RSM Resources

Eight hours a day, 40 hours a week, has long been the standard U.S.workweek. But experts say times are changing with workplace demographics. According to a recent study by the Families and Work Institute, generational differences will increase demand for more flexible work schedules.

The study documents what many managers have experienced firsthand: Generation X and younger employees put a greater premium on work-life balance compared with baby boomers and older workers. The result? More companies are exploring flexible scheduling options as tools to:

• Retain experienced employees and recruit new ones.
• Reduce absenteeism and lost hours because of dependent care, health care and other personal business conducted during business hours.
• Save payroll expenses during seasonal or economic slowdowns.

Done well, flextime arrangements can improve morale and provide midsized companies with a distinct competitive advantage. Done poorly, they can cause confusion, conflict and even charges of discrimination.

Why flextime?
The Families and Work Institute study,"Generation & Gender in the Workplace," found that Generation X workers are significantly less career-focused than their "boomer"colleagues:

• 22 percent of boomer workers place a higher priority on work than family compared with only 12 percent of Gen-X workers.
• 52 percent of Gen-X workers place a higher priority on family than work, compared with 41 percent of working boomers.
• The number of workers who want positions with greater responsibility in the workplace has decreased by nearly 19 percent during the past 10 years.

These trends are expected to continue as greater numbers of women and mothers enter the workforce, young fathers play a more active role in family life, and aging adults increasingly require care from working children.

Many experts cite a dramatic increase in companies offering flexible scheduling. A study by Hewitt Associates found that six in 10 large companies have flextime options, and one human resources consultant says that nearly 70 percent of his clients offer flextime, partly to boost recruitment and retention. Employers who provide these in-demand options may have an edge attracting and retaining employees.

"Our employees are more energized, more satisfied and more productive — it’s definitely a win-win situation," says Teresa Hopke, director of Work Life Strategies for RSM McGladrey.

Hopke is overseeing RSM McGladrey’s transformation from an accommodation model of flexible scheduling (in which flexibility is sometimes regarded as an exception to "the rules" for colleagues who present the right reasons) to a situation-blind, business-based model (in which any employee can propose any work schedule provided the business impact is neutral or positive). The company’s evolving "culture of flexibility"provides a clear competitive edge when it comes to hiring and keeping top employees, Hopke says.

Flextime options
The Society for Human Resource Management’s SHRM Work/Life Balance Toolkit highlights flexible-scheduling options and related benefits. If you’re considering flextime for your company, involve your managers, human resources staff and employees to choose options that make the most sense for your business. This will ensure buy-in and consistent application of new policies.

Alternative scheduling. One of the most common forms of flextime, alternative scheduling allows employees to start and end their workday as their personal lives demand. For example, a mother may work from 6 a.m. to 3 p.m. to be home when her children return from school, while a co-worker might work from 10 a.m.to 7 p.m. to avoid rush-hour traffic.

Employees benefit by setting their own time priorities, helping to improve their overall job satisfaction and performance. The employer, meanwhile, benefits from better workplace morale, higher employee retention, and increased staff availability over a longer business day.

Telecommuting. Employees can also gain personal time by telecommuting,which enables them to work from home or a satellite office, aided by the Internet and other high-tech conveniences.

Allowing employees to work from home helps them juggle unpredictable schedules caused by a variety of family or personal matters, according to SHRM experts. Telecommuting can increase a worker’s productivity because of reduced commuting time, while helping the company saveon office space, electricity and other worksite-related costs.

SHRM cautions that telecommuters can sometimes find themselves excluded from key conversations, critical decisions, regular feedback loops and advancement opportunities. Employers would be wise to establish clear guidelines, performance expectations and training for telecommuters, as well as facilitate collaboration, communication and feedback.

Compressed workweeks. The availability of "4/40" workweeks is also increasingly popular, thanks to the appeal of a three-day weekend in exchange for four 10-hour work days, or four nine-hour days and a half-day on Friday.

While many employers offer these options during the summer, when employees’ children are out of school or when product demand slows, a year-round compressed workweek is gaining ground in certain industries. For example, nurses and other health care providers typically work three 12-hour shifts — ensuring more consistent patient care and providing adequate downtime for professionals with stressful jobs.

Employers enjoy varying benefits of compressed workweeks. Some companies may stagger workweeks to ensure staffing of five, even seven days a week. Others may realize greater cost savings by closing entirely one day a week.

Other options. Less prevalent flextime alternatives include:

• V-time arrangements, or "flex years," in which employees work full-time for part of the year, and part-time or not at all during agreed-upon periods. Employees may receive prorated pay throughout the year and remain eligible for benefits year-round.
• Job-sharing arrangements, in which two part-time employees do the work of one full-time employee by coordinating hours, responsibilities and activities.

At RSM McGladrey, Hopke says the next level of flexibility will be the "Flex career," in which employees will be able to take multiple years off to pursue other interests. Employees will be able to return to work at any time during those five years, and the company will pay for continuing education while they are on leave. In addition, employees can pitch their own version of flexible scheduling if none of the company’s options fits.

"Our goal now is to make it completely employee-initiated," Hopke says. "If they see a way that they can work more effectively, we want them to make the case."

Bend without breaking
As with all benefits, flextime options require careful planning and understanding at all levels of an organization. Supervisors may find it difficult to coordinate schedules when employees work at different times. Some employees may feel discriminated against without the same opportunities for flexible hours, while those who take advantage of flextime may feel they hold a lower status.

Experts cite six steps employers can take to avoid these problems:

• Assign one contact for all employees interested in flextime. This ensures consistency of messaging and policy application throughout the organization.
• Note each employee’s work arrangement in writing. This ensures that expectations are clear and work hours are consistent. While no flextime arrangement should be carved in stone, an employee’s schedule should be consistent to avoid misunderstandings and staffing lapses.
• Use flextime strategically. Not all positions are conducive to each flextime option — manufacturing line workers, for example, often need to be on the job at very specific times. Training and generous personal paid time off may help them understand the value of flexible scheduling to co-workers and the company.
• Offer the plan consistently to all employees. If providing flextime, apply it evenly. Allowing a young mother to change her schedule but denying the same option to an older employee with no dependent-care responsibilities opens you to charges of discrimination.
• Within reasonable bounds, leave the choice to the employee. Don’t push anyone to use flextime. Establish clear parameters such as minimum levels of coverage during regular business hours, and let everyone know their options.
• Be clear about performance expectations. Employees who take advantage of flexible scheduling options need to know they won’t be passed over for promotions or raises. Be sure employees know how they will be measured so key areas of performance don’t slip under their flextime arrangements.

"We’ve begun extensive training for managers," Hopke says. "Flexible scheduling definitely impacts the way they work — they have to give up control and delegate more effectively. But managers also need to realize that not everyone will take advantage of these options and that those who do generally perform better."