Business Impacts of Flexibility: An Imperative for Expansion

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Business Impacts of FlexibilityAn Imperative
for Expansion
Business and Professional Womens Foundation
Audio Conference May 23,2006
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Corporate Voices

• 52 company coalition
• Founded in 2001
• Created to bridge the gap between private and
  public sector regarding working family policies.
• Non-partisan, non-profit 501c3

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Corporate Partners

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What Is Flexibility?

• Flexibility is the ability of the manager and the
  employee to determine when and where work gets
  done.
• Workplace flexibility is about how work gets
  done. Its the 21st Centurys response to a
  one-size-fits-all way of working.

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Overview of the Project

• The Challenge
• Not an accommodation
• Not a womens solution
• Objective
• Measure and define the business benefit of
  flexibility
• Expand flexibility as a core business practice
• The Findings
• There is a compelling business case to expand
  flexibility.

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The Weight of Evidence

• The body of data about flexibilitys positive
  impacts is substantial more than generally
  realized
• Sophisticated measurement and analytic tools
  going beyond self-report
• Positive business impact
• demonstrated independently
• by research in many companies

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Cumulative Findings

• Three kinds of business impact have been
  documented
• Human capital outcomes
• Talent management
• Financial performance and operational outcomes

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The Power of Human Capital Outcomes

• Employee Satisfaction
• Validated research construct that predicts
  performance behaviors
• Employee Engagement/Commitment
• Every 10 improvement in commitment can increase
  level of discretionary effort by 6 and
  performance by 2 - Corporate Leadership Council
• Double-digit growth companies have 39 more high
  engaged employees, 45 fewer disengaged employess
  Hewitt Associates
• Stress
• Stress is responsible for 19 of absenteeism, 40
  of turnover, 55 of EAP cost, 30 of short-term
  and long-term disability costs, 10 of
  psychotherapeutic drugs, 60 of cost of workplace
  accidents and 100 of workers compensation and
  lawsuits due to stress

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Impact of Flexibility onHuman Capital Outcomes

• Increased Satisfaction
• Higher flexibility score related to job
  satisfaction, rating of company, sense of
  accomplishment, rating of workplace as healthy
  IBM
• Access to flexibility, both formal and informal,
  affects overall satisfaction and perception of
  the company JP Morgan Chase
• Increased Level of Engagement/Commitment
• Commitment scores 28 - 32 higher for employees
  with flexibility AstraZeneca, Deloitte
• Reduced Levels of Stress
• Employees with flexibility able to work more
  hours before feeling work-life stress IBM
• Employees with flexibility scored 30 lower on
  stress and burnout

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Impact on Talent Management

• Improved Employee Retention
• Flexibility a top three choice Accenture
• Flexibility issues second leading for considering
  leaving the company number one issue for mothers
  IBM
• 96 say flexibility influences decision to stay
  AstraZeneca
• 41.5 million savings in turnover-related costs
  in 2003 - Deloitte
• Improved Talent Recruitment
• Unacceptable levels of turnover addressed through
  implementing flexibility - Deloitte
• 95 report that availability of flexible work
  arrangement is a critical factor in taking a job
  - Discovery

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Flexibility AffectsRecruitment
Of Employees Hired in the Last 3 Years, Who
Were Influenced by Flexible Work Arrangements to
Join the Company
Source Bristol-Myers Squibb work-life survey
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Impact on Financial Performance and Operations

• Increased Productivity,
• Increased Revenue,
• Business Process Improvement,
• Client Service Improvement.

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Summary

• Robust research techniques have produced multiple
  data points
• Positive people effects are proven
• Flexibility has direct effect on business
  outcomes
• Impact is widespread and diverse across
  industries
• More than a business case
• A BUSINESS IMPERATIVE to expand flexibility
• to
• Stay competitive
• Get the best from peopleand get the best people
• Improve business results