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RESEARCH REPORT

Workplace Flexibility

ForewordThis research report looks at the findings of a survey during April 2010 that explored three perspectives on workplace flexibility.

The first is the idea that flexibility means enabling employers to make arrangements with their workforce on such matters as hours of work, the conditions under which work is undertaken and the arrangements for employees taking various forms of leave. Those matters have been affected by the introduction of the Fair Work Act 2009.

The second relates to the capacity under the new legislation for employees to request leave and hours of work that suit them, with the onus on employers to refuse requests only on “reasonable” grounds. Employers are now also required to take account of 10 National Employment Standards as well as 121 modern awards when making employment arrangements.

A third dimension to the term flexibility is the readiness of organisations to initiate a level of responsibility for workers’ mental and physical wellbeing and their work-life balance.

The answers to the survey that inform the findings of this report reveal how organisations are dealing with flexibility in the early days of The Fair Work Act. Because the responses are from individuals reporting anonymously at executive level in organisations, the answers reveal some genuine difficulties with the legislation as well as some differences between rhetoric and practice within the organisations in which they work.

Peter Wilson AM National President Australian Human Resources Institute

Even though the Fair Work Act had only been in operation for less than a year the Australian Human Resources Institute decided it was opportune to ask executive level members how they thought it was travelling, especially with respect to flexibility arrangements, because some employers were claiming it gave them less flexibility.

Because the survey was sent to a relatively small sample group of executives working in the HR area, it also will provide us with a litmus test of the mood on the ground for our large research undertaking later this year on the impact of The Fair Work Act that we have commissioned to Deakin University.

I would like to take this opportunity to thank the executives who responded to the survey. I commend the report of the findings to you.

Serge Sardo Chief Executive Officer Australian Human Resources Institute

AcknowledgementsProject director: Serge Sardo Research coordinator: Anne-Marie Dolan Report authors: Serge Sardo, Paul Begley Sponsor:

Every effort has been made to represent accurately the results of the survey that informed this report. The responses that make up the general findings are based on the responses given anonymously by online respondents.

Volume 2, Number 1 © Australian Human Resources Institute, June 2010

Research Report1

page

SURVEY OVERVIEWThe survey that resulted in these findings was conducted online during April 2010 and communicated by email to a select executive-level sample group, including executive members of the AHRI database.

A total of 57 respondents returned answers to the survey. All responses were treated anonymously.

DEMOgRAPHICSFigure 1. Location of head office

Figure 1 shows that approximately half the head office addresses of respondents (47.06%) are located in NSW and a quarter (23.53%) in Victoria.

Figure 2. Gender

Figure 2 shows that a little more than half the respondents (54.55%) are female.

0%

25%

50%

(51 responses)

Australian Capital Territory

New South Wales Northern Territory South Australia Victoria Wes tern Australia Other Country

13.73%

47.06%

1.96%5.88%

23.53%

5.88%1.96%

0%

30%

60%

(55 responses)

Female

54.55%

Male

45.45%

Research Report2

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Table 1. Industry representation of respondents

What industry do you currently work in?

Option Count Percent

Accomodation 1 1.7

Administrative & support services 2 3.8

Arts & Recreation Services 1 1.9

Construction 1 1.9

Education & Training 6 11.3

Electricity, gas, Water & Waster Services 2 3.8

Financial & Insurance Services 5 9.4

Health Care & Social Services 9 17.0

Information, Media & Telecommunications 5 9.4

Manufacturing 1 1.9

Mining 2 3.8

Professional, Scientific & Technical Services 5 9.4

Public Administraion & Safety 2 3.8

Transport & Logistics 1 1.9

Other 10 18.9

Total 53 100

Figure 3. Organisation type

Nearly half the sample group (42.11%), are from the private sector, as indicated in Figure 3, with roughly a quarter each from the public sector (28.07%) and not-for-profit (26.32%).

0%

20%

40%

60%

60%

(57 responses)

Public

28.07%

Private

42.11%

Not for pro�t

26.32%

Government business enterprise

3.51%

Research Report3

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Table 2. Position

Option Count Percent

HR Administrator 2 3.6

HR Advisor 6 10.7

HR Manager 3 5.4

Senior HR Manager 5 8.9

HR Director/gM 21 37.5

Consultant 1 1.8

Manager 2 3.6

Senior Manager 4 7.1

Director/CEO/gM/Executive 11 19.6

Other 1 1.8

Total 56 100.0

Figure 4. Union coverage

Around one third of respondents (29.82%) indicate no union membership in the organisation and a fifth (17.54%) report having fewer than 10 per cent of the workforce covered by a union. Nearly a third (31.38%) report between 10 and 50 per cent union coverage, and another fifth (21.05%) report union coverage of more than 50 per cent of employees.

0%

20%

40%

(57 responses)

Zero

29.82%

More than1% but lessthan 10%

17.54%

Between10 - 19%

8.77%

Between20 - 29%

10.53%

Between30 - 39%

10.53%

Between40 - 49%

1.75%

Between 50 - 59%

7.02%

Between60 - 69%

1.75%

Between80 - 89%

3.51%

Between 90 - 100%

8.77%

Research Report4

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SECTION 2: FINDINgS AT A gLANCESince the • Fair Work Act was introduced, approximately one in four respondents (26.32%) report that management in their workplace has less flexibility to dismiss employees.Nearly four out of ten respondents (38.6%) report the • Fair Work Act has made employee flexibility easier, and nearly half (47.37%) report no change. Only 10.53% say it’s made employee flexibility harder.Although more than four out of ten respondents (41.07%) report their organisation is taking more •time to manage flexible employee arrangements, less than two out of ten (17.54%) report more time is spent negotiating with unions on flexibility arrangements. Around four out of ten respondents (40.35%) report more legal advice is needed in dealing with •requests for flexibility arrangements and about the same proportion (42.11%) believe that will continue into the future. Nearly four out of ten respondents (39.29%) report more time is now spent keeping records •relating to flexible working arrangements than previously.Even though employer refusals to grant requests for flexibility are not subject to appeal, more than •seven out of ten respondents (71.93%) reported their organisation is likely to take those requests seriously with only 12.28% reporting they are not likely to do so. While more than eight out of ten respondents (82.14%) report the culture in their organisation does •not insist on employees working to the clock, nearly four out of ten (37.5%) report the culture puts pressure on to work unpaid overtime hours.While seven out of ten respondents (70.1%) report senior management openly calls on employees •to work sensible hours, six out of ten (61.4%) report that senior management does not model that behaviour.

SECTION 3: DETAILED FINDINgSWith respect to the operation of the flexibility provisions of the Fair Work Act, questions were asked of the sample group in the areas of legal advice, workplace instruments, record keeping, managing requests, negotiating with unions, and the respective capacity of employers and employees to achieve flexibility.

Workplace instruments

Figure 5. Sources of legal advice

Figure 5 shows that respondent organisations were roughly equally divided into those relying on external (26.32%) and internal (24.58%) legal advice, with around a third (31.58%) relying on both. Less than one in five relied either on employer associations (8.77%) or were self-reliant (8.77%).

0%

10%

20%

30%

40%

(57 responses)

External legaladvisors

26.32%

Internallegal advisors

24.56%

Both internal and external legal

advisors

31.58%

Employerassociation

8.77%

Self-reliant

8.77%

Research Report5

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Table 3. Instruments delivering flexibility

More Flexibility Less Flexibility No Change Don’t know

Modern Awards 6 (10.53%) 12 (21.05%) 31 (54.39%) 6 (10.53%)

National Employment Standards

17 (29.82%) 10 (17.54%) 22 (38.60%) 6 (10.53%)

Enterprise agreement 20 (35.09%) 5 (8.77%) 23 (40.35%) 5 (8.77%)

Individual flexibility arrangements

22 (38.60%) 3 (5.26%) 23 (40.35%) 4 (7.02%)

Common law contracts 13 (22.81%) 6 (10.53%) 30 (52.63%) 7 (7.02%) Table 3 shows that respondents are roughly equally of the view that enterprise agreements (35.09%), individual flexibility arrangements (38.6%) and the National Employment Standards (29.82%) will deliver more workplace flexibility. Few respondents report any of the instruments will deliver less flexibility with modern awards having the strongest support of 21.05%. Large numbers of respondents report expectations of ‘no change’ for each instrument in the impact on flexibility.

Table 4. Since the introduction of the Fair Work Act in July 2009, has the management in your workplace gained or lost flexibility in the following areas?

More Flexibility Less Flexibility No Change Don’t know

Employee hours of work (e.g. to fit rostering schedules)

4 (7.02%) 6 (10.53%) 45 (78.95%) 1 (1.75%)

Days on which employees work (e.g. public holidays)

3 (5.26%) 3 (5.26%) 49 (85.96%) 1 (1.75%)

Rates at which employees are paid (e.g. penalty rates)

4 (7.02%) 8 (14.04%) 44 (77.19%) 1 (1.75%)

Productivity (number of employees hired to achieve results)

2 (3.51%) 7 (12.28%) 47 (82.46%) 1 (1.75%)

Capacity to dismiss employees

5 (8.77%) 15 (26.32%) 39 (68.42%) 2 (3.51%)

Capacity to communicate with employees

5 (8.77%) 3 (5.26%) 47 (82.46%) 1 (1.75%)

Other 0 1 (1.75%) 5 (8.77%) 1 (1.75%) Table 4 shows that, with the exception of ‘capacity to dismiss employees’, respondents largely report little change in the capacity of management to exercise flexibility as a result of The Fair Work Act.

Research Report6

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Management and flexibility

Figure 6. Management capacity to achieve flexibility

Figure 6 reveals that nearly a quarter of respondents (24.56%) report that the new Act has made organisational flexibility more difficult and 15.79% say it has made it easier. More than half (54.39%) report no change.

Figure 7. Union involvement in flexibility arrangements

Figure 7 indicates that seven out of ten respondents see no change in union involvement with flexibility arrangements, with less than a fifth (17.54%) reporting that more time is now taken negotiating with unions on flexibility matters.

0%

25%

50%

75%

100%

(57 responses)

It is takingless time

1.75%

No change

70.18%

It is taking more time

17.54%

Don’t know

10.53%

0%

20%

40%

60%

(57 responses)

Made organisation�exibility easier

15.79%

No change

54.39%

Made organisational�exibility harder

24.56%

Don’t know

5.26%

Research Report7

page

Figure 8. Managing workplace flexibility

Figure 8 shows that around four out of ten (41.07%) respondents see the management of workplace flexibility being more time consuming with around a half (51.79%) seeing no change.

Figure 9. Present demand for legal advice

Figure 9 indicates that around four out of ten respondents (40.35%) report more legal advice being sought as a result of requests under the Act for flexible working arrangements, while more than half (54.39%) report no change.

0%

00%

50%

00%

100%

(57 responses)

Less legal adviceis being sought

1.75%

No change

54.39%

More legal advice is being sought

40.35%

Don’t know

3.51%

0%

25%

50%

75%

100%

(56 responses)

It is takingless time

1.79%

No change

51.79%

It is takingmore time

40.07%

Don’t know

5.36%

Research Report8

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Figure 10. Future demand for legal advice

Figure 10 reveals that four out of ten respondents see requests for flexible working arrangements requiring more legal advice into the future than was the case in the past. While that number is the same as the proportion represented in Figure 11, there is a significant lowering of expectation among the 54.39% of respondents who see no change in demand for legal advice at present, with only a third (33.33%) expecting that demand to continue and 17.54% expecting a reduced demand in the future when the issues are better understood.

Figure 11. Record keeping

Figure 11 reveals a very similar response rate on the matter of time now required to keep records as for the issue of seeking legal advice.

0%

50%

100%

(57 responses)

Less legal advicewill be needed

17.54%

No changeexpected

33.33%

More legal advicewill be needed

42.11%

Don’t know

7.02%

0%

25%

50%

75%

100%

(56 responses)

It is takingless time

1.79%

No change

53.57%

It is takingmore time

39.29%

Don’t know

5.36%

Research Report9

page

Employees and flexibility

Figure 12. Areas in which flexibility is sought

Figure 12 shows that five areas stand out as ones in which employees seek workplace flexibility: part-time hours (62.5%), working off-site (58.93%), variable hours (53.57%), extension of parental leave (51.79%) and personal carer leave (46.43 %). Requests for job sharing is reported next by a quarter of respondents (26.79%).

Figure 13. Employee capacity to achieve flexibility

As shown in Figure 13, nearly four out of ten respondents (38.6%) believe the Act has made employee flexibility easier and only 10.53% believe it is harder now for employees. Nearly half the respondents (47.37%) see no change.

0%

20%

40%

60%

80%

(56 responses)

Recreationleave

PersonalCarer’s leave

Part-timehours

Variablehours

Job sharing Working o�-site

(e.g. at home)

Extension of parental

leave

26.79%

46.43%

62.50%

53.57%

23.21%

58.93% 51.79%

Other - pleasespecify

3.57%

0%

25%

50%

(57 responses)

Made employee�exibility easier

38.60%

No change

47.37%

Made employee�exibility harder

10.53%

Don’t know

3.51%

Research Report10

page

Table 5. Awareness of employee rights to make flexibility requests

Very Aware Aware Aware to some extent

No Idea Don’t know

Personal carer’s leave

29 (50.88%) 16 (28.07%) 10 (17.54%) 2 (3.51%) 0

Variation of hours (e.g. outside 9-5 band, part-time job sharing)

22 (38.60%) 11 (19.30%) 20 (35.09%) 3 (5.26%) 0

Working offsite (e.g. at home)

11 (19.30%) 12 (21.05%) 25 (43.86%) 5 (8.77%) 4 (7.02%)

Extension of parental leave

11 (19.30%) 20 (35.09%) 20 (35.09%) 3 (5.26%) 3 (5.26%)

Table 5 shows that nearly eight out of ten respondents (78.95%) believe employees are very aware or aware of their right to request personal carer leave under the Act. They also report degrees of awareness of that order by employees on variation of hours (57.9%), extension of parental leave (54.39%) and working off-site (40.35%).

HR and flexible working practices HR and flexible working practices

Figure 14. Does HR have a flexible work practices policy?

Figure 14 indicates that a large majority of respondent organisations (87.5%) have a flexible work practices HR policy.

0%

50%

100%

(56 responses)

Yes

87.50%

No

12.50%

Research Report11

page

Figure 15. Does your organisation promote its flexible work practices to attract and recruit staff?

Figure 15 shows that around seven out of 10 respondents report their organisation promotes flexible work practices for the purposes of recruitment and attraction.

Table 6. Employee take-up of right to request flexible work practices

Often Sometimes Rarely Never Don’t know

Personal carer’s leave

25 (43.86%) 25 (43.86%) 6 (10.53%) 1 (1.75%) 0

Variation of hours (e.g. outside 9-5 band, part-time job sharing)

13 (22.81%) 33 (57.89%) 8 (14.04%) 3 (5.26%) 0

Working offsite (e.g. at home)

11 (19.30%) 19 (33.33%) 18 (31.58%) 8 (14.04%) 1 (1.75%)

Extension of parental leave

6 (10.53%) 23 (40.35%) 19 (33.33%) 7 (12.28%) 2 (3.51%)

As indicated in Table 6, the strongest take-up of frequent requests for flexibility is in the area of personal carer leave (43.86%). At 22.81%, frequent requests for variation of hours and working off-site (19.3%) are strong. Only 10.53% report frequent requests for extension of parental leave, though that option may require more time to reveal reliable figures.

0%

50%

100%

(52 responses)

Yes

71.15%

No

26.92%

Don’t know

1.92%

Research Report12

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Figure 16. Will employers take employee flexibility seriously?

Despite there being no appeal provisions in the Fair Work Act with respect to employer obligations to give ‘reasonable grounds’ when refusing a request for flexibility, Figure 16 shows that a significant proportion of the sample group (71.93%) believe employers will take the flexibility provisions seriously and only 12.28% believe they will not do so.

SAMPLE RESPONDENT COMMENTSRespondents whose organisations have had occasion to refuse requests for flexible arrangements were asked to name examples of the reasonable grounds given for refusals. The following are a sample of answers.

“Nature of our business, being professional services, requires full-time employees”

“Size of our business and our ability to absorb the workload of the person either reducing hours or managing off-site working”

“Hinders the others in the team where a large portion of the role is knowledge based”

“Expectations / requirement of client to be dealing with single direct contact point”

“Professional services organisation with a requirement to bill external clients for time spent on a territory. Territories must be covered 38 hours a week hence company unable to approve requests to work part-time on a territory”

“Work in aged care requires that staff be in attendance at critical times, so flexibility is often a mismatch with individual employees expectations”

“Feasibility of organising job share. Some one goes on to 3 day week and 2 days work needs to be picked up by the rest of the team which causes a lot of friction. Very rare to find someone who wants 2 days per week to make up balance. Only solution is 3 days X 2 but that is not productive”

“’Operational Need’. Usually not defined any further and used mostly as a catchword to say no for more personal reasons than organisational ones”

“Operational requirements”

“Inherent job requirements mean that a part-time employment arrangement is not practical for that specific position”

“No requests have been refused per se. Most staff work on Fly In/Fly Out or Drive In/Drive Out sites which limits the need for flexible work arrangements”

“Customer Service requirements must be maintained. Customer Service expectations must be met. Difficult market conditions have meant the organisation cannot sustain the increased cost that will result from the request”

0%

50%

100%

(57 responses)

Yes

71.93%

No

12.28%

Don’t know

15.79%

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“Request to start early / finish early 5 days per week in a management role within an organisation with European HQ (and therefore requiring regular interaction with European based colleagues)”

“Compromise reached for start early / finish early 3 days per week, start late / finish late 2 days per week”

“Scope of responsibilities and span of control associated with the position. Headcount restrictions imposed by US parent”

“Urgent customer orders that need to be completed”

“Need for regular global meeting times with our people in other countries, both west and east of Australia, that are inflexible in their nature”

“Would have a detrimental effect on the ability the business to operate, would reduce customer service capability and productivity”

“Interferes with normal requirements of the job. Unable to mange a group of people effectively on a part-time basis. Unable to fulfil customer expectations and retain high customer service levels”

“We haven’t refused any yet”

“Requests to return from parental leave into job share arrangements. We have refused on some occasions based on too many other job-shares in the school and not being able to accommodate another part-time arrangement to work in the best learning interests of the children. Parent complaints about teaching performance increase if too many job-share arrangements are in place in a school”

“Rostering issues. Nno vacant shifts available to accommodate requests”

“Impact on rosters/shiftwork”

“Impact of size of organisational unit”

“Team-work needs vs individual needs”

“Does not meet the inherent requirements of the position”

Workplace health and work-life balanceFigure 17. Employer benefits in mental and physical health

Figure 17 reveals that nearly nine out of ten organisation (89.47%) offer workplace benefits related to the mental and physical health of employees.

0%

50%

100%

(57 responses)

Yes

89.47%

No

10.53%

Research Report14

page

Figure 18. What types of health programs are offered?

Figure 18 shows that the main program offered is employee assistance by way of psychological advice with 88.46% of respondents nominating it. The much less formal array of workplace social functions is the next strongest nomination by 82.69% of the sample group. More than half the respondents also nominated career development programs (65.38%), executive and personal coaching programs (59.62%) and team development programs (50%). Other benefits such as workplace health food (23.08%), workplace massages (19.23%) and yoga at work (17.31%) are nominated by relatively small numbers.

Figure 19. Work-life balance programs

0%

50%

100%

(52 responses)

EmployeeAssistance

(psychologicaladvice)

programs

88.46%

Workplace massages

19.23%

Yoga at work

17.31%

Workplacehealthfoods

23.08%

Workplace social

functions(e.g. Christmasparties, Friday

drinks)

82.69%

Culturalchange

programs

32.69%

Careerdevelopment

programs

65.38%

Executiveand

personalcoaching programs

59.62%

Team development

programs

50.00%

Other- pleasespecify

23.08%

0%

50%

100%

(57 responses)

Yes

43.86%

No

54.39%

Don’t know

1.75%

Research Report15

page

Figure 20. If yes, do you communicate the work-life balance program to staff?

Figure 19 indicates that less than half respondent organisations (43.86%) have a work-life balance program in operation, and of those that do, Figure 20 shows that 80% communicate the program to employees.

Figure 21. Does your workplace culture expect you to work to the clock?

0%

50%

100%

(30 responses)

Yes

80.00%

No

16.67%

Don’t know

3.33%

0%

50%

100%

(56 responses)

Yes

17.86%

No

82.14%

Research Report16

page

Figure 22. Does your workplace culture apply pressure to work unpaid overtime?

Figure 21 shows that more than eight out of ten respondents (82.14%) report a workplace culture that does not insist on employees working to the clock. However, Figure 22 reveals that nearly four out of ten (37.5%) report a culture that applies pressure to work unpaid overtime.

Figure 23. Senior management encouragement to work sensible hours

0%

50%

100%

(56 responses)

Yes

37.50%

No

58.93%

Don’t know

3.57%

0%

50%

100%

(57 responses)

Yes

70.10%

No

21.05%

Don’t know

8.77%

Research Report17

page

Figure 24. Senior management modelling on working hours

Figure 23 reveals that seven out of ten respondents (70.1%) report that senior management in their organisation encourages staff to work sensible hours. However, Figure 24 shows that senior management in six out of ten of those organisations (61.4%) do not model sensible working hours in their own behaviour.

0%

50%

100%

(57 responses)

Yes

36.84%

No

61.40%

Don’t know

1.75%

Australian Human Resources Institute LimitedABN 44 120 687 149 Level 10, 601 Bourke Street Melbourne Victoria 3000 T (+613) 9918 9200 F (+613) 9918 9201www.ahri.com.au