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ILS Discussion Paper Series 2010

Flexible Work:

Learning from the Practices of

Global Enterprises

Katherine B. Brimon

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For Discussion Purposes Only

ILS Discussion Paper Series 2010

Flexible Work:

Learning from the Practices of

Global Enterprises

Katherine B. Brimon

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TABLE OF CONTENTS

1 Background 4 2 Concepts and Definitions 7 3 Policy Responses: An Overview 11 4 Flexible Work in Global Enterprises 15 5 Policy Considerations 19

References 23

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Flexible Work:Learning from the Practices of Global Enterprises

Katherine B. Brimon

I. Background

Today, countries are driven to re-evaluate strategies so it can respond effectively to changes

in the market. First, demographic change both in terms of an ageing society in the West

and the growing young population in the East is hugely influencing business decisions.

Second, the influx of technology is completely changing the way work is done. Third,

societal norms are now evolving such that people seek more autonomous, individual lives

and tend to build smaller families. Fourth, with information available on various health risks,

people are placing a higher premium on healthy lifestyles. Fifth, scarcity in resources and a

growing awareness about energy efficiency are pushing countries and individuals to rethink

their decisions or actions.

These changes, inevitably, impact on work and workplaces all over the world. Among

businesses‟ strategic responses is the development of flexible work arrangements as

mechanisms for transitioning to changing needs and a dynamic work environment. Quick to

adopt these responses are developing countries where the policy environment already

allows for effective transitions within firms. On the other hand, multinational companies also

pursue reforms toward more flexible working arrangements recognizing that the globally-

integrated nature of their business simply leave them with no choice.

The changes have paved the way for a new breed of employment arrangements as well as a

new category of workers who are engaged in non-traditional forms of work that include

such arrangements as self-employment, contract work, temporary work, and part-time

work. These arrangements reflect both business needs and changing life styles, and are

sought after by employees wanting different work-life choices. Its presence in the labor

market is also seen as a source of global competitiveness, particularly among firms whose

operations are dispersed around the globe. As these arrangements keep on evolving,

policymakers are confronted with challenges toward allowing businesses to adopt new

business models and helping workers to change jobs and learn new skills with adequate

safety nets. These are also linked to policies on responding to skills needs and in changing

the educational system and to those on ensuring social protection.

As the Philippines pursue increasing presence in the global market by attracting more

investments into the country, questions are being raised on the country‟s conduciveness for

these kinds of investments. Particularly, potential investors are raising concerns regarding

the limitations found in Philippine labor laws such as those pertaining to hiring and firing,

working hours, and setting of holidays. These are seen by businesses as factors that

impinge on business flexibility to respond to changes whenever and wherever it occurs. The

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ADB (2007) notes that in addition to high labor costs, market rigidities such as the

difficulties in hiring and firing labor may deter investors to come to the Philippines. The

report cites that a comparison with the Philippines‟ regional neighbors on labor-related

regulations indicates that it is difficult to hire and fire employees in the Philippines and the

costs of firing an employee can be as high as 91 weeks of salary. This situation, the ADB

notes, may lead investors, both existing and new, to view the Philippine labor market as

very rigid and a constraint to investment (ADB 2007).

Meanwhile, the “Arangkada Philippines Report 2010” of the Joint Foreign Chambers of

Commerce, cites the apparent disconnect of current policies with the changes occurring in

the world of work, particularly with reference to the conditions in the IT-BPO sector. It cites

that legislation originating in the congressional labor committees is often not in the interest

of the IT-BPO sector and that Philippine labor laws are oriented towards manufacturing

rather than the IT-BPO sector. It also tries to explain the situation by noting that the

country‟s labor laws were formulated at a time when the IT-BPO sector did not yet exist in

the Philippines. In addition, the report states that some legislative proposals tend to

establish regulations to address the abuses of smaller firms with lower standards to the

detriment of globally-operating firms whose standards are above par. The report

highlighted two areas that should be the focus of current and future legislative proposals

affecting the IT-BPO sector: subcontracting and termination of employment – a clear

indication of business‟ clamor for more industry specific legislation and of their concern over

how employment relationships are set in a highly flexible work environment.

This paper, therefore, explores the subject matter of flexible work at the company level,

particularly toward building information on these arrangements as contribution to efforts in

policy reforms toward improving the climate for investments in the country without

compromising the rights of workers as guaranteed in established labor standards.

Objectives of the study

This paper offers policymakers as well as HR practitioners with the following:

1. Discussion on the current concepts and forms of firm or company-based flexible work as

presented in both academic and corporate researches.

2. Information on flexible work arrangements as practiced by global enterprises with focus

on facilitating and hindering factors in its implementation.

3. Recommendations toward formulating policy responses on flexible work in the

Philippines.

Limitations

The study relied heavily on secondary data particularly in gathering information on the

practices of selected global enterprises. On the other hand, policy recommendations are

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mostly based on information and insights gathered during consultations and dialogues with

key informants particularly those representing businesses and workers groups.

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II. Concepts and Definitions

Company or firm-based flexible working arrangements or commonly termed as “flexible

working” refers to work process schemes that enable an organization to be adaptable to

technological innovation and market fluctuations by allowing for changes in working time,

more mobility among workers, and innovations in work organizations (Atkinson, J. and

Meager, N.1986). Referred to in theory as internal numerical flexibility or working time

flexibility, the arrangement involves adjustment in working hours or schedules of workers

already employed within the firm. The arrangements may be arrived at either formally or

informally, with the employees given greater control over when and where work gets done

and over how much time they choose to work.

It includes arrangements such as compressed workweek, flexi-time, broken work hours,

part-time work, night shifts, weekend shifts, working time accounts, job sharing, and “on

and off-ramp” schemes that includes leaves such as parental or carer‟s leaves. These

arrangements, arrived at through highly detailed and individualized discussions between

employees and supervisors, have proven beneficial to both employers and employees,

particularly in the developed countries. Enhancing adaptability in workplaces may also refer

to locational flexibility or flexibility of place – one which entails employees working outside

the normal work place such as home-based work, outworkers or teleworkers or

telecommuting. This form of firm-based flexibility may also cover workers who are

relocated to other offices within an organization.

These arrangements are utilized by firms depending on the needs of the business as well as

the diverse needs of the employees seeking to be engaged in these schemes. Companies

do not implement a one-size-fits-all arrangement for its employees. Rather, flexible work

schemes are individualized arrangements arrived at through careful consideration of several

factors including productivity, performance, costs, resources, career, and personal needs of

employees. As such, arrangements may vary across firms, among employees, and may

continue to evolve depending on the requirements of businesses and the employees

themselves. For instance, a survey of 479 senior executives conducted in 2010 by The

Economist Intelligence Unit reports that sixty-two percent of the respondents expect a

growing proportion of workers to be “contingent” (i.e. contract-based rather than

permanently employed). The survey also cited that “a flexible workforce will make it easier

to scale up or down as business needs dictate and that “there will be greater leeway to work

from home, make lateral moves and work modified schedules within the next ten years.

The report notes that employees in a highly flexible and mobile work environment will

choose to become free agents, working where and when they want (Economist Intelligence

Unit 2010).

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Existing literature provides some definitions for commonly-observed company-based flexible

work practices, as follows:

Flexible work hours

According to the ILO, flexible hours of work hours are arrangements offering various

possibilities in relation to the number of hours worked and the arrangement of rosters, shifts

or work schedules on a daily, weekly, monthly or yearly basis. It is characterized by

possible daily and weekly working time scheduled outside core hours when presence at the

place of employment is compulsory. Hours worked in addition to contractual hours of work

for the week (pay period or month) may be taken as leave during subsequent weeks or

months, often within a deadline and up to a maximum number of hours.

Compressed working week (CWW)

Compressed working week arrangements, characterized by organizing the working time over

fewer days than what is considered the normal or standard working week. In DOLE

Department Advisory 02-04, compressed workweek scheme is defined as an alternative

arrangement whereby the normal workweek is reduced to less than six days but the total

number of normal work hours per week shall remain at 48 hours. The normal workday is

increased to more than eight hours without corresponding, overtime premium. This concept

can be adjusted accordingly in cases where the normal workweek of the firm is five days.

On the other hand, the ILO (2005) defines compressed working weeks as a method of

organizing working time under which normal weekly hours of work are scheduled over fewer

days. If weekend work is required, average weekly hours of work may be shortened in

compensation. To coverextra days of work, rotation schedules may be adapted or part-time

workers hired.

Telework/telecommuting

The ILO defines telework as work at a distance (including work at home) employing

telecommunication and/or computer facilities. A teleworker is often referred to as a „home

worker‟, „home-based worker‟, „location independent worker‟ and „telecommuter.‟ In a study

done in the United Kingdom, a teleworker is defined as an employee who works some or all

of their time at home and is provided with appropriate computer/telecommunications

equipment by their employer to enable them to do so (Williams 2005). In teleworking, an

individual can specify a different place of work or some change to or from home working,

and their base of work is moved to an alternative location of the business. The advantages

to teleworking include reduced cost for the business in office accommodation, productivity

and retaining individuals. However, work and occupational safety still needs to be

considered to ensure a safe and appropriate work environment, for which the employer

remains responsible even if the work is conducted off the business site. Other concerns

include information security, the management and reimbursement of costs incurred while

working at home, technical assistance, the conduct of effective communication with the

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worker, management and maintenance of organizational unity despite differences in work

locations, the replenishment of work supplies.

Part-time work

This scheme may include working fewer hours or days per week, sharing a job with another

employee, or reducing one‟s overall workload. In some countries, part-time employment

may mean working less than 35 hours per week1 while reduction in workload as a part-time

scheme may mean “working less than full-time such as four instead of five days a week, and

being paid less accordingly (Lee and Kossek 2004). The US Department of Labor defines

working part-time as working between 1 and 34 hours per week while practitioners refer to

part-time work as encompassing “fewer hours than the standard full-time schedule, typically

with pro-rated salary, benefits and career advancement. Employees working reduced hours

should have workloads to match and working less than full-time should not affect an

employee's status or opportunities for advancement."2 The ILO defines the arrangement as

a single, regular or voluntary form of employment with hours of work substantially shorter

than those considered as normal to the establishment.

Job-sharing

Job sharing is an arrangement where two people share one full-time job in a company, each

working a part of the week.Both employees are considered part-time workers and divide the

full-time hours between them in a manner agreeable to themselves and the employer. The

salary and benefits are also shared between the employees on a pro rata basis to the

number of hours worked respectively. The scheme is regarded by equal opportunity

advocates as a better flexible working option since the job is still carried out on a full-time

basis and there may as a result be an opportunity for a job-sharer to return to full-time work

at a later date if she or he wants to. In most Western European countries, job-sharers are

covered by employment protection rights only if they work in excess of eight hours per week

and are seen as offering women employees with family obligations an opportunity to return

to work on the basis of suitable hours.

On and Off-Ramp

Also an arrangement that is observed mostly by women employees, on and off-ramps are

schemes that allow employees to voluntarily leave the workforce to take on family demands

and to re-enter after a period of time. A work-life policy study cited by the New York-based

Center for Work-Life Policy cites that across sectors, off-ramping among highly qualified

women is often triggered by family responsibilities with childcare and elder care being the

predominance reasons. The study notes that on average, women off-ramp for only 2.2

years while shorter off-ramp periods are observed in business and banking/finance at 1.2

and 1.5 years respectively.3 Under this scheme, employees, with approval from their

1 Source: Families and Work Institute, 2002. Accessed at http://www.familiesandwork.org/announce/2002NSCW.html. 2 Source: FlexPaths. (n.d.). Glossary. Retrieved from http://www.flexpaths.com/resources/glossary 3 Source: www.worklifepolicy.org/.../news-pr10.pdf

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employer take various forms of paid or unpaid leaves of absence from work. Employees

may choose to take time away from work in response to personal or family illness, military

service, the birth or adoption of a child, and for educational and training pursuits.

Career Breaks

A career breakis a scheme where an employee is granted a period of time out from

employment. Traditionally, this arrangement catered to mothers wanting to raise children.

Now it is used for people taking time out of their career for personal development and/or

professional development. The scheme is usually between one month and two years long.

Six months to 2 years is the most common period of time for a career break. It can take

the form of a sabbatical, which can be paid or unpaid but it may also provide career

breakers one or more of the following: travel, voluntary work, paid work abroad, and

studying or training. The scheme is highly popular in the United Kingdom where it evolved

from the gap year concept, with 75% of the British workforce currently considering a career

break.

The possible costs and benefits of these forms of flexible work can be as diverse as the

arrangements being undertaken. Research have established the negative impact of

company-based schemes for employees such as unusual working hours being detrimental to

occupational safety and health and for employers such as work accidents and lost

productivity resulting from the long working hours (Eurofoundn.d).

On the other hand, benefits for businesses pertain to having more loyal, productive

employees, improved employee retention, improved productivity, reduced absenteeism,

lower costs, ability to have work done in different time zones and locations, improved

employee satisfaction, and lower energy costs not only as a result of reduction in

commuting among employees but also in the use of office facilities. Employees likewise

derive benefits such as having more time for family, for attending to personal needs

including further studies, and building new skills. The schemes are also recognized for

providing employees a high sense of trust and confidence and autonomy and control in

delivering results at work. Practitioners, however, note that since flexible work does not

comprise on a not one-size-fits-all scheme, benefits as well as costs, may vary among

employees and among businesses.

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III. Policy Responses: An Overview

Relevant policy responses in the Philippines on company-based flexible work or those

seeking to afford workers with an opportunity to arrange their working time taking into

account personal needs and for companies to implement flexible work arrangements may be

categorized into the following:

National Laws.Perhaps owing to the principle that fixing of working time or working

conditions is within the ambit of management prerogative so long as labor standards are not

compromised, the Philippines does not expressly recognize the practice of company-based

flexible work except in the following laws:

Section 6, Rule XVII of the Administrative Code allows public offices to observe

flexible working hours subject to the discretion of the head of department or agency.

The law also provides that “in no case shall the weekly working hours be reduced in

the event the department or agency adopts a flexi-time schedule in reporting for

work.”

Sections 3(e) and 6 of RA 8972 or the “Solo Parents‟ Welfare Act of 2000” grants

single parents the right to vary his/her arrival and departure time without affecting

the core work hours as defined by the employer. It also provides that observance of

a flexible work schedule by the single parent should not affect individual and

company productivity and that any employer may request exemption from the above

requirements from the DOLE on meritorious grounds.

Republic Act. No 10151 recently passed into law this June 2011 removed the general

prohibition against employment of women for nightwork by repealing Article 130 of

the Labor Code. In lieu of Article 130, RA 10151 inserted provisions into the Labor

Code relating to the employment of night-time workers. It provides, among others,

for: (a) the implementation of health assessment of night-time workers; (b) the

provision of mandatory facilities for night work; (c) rules for transfer of nighttime

workers; (d) special measures for the protection of women nighttime workers; (e)

rules on compensation and special services for nighttime workers. This law is seen

as a milestone in affording access to flexible work particularly for women employees.

At present, there are efforts to introduce specific forms of flexible work into the policy

landscape of the country. The most prominent and recent of the proposed legislations is

House Bill No. 5237 filed by Representative Winston Castelo. Entitled “An Act Mandating

Four-Day Work Week in Public and Private Sectors, requiring thereby Ten Hours of Work

Daily and for other Purposes,” the bill, which has been receiving varied reactions from all

sectors, aims to lower business costs to enable companies to cope with operational

expenses without compromising payment of workers according to established labor

standards.

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Jurisprudence.There have been several Supreme Court rulings on the validity of company-

based flexible work. In a study on FWAs done by Alcantara and Molina (2009) the following

cases were cited:

BisigManggagawa vs. NLRC where the Court held that a compressed workweek

agreement was valid as it was shown that the person making the waiver of the right

to claim overtime pay for work rendered after the usual working hours under a

normal work schedule did so voluntarily, with full understanding of what he was

doing.

Philippine Graphic Arts vs. NLRC where the Court ruled as valid management

prerogative a corporation‟s policy on forced vacation leave without pay or reduction

of working days due to economic circumstances. In this decision, the Court

recognized several conditions that should exist in an arrangement:1) leave is

temporary in nature; 2) notice and consultations with workers; 3) consensus; 4)

solution as more humane than retrenchment or reduction of personnel; and 5)

sufficient proof of company losses.

Linton vs. Hellera tackled the issue on reduction of workdays. The Court held that

management has the prerogative to come up with measures to ensure profitability or

to minimize losses. It however held that such prerogative is not absolute and must

be exercised in good faith and with due regard to the rights of labor.

DOLE Issuances.These DOLE issuances were all intended to recognize the need for

company-based flexible work particularly in instances where a response to a crisis situation

that threatened the sustenance of businesses and employment in the country was called for:

Department Order No. 21 (1990) was issued by the DOLE in response to an

impending oil crisis that threatened the country as a consequence of the Middle-East

crisis. The issuance provided guidelines on the voluntary implementation of the

compressed workweek scheme. It was issued as an energy saving measure while

also seeking to address maintenance of productivity in industries. Under the

scheme, a normal workweek is reduced by a day but the normal working hours are

prolonged. Overtime time pay for the time worked in excess of the eight hours was

waived.

Department Advisory No. 2 (2004) was issued in response to the request of the

Semiconductors and Electronics Industries of the Philippines, Inc. (SEIPI) to allow its

member-firms to adopt a compressed workweek scheme (CWW). The issuance

improved on DO 21 by providing among its objectives the promotion of business

competitiveness and productivity and by allowing employers and workers flexibility in

fixing hours of work compatible with the needs of the business and the employees‟

need for work-life balance and occupational safety and health. It also set certain

conditions in the implementation of a CWW: 1) that the scheme is a result of an

express and voluntary agreement of majority of the employees or their duly

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authorized representatives; 2) that a certification on the threshold limits or tolerable

levels of exposure to occupational hazards is issued if the work poses health risks to

employees; 3) that prior notice to given to the DOLE in implementing the CWW and

when reverting to the normal work schedules.

Department Advisory No. 2 (2009) on “Guidelines on the Adoption of Flexible Work

Arrangements” was issued to afford businesses with a coping mechanism in times of

economic difficulties and national emergencies and to offer a better alternative to

outright termination of employees or business closure. Flexible work arrangements

under this issuance were also anchored on a voluntary basis and included the

following six schemes: compressed workweek, reduction of workdays, rotation of

workers, forced leave, broken-time schedule, flexi-holidays. An ILS study (2009)

cites that a total of 320 firms from across all industries in the country availed of

these arrangements during the period October 2008 – May 2009. The study noted

that some 86,458 workers underwent the FWAs, compromising of workers who were

still undergoing the scheme even prior to the issuance of the advisory and those

recalled to work or whose work schedules have returned to normal despite the crisis

situation. It was also noted in the study that firms from the manufacturing sector

were at the forefront of implementing the FWAS in terms of number of workers

covered (Alcantara&Molina 2009).

Department Advisory No. 2 (2010) is an industry and location specific issuance that

allows the implementation of flexible work arrangement as a temporary coping

mechanism and remedial measure during the power crisis in Mindanao.

Department Advisory No. 4 (2010) was issued to assist and guide employers and

employees in the implementation of various flexible work arrangements and the

exemption from the nightwork prohibition for women employees under Article 130 of

the Labor Code. It recognized the specific need for flexible work as well as

nightwork in the business process outsourcing industry.

Development Planning. Meanwhile, recognition of flexible work as a practice in the

Philippines can also be found development planning instruments of the country as these are

seen as factors that may influence the growth of investments and over-all competitiveness

of the Philippines.

In Chapter 9 (Labor) of the 2007-2010 Medium-Term Philippine Development Plan

(MTPDP), it was noted that flexible work arrangements are emerging as a result of

globalization. The MTPDP further noted that companies undertake flexible work in

the form of restructuring, downsizing of workforce, and utilizing non-traditional

employment practices such as hiring of part-time or temporary workers,

subcontracting and business outsourcing.

The most recent national development plan – the PDP 2011-2016,recognizes

arrangements that improve productivity and efficiency, one that is mutually agreed-

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upon. Chapter 3 on Competitive Industry and Services underscores that mutually

agreed-upon working arrangements can contribute to increasing efficiency and

streamlining operations and are thus essential for the competitiveness of enterprises.

In the context of the inclusive growth framework of the PDP, mutually agreed upon

arrangements must be consistent with the promotion of employment and protection

of basic rights of workers accompanied by adequate social safety nets to protect the

vulnerable workers. The PDP also notes that in encouraging these arrangements,

government should be able to establish facilitation mechanisms and services

accessible to workers and enterprises alike (NEDA 2011).

This policy recognition for mutually-agreed upon work arrangements is reiterated in

the Philippine Labor and Employment Plan 2011-2016 (LEP) – the sectoral plan that

contributes to the achievement of PDP goals. Included in the Workers‟ Rights

strategies in the LEP is on guaranteeing “the rights and protection of workers in

mutually agreed upon work arrangements while also balancing the legitimate needs

of employers for flexibility” by embarking, among others, on the review of the Labor

Code particularly the provisions on contracting and subcontracting and by supporting

“collective bargaining or tripartite initiatives toward establishing alternative

employment arrangements such as the adoption of the 40 to 48-hour workweek to

afford flexibility in hiring workers for industries or firms where work hours vary based

on demand for products or services.” (DOLE 2011).

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IV. Flexible Work in Global Enterprises

With a policy environment that has substantially been encouraging the implementation of

various forms of flexible work, it is not surprising that the Philippines now plays host to

several companies that offer flexible work schemes. A global business survey from Regus,

the world‟s largest provider of workplace solutions, shows that flexible work practices are no

longer exclusive to developed countries. The survey notes that these arrangements are now

mainstreamed across the world with nine out of ten companies in the Philippines now

offering flexible working hours to their staff and companies attesting that they are now

reaping the benefits of “flexi” time.4 The Regus survey also showed that, far from being a

crisis-situation response where companies are advised by government to practice flexible

work as a coping measure, flexible working practices have become a mainstream solution to

containing costs and boost profitability, with 81% of firms covered by the survey globally

offering their employees a level of choice about when and where they work.

Meanwhile, a 2007 study by the Boston College Center for Work and Family cites that while

flexible work practices started out as responses to what it terms “mommy issues” – a way

for companies to keep employees who are mothers in the workforce after they have had

children, schemes today show that fathers in the workforce are increasingly seeking some

form of flexible work as they now want to be more active at home. On the other hand, the

study also shows that baby boomers are also seeking for flexible work in part due to family

concerns but also due to health issues. Millenials, on the other hand, were found by the

study not wanting to go through a 9 to 5 work schedulewhich is seen as a post-industrial

arrangement.

These varied challenges facing global enterprises along with the opportunities offered by

technology have encouraged global firms and employees alike to come up with flexible work

practices that cater to diverse needs of the workforce – arrangements that may provide

insights in developing policy responses to flexible work in the Philippines. This section thus

offers some discussion on flexible work practices in global enterprises, some of which have

parts of its operations in the Philippines.

Flexibility @ Work at IBM.5IBM recognizes that its employees are key to its continued

business success and thus believes in creating a workplace culture in which employees can

satisfy their professional and personal priorities without compromising their individual needs

and the needs of the business. Under its Flexibility @ Work program, IBM offers a range of

working options such as individualised work schedules; compressed or flexible work week;

and leave entitlements such as paid parental leave, annual leave, long service leave, self-

funded leave, personal work/life leave, study leave, leave of absence, religious observance,

floating cultural holiday, and parental leave.

IBM Philippines, for instance, has established telecommuting as a corporate practice for over

4 Source: http://business.inquirer.net/1527/more-ph-offices-offer-flexi-time-staff.htm 5 Source: http://www-07.ibm.com/employment/au/diversity/worklife_integration.html

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a decade. Armed with a mobile phone and a ThinkPad, employees may work anywhere

anytime as long as they are able to meet their personal business targets. Studies on the

practice at IBM note that the system worked so well that less than three years since its

inception, telecommuting expanded to include administrative functions such as human

resource management, finance, and accounting.

Work-Life Balance at Accenture.6The arrangement, which provides employees options

for how and where work is delivered, was initially designed to address the specific career

challenges facing women but was later made available to men as well. It includes options

aimed at helping employees achieve work-life balance such as flextime schedule which

enables people to vary start and finish times - either around pre-determined "core hours,” or

by compressing standard hours into fewer than five days by varying the length of each

workday; job-sharing which usually involves dividing the workload of a full-time position

between two people (usually each working a part-time schedule); telecommuting/home

working which enables an individual to work from a location other than an Accenture office

or project site; “flybacks” option for employees working away from their home location

which provides employees the option to fly someone to their project site or to fly to an

alternate location in lieu of a trip home; and client-site arrangements which involves full or

extended weekends at home, or extended periods at the client location or home. It also

provides innovative communication and collaboration tools to help increase employee

productivity, efficiency and flexibility.The programme resulted in reduced turnover rate

among women employees and increased the number of female employees. It also resulted

to improved team productivity, job satisfaction and personal motivation particularly among

the female employees.

Open Work at Sun Microsystems.7 The company‟s work from anywhere program has

made it more flexible, helped increased its productivity and cut costs. With the Open Work

program, Sun Microsystems offers its employees a virtual workplace. More than half of its

employees do not have an assigned office space in a fixed location. Rather, they are

allowed to work wherever and whenever it suits them. To support this kind of work culture,

Sun Microsystems‟ workspaces are designed with a mix of traditional and flexible work

facilities such as drop-in spaces, hotelling services, collaboration spaces, and café style work

areas. Employees are provided with work-style resources which allow them to be mobile

even while working such as global computer sessions where they can move from one

location to another and still be able to access desktop, data, documents and other personal

preferences using a special Java ID card to log onto any system to access their work. Some

employee spend an average of 3-4 days a week outside the office, working from home or

even a coffee shop, but are still able to stay connected and productive. The company also

banners the program as being instrumental in savings for real estate and energy costs.

6 Source: http://careers.accenture.com/Microsites/asia-boarding-pass/life-at-accenture/worklife-

balance/Pages/index.aspx 7 Source: http://www.theanywhereoffice.com/mobile-work/for-sun-microsystems-open-work-is-working.htm

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Employee Assistance Program at ANZ. ANZ is a regional bank that provides a range of

banking and financial products and services to around 8 million customers. It employs

around 48,000 people worldwide and operational units in 32 countries in Australia, New

Zealand, throughout Asia and the Pacific, and in the Middle East, Europe and America. In

the Philippines, ANZ‟spolicies and practices aim to create a positive environment for its

people. It thus believes that balancing work with other commitments and pursuits is vital to

the health and wellbeing of its workforce. As such it recognises that sometimes personal or

family commitments demand more of an individual's time and that life balance is an

important part of the modern workplace landscape. Under its Employees Assistance Program

it provides support a family friendly working environment to its employees along with work-

related assistance such as the subsidized computer at home and flexible working time for its

employees.

Balancing work and life at Shell. The company offers its employees flexible working

practices wherever necessary and operationally possible. Employees at Shell are allowed to

„telecommute‟ and work from home. In some of its business locations, employees may also

avail of flexi-time working, enabling them to start their workday earlier or later to fit their

needs. Further, to meet the needs of an increasingly virtual environment, employees may

even work out of their base location in a regional or global role. The company also

offerscompetitive levels of annual leave entitlements and maternity/paternity leave

allowances as well as accommodates career breaks and sabbaticals wherever feasibly

possible. In addition, employees are encouraged to step outside of purely work boundaries

to participate in other areas of interest such as social responsibility projects as part of Shell

Project Better World, employee interest groups or campus recruitment, which offers the

chance to meet with university students.

Workstyles Program at Telus. The program seeks to support people working when and

where they can be most effective. It includes key components such as the Workstyles

portal that goes live on Telus' intranet Monday, and serves as a "one-stop resource" on

telework for managers and employees (dubbed "team members" in Telus parlance).Instead

of a teleworking policy, the portal offers "guidance and tools for managers and team

members to have the conversation and make intelligent decisions." Resources found in the

portal include: telework guidelines, a telework agreement and checklist, as well as a learning

guide on how to work virtually. A section on virtual workplace risks and precautions is also

found in the portal. The Workstyles program was designed to: 1) Help managers and team

members adopt a flexible work environment culture that enhances team member

engagement and productivity; 2) Support the reduction of floor space utilization resulting in

significant real estate cost savings; 3) Reduce environmental impact through reduced

greenhouse gas emissions.

These practices are regarded by the global firms as highly influential not only in making

their workplaces effective but also in helping their workforce enjoy work-life balance. In a

study of flexible work cultures (Boston College 2007), however cite that flexible practices, on

its known will not result to effective workplaces or substantial work-life balance among

employees. It noted that these practices will have to take into account such factors as: job

autonomy, supervisor support, coworker and team support, learning opportunities on the

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job, and involvement in management decision-making. The study also stresses that it takes

more than establishing programs and policies to make flexible work arrangements work.

Some firms believe that government interventions may also be necessary so that

implementation gaps such as acceptance from both employees and supervisors of the terms

of the work arrangement; employee skepticism and fear, and resistance to a major change

are addressed.

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V. Policy Considerations

The flexible work arrangements in the studied globally-dispersed enterprises highlights

factors that should be considered in crafting a policy response to the clamor for more

flexible work in the country. In considering these global practices, it would be instructive to

compare the policy environment for flexible work found in the country with that of the

practices presented in this paper.

Sectors Covered.The Department advisories presented in Chapter III of this paper

indicates that policy recognizes the need for company-based flexible work among

manufacturing firms, specifically in the electronics industry. Reports on the implementation

of compressed workweek schemes submitted by DOLE Regional Offices also show that these

schemes are more dominantly found in Regions with a large manufacturing base such as

Regions 3 and 4-A. An acknowledgement that flexible work within firms may also be

undertaken in the services sector, however, is seen in the latest Department issuance –

Department Advisory No. 4 (2010) as expressly targets flexible work and nightwork in the

business processing industry or BPOs. What can be seen in the practices of the global firms

presented in this study, on the other hand, is the prevalence of flexible work in knowledge-

based industries that rely heavily in information technology and which most likely attracts

highly-skilled workers in knowledge professions such as software design and research and

development.

Motivation. Flexible work in the Philippines, as can be gleaned from the DOLE issuances,

may presently be seen as mere crisis-response mechanisms aimed at cutting costs and

preserving jobs of workers. As such, these arrangements may be seen as temporary or ad

hoc schemes that may only be availed of in times where risks are seen both in the

sustenance of a business as well as the employment of a large group of workers such as

those found in the manufacturing sector. Meanwhile, flexible work as practiced by the

presented global enterprises is seen as part of normal business strategy – options that are

integral to the business competitiveness in a global market. As such its objectives are more

toward increasing employee satisfaction on the job as a way of retaining talent, providing

work-life balance given the fact that employees in these global enterprises come from

diverse backgrounds which means having diverse work and personal needs. It also not

precluded that these global firm practices inevitably result on cost-cutting albeit in a more

comprehensive scale which involved lower costs for hiring and training employees, lower

turn-over costs, and lower energy costs.

Process. The reports on flexible work arrangements implemented as a coping mechanism

during the global financial crisis show that the process for embarking in these schemes is a

highly formal and probably one-size-fits-all procedure that involves notification to DOLE,

gathering of agreements from majority of employees and generating consensus. In

contrast, the practices among the global enterprises will show that undertaking of a flexible

work arrangement may either go though a formal process such as its inclusion in an

employees‟ employment contract or an informal one such as during counseling sessions and

discussions of performance or targets. As such, the process in these arrangements may be

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highly individualized and may result in a company administering several or varying forms of

flexible work among its employees.

Key Actors. Differences also lie between flexible work in crisis-settings as against those

that are part of business norms in terms of the actors in the implementation process. In the

former, key roles are given to trade unions or workers organizations as the crucial source of

support for the flexible work arrangement. Government plays both an advisory role through

the issuance of guideposts to specific sectors requesting for flexible work schemes as well as

a potential settler of disputes in case no grievance mechanism exists in the implementing

firm. Decisions on whether or not to implement a flexible work scheme are also seen to

emanate from the company as a whole. In flexible work among global enterprises, it may

be assumed that key roles are limited to the individual employee and his/her supervisor.

While the global companies may offer flexible work options as part of its business strategy,

the realization of implementation of these schemes is highly dependent on the individual

who expresses a desire for such an arrangement and the supervisor who responds to such

request taking into account the values of the whole organization.

Given these distinctions between the kind of flexible work being encouraged in the country

and those being exercised by global enterprises whose presence are now felt in the

Philippines or which the country seeks to attract as a way of pursuing economic

growth,policy responses should take into account the following considerations:

Focus on skills and competence. Benefits for both the employees and the employers

from these arrangements can only be realized where employees‟ skills and competence,

particularly in the services sector where these schemes are usually employed, are at par

with global standards. It may be considered that, along with clarifications on the rights

afforded to workers in flexible work arrangements, skills and competence are non-

negotiables in flexible work – the absence of which may be detrimental to both the

employee getting into an arrangement for which he or she is not prepared for and the

employer engaging the services of an employee who may not guarantee delivery of results

Flexible Work in the Philippines

Implementation

Factors

Flexible Work – Global Enterprises

Manufacturing and Services (BPOs)

Sectors Knowledge-Work, IT-enabled Services

Crisis response for cost-cutting (energy) and job preservation

Motivation Work-Life Balance, Talent Retention, Cost-Cutting (turn-overs, energy)

Notification to DOLE Majority support; consensus One-size-fits-all

Process Formal or informal discussions Individualized requests Varying arrangements

Trade unions or workers‟ organizations

DOLE Regional Offices Company as a Whole

Key Actors Individual Employees

Supervisors

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despite offering him/her the benefits of flexible work. The practices among global firms

would actually illustrate that arrangements are only desirable in occupations where skills and

competence is the basis for engagement, hence the fact that flexible work strategies in

global firms are implemented toward ensuring talent or skills retention specially in highly

competitive industries such as information technology.

Agreements-Based. Flexible work depends highly on having an environment conducive to

mutually-beneficial discussions on terms and conditions of employment between an

individual employee and his/her supervisor. These may occur at the point of hiring of an

employee, during performance assessment, and even in the day-to-day transactions at the

firm-level. It implies how important individual work contracts, performance assessment

processes, and productivity-based benefits are in these arrangements. The practices

presented in this study stresses the importance of individuals having the adequate

information on career options, training or skills enhancement options, benefits and

incentives schemes, as well as work-life balance opportunities that may be availed of. It

also underscores the need for employees that are strongly aware of productivity as it

impacts not only on his/her personal life but also to the over-all performance of the firm.

Armed with these information, the individual employee is deemed empowered to negotiate

his terms and conditions of work without necessarily derailing the achievement of firm or

company targets.

IT Accessibility. The practices illustrate that the availability of information technology is

integral to the terms and conditions of employment, without which flexible work cannot be

realized. Whereas the flexible work schemes implemented as crisis-responses may involve

workplaces or work environments that is highly-industrial and labor intensive, those found in

the global enterprises may offer work environments that depend heavily on information

technology and with a small group of employees dispersed in work locations all over the

globe. A key observation in the global practices is that offerings for flexible work almost

always comes with a package of IT resources such as access to virtual worksites, mobile

telephone services, and performance monitoring software. Policymakers, thus, will have to

ensure that in pursuing more flexible work, the necessary IT infrastructure is available to

complement these practices.

Role Definition. Flexible work highlights the role of the employee as the deciding agent on

how and where work shall be performed, the managers and supervisors as enablers of

flexibility without compromising performance, the firm as a provider of autonomous working

conditions. In this scenario, government‟s traditional role as enforcer of standards may

have to be revisited along with careful consideration of the clamor among businesses for

lesser regulation in determining work arrangements – a matter that is seen as within the

prerogatives of businesses. The practices in the global firms would show that government

interference in defining work arrangements may be seen as rigidities in the labor market

that would render firm-based practices ineffective as well as unnecessary. It has been

proposed in several ILS researches on flexible work (Brimon 2010; Alcantara and Molina

2009) that government‟s role in flexible work should focus on balancing the interests of

business‟ need for flexibility and for workers‟ need for better conditions of work including

22

security in their jobs. In achieving such balance, the DOLE may need to implement

programmes that promote self-regulation in business while ensuring that basic guarantees

in protecting the rights of workers are not compromised. Meanwhile, flexible work also

redefines the role of employees as specialists that are capable of designing their work

according to established needs of the company and their personal needs. It also highlights

the need for managers to build networks not only among its employees but also across

occupational categories and industries as these networks are important sources of

information on effective flexible work practices as well as other business strategies that

facilitate flexible work.

Roles among all actors will also have to re-defined at the firm-level particularly in the

process of developing flexible work arrangements. As the need for flexibility varies across

industries and even among firms and depends largely on factors such as employee size,

product or service, and type of ownership, the process for formulating flexible work

practices should give room for adequate consultations on what flexible work arrangements

are prevalent in certain industries and for determining the protective measures that should

be in place for workers in these arrangements. This calls for frequent dialogues among

businesses and industry groups to determine where flexible work arrangements are an

imperative to business competitiveness and to gather models or exemplars in the

implementation of flexible work arrangements. It may also be necessary for DOLE together

with key industry players to draft a practical guide on responsible flexible work

arrangements using the insights from models or exemplars presented

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