Question

 

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.

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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 reflect how companies are finally correcting the age old problem of work life balance.It is not surprising that large companies are finding it necessary to improve employee satisfaction levels given the digital world we are living in, as any bad review that point out how companies are not treating their employees well could put a dent in their reputation which can perversely affect their business.

In the age of digitalization it has become indispensable for large companies to hire and retain employees. Due to unemployment being high salary per worker is less. As higher salary does motivate high effort and productivity this however entails large costs to company. Therefore large companies are offering progressive benefits package that includes health, dental and disability insurance, paid time off and a host of other amenities.

The advantages to companies are summarized as under-

i. Increases Productivity

ii. Reduces Staff Turnover and Recruitment Costs as it is costly to replace workers because of the productivity losses when someone leaves a job, the costs of hiring and training a new employee, and the slower productivity until the new employee understands the job role.

iv. Increases Employee Engagement

v. Lowers Medical Costs and Absenteeism

vi. Improves Your Brand Perception- If the organization is known for supporting a work life balance it will create a more positive brand perception as an employer and business. This type of brand perception helps attract and recruit top talent in the future. Such positive perception will also give an edge over the competition.

In order to smooth work life balance companies are creating a sort of homely environment which is conducive to employees health and overall well being.For example as pointed out bringing pets to workplaces , establishing child care centers, gyms etc. This may also lead to lesser health related costs borne by companies per worker. Employees don't have to work under stressful situations.

Further, a strong employee benefits package is a powerful tool for attracting and retaining the quality workers as benefits play an integral role in employee satisfaction. With so many personal demands on workers today, a flexible work schedule is a big plus in a benefits package.

From economics point of view paying a lump sum amount as employee benefit where they can monetize the benefits is more effective than offering such alternatives as they get the freedom to choose what to do with their money. However comparatively a lump sum amount versus a benefits package, the latter would improve productivity more than former as it is now mandatory to take leisure or breaks during work .While these benefits are within the reach for large businesses, a little creativity can lead to similar, less expensive options that can have just as big an impact on employee morale and loyalty.

Alternatives to lump sum pecuniary benefits are -

i. flexible work hours that gives employees time to pursue a degree on their own

ii. job sharing

iii. on-site child care

iv. discounted local gym memberships

v. allowing regular telecommuting days

vi. allowing employees to bring their pets to work etc.

To support better business outcomes, companies are helping employees focus on work, not on finances, by reducing that stress and creating a culture where people don’t feel overwhelmed. They are especially mindful of their employees’ financial and mental well-being, and are seeking solutions that will enable people to be productive, engaged, and satisfied at work. Therefore large companies are taking a holistic, bigger-picture view to build and enhance their employee. Instead of a one-size-fits-all approach, they are more deeply understanding their employees’ needs and desires on an ongoing basis.