Viewpoint - Viewpoint

The Bottom Line Value Of Work/Life Strategies ©

This report is the work of CEBC's Work/Life Business Task Force as  approved by the Board of Directors and published in 1997 --  ( Sic... the information included is Consistent to the Today's Workforce Environment). The report urges employers to adopt work/life strategies based on substantial and growing evidence of positive returns to the bottom line, to employees and their families, and to society.

The initiative launched by the Task Force is continuing the regular meetings of The Work«Life Network TM which brings together employers, community organizations and researchers to pursue wider and more effective implementation of work/life strategies. 

Why This Report Is Needed!
Work/Life policies and strategies are not new. For almost two decades, many leading companies have struggled to help employees balance the competing responsibilities of working life and personal or family life. "Been there, done that" is the attitude at some firms. So, why is this report needed?

Opportunities Lost:
The Center for Ethical Business Cultures' Work/Life Task Force concluded that enormous potential benefits to business - and to society - from Work/Life strategies are not being realized. The Task Force identified a variety of impediments:  
•     Employers see only the "cost side" of the Work/Life equation. Many treat it narrowly as a "benefits" question. Opportunities for using these tools as a business strategy to redefine work, reduce employee turnover, and boost productivity are overlooked.  
•     Work/Life is perceived as "soft" or "charity" rather than a business strategy that impacts employee performance and the bottom line.  
•     Employers, hearing the term "Work and Family," jump to the mistaken assumption that this is only about women and children and fail to see it as a powerful human capital investment strategy applicable to their entire workforce. Asking one company if they had a Work and Family program elicited this response: "we don't need that here; most of our workers are men."  
•     Many companies that have taken steps to develop Work/Life or Work and Family focus on  "programs" or "policies" - daycare, resource and referral hotlines, seminars, flex policies, etc. Yet, they overlook the critical importance
of reshaping the underlying organizational  culture and the opportunities that arise from linking Work/Life to core business strategies.
•     Far too often, the reality in business is a practice of accommodating a few individuals rather than engaging all Workers through clear and well-communicated Work/Life strategies. 

Read More of the Research - (PDF)

Examples of Companies who have shown success by creating Worklife Programs -

Companies have found many creative ways, often low, no-cost, or fee-based convenience services. In a word, these services make life a little easier, a little more manageable. A few examples are: 

First Tennessee Bank
By building a strategic link between benefits programs and employee commitment and loyalty, First Tennessee improved employee retention, cut turnover costs, increased productivity and enhanced quality. Key strategies included flexible scheduling, extensive training for managers, expanded resource and referral information srvices, and providing some benefits to part-time employees. For First Tennessee family-sensitive programs are keys to profitability and a growing customer base.

American Express Financial Advisors
American Express Financial Advisors recovered 210 days of productivity by creating a "sick child care" resource for employees. The investment returned $2.50 for every dollar spent, and employees rated the service as 4.5 out of 5 in terms of satisfaction. The company's "back-up child care" service recovered 105 days of productivity, had a 5:2:1 benefit:cost ratio, and was rated a 4.7 out of 5 in terms of employee satisfaction.

GMAC
Work and Family programs helped reduce turnover, absenteeism and lateness. Savings exceeded $400,000. Programs improved the company's image and recruiting.

Fel-Pro Johnson & Johnson
Turnover is costly. Fel-Pro found that 77% of employees stayed with the company fearing other employers wouldn't offer Work/Family programs. At Johnson & Johnson, 71% of employees who use family supportive programs cite them as very important in their decision to remain with the company.

Calvert Group
To cut its annual 30% employee turnover rate, Calvert, a mutual fund company specializing in socially responsible investing, redesigned its policies to support four human needs: survival, psychological, emotional and spiritual. The company instituted ChoiceBucks, a flexible benefits package, and implementd flex-time, 12 days annually of leave for community service work, and an organizational commitment to trust and respect. Results: lower turnover and increased morale.

 Hoechst Celanese
A survey of 3,000 workers found 60% regarded the ability to balance work and personal life was of "great importance" in deciding to remain with the company. Flexible hours, especially on a daily basis, was deemed most valuable. For 80% of managers Work/Life initiatives have a positive impact on the company.

 Medtronic
Medtronic's "sick child care" program yields a savings of $2.50 for every dollar spent. Employees value the benefit because of the quality of care and the flexibility. Medtronic is the world's leading medical technology company and specializes in implantable and invasive therapies.

Du Pont
A Du Pont study, conducted by Rodgers & Associates, found that Du Pont employees who had used work-family programs were more likely to "go the extra mile" to assure Du Pont's success. According to the researchers, "practices that respond to the needs of the labor force are very effective as tools to make the work force more committed and more engage."

3M
A 1994 analysis of 3M's sick child care program in Austin, Texas revealed a return on investment to the site of over 200% based on a savings from reduced employee absenteeism.

Aetna Life & Casualty
Aetna cut the rate of resignations among new mothers by extending its unpaid parental leave to six months, saving the company $1 million in hiring and trainng expenses.

CIGNA
CIGNA's Wellness Center offers on-site physical therapy and dental care. By providing convenient and early access to quality care, CIGNA saves money, increases productivity - employees spend about half as much time getting therapy as they would going off-site and often cut recovery time.

Aetna Life & Casualty
Aetna cut the rate of resignations among new mothers by extending its unpaid parental leave to six months, saving the company $1 million in hiring and trainng expenses.

To See more examples (PDF)

Conclusion
Recently, leading employers and researchers have focused on the critical importance of changing work practices, cultural change, and the flexibility afforded by alternative work arrangements. However, strategies can be implemented gradually. It is possible to do it one-step-at-a-time as issues and opportunities arise - provided the process is sustained.

This excerpt was taken from the report created by the Center for Ethical Business Cultures
Mission -- Structure -- Programs
The Center for Ethical Business Cultures operates on the premise that long-term profitability for any business depends on the strength and well-being of the communities and society in which it operates. CEBC assists business leaders in developing practical, productive and responsible relationships with key stakeholders. CEBC strives to be the recognized leader locally, nationally, and worldwide on issues pertaining to corporate responsibility, values and business ethics. The Center is committed to sustaining the Minnesota Tradition of exemplary corporate citizenship that has contributed immensely to the vitality of this region.
CEBC is an independent not-for-profit business association supported by financial contributions from over 115 member companies The Center is affiliated with the University of St. Thomas Graduate School of Business.  

Focus of CEBC Programs  
•     Global Business Ethics - The Principles for Business  
•     Work/Life Strategies for Employers  
•     Aligning Values and Actions in Organizations  
•     Leadership and Values  
•     Corporate Citizenship  
For further information:

Visit CEBC's WEB Page at  http://www.cebcglobal.org
Call CEBC at 612-962-4120

Comments: