Work-Life Benefits and Employee Retention
More Recruiting and retaining employees who are both qualified and motivated is an ongoing challenge for most businesses. One way of building staff loyalty and increasing productivity is to put policies in place that help employees balance their commitments at work and at home.
Employees who have the time they need to care for children or elderly parents, or pursue further education or even hobbies, will likely be less stressed and more focused when they are at work. And by offering flexibility to employees, businesses will, in turn, have greater flexibility to employ people who prefer part-time or non-traditional work arrangements that also meet the needs of the company.
Demographic and societal changes inevitably have an impact on the workplace. The 9-to-5 workweek was conceived with the "traditional family" in mind. But the male em-ployee with a wife at home to take care of family matters today represents a minority group in the U.S. labor force. Some 85% of American workers have immediate, day-to-day family responsibilities, according to Senate Resolution 210, a proclamation designating October as "National Work and Family Month," that was passed by the Senate in September 2003.
The resolution, which identified issues confronting workers that can be addressed by the adoption of work-life programs and services, noted that 46% of workers are parents with children under the age of 18, and that nearly 20% of Americans have been responsible for providing or arranging care for family members or friends over the past year. Work-life programs are not just beneficial for families, the resolution declared; they are also key predictors of job productivity, job satisfaction, retention, and commitment to employers.
"The workplace today is not our father’s workplace," Ellen Galinsky, president of the Families and Work Institute observed in a testimony before the U.S. Senate Health, Education, Labor & Pensions Committee. "No longer are whistles that signal the start and end of the workday commonplace. No longer are photos of our family members at work the sole symbol of our lives outside of work."
Despite the clear demand for programs that would support employees in juggling their personal and professional responsibilities, many business owners remain uncomfortable with the idea of "flexibility." Some fear that the work would not get done outside of traditional work arrangements, or that the administrative burden of keeping track of staff with unconventional schedules would be too onerous. Other employers view flexible working as a perk to be scaled back or eliminated in periods of budget cuts and downsizing. A survey by the Alliance for Work-Life Progress and Work/Life Today found that the type and number of work-life programs declined during the recent slowdown, and are now only starting to return to pre-2001 levels.
While the work-life benefits offered to employees vary widely from company to company, some of the most common programs, according to Work/Life Today, include:
- Employee assistance programs
- Child care referrals
- Elder care referrals
- Tuition assistance
- Flexible schedules
- Wellness programs
- Back-up child care
- Paid maternity leave
Some of these benefits, such as referral services and flexible schedules, are inexpensive to provide; while others, like paid family leave or tuition assistance, are more costly. But given the potential return in improved productivity and employee retention levels, investing in a mix of programs tailored to the needs of its particular workforce can give a company a competitive edge.
Most employers are aware that hiring part-time workers is usually more cost-efficient than taking on full-time employees, especially since part-timers often do not qualify for the full range of employee benefits, such as participation in health and retirement plans, or paid leave.
But because part-time workers receive fewer benefits, they are often less loyal to their employers. Some will leave a company if they are offered full-time employment elsewhere.
There are, however, some workers who prefer part-time schedules. These include parents with children, older workers, and students. While companies may not consider it feasible to offer part-time workers the same benefits package as full-time employees, they can improve retention rates of part-timers by providing them with flexible hours and the opportunity to take unpaid leave. These employees, in particular, tend to have pressing commitments outside the workplace, and value having the flexibility to alter their schedules to fit in teachers' conferences, doctors' appointments, or study time for exams.
The entry of large numbers of women into the workforce in recent decades has brought dramatic changes to the American workplace. Another transformation is underway as the labor pool ages. While many baby boomers will retire on schedule, some will want to continue to work well into their sixties, or beyond.
Seniors do, however, tend to want to put in fewer hours than younger workers. A survey by consulting firm Watson Wyatt found that one out of three older employees would continue working longer if their employer offered a phased retirement program. But researchers noted that many companies have yet to establish formal or informal arrangements, such as shorter work weeks or flexible hours, that would encourage older workers to delay retirement.
Traditional work and retirement patterns are in flux, according to the AARP website. The current trend is for people to leave and reenter the workforce a number of times throughout their lives. The AARP emphasizes that seniors, like younger adults, are likely to have family responsibilities, such as caring for grandchildren or sick relatives.
The AARP suggests that companies discuss alternative working arrangements with employees who wish to continue to work past retirement age, such as phased retirement, flextime, a compressed work week, part-time work, job sharing, telecommuting, job reassignment, or even job redesign.
By adapting to the needs and desires of their older workers, employers will be able to hold on to workers with valuable experience and knowledge of the company. "As the economy recovers and baby boomers reach traditional retirement ages, labor shortages will reemerge as an important issue," observed Valerie Paganelli, senior consultant with Watson Wyatt. "Employers would be wise to consider phased retirement strategies that address older workers' needs and that will help maintain an adequate supply of talent and experience in the years to come."
