Work Flex as a Turnover Reduction & Employee Retention Tool
Work flex is fast becoming a great way to retain, recruit, and engage your employees. Companies that provide these different type of flexible work arrangements are seeing increased employee retention, lower recruiting costs, lower employee absenteeism costs, and higher levels of employee productivity and engagement. The impact can be huge especially when you factor in the cost of employee turnover to range from 150-300% of an employee’s first year salary.
Companies like UPS have seen an employee turnover reduction of as much as 50% after implementing their corporate work flex program. The trend is growing as 77% of employers are now said to offer some form of work flex according to the 2012 National Study of Employers. The transition to the new work flex mindset requires trust between employee and manager as well a new style of management where leader manage using many new technologies like video conferencing, instant messaging, and using internal collaboration and workplace tools like Yammer and Jive.
Types of Flexible Work Environments & Programs
Traditionally, there are five different types work flex programs that companies consider. Each one presents different pros and cons depending on the type of position, its job requirements, and industry where your company works.
- Flex/Alternative Work Schedule. A flex or alternative work schedule is a scheduling arrangement that permits a variation from the employee’s core hours in starting and departure times, but does not alter the total number of hours worked in a week. Many companies offer flex schedules allowing for employees to leave work early for family obligations and arrive later so less time is spent commuting during peak hours.
- Flexplace/Telecommute. A flexplace arrangement is an option that allows an employee to work at home or another off-site location, for a specified number of hours per week, and for a pre-set, limited duration.
- Compressed Work Week. A compressed work schedule allows an employee to work a traditional 35-40 hour workweek in less than five workdays. Many compressed work schedule options may be negotiated. For example an employee might work 4 ten hour work days.
- Job Sharing. A job share arrangement is a form of regular part-time work in which two people share the responsibilities of one regular, full-time position. These positions are regular part-time and as such must involve at least a 50% commitment. Two individuals typically work 20 hours a week sharing the compensation, benefits, and position requirements and responsibilities.
- ROWE. This stands for Result Oriented Work Environment and was founded at Best Buy. Managers don’t count their employees work hours or even require that they maintain a traditional work schedule. Meetings are optional so long as employees continue to meet performance and work productivity standards. Those that don’t are handled using traditional work performance warnings and write ups.
You can learn more about work flexible programs and schedules and how they impact Oklahoma’s future and current workforces by attending the Oklahoma Ready to Work Conference Friday, October 26th. Register here. Read more about how skilled workers are impacted by the improving economy.
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