Question

Another key objective for a firm is to "Retain Human Capital".  Given this, please read the passage below and answer the 2 questions that follow.

The Blurring Boundaries Between Work and Home

One of the most interesting transformations taking place in the work place today is the rapid blurring of the boundaries between home and office. The following numbers, based on a survey of large companies that employ more than 500 employees, tell an interesting story.

¨             40 percent of large companies allow part-time telecommuting.

                ¨             16 percent of large companies offer child care centers, some even subsidized by the company.

                ¨             3 percent of large companies allow employees to bring their pets to work.

1. Do these numbers surprise you?

2. Why do you think companies permit such flexibility, even in an environment where unemployment is high?

Answer 1

These numbers are not really surprising.

The needs of employees to be satisfied as they also the stakeholders of the company. Employees in large companies especially in the IT companies face large level of stress and tension of deadlines and completion of projects. These stress and tension will lead to many other mental and physical health problems. So, these problems of employees should be addressed by the companies and should take remedial measures to minimize these issues. Lot of studies conducted in the area of stress management and job satisfaction. The studies revealed that the major cause of employees' health problem is the stress from companies. This will to increase the rate of employee lay off in the company. Therefore, the higher management of such large companies formulated measures to minimize the stress issues of employees and make them happy even in the time of work. So, they advised to bring their pets with them, give them time to spend with their families and opportunity to go for pleasure trips, etc.

Even if the unemployment is in a higher rate, the companies will focus on to retain their highly efficient and expert employees within the organization to reduce employee turnover rate and replacement cost. In other words we can say that it is a part of Corporate Social Responsibility to avoid and minimize the illhealth to the employees caused by the company. More companies undertaking the studies in employees stress management and seeking remedies to minimize and manage their stress caused by the job.