Flexible Working in a World of Shifting Demographics - and Changing Legislation.

Flexible Working is key to attracting and retaining talent. According to the latest CIPD findings, companies in all sectors need to adapt to the changing world of work - and the opportunities/challenges in meeting the needs of three generations of workers: Gen Y, Gen X and the 'retiring' Babyboomers.

Flexible Working is potentially attractive to all three of those working populations. Gen-Y (up to 30 year olds) are less keen on the long-hours culture of 'presenteeism', are confident with their skills and can be flexible if they are offered flexibility in return (and if they belong in scarce skill populations, such as software development, lack of flexible working may even mean they leave the business).

Similarly, Gen-Xers (31-50 year olds) are often in more senior roles and have caring responsibilities. In a 'typical' organisation, Gen-X comprises approximately 50% of the employee-base - and need to be offered different working patterns to enable their retention and continuing job satisfaction.

Beyond that, the Babyboomer generation (those born between 1945-1959) is now beginning to enter retirement age, just as the 'demographic time-bomb' has exploded. Pension shortfalls and extended life expectancy mean that many people are now looking to work beyond the traditional age of retirement. The government is committed to scrapping the default retirement age in November 2011 - and next month (April 2011) the proposed Welfare Reform Bill will unveil new (and radical) measures that will allow people to work at any adult age and in the most flexible way.

The IoD concludes that flexible working should be considered as "the norm - and not just for working mothers - and that HR needs to be more proactive in offering flexible working for everyone at all stages of their careers and as their life responsibilities change."

This year and henceforth, 'Flexible Working' will become one of the most topical workplace challenges/opportunities, as the following three Case Studies illustrate. The first two Case Studies centre around creating flexible, 'Family-Friendly' working that cuts across all Diversity streams and builds an inclusive working environment. The third Case Study, Slivers of Time, shows how organisations such as Tesco are benefitting from this particular modus operandi.

Case Study 1: National Grid - 'Families at Work'.

The Company:

National Grid (NG) has approximately 9,000 employees in the UK (and a further 19,000 employees internationally). Some 77.3% of its UK workforce is male and 13.5% come from ethnic minority groups.

NG's senior management team is committed to developing a culture that allows talent to flourish and individuals to feel valued. It recognises that in order to demonstrate this, it has to create an environment where people feel they are working for a company where family life and its commitments are appreciated. To foster an inclusive environment it needs to remove the barriers that may prevent the organisation from attracting, developing and retaining talent.

The company's flexible working and diversity initiatives have won them a number of external awards from organisations such as Working Families and Opportunity Now - and a place on the list of top employers for family-friendly policies.

The Families at Work Scheme:

NG provides support for employees who want to balance the needs of their families and obligations to their employers, by establishing a network of volunteer employees who offer support and advice. The award-winning "Families at Work scheme" (FAWS) is run and managed by volunteer employees who act in an advisory capacity, sharing their own knowledge and experience. Information for staff is chiefly available through a web portal (on the company’s intranet) and newsletter - covering parenting, caring, relocation and retirement. The aim is to make family matters a gender-neutral issue, empowering employees and aiding consistent application of policies by managers, through the provision of information and support.

Buddy Scheme:

As well as the online information tool, National Grid has created a network of support through a buddy scheme where individuals share their experiences and assist others. The buddy scheme for parenting, for example, has a range of people - mothers, fathers and managers - who are confident to talk about their own experiences and offer information and advice to others.

The information sought by employees is diverse - such as post-natal depression, managing twins, getting a flexible contract and caring for a disabled relative. Joanne Cantello, project manager for the scheme, explains: "It's up to the buddy as to how much of their own experiences they’re prepared to share, but in our experience people are very open and often happy to have their own personal circumstances published."

The buddy system also ensures that experienced and knowledgeable managers can offer support and advice to less experienced managers who may be unsure how to supervise staff who want to work flexibly. They can benefit from talking to someone who is experienced in managing different working patterns. This is important as NG's policy is for flexible working to be available to all staff and for requests to be approved, subject to operational constraints.

Line managers are key in determining how easily an employee can manage their work-life balance, so the company seeks to assist managers through information and training and, where necessary, change the culture so they can support their staff. NG is an amalgam of companies so the culture in a particular part of the business may depend on its history. "Pockets of the organisation do extremely well, whereas in others we're working with HR to help change the culture," says Cantello. "We now have flexible working in areas where it hadn't been considered a possibility, but the right manager with the right approach has enabled the whole team to work flexibly."

Case Studies on the website provide examples of the many different working patterns in operation at NG. They include examples of men working flexibly and others that promote a greater awareness of flexible working beyond caring responsibilities. "We're trying to build transparency and help employees and managers see what is possible through individual case studies."

Initially, the extent of the company's concern with family matters had been on women returning from maternity leave. This was in response to their women's network's concerns about potential inconsistencies in treatment during and following maternity leave. However, a narrow focus could have resulted in a negative view that the intent was to support only a small minority group in what is a male-dominated business.

"We realised the best way to improve perceptions was to make flexible working acceptable across the organisation and not have it pigeon-holed as a mother's issue," states Cantello.

In 2009, the company decided to expand its remit and rename its employee support network from "Parents at Work" to "Families at Work."

Collaborative Working:

The FAWS group is run by a steering committee which includes a representative from HR and links into the company's other employee networks: women; disability; ethnic minority and faith and LGBT. The HR link has enabled FAWS to develop and enhance company policy based on the feedback it receives from employees.

The work is resourced by staff, who volunteer their time in addition to their normal day job. Management supports the volunteers by allowing them to take time when necessary - with their efforts being acknowledged and rewarded in their performance appraisal.

The group works collaboratively with all of NG's networks and takes its funding from the group's allotted budget of £50k. It runs numerous employee events on areas ranging from work-life balance to parenting and fathers, using technology to facilitate their dissemination across the company. For example, when the BBC Radio 4 presenter, Libby Purves, led a discussion at NG's Warwick headquarters to mark the launch of FAWS's interactive site, the event was broadcast to many locations by video link.

As well as running seminars, the group has produced a variety of information booklets for staff - as well as a manager’s toolkit. To support managers, it has also developed a parenting pack and maternity checklist to help them discuss with employees the available options and ensure good practice.

"The manager toolkit provides practical ongoing support and we're embedding it across the organisation," says Cantello.

Carers' Network:

In addition to the carers area on the FAWS site, a carers' network puts employees with caring responsibilities in touch with one another to act as buddies and share experiences as well as useful sources of information and support, both internally and externally. The network holds monthly teleconferences and works with FAWS and the disability network on areas where they feel the business can do more.

As one employee points out: "The group can be a lifeline for some carers, just having someone to listen makes a huge difference. It's vital people don't feel alone. There is a lot of support out there."

NG runs an annual carers week, offering employees a variety of talks on topics ranging from coping strategies for carers, living with depression and caring for the elderly. The talks are filmed and are available afterwards on the internet site, as well as being distributed via a CD. Stories are posted throughout the week on the home page - and several locations host information stands. Significantly, following carers week in 2009, requests for flexible working rose by 18%.

Successes:

Families at Work seeks continuous feedback from staff, so they can share their views and ensure that the group is meeting their needs. "To date, we've received excellent feedback from our leadership and employees, who welcome our efforts and the opportunity to have a voice," notes Cantello.

Thanks to the group successfully communicating and highlighting family issues, it has encouraged a debate at many levels across the company - and been instrumental in ensuring that there is clarity and understanding of some of the issues faced by staff trying to balance their home and work life.

NG reports a growing number of buddies across the firm and an ever-increasing number of case studies and individuals who are willing to share their own experiences. The number of people working flexibly, including contractual and non-contractual requests, has increased - and more men are taking family-related leave. After maternity leave there is an option of a further childcare break of seven weeks, which previously was invariably taken by women but, thanks to the publicity done through the roadshows, an increasing number of men are taking advantage of the scheme (this is significant as nationally in the UK, according to government figures, 40% of fathers say they would like to take more leave but don't feel able to). "Thanks to our efforts, men are actively spending time with their children, and that’s a really big step forward for such a male-dominated business," concludes Cantello.

Key Points:

• NG has sought to create an inclusive environment where people feel they are working for a company that values family life and its commitments.
• The Families at Work Scheme is run and managed by volunteer employees, working to ensure that flexible working is more culturally acceptable and not just a 'mother's issue.'
• A Buddy Scheme allows individuals to share their experiences and help other employees and managers. A dedicated carers' network meets regularly, putting staff with caring responsibilities in touch with one another, to share information and support.

Case Study 2 - The Sysdoc Group: improving performance through flexible working.

The Company:

The Sysdoc Group is a management consultancy specialising in change management, business process improvement and knowledge management. The company has 150 people, working with high-profile clients including Vodafone, IBM, Reed Elsevier and Network Rail.

By adopting a 'customer-focused' approach, Sysdoc has tapped into a pool of highly-skilled consultants who are looking for a more 'flexible' employer. In this paper, we look at the measures Sysdoc has put in place to support flexible working in the firm.

Embracing Flexible Working and powering 'Employee Advocacy':

Creating a work culture that embraces flexibility, Sysdoc has built a committed and enthusiastic team that has delivered well-above-average business results: in 2008/09 the company grew nine times faster than the sector as a whole.

Management consultancy is generally seen as a male-dominated sector, where consultants are routinely expected to work long hours and for prolonged periods away from home. While most major firms support equal opportunities, such working regimes mitigate against employees, especially working parents, achieving a work-life balance. Sysdoc was determined to break this mould.

To compete against the bigger, established consultancies and multinational software companies, Sysdoc needed to build up a talented team of consultants who would exceed client expectations. The business aim was to so impress customers during projects that clients would use the firm's services repeatedly - and recommend Sysdoc to their peers. The company's performance and the impact of its positive approach to work-life balance have exceeded expectations. Indeed, Sysdoc's business results show that it is possible to achieve success while championing flexible working:

• Turnover in the period 2008/09 has increased by 42%, far in excess of the sector benchmarks of between - 1.6% and 5%.
• 95% of new business is referral-based.
• 100% of customers have provided references and would be prepared to act as referees for the company.
• Over 95% of customers have repeat-business with Sysdoc
• 96% of clients surveyed agreed that the firm had met their expectations and 78% said their expectations were exceeded.

Sysdoc's positive approach to flexible working also had an impact on employees:

• 71% of the board are women with dependants at home
• Half of employees and associates are from groups that are under-represented in management consultancy
• 25% of employees have reduced their working hours to suit their home life
• 100% of staff with children strongly agree that "I do not feel that having a family has held back my career progression"
• Sickness absence is typically 0 to 5 days per employee per year
• Staff turnover is under 5%.

The "Sysdoc Way".

Sysdoc has implemented a set of organisational values that lie at the heart of the company. Known as the 'Sysdoc Way', these include a "commitment to the growth of our people and support of their families", reflecting Sysdoc's belief that 'to deliver client excellence, you have to be in balance with yourself'.

A range of measures have been put in place to support this work-life balance.

Recruitment:

Sysdoc has implemented a values-based recruitment strategy - recruiting for right attitude then training for skills. "We look for people who will fit in with our culture and share our values," asserts Clare Hill, UK CEO. "We are happy to recruit someone who has the potential to be a really good consultant. This means we do not limit ourselves to the traditional recruitment programmes adopted by many of the big companies. We are always looking for good people who can grow with the company, and have recruited people with legal, engineering and accounting backgrounds - a teacher from China has become one of our top consultants."

People who are returning to work following a career gap for child rearing are also not viewed as a problem by the company. "A parent who had been at home for 10 years displayed the drive and capabilities we needed", said Hill. "She has now established a successful career with us. It is important to keep an open mind and to look to accommodate people with different backgrounds and different ways of working."

Performance Appraisals:

Appraisals for line managers and by line managers explore performance against life goals, as well as against professional goals. Sysdoc encourages both personal and professional achievement by ensuring that they are aware of, and act on, the life goals and ambitions of everyone in the team.

Part-time Working:

Sysdoc facilitates part-time working whenever it is possible, and has found that it frequently enhances successful completion of a project. The company has removed the stigma associated with part-time working by offering it to all of its employees - including senior executives.

Work-life balance:

In a survey, half of Sysdoc's employees said that they had taken time off, with full company support, for family events outside of work (eg: weddings and nativity plays). However, Sysdoc is quick to point out that flexible working is not just about meeting the needs of women with families. The survey showed that 29% of employees had taken sabbaticals, which are available to all employees regardless of length of service. The length of sabbatical and amount of pay varies, depending on each individual’s circumstances. For example, one employee took a year's unpaid leave to go travelling, whereas another took three months’ part-paid sabbatical to do work in the community.

Flexible Reward Packages:

Sysdoc empowers staff by giving them choices in the structure of their reward package and agreeing their objectives. Performance-based bonuses have been designed to motivate individuals in line with Sysdoc's values - eg: extended leave can be offered instead of a cash bonus.

Communication:

While there is a formal equal opportunity and diversity policy, Sysdoc does not have a written flexible working policy. Hill explains: "Our way of working is part of our culture. Our people know we mean what we say by the number of people who are working flexibly - from the senior team down." Sysdoc's support for flexible working is also made known to its employees and associates through the firm's induction, training and performance review processes. A company portal also features flexible working, and these are also highlighted and monitored in the company survey.

Two-way Process:

Sysdoc is firm that flexible working requests must be balanced against the needs of the business and its customers, and whilst the company is very supportive of employees who wish to reduce their working hours or take time off from the business, the bottom line is that the business and the customer must come first. Being as positive as possible, the company has managed to meet employee requests at least 70% of the time.

Hill explains: "the trusting relationship between us and the customer is absolutely critical. We believe that people who have work-life balance have more to offer their customers and are less likely to become jade and burned out. People who are achieving their life as well as their work goals are far more effective."

Hill concludes: "Sysdoc's way of working has disproved some deeply entrenched sector assumptions, that is, to be truly successful in business you have to de-prioritise the rest of your life, comply with unchallenged norms and abandon your life goals."

Key Points:

• Although Sysdoc does not have a specific policy on flexible working, it has a range of measures to support work-life balance, such as a values-based recruitment strategy - recruiting for attitude and training for skills, extensive part-time working (including by senior managers), encouraging work-life balance amongst all staff (not just parents) and including life goals in performance appraisals.
• Sysdoc says it has often exceeded Customer expectations whilst ensuring that employees achieve work-life balance. However, it’s recognised that this is a two-way process and requests for flexible working must be balanced against the needs of business.

Case Study 3: 'Sliver of Time' - Tesco launches four-hour shift system.

The Company:

Britain's biggest private-sector employer is among the first to offer the option of working "slivers of time" to its employees. The four-hour 'sliver of time' shift is primarily aimed at workers with complicated home lives, such as carers or those with illnesses, or who simply want to earn more cash. Tesco has been testing "slivers of time" for a year and in November 2010 launched its "overtime booking system", enabling staff to pick up extra hours before Christmas.

Matching working hours with Customer Behaviour:

"A challenge for our business is responding to changing shopping patterns," says Arnie Herrema, head of Tesco's flexibility programme, who deals with the complex demands of juggling checkout queues, the shopfloor and internet orders. "We wanted to simplify the processes that enable our staff to book overtime, whilst allowing for a more efficient way for managers to sign staff up for extra hours." The 'overtime booking system' is held on a company extranet, accessible by password to all staff.

With nearly 2,500 stores and 340,000 UK staff, Tesco has in effect created an internal labour market that lets shopworkers sign up for extra shifts in their own or other nearby stores. The system allows them to find periods of time when they are free to do extra work. The company said 10,000 employees had already signed up.

At Tesco, the impetus to join in comes from workers rather than bosses. "[Employees] can set parameters for their minimum shift length and minimum period of notice," said Herrema. Signing up for slivers-of-time working had no impact on their regular hours. "We want to achieve the flexibility required in a way that also helps our 340,000 employees… many of them would like extra hours of work that will fit around their family commitments, studying or other activities," he added.

Legislation from April 2011 may widen and formalise Slivers of Time:

Tesco's initiative has simply created 'internally' what has been available externally - a number of 'Slivers of Time' online agencies, matching people (aimed at the lone parent or those with disabilities) with organisations - have been successfully operating since 2006.

Iain Duncan Smith has indicated that his Welfare Reform Bill due for consultation in April 2011, may well provide a government mechanism that could offer Slivers of Time through Job Centres.

It would appear that this ultra-flexible work system, which allows people to sell their labour in small blocks of time, is placed at the heart of the government's welfare reforms. Lord Freud and Maria Miller, the welfare ministers, are examining changes to benefit rules to allow people to sign up for work for as little as two hours a week under the slivers of time initiative. It's particularly aimed at parents with young children, disabled people who may not be available for work for most of the week, people who care for a dependent adult or the long-term unemployed who want to ease slowly back into work.

The government is keen to incorporate the slivers of time system into the new universal credit, the centrepiece of the welfare reforms unveiled by IDS. Freud and Miller want to pilot the system for disabled and lone parents at Jobcentres across Britain from next April with a view to rolling it into the running of the universal credit from 2013.

Its proponents claim the reform would mean that a disabled or lone parent would be able to book a few hours of work a week on their terms. Ministers believe current rules would have to be changed because the system has implications for the "earnings disregard" - the process by which benefits are reduced once earnings reach a certain level.

Freud said : "The current benefits system and lack of flexibility has encouraged people to stay on benefits rather than take on a job. The principle of slivers of time - and schemes like it - represent a great way for people to build up mini-jobs in the official economy".

There is a real demand for this:

The UK retail sector, which employs close to 3 million people - 11% of the country's workforce - is a low-paid industry with many employees already working part-time or flexi-hours. The recession has had a devastating effect, with high-profile casualties such as Woolworths - which employed 30,000 - and it is estimated that 145,000 jobs have been lost in the last five years.

Many workers have suffered as employers such as Argos, Homebase and Halfords cut their hours to shore up profitability during the downturn.

'Slivers of Time' means that people with valuable customer skills will now be able to access working hours that suit them.

Recent research amongst one group - single parents - shows the dearth of flexible working opportunities. A survey (undertaken by Gingerbread) of 500 lone parents’ experiences of looking for flexible work, found that:

• 62% of parents had seen no or very few jobs advertised at part-time hours that they could apply for;
• 97% had seen no or very few jobs advertised within school hours that they could apply for;
• 95% had seen no or very few jobs advertised as a job share that they could apply for; and
• 97% has seen no or very few jobs advertised as flexible in any other way that they could apply for.

An accompanying two-week sample undertaken by Gingerbread of those jobs advertised in two London newspapers that were available to single parents, showed that 83% of jobs were not flexible and no jobs were in school hours or on a job-share basis. Just 11% of jobs advertised were part-time and 6% of jobs were flexible in another way.

Any employer able to tap into this population will enhance its operational effectiveness and employment brand considerably.

Key Points:

• Organisations need to decide whether to set up an 'internal' Slivers of Time programme - or rely on the external options.
• There is undoubtedly a huge resource in flexible 'slivers', across the UK.
• Next month's Welfare Reform Paper will lay the plans for government 'sliver' external mechanisms.