shrm survey findings: 2014 workplace flexibility—strategic use of flexible work arrangements...

SHRM Survey Findings: 2014 Workplace Flexibility—Strategic Use of Flexible Work Arrangements

October 15, 2014

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Introduction and definition

Introduction

The 2014 Workplace Flexibility Survey was administered by the Society for Human Resource Management (SHRM) to identify the prevalence and types of flexible work arrangements (FWAs) organizations offer. The survey also examined employee use of these programs, metrics/analytics on FWAs, success factors, the impact of these programs on both employees and employers, and challenges associated with FWAs.

The following topics are included in the two-part series titled “2014 Workplace Flexibility”:

Part 1: Overview of Flexible Work Arrangements

Part 2: Strategic Use of Flexible Work Arrangements

Definition

Flexible work arrangements, also known as workplace flexibility, or Workflex, are a dynamic partnership between employers and employees that defines how, when and where work gets done in ways that work for everyone involved (including families, clients and other stakeholders).

2014 Workplace Flexibility Survey—Strategic Use of Flexible Work Arrangements ©SHRM 2014

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Establishing Methods to Measure the Impact of FWAs• Many organizations have not established any methods to measure the impact of FWAs.

» Recruitment and Retention: Among the responding organizations that offered at least one type of FWA, two-thirds or more had not established any methods to measure the effect of FWAs on turnover, hiring costs and employee intent to stay and had no plans to do so in the future (66%-76%). One-fifth or less (13%-21%) had established methods to measure the impact of FWAs on these organizational outcomes.

» Employee Experience: About three-fifths to two-thirds of organizations had not established any methods to measure the effect of FWAs on performance appraisals, employee attitudes, employee engagement, and employee health and wellness (56%-67%). One-fifth to one-third (21%-31%) of organizations had established methods to measure the effect on these outcomes.

» Organizational Success: Two-thirds to four-fifths of responding organizations had not established any methods to measure the effect of FWAs on business continuity, health care costs, overall profits or revenue, organizational brand identify, employee diversity and inclusion, and real estate costs (69%-83%). One-quarter (24%) of organizations established methods to measure the effect on business continuity and less than one-fifth (11%-18%) established these methods for the other organizational success outcomes.

Key findings

2014 Workplace Flexibility Survey—Strategic Use of Flexible Work Arrangements ©SHRM 2014Note: Results are based on responding organizations that offered at least one type of FWA.

2014 Workplace Flexibility Survey—Strategic Use of Flexible Work Arrangements ©SHRM 2014 4

Methods to Measure the Effect of FWAs on Organizational Outcomes• The vast majority (92%) of responding organizations that offered at least one type of FWA had

not established a method to measure its return on investment (ROI).» More than four-fifths (83%) had not established a method to measure the effect of FWAs

on organizational and employee performance (other than ROI).

Usefulness of Methods/Processes to Help Organizations Implement a Measurement Plan• More than one-half (55%-60%) of responding organizations that offered at least one type of

FWA indicated an industry standard on what data to collect, industry benchmarks to evaluate levels of success and an industry standard on how to analyze the data would be useful/very useful in helping the organization implement a process to measure the impact of FWAs.

» About one-half (46%-48%) indicated HR analytics software designed to analyze this type of data, and metrics and analytics training for staff would be useful/very useful; 41% reported HR analytics software designed to store the data would be useful/very useful.

Importance of Various Factors to the Success of FWAs• Two-thirds or more (68%-83%) of responding organizations that offered at least one type of

FWA indicated eight out of 16 factors were “very important” in contributing to the success of FWAs. These factors included support/buy-in from top management, commitment from employees to make it work and a supportive organizational culture, among others.

» About one-third indicated two factors were somewhat unimportant or not at all important to the success of FWAs: employees from all levels using FWAs and the policy/practice/program being gradually implemented (e.g., piloted with a small group) (31% and 35%, respectively).

Key findings (continued)

Note: Results are based on responding organizations that offered at least one type of FWA.

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Impact of FWAs• The majority of organizations indicated that FWAs have had a positive impact on

certain factors.

» Recruitment and Retention: The majority (52%-75%) of responding organizations that offered at least one type of FWA indicated FWA options had a positive impact on retaining employees, attracting employees and turnover; about one-third (36%) indicated the same for the impact on hiring costs.

» Employee Experience: The majority (52%-84%) indicated FWA options had a positive impact on the quality of employees’ personal/family lives, employee morale/job satisfaction/ engagement, employee job autonomy and employee health and wellness; about one-third indicated the same for the impact on performance appraisals (36%) and employee career attainment/progression (32%).

» Organizational Success: The majority (52%-72%) of responding organizations that offered at least one type of FWA indicated FWA options had a positive impact on employee commitment to the organization, overall company culture and the company’s public image of being an employer of choice; about one-third indicated the same for the impact on ROI (35%) and supporting corporate social responsibility practices (30%).


2014 Workplace Flexibility Survey—Strategic Use of Flexible Work Arrangements ©SHRM 2014Note: Results are based on responding organizations that offered at least one type of FWA.


Individuals/Groups Involved in FWAs• Design: About one-half (52%-54%) of responding organizations that offered at least

one type of FWA indicated top management and those in an HR function/role (including CHRO) were involved in the design of FWAs at their organization “to a large extent;” just 13% indicated the same for line managers/supervisors.

• Implementation: About one-half (52%) indicated those in an HR function/role (including CHRO) were involved in the implementation of FWAs at their organization “to a large extent;” about one-third (31%-36%) indicated the same for top management and line managers/supervisors.

• Evaluation/Measurement: More than one-third (38%) indicated those in an HR function/role (including CHRO) were involved in the evaluation/measurement of FWAs at their organization “to a large extent;” about one-quarter (27%) indicated the same for top management and just 17% for line managers/supervisors.


Note: Results are based on responding organizations that offered at least one type of FWA.


• Many organizations that offered at least one type of FWA had not established methods to measure the effect of FWAs. This may be because it is difficult to link measurements to other initiatives, or it may indicate lack of experience in working with FWA metrics. Experts in both FWAs and HR metrics often advise organizations to choose a few key metrics of particular interest to their business leaders and focus on these metrics first; they can then build on these metrics and add additional measurements over time. See www.shrm.org, www.whenworkworks.org and www.hrcosting.com for resources for measuring the impact of FWAs.

• Not understanding the impact of FWA initiatives makes it more difficult to maximize their success. An important first step is to establish the main goal(s) of any FWA initiative. Once goals are articulated, it is much simpler to identify the metrics that can best demonstrate a program’s success. Common examples of factors to measure are employee absence, turnover, productivity, attitudes/morale, and health and wellness.

• As more organizations develop their FWA metrics, similarities in approaches could lead to informal industry standards. Meanwhile, more formal initiatives such as those spearheaded by SHRM, the American National Standards Institute (ANSI) and the International Organization of Standardization (ISO), could lead to the establishment of professional HR standards on FWA metrics.

• Because HR professionals report that many factors play a role in the success of FWA initiatives, the complexity of implementing these initiatives and ensuring their success cannot be underestimated. HR professionals and organizational leaders must therefore be thoughtful about their FWA strategies and consider multiple contributing factors when executing their strategies.

What do these findings mean for the HR profession?

http://www.shrm.org/

http://www.whenworkworks.org/

http://www.hrcosting.com/


• The HR professionals in this research made a strong case for FWAs because of the positive impact on recruitment and retention, employee discipline, productivity, morale, the quality of employees’ work and their personal lives, health, and organizational success overall. These reported positive effects, along with relatively low reported negative effects, suggest that adopting these initiatives could benefit many organizations.

• Among the responding organizations that indicated they offered at least one type of FWA, top management and HR were generally involved in the design of FWAs at their organizations, but more organizations may benefit from getting line managers more closely involved in designing their FWA strategies.

What do these findings mean for the HR profession? (continued)


Methods to Measure the Effect of FWAs

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Established method(s) to measure the effect of FWAs on recruitment and retention

Note: n = 246-250. Percentages are of those organizations that indicated they offered at least one type of FWA. Respondents who responded “don't know” were excluded from this analysis. Percentages may not total 100% due to rounding.

Turnover

Hiring costs (e.g., for an employee who resigns to take a position at an organization that offers FWAs/workflex)

Employee intent to stay

21%

13%

13%

14%

11%

14%

66%

76%

73%

Yes

No, but we have a clear plan for doing so in the near fu-ture

No, and we do not have a clear plan for doing so in the near future



Established method(s) to measure the effect of FWAs on employee discipline


Absenteeism

Administration of workplace discipline (e.g., number of disciplinary actions)

Compliance with safety procedures

24%

22%

21%

11%

9%

7%

65%

69%

71%

Yes




Established method(s) to measure the effect of FWAs on employee excellence

Productivity

Client/customer service

Client/customer satisfaction

Employee creativity

27%

27%

26%

12%

12%

10%

10%

8%

61%

63%

64%

80%

Yes





Established method(s) to measure the effect of FWAs on employee experience

Performance appraisals

Employee attitudes (e.g., job satisfaction, commitment, morale)

Employee engagement

Employee health and wellness

31%

30%

27%

21%

8%

14%

15%

12%

60%

56%

59%

67%

Yes





Established method(s) to measure the effect of FWAs on organizational success

Business continuity (i.e.,

Health care costs

Overall profits or revenue

Organizational brand identity

Employee diversity and inclusion

Real estate costs

24%

18%

16%

14%

14%

11%

8%

8%

7%

8%

7%

6%

69%

74%

77%

78%

79%

83%

Yes



organization is able to continue delivery of products/services)



Established method(s) to measure the ROI of FWAs and their effect on organizational and employee performance

2%

6%

92%

Yes

No, but we have a clear plan for do-ing so in the near future


Has your organization established a method to measure the return on

investment (ROI) of the FWA program?

n = 189

9%8%

83%

Has your organization established some other method(s) to measure the effect of FWAs on organizational and

employee performance?

n = 187

Note: Percentages are of those organizations that indicated they offered at least one type of FWA. Respondents who responded “don't know” were excluded from this analysis.


How useful would the following items be to help your organization implement a measurement plan?

Industry standard on what data to collect

Industry benchmarks to evaluate levels of success

Industry standard on how to analyze the data

HR analytics software designed to analyze the data (e.g., automated calculations based on industry standards)

Metrics and analytics training for staff

HR analytics software designed to store the data (e.g., databases with relevant fields and input options)

21%

19%

17%

15%

14%

13%

39%

41%

38%

31%

34%

28%

30%

27%

28%

28%

31%

31%

10%

14%

16%

26%

21%

28%

Very useful Useful Somewhat useful Not at all useful

Note: n = 195-200. Percentages are of those organizations that indicated they offered at least one type of FWA. Percentages may not total 100% due to rounding.


Impact of FWAs


How important is each of the following factors to the success of FWAs at your organization?

Very import

ant

Somewhat

important

Somewhat unimporta

nt/ Not at all important

Support/buy-in from top management (e.g., executive level, c-suite)

83% 15% 3%

Commitment from employees to make it work (e.g., following the rules of policy)

77% 19% 4%

Support/buy-in from employees’ line managers/supervisors 77% 18% 6%

Suitability of the job for flexible work (e.g., receptionist) 76% 19% 5%

Supportive organizational culture 75% 22% 4%

Business needs allow for FWAs 72% 22% 6%

Employee understanding of how policy/practice/program works

69% 25% 6%

Success with managing employees with FWA options (e.g., schedules and work)

68% 27% 5%



Very import

ant

Somewhat

important

Somewhat unimporta

nt/ Not at all important

Employee interest in/knowledge of policy/practice/program 60% 32% 8%

Organizational consistency in policy/practice/program implementation (e.g., not left solely to discretion of line manager/supervisor)

56% 38% 6%

Policy/practice/program is well established 53% 29% 18%

Organizational consensus on policy/practice/program design 47% 39% 14%

Alignment of other workplace policies to support FWAs(e.g., streamlined approval processes for changes)

41% 43% 16%

Encouragement by organization to participate in FWAs 39% 39% 22%

Employees from all levels (i.e., executive through individual contributors) use the FWAs program

31% 38% 31%

Policy/practice/program was gradually implemented (e.g., piloted with a small group)

28% 38% 35%

How important is each of the following factors to the success of FWAs at your organization? (continued)



What type of impact, negative or positive, have FWA options had on recruitment and retention?

Retaining employees

Attracting employees

Turnover

Hiring costs (e.g., when an employee resigns to take a position at an organization that offers FWAs/workflex)

75%

61%

52%

36%

22%

37%

42%

59%

6%

5%

Positive/somewhat positive impact Neutral impactNegative/Somewhat negative impact


2%

4%


What type of impact, negative or positive, have FWA options had on employee discipline?

Employee absenteeism rates

Administration of workplace discipline (e.g., number of disciplinary actions)

Compliance with safety procedures

56%

30%

18%

35%

63%

82%

9%

8%

1%

Positive/Somewhat positive impact Neutral impactNegative/Somewhat negative impact



What type of impact, negative or positive, have FWA options had on employee excellence?

Employee intent to stay

Employee productivity

The quality of employees' work

Customer/client service

Employee creativity

Customer/client satisfaction

74%

67%

59%

50%

46%

43%

23%

29%

39%

46%

52%

54%

2%

4%

2%

4%

3%

3%




What type of impact, negative or positive, have FWA options had on employee experience?

The quality of employees' personal/family lives

Employee morale/job satisfaction/engagement

Employee job autonomy

Employee health and wellness

Performance appraisals

Employee career attainment/progression

84%

80%

56%

52%

36%

32%

14%

15%

44%

46%

62%

65%

2%

5%

1%

2%

2%

4%


Note: n = 149-176. Percentages are of those organizations who indicated they offered at least one type of FWA. Respondents who indicated "Don't know” were excluded from this analysis. Percentages may not total 100% due to rounding.


What type of impact, negative or positive, have FWA options had on organizational success?

Employee commitment to organization

Overall company culture

Public image of being an employer of choice

Return on investment

Supporting corporate social responsibility (CSR) practices

Supporting a 'green' workplace philosophy/practice

Organizational brand identify

Promoting employee diversity

Perception of fairness among employees without FWAs/workflex

Real estate costs

Health care costs

Overall profits or revenue

72%

63%

52%

35%

30%

29%

28%

23%

22%

20%

19%

19%

28%

34%

47%

65%

70%

71%

70%

77%

50%

79%

80%

81%

1%

3%

1%

1%

28%

1%

2%

1%

Positive/Somewhat positive impact Neutral impact Negative/Somewhat negative impact

0%

0%

0%

0%



Design, Implementation and Evaluation/Measurement of FWAs


To what extent are/were the following individuals/groups involved in the design of FWAs at your organization?

Top management (e.g., executive level,

other c-suite)

HR function/role (including CHRO)

Line managers/supervisors

Nonmanagement employees

Consultant, HR vendor or other third party

52%

54%

13%

4%

5%

29%

18%

31%

10%

6%

19%

28%

56%

85%

89%

To a large extent To a moderate extent To a small extent/Not at all



To what extent are/were the following individuals/groups involved in the implementation of FWAs at your organization?



other c-suite)



52%

36%

31%

3%

18%

27%

30%

5%

31%

37%

39%

92%




To what extent are/were the following individuals/groups involved in the evaluation/measurement of FWAs at your organization?



other c-suite)


Nonmanagement employees


38%

27%

17%

3%

4%

17%

21%

26%

9%

6%

44%

51%

57%

88%

91%




Demographics


Demographics: Organization industry

Note: n = 373. Percentages do not total 100% due to multiple response options.

Percentage

Manufacturing 22%

Professional, scientific and technical services 18%

Health care and social assistance 13%

Finance and insurance 12%

Government agencies 7%

Educational services 6%

Transportation and warehousing 5%

Utilities 5%

Construction 4%

Accommodation and food services 3%

Administrative and support, and waste management and remediation services 3%


Demographics: Organization industry (continued)

Note: n = 373. Percentages do not total 100% due to multiple response options.

Percentage

Mining, quarrying, and oil and gas extraction 3%

Retail trade 3%

Agriculture, forestry, fishing and hunting 2%

Arts, entertainment and recreation 2%

Information 2%

Real estate and rental and leasing 2%

Religious, grant-making, civic, professional and similar organizations 2%

Wholesale trade 2%

Repair and maintenance 1%

Personal and laundry services <1%

Other industry 12%

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Demographics: Organization sector

n = 366

Publicly owned for-profit

Privately owned for-profit

Nonprofit organization

Government agency

Other

16%

52%

22%

8%

2%


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Demographics: Organization staff size

n = 360

1 to 99 employees

100 to 499 employees

500 to 2,499 employees

2,500 to 24,999 employees

25,000 or more employees

31%

34%

20%

12%

3%



n = 367

Demographics: Other

U.S.-based operations only 77%

Multinational operations 23%

Single-unit organization: An organization in which the location and the organization are one and the same.

35%

Multi-unit organization: An organization that has more than one location.

65%

Multi-unit headquarters determines HR policies and practices

50%

Each work location determines HR policies and practices

7%

A combination of both the work location and the multi-unit headquarters determines HR policies and practices

43%

Is your organization a single-unit organization or a multi-unit organization?

For multi-unit organizations, are HR policies and practices determined by the multi-unit headquarters, by each work location or by both?

Does your organization have U.S.-based operations (business units) only, or does it operate multinationally?

n = 370

n = 245

Corporate (companywide) 67%

Business unit/division 15%

Facility/location 18%

n = 245

What is the HR department/function for which you responded throughout this survey?

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• Response rate = 12%• 525 HR professionals from a randomly selected sample of SHRM’s membership

participated in this survey• Margin of error +/- 4%• Survey fielded April-June 2014

Survey Methodology

SHRM Survey Findings: 2014 Workplace Flexibility—Strategic Use of Flexible Work Arrangements



For more survey/poll findings, visit shrm.org/surveys

For more information about SHRM’s Customized Research Services, visit shrm.org/customizedresearch

Follow us on Twitter @SHRM_Research

About SHRM Research

Project lead:Karen Wessels, researcher, SHRM Research

Project contributors:Evren Esen, director, Survey Programs, SHRM Research

Yan Dong, Survey Research Center, SHRM Research

Copy editor:Katya Scanlan, SHRM Knowledge Center

http://www.shrm.org/surveys

http://www.shrm.org/customizedresearch

http://twitter.com/SHRM_Research

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Founded in 1948, the Society for Human Resource Management (SHRM) is the world’s largest HR membership organization devoted to human resource management. Representing more than 275,000 members in over 160 countries, the Society is the leading provider of resources to serve the needs of HR professionals and advance the professional practice of human resource management. SHRM has more than 575 affiliated chapters within the United States and subsidiary offices in China, India and United Arab Emirates. Visit us at shrm.org.

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