Flexible Work Arrangements Attract Older Workers

Flexible Work Arrangements Attract Older Workers

Work-life balance opportunities are important to your company's recruitment and retention strategies. Consider this: If job applicants have a choice between a company that allows them to work where they want, when they want, and how they want, and another company with a one-size-fits-all policy and no flexibility-which do you think they will choose? Which company would have better retention rates?

A 2007 survey by the Association of Executive Search Consultants reveals that 85 percent of recruiters have had candidates turn down a job because it lacked work/life balance. Ninety percent of recruiters believe that work/life issues are more important than they were in 2002.

What's In It for Employers?

Many companies that offer flexible work arrangements (FWA) are finding it gives them an edge over their competition in recruitment and retention. Some employees work full-time at one company and then move to part-time performing the same job or a new one. Others choose to shift gears entirely and seek employment in a new industry. In fact, in a 2005 Merrill Lynch retirement survey, two-thirds of boomers said they wanted to pursue a different line of work.

FWAs can be also good for employers, too. In a 2004 study by the nonprofit Corporate Voices for Working Families, researchers discovered a positive outcome from having FWAs in relation to employee engagement, productivity, retention and financial performance. For example, PNC Financial Services, which launched a seven-month compressed work week pilot program, found its workers did their jobs faster, were more effective, missed work less, and the cost to the company was $112,000 less in turnover than for those who didn't partake.

The Sloan Foundation reports that the accounting firm Deloitte saved $41.5 million in turnover costs in one year because of workplace flexibility. And Netflix, the online movie retailer, has a broad menu of these options and realized $1 billion in sales last year. (Its salaried workers can work at home any time and take as much vacation as they like.)

An Age-Neutral Advantage

AARP research shows that many boomers would defer retirement if they could work fewer hours on a less rigid schedule. What's more, younger generations increasingly expect and demand work flexibility. As four generations find themselves under the same roof with a myriad of different needs, companies will find that they have no choice but to be flexible.

Defining Flexible Work Arrangements (FWA)

FWAs come in a variety of configurations, but flexible work arrangements essentially mean four things:

• When to work. This includes flex time, in which employees have flexible start and stop times or take time off during the day, but still work a regular 35-40 hour work week. (Some companies require all employees to be at work during certain core hours.) Other options are compressed work weeks, where (for example) instead of working five days a week, employees work four 10-hour days; part-time work, which could mean reduced weekly or annual hours; seasonal work i.e. clocking in just six months of the year, such as during the busy winter season in Florida. Still more FWAs include summers off, weekends only, or even three months on, three months off.
• Where to work. Options include telecommuting, or working from home either all week or part of the week; or working in more than one location if an employer has more than one office or branch.
• How to work. This might be job sharing, which means splitting one job between two employees, with salary and benefits prorated; phased retirement or cutting back on hours over a period of time before fully retiring, often continuing to receive pension or healthcare benefits; temporary, contract, or even per diem work.
• What to receive for working. This involves choosing specific benefits, whether it's for childcare or eldercare, for instance, or a flexible spending account. Benefits depend on an employee's needs and stage of life.

The most common of these arrangements are flextime and telecommuting. But these are not either/or choices. Workers often combine more than one workplace option with success.

Making Flexible Arrangements Work

There are challenges in adopting flexible work policies, and they are not conducive to all business environments. It goes without saying that employees must be able to get their work done and the arrangement must work for both parties. For flexible work arrangements to be effective:

• employees need to be self-motivated and hard-working;
• bosses and senior management must be on board and ready to manage a variety of flexible arrangements;
• healthcare and other benefits must be closely examined; and
• performance and results metrics should be clearly stated.

Along with performance measures, employers should consider spelling out:

• the terms of the flexible setup;
• contingency plans if it doesn't work;
• communication plans between supervisor, colleagues and customers; and
• benefits and protocol if the terms need to be changed.

Not all jobs are designed to be flexible-they may require face time during traditional business hours. Likewise, not all employees are suited to flexible work arrangements. Launching a pilot program for a defined period of time, with feedback from both managers and workers - and analysis of the results - is one way for businesses to test the waters.

In Good Company: What Businesses Offer

Here's how some of the AARP Best Employers for Workers Over 50 are navigating this issue:

• The healthcare system LRMC/TVRH has a "Summers Off" program, in addition to weekend flex, telecommuting, compressed work schedules, and flexible hours.
• MidMichigan Health's "Retiree/Rehire" program allows retirees to leave for six months with the option of returning for 800 hours a year and collecting full retirement benefits.
• The University of Colorado Hospital has 4-6-8-12 hour shift options, weekdays only/weekends only, straight days/straight nights, and per diem programs.
• L.L. Bean's "Swap Book" lets workers trade, pick up or give away shifts, volunteer to stay late, or leave early.
• Massachusetts Institute of Technology has written guidelines to help managers provide flexibility in response to employees' needs.

Opting In

Most business that offer FWAs will find that all sides-employers, employees and customers-can gain from well thought-out flexibility initiatives. What's more, these options are here to stay; they are an integral part of today's modern and competitive workplace.

Resources

AARP Best Employers for Workers Over 50
This recognition program acknowledges companies and organizations whose best practices and policies for addressing aging workforce issues are roadmaps for the workplaces of tomorrow.

The Center on Aging & Work/Workplace Flexibility at Boston College
This research center helps American businesses prepare for the opportunities and challenges associated with the aging workforce.

Workplace Flexibility 2010
Based at Georgetown University Law Center, this campaign supports the development of a comprehensive national policy on workplace flexibility.