> Work/Life Issues

Work/Life:

It's All About Time

by Carol M. Sladek ^What does a typicai day feel like to you? Stressed? Rushed? Exhausted? Overcommitted? Out of time? Pulled in too many directions? Ten thousand things on your "to do" list with oniy time enough for ten? Unfortunately, in today's world most of its feel this way to varying degrees too much of the time. We^e all frantically trying to juggle the increasing demands on our livesdoing a good job at work; taking care of our families; taking care of ourselves; managing time; managing our finances; participating in community, school and church activities; managing stress... and enjoying life. While our personal lives are quite diverse and the demands that we're each juggling vary dramatically, we all have one thing in commonwe have just 24 hours in a day. And regardless of the specifics of our individual juggling acts, for most of us our days are spent trying to squeeze as much as possihle out of each fleeting moment. Ws all about time each and every day^ and life feels like a constant game of "Beat the Clock." <

I the same time, employers are busy A playing their own version o f "Beat the / B Clock." Advances in technology mean L H business is conducted instantaneously, X ^Land overnight is too long to wait. Sometimes immediately isn't soon enough in our fast-paced society. These advances also mean the world has become much smaller and global competition has increased at a phenomenal pace. As a result, employers are increasing the pressure on their employees, who are expected to work more, work harder, work smarter and do more with less. But in this crazy, fast-paced world, some employers have discovered an amazing reality giving employees more control and flexibility over their time to help them juggle the demands of their lives actually helps drive business results. To the employer, work/life is all about talent management. As employers struggle to attract, engage and retain the best people, work/life programs are essential to creating an environment where the right people want to be. Work/life programsespecially those focusing on t i m e ^ a n be a true "win-win." THE TIME/FLEXIBILITY SOLUTION Because work/life programs are a response to individual employee and employer needs, there is no one formula for success. Employers have discovered a myriad of benefits and policies to help meet employee work/life needs and drive business results. These innovative solutions include child- and elder-care programs, time-off programs, flexible work arrangements, financial planning assistance, educational assistance, lifecycle accounts, employee assistance programs, and so forth. And while there's no one-size-fits-all answer to a work/life program design, employers are increasingly focusing on time as one of the key elements in a work/life strategy. Work/life programs that focus on time and flexibility offer several advantages: Time off and having more control over time continually arise as top employee work/life needs in employee focus groups and surveys. Time/flexibility programs meet diverse employee needs by offering something for everyone and not focusing only on em-

BENEFITS QUARTERLY. Second Quarter 1999

FIGURE 1
Prevalence of Time/Work/Life Programs

Child Care Elder Care Alternative Work Arrangements

85%

tive work arrangements, can have a significant impact on employee work/life balance while involving little or no cost to the employer. In this increasingly global economy, some arrangements can help employers better meet customer needs across time zones. EXPLORING TIME/FLEXIBILITY PROGRAMS Employers have identified four types of programs that focus on time and flexibility: alternative work arrangements, paid-time-off banks, sabbaticals, and vacation buying and selling.
Alternative Work Arrangements

66%

69%

1991 1997
88% : 75%

Souriv: Hewiil Associates SpccSummary '^'.

FIGURE 2
Prevaience of Aiternative Work Arrangements

Telecommuting Compressed Workweeks Job Sharing Part-Time Work Flextime

Source: Hewitt Associates SpecSitinmary''^.

ployees with families. A flextime program. for example, might meet the needs of an employee with a dependent care issue, or one pursuing an advanced degree, or even alleviate a difficult commute. Employee utilization and satisfaction with time/flexibility programs are generally higher than other work/lile programs. Corporatewide time/flexibility programs can often be tailored to best meet the needs of individual work groups, providing managers with control to manage the needs of the business. Time/flexibility programs, sueh as alterna-

Altemative work arrangements have emerged as one of the most common work/life programs and have grown dramatically over time. (See Figure 1.) As more and more employers discover that allowing flexibility in the way work gets done increases employee productivity and commitment to the organization. "9 to 5" has become a thing of the past. Employers offer many different types of alternative work arrangementssome focusing on working fewer hours, some on working different hours, and others on where the work gets done. The most common types of flexibility include: Part time^a reduction in hours and pay (and generally benefits) Flextimea full-time schedule with set core hours but varied beginning and ending times Job sharingtwo part-time employees sharing one job or workload Compressed workweeksa full-time schedule in less than five days per week (or less than ten days over a two-week period) Telecommutinga full- or part-time position with some or al! of the work done at an alternate location (generally the employee's home) Summer hoursA compressed workweek arrangement applied to an entire work group during the summer months Phased retirementa gradual reduction of hours from full time to part time to ease an individual into retirement. (See Figure 2.)

BENEFITS QUARTERLY, Second Quarter 1999

While these arrangements are the most eommon forms of flexibility, many employers offer hybrids of these arrangements or other creative solutions that support business and employee needs (e.g., telecommuting combined with a compressed workweek). Alternative work arrangements offer many advantages to both the employee and the employer. The employee enjoys more flexibility to balance the demands of work and life outside of work, more control over time and, in some cases, more time off. In turn the employer reaps the rewards of more motivated, engaged and productive employees. Paid-Time-Off Banks Historically, time-off programs have included vacation, personal days, salary continuation, short-term and long-term disability, holidays and sick leave. When these parts are added together, it's not uncommon for their cost to reach 15-20% of payroll. Having different types of time off for different purposes also leads to administrative and managerial complexity. Not surprisingly, many employers are looking for innovative, cost-effective, simpler ways to manage their time-off programs. Paid-time-off (PTO) bank programs are capturing the attention of a growing number of employers. Many companies are considering PTO banking as a means of helping both the business and employeesreducing unscheduled absences and overall program costs while giving employees more choice and flexibility. (See Figure 3.) In a PTO bank design, vacation, personal time, sick time and, in some cases, holidays are combined, and employees receive one "bank" of time lo use for any purpose. The PTO bank offers employees more control and flexibility over their time. Employees are responsible for managing their total PTO bank and can tailor the program to meet their individual time-off needs. As a result, managers spend less time "policing" time off. employees sehedule more of their time off in advance, and there is less abuse of time off. In addition, many employers that have moved to a PTO bank have found that total time off, and therefore total program costs, are reduced. PTO banks allow employers to distribute time off more equitably than traditional time-off approaches and offer more

FIGURE 3
Growth in PTO Banks
% of Companies* With PTO Banks

Pre-1990 1993 1995 1997 Source: Hewitt Associates Survey, "Managing Paid Time Off," 1997. *Exc!udcs health care organizations

consistent and simplified administration und communication. Sabbaticais Another trend in work/life programs is the growth of employer-sponsored sabbatical programs. According to a Hewitt Associates 1997 study. "Managing Paid Time Off," sabbatical programs are offered by 15% of major U.S. employers. Many employers have found that offering employees an extended period away from work results in higher employee engagement and productivity. Sabbatical designs vary by employer, with major differences involving: Eligibility, length and frequency. Sabbaticals vary significantiy from employer to employer. Eligibility ranges from immediate lo 15 years of service; length may be anywhere from four

The Author
Carol M. Sladek, is the national practice leader for Hewitt's Time and Work/Life Consulting Services atid specializes in work/life and time-off Issues and developments. She consults with clients, helping them lo design and implement programs that are best suited to their partieular organizations and employee populations. Ms. Sladek earned a B.S. degree in finance from the University of Illinois and an M.B.A. degree from Georgetown University,

BENEFITS QUARTERLY, Second Quarter 1999

weeks to a year; and frequency may be as oflen as annually or only once in a career. Paid vs. unpaid. Nearly two-thirds of sabbaticals are unpaid., while approximately one in four employers offers some type of paid program. Some employers today are offering a hybrid approach by allowing employees to bank or set aside a portion of their paid lime off toward a sabbatical. A

with 35% of those offering the option to buy only, 21% offering the option to sell only and 44% offering both.These programs allow employees to tailor their total time off for the year to meet individual needs and to make tradeoffs between time and money. MAKING TIME/FLEXIBILITY WORKa CHANGING THE CULTURE To be successful, titne/flexibilily programs require employers to change the way they look at timeto change the organizational culture.
Defining Success

I
"To be successful, time/flexibility programs require employers to change the way they look at time fo change the organizational culture."

Most cultures today define work by time and place: Employees who work the longest hours and spend the most time in the office receive the highest awards and are considered the most successful. Time/flexibility programs require employers to shift this paradigm and create a culture where work is defined by results, not by time and place. One of the greatest challenges in implementing time/flexibility programs is to measure performance in terms of results; often employers review their performance management process in eonjunetion with introducing these programs.
Middie f\/lanagement Support

few employers match a portion of the time that the employee banks to share the eost of the sabbatical with the employee. Purpose. While most sabbaticals are offered to employees for use at their own discretion, some employers allow sabbaticals only for specific purposes (e.g., education). Employees who take advantage of a sabbatieal enjoy an opportunity to rest, refresh and recharge. Sabbatical programs help employers to recruit and retain key employees, reduce employee burnout, offer cross-training opportunities and promote employee engagement
Vacation Buying and Selling

Since employee work/life issues and resulting time-off needs vary significantly, many employers offer vacation buying and selling to enhance employee flexibility and controi. Employees may elect at the beginning of the benefit plan year to buy additional time off in lieu of some portion of their time-off allowance. According to the Hewitt study, 14% of employers offer vacation buying and/or selling,

To accomplish this culture change, time/flexibility programs must have the full support of all levels of the organization-employees, middle management and upper management. Middle managers are particularly crucial to this process. Employee perceptions of the work environment rely heavily on their interactions with their supervisors. Even the best programs can fail to add valueand worse, can backfire and ignite negative reaetionwhen managers do not support or encourage use of these programs. A number of barriers can stand in the way of middle management's support for these programs. Often managers fear time/flexibility programs because they do not realize these programs are tools that can motivate employee performance, reward high achievers and improve overall results; instead managers view them as a threat to current success. Some managers simply do not recognize the conflicts their employees face because they don'l share the same concerns. Others may feel ill-equipped to make decisions regarding time and flexibility.

10

BENEFITS QUARTERLY. Second Quarter 1999

Even managers who embrace the concept of work/life balance need help in figuring out how to make good business decisions, effectively measure performance, communicate openly with employees, build a relationship based on trust and use time/flexibility programs as a tool to enhance business results. Management education/communieation is critical in creating this culture shift. When managers understand the work/life balance issues their employees face and are familiar with time/flexibility programs and their benefits to both the individual and the business, they are more likely lo be supportive of them. And when managers are given the opportunity to improve their communication and performance management skills, they are more likely lo be effective managers for all employees.
A Success Story: Ralston Purina Company

Raiston's work/life program, "It's All About Time," is a solution that not only helps employees better balance their lives, but one that has had a positive impact on the business. According to feedback from managers and employees. "It's All About Time" has been an overwhelming success. Etnployees love the new programs, especially the PTO bank and the sabbatical. Managers feel more comfortable managing in a flexible environment and see the tie to the business results. And even senior management is taking advantage of some of the programs (including the sabbatical).

Several years ago, Ralston Purina embarked on an innovative jourtieyto change the way its organizational culture regarded time. The primary cultural issue was one that is quite common among employers todaytoo much emphasis on time and nol enough on results. Ralston Purina set out to find a better way. The work/life design goals were lofty: to shift the time paradigm, to give employees more flexibility and control over their lives, to create consistency in managerial approaches to time off and flexibility, and to provide programs that would assist all employees, not just those with families. Ralslon's work/life program. "It's All About Time," includes a paid-time-off bank; alternative work arrangements, including flextime, work at home, job sharing and voluntary redueed hours; and a sabbatical program (funded by employee-banked PTO time). In order to ensure the success of the program, Ralston's efforts focused heavily on manager training/communication and employee communication. The message to all was clearwork/life is not an entitlement, but a partnership that supports both the employee and the business.

"Work/life programs are indeed tools to drive business results by attraoting the right people and creating an environment where the right people want to be."

THE PROOF; DRIVING BUSINESS RESULTS In the end, the proof is in the bottom line. Employers are offering work/lifeespecially time and flexibility programsto attract, engage and retain talent. Does it work? The answer is a resounding "yes." Employers like Ralston Purina have found that employees offered work/life programs are more satisfied with their jobs, are more comtnitted to doitig their jobs well and helping their employers sueceed, take more initiative, and are more loyal to their employers. Work/life programs are indeed tools to drive business results by attracting the right people and creating an environment where the _right people want to be. ^

BENEFITS QUARTEHLY. Second Quarter 1999

11