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The business case for work-life balance:  

Introduction

When companies started to consider work-life issues in the 1980’s and 1990s, there was an intuitive sense that it was an important thing for employers to do, although there was no strong data to back up this feeling. Unsupported claims of "reduced absenteeism", "improved productivity" and "greater potential for recruitment and retention" were made to counter perceptions among senior management that work-life balance was a "fluffy" human resources issue.Over the past decade, however, an abundance of data and the results of research studies supported these claims and point to work-life policies as being good for business. Several reliable data collection instruments and survey tools and an increasing body of research now exist to help us make the economic and social arguments for work-life balance. The results of the research and of these surveys support contentions that work-life balance is linked to reduced absenteeism and enhanced productivity. They indicate that the challenges of recruiting and retaining top talent in an increasingly competitive labour market are driving workplace change and workforce demands for work-life balance. These factors are now motivating employers to integrate work-life balance measures in their business strategies. As stated by Courtney Pratt, CEO, Toronto Hydro, "This (facilitating work-life balance) is not corporate social work. It’s a business imperative.

Absenteeism

The Conference Board of Canada’s Survey of Canadian Workers on Work-Life Balance(1999), found that twice as many Canadians reported moderate to high levels of stress as a result of trying to balance their work and home lives, a sharp increase compared to 1989 (46.2 percent in 1999; 26.7 percent in 1989). These stress levels are reflected in health problems and absences. Respondents who report a high degree of stress in balancing work and family life also report missing an average of 7.2 days of work while those who report very little stress in balancing work and family have missed, on average, only 3.6 days. Statistics Canada: Work Absence Rates, 1987-1998, (Analytic Report No. 10 states that Canadian workers lost an average of 5.7 days in 1998; women averaged 6.7 days lost, while men were absent for 4.9 days. The presence of children, especially pre-school children, was a primary indicator of time lost: employees with pre-schoolers lost an average of 6.4 days, compared to 5.6 days for employees without children. The ageing workforce also contributed to increasing absenteeism. Workers between 55 and 64 are absent for an average of 6.9 days per year, while all age groups combined report an average of 5.7 days.According to the Watson Wyatt: Staying @ Work Study(September 2000), a survey of large employers in the US, short-term absences have doubled in the last three years. It concludes that the best way to address absenteeism and reducing absence rates for all groups is to provide work-life balance measures/programs.

 Accountability

According to Nora Spinks, of Work-Life Harmony Enterprises, unless there are "teeth" to work-life strategies, they are only a piece of paper". In building your business case and developing your work-life balance strategy, it is therefore important to remember to clearly articulate roles and responsibilities and identify accountability measures. The more clarity, the more convincing your business case will be. Some accountability measures that have been used successfully include:

  • Defining what accountability means to your organization. This could mean holding managers/supervisors accountable for "Walking the Talk".
  • Incorporating measurements in performance appraisals. For example, these could be based on employee satisfaction survey results, absenteeism rates, productivity rates, and/or work unit turnover rates. The results could then be tied to incentives, bonus calculations, and flexible compensation.
  • 360 degree feedback or methods of assessment.
  • Policy usage reporting and program utilization satisfaction reporting.
  • The implementation of a process to annually review organizational processes and procedures including meeting schedules, workload distribution, application of technology etc. Review how each process helps or hinder work-life balance.
  • Put work-life issues regularly on business agendas at all levels in a company. Discuss it, evaluate it, and treat it as seriously as you would any other important organizational issue.

In smaller organizations, informal approaches can also be very successful if the work environment fosters openness and dialogue with regard to both personal and business needs. These could then be accommodated by flexible or modified work arrangements or other means of support available to you .Recruitment & Retention In the Executive View Study conducted by Canadian Facts and sponsored by The Globe and Mail, 1850 CEOs and business leaders were asked "What issues about your business are most likely to keep you awake at night?" Interestingly, the most common response was not profitability or competition but the demands of attracting, training and retaining staff. Seventy-one per cent of leaders anticipate problems in retaining skilled workers. As a result of the competition for talent, the ageing workforce and the shrinking of the labour pool, companies have seen their recruitment costs rise dramatically. Estimates from human resource professionals and consultants indicate that to recruit a new staff member it costs them between two and four times the annual salary for the position. When employees are dissatisfied with their work experience they leave. Organizations see experience and knowledge walk out the door and down the road to their competitors. Consequently, more than ever, employers are recognizing the need to offer more than just "a job". Prospective employees are looking for a company that recognises their commitments both inside and outside the workplace. As a result, work-life programs and policies are considered as tools for companies seeking to recruit and retain skilled employees.In the PriceWaterhouseCoopers 1999 International Student Survey 57% of students stated that work-life balance is their primary goal, and don’t believe this competes with long-term career development and personal growth goals.In AONs Canada @ Work 2000 a growing number of respondents (29%) rank work-life balance as the first or second most important factor in taking a job. The good news is that over 69% indicate that their organization had demonstrated increased efforts over the last year to support work-life employee needs.

Productivity

In a 1999 study by Health Canada, it reported 40 percent of working Canadians say they experienced high levels of work-family conflict. This conflict is particularly acute for women, however, it is becoming more of a concern for men with 49 percent reporting some kind of work-family stress. In a workplace that focuses on hours worked, bodies in seats and "face time" (being able to see employees when they work), productivity is often confused with working long hours. This creates a barrier for employees looking for flexibility in how they work, since long working hours are not compatible with employee health, personal and workplace well-being, or work-life balance. When building a business case for work-life balance, the main factors to consider are costs and stakeholder impact. Absenteeism, recruitment and retention issues and low productivity all impact organizations’ bottom-line. Customer/client commitment is based on a positive experience with representatives of the organization they are dealing with. Employees who report that they have achieved work-life balance are more satisfied and more willing to ‘go the extra mile’ for their employers.

Identifying the benefits in your organization

When developing your work-life business case, it is important to consider the tangible and intangible benefits. Start by linking your work-life strategy to your organizations goals and objectives. Then consider all the possible benefits that could arise from implementing your strategy such as.

  • The potential for increased service coverage if some employees arrive earlier and others stay later.
  • The possibility that telecommuting employees (especially those in sales and service functions) may be closer to their customers’ offices, thereby reducing necessary travelling time.
  • Greater flexibility in employee schedules may help meet customer demand. Improved employee health and well-being.
  • Reduced stress, reduced absenteeism and reduced numbers of short term disability claims.
  • Increased employee commitment, satisfaction and resiliency.
  • More effective workload management, reduced interruptions and distractions in the workday.
  • Increased capacity to meet work targets and make customer needs their top priority.

 You may also want to link your strategy to other employer obligations you may face such as:

  • Accommodation under employment equity and/or human rights legislation.
  • Occupational safety and health.
  • Workplace health and well-being.

In conclusion…

If, in your organization, work-life balance is viewed as "just an HR issue", you may find that by building a business case, you can alter perceptions. By continually evaluating and evolving your strategy and by focusing on measurable results, your work-life strategy could become a powerful management tool. You may also wish to consider using culture change measures to support implementation.

Human Resources and Skills Development Canada 

 

 
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