity’, Occupational Medicine, Vol. 53, No. 2, pp. 95-101. Gareis, K. & Korte, W.B. 2002, ICTs and the Adaptability of Work Arrangements in the EU, Paper presented at the European Conference on Information Systems, Gdansk, Poland, June 2002, viewed 7 November, 2012 http://is2.lse.ac.uk/asp/aspecis/20020073.pdf Golden, L. 2012, The effects of working time on productivity and firm performance: a research synthesis paper, Conditions of work and Employment Series, ILO, Geneva. Goudswaard, A., Oeij, P., Brugman, T. & De Jong, T. 2009, Guide of good practice on internal flexibility policies in companies, Eurofound, Dublin. Goudswaard, A., Dhodit, S., Vergeer, R., & Oeiji, P. 2010, “Organization of working time: Implications for productivity and working conditions” Overview Report, Eurofound, Loughlintown, pp. 1-65. Grover, S. L. & Crooker, K. J. 1995, ‘Who appreciates family-responsive human resource policies: The impact of family-friendly policies on the organizational attachment of parents and non-parents’, Personnel Psychology, Vol. 48, pp. 271-288. Häusser, J.A., Mojzisch, A., Niesel, M. & Schulz-Hardt, S. 2010, ‘Ten years on: A review of recent research on the Job Demand-Control (-Support) model and psychological well-being’, Work & Stress, Vol. 24, No. 1, pp. 1-35. Hill, E.J., Miller, B.C., Weiner, S.P & Colihan, J. 1998, ‘Influences of the virtual office on aspects of work and work–life balance’, Personnel Psychology, Vol. 51, pp. 667-683. Igbaria, M. & Guimaraes, T. 1999, ‘Exploring differences in employee turnover intentions and its determinants among telecommuters and non-telecommuters’, Journal of Management Information Systems , Vol. 16, No. 1, pp. 147-164. International Labor Office (2007), Decent working time: Balancing workers’ needs with business requirements, ILO, Geneva, viewed 7 November, 2012 http://www.ilo.org/wcmsp5/groups/public/---ed_protect/---protrav/---travail/documents/publication/wcms_145391.pdf Jamal, M. 2004, ‘Burnout, stress and health of employees on non-standard work schedules: a study of Canadian workers’, Stress and Health, Vol. 20, No. 3, pp. 113–119. Read More