Working Full-time into our 80’s?

Earlier in January, I wrote my annual review of the state of flexibility — the limited gains of 2011 and projected trends for 2012. One of the unusual characteristics of the year past: flexibility fell from visibility in the general media.

Vanishing Mentions   One final indicator that “the year gone by was a bad one” was the virtual disappearance of flexibility from the HR, business and popular press. Flex articles are often a staple of feature, best practice and how-to sections of airplane magazines and the new media. In 2011, the mentions were few and far between.

If the only problem was diminished references to flexibility, that would be unfortunate. But the actual idea and practice of flexibility seem to have receded in general consciousness as well. Even at the height of the recession, situations would be written up that lent themselves to a “flexible solution” – layoffs might prompt the suggestion of work sharing, retention of valuable talent would set off a mention of virtual work and pressing family situations could lead to a discussion of part-time options.

These actions and reactions still occur – to some extent. But they seem to make their way into print far less often. Nowhere is this phenomenon clearer than in a recent Washington Post article by Peter Whoriskey, “Amid downturn, more older Americans employed than ever before.”   The challenge of ‘vanishing flex’ is more striking here because it occurs in an otherwise excellent piece of journalism.

The article tells the eye-opening story of how millions of older workers are laboring past the “normal” retirement age of 65 because:

1. Their 401Ks are not providing income equal to traditional pensions
2. The recession has reduced their net worth and earnings
3. All things considered, they may have to work until age 70 or 80.

“The number of people older than 55 who are working has actually risen by 3.1 million, or 12 percent, since the beginning of the recession.”  This includes growth in the group 75 years and older.

A 63-year old real estate saleswoman has “put off retirement and, with the downturn in home sales, sold off jewelry and purses on consignment.” She said “Sometimes I wish I could retire. But at this point I expect to be working as long as I can.”

And how will this woman and millions of others continue working full-time into their 70s and beyond. Will they be healthy enough to do this? Will they have the stamina for full-time work? Will they want to spend their waning years devoted to working most of the time?

A couple million might. A million or more might not. It’s at this point in the story that the possible need for reduced schedules, for part-time work, for phased and partial retirement should be raised. Such an expansive article need not focus on flexible schedules as a tool of workplace and social policy. But omitting them totally speaks volumes about our recession-era thinking about how we structure work. Flexibility seems to have fallen off a cliff.

What paragraph or two on flexibility and older workers would I include in an article like this?

Older workers in growing numbers want and need to extend their working lives. That is unlikely to occur for millions of those aged 60, 70 and 80 if it requires that this very large group remains as healthy and vigorous as it was at age 50. And if the only form work takes is full-time jobs, this may pose a further challenge to the stamina and energy of older workers. Not all workers will need modification – and not all the time. But hundreds of thousands could need flexibility once in a while or for extended periods.

US employers have made limited progress in offering flexible schedules to their regular employees. But fewer have made significant strides in helping older workers modify their schedules. Options to consider are:

• Phased Retirement – These are end-of-career reductions to 90%, 80%, etc. This schedule is often paired with a Knowledge Transfer process.
• Part-Time – This is a broad range of reduced schedules that can be intermittent or sustained and range from 10% to 50% of full-time.
• Part-Year – This reduced schedule allows work and time off to be organized in blocs – such as one, two or three months off per year.

Implementing such options will be a long challenging process. Mentioning them in a long, front page article in Washington, DC’s leading newspaper alone will not lead to that change. But positive articles and stories can help in the change process. When the media as a whole back off from the challenge, it becomes far more difficult to create new work environments.

Posted in Flexible Work Arrangements, Informal Flexibility, Part Time, Phased Retirement, Retention | Leave a comment

How Will Millennials “Occupy Cubicles”

The first wave of the millennial workforce is now settling into companies across the country. This generation of 70 million people may rival the Boomers in their impact on the way we work. They could assimilate into the way things are done today, or become a creative force for change.

As this group – also called Generation Y – came on the scene, a flood of articles, books and opinion pieces offered quick analysis, often calling them self-indulgent, difficult to manage and more preoccupied with social media than their job assignments. Rupert &
Company develops flexibility approaches with large companies and thought we should learn about millennial views by talking directly to them.

Over the last several months we collaborated with nine large employers to conduct nearly two dozen focus groups. The 205 millennial participants spoke candidly and clearly about the expectations regarding flexibility, management practices, plans for family and a commitment to hard work and advancement. The full study, Millennials
Speak
, describes their views in their own words.

In sum, they seem to be purposeful individuals with clear goals and less tolerance for slow change than their predecessors. They want managers who set precise work expectations, give ongoing feedback and encourage flexibility “as long as the work gets done.”  They want to see clear paths to development and don’t like to wait purposelessly. They struck us throughout as a potential force for change.

Part of the way through our sessions, a small movement – driven in part by millennials –  emerged in New York City. Occupy Wall Street has grown rapidly to national and global dimensions. Its general critique and broad demands have perplexed observers, but attracted tens of thousands of participants. According to news accounts, some of those “occupiers” may well be employees like the members of our focus groups.

As the movement has grown and we have spoken and written about our study, some interesting questions arose:  Just as OWS seemed to emerge suddenly from a general dissatisfaction, might some of the workplace frustrations we heard lead to social movement within companies? Can the seemingly modest requests – clear direction, managerial feedback and adequate time for their families – turn out to be viewed as too vague and/or too impossible?

Reviewing our study and its numerous verbatim comments from participants, one can see a link between the spirit of those who occupy plazas and those who reside in cubicles.  Several examples follow:

“Balance” has been an issue for decades. But these millennials address it emphatically.

“The need for flexibility depends on what stage you are in your life.  Before I was married it was OK to work all the time.  Now that I’m married and soon to have kids, it’s not OK – it cuts into my family life.”

Many millennials made the connection between conditions in their company and the
broader society. The implication is that “social change” may be needed for internal
change to happen.

“Blurring [the line between life and work] is happening to everyone, not just to the millennials.  It’s just a society thing now.  It’s a bad shift for society.  It’s no longer a time when work stays in the workplace and you go home to your family.  The new expectation is that I‘m expected to make up time.  It went from an escape valve to a shackle.  If the lines continue to blur too far, it’s bad for everyone.”

Sometimes workplace flexibility is seen as greater employee control over schedules. This millennial’s view assumes primary control for the employee – a major change.

“Define the working hours and outcomes with your manager and work anywhere as long as you have the equipment and tools you need.  You should control your timing
regarding work .”

There was a different view of the power of monetary incentives to drive engagement. Meaning matters, as does positive feedback. These “subversive” notions were raised throughout the groups as participants ranked flex just below or above compensation.

“People need to feel ownership of their work.  And it’s not through monetary incentives but through things like personal leadership techniques, public praise, letting employees know that what they do is important, positive reinforcement of employee’s work.  For us, a timely “atta boy” or  “atta girl” is critical.”

It’s harder to provide feedback if the framework of performance isn’t clear. It is a serious change to do what this millennial asks, but this thread runs through all the groups.

“Leaders need to provide guidelines defining success and failure.  It’s not about how many hours but about the quality of the work.”

Automatic loyalty can enable employees to live without changes they really desire – or to stay home rather than venture into the streets or parks. This cohort may lack that loyalty.

“This generation feels no automatic obligation to anyone when they saw their parents get cut without warning after a lifetime of loyalty to the company.

There should be little doubt that this generation has different priorities and at this stage in their careers seems intent on bringing about change. How serious they are, what sacrifices they are prepared to make, how maturing in the workplace will temper their critiques – all these questions will be answered in due time.

An “Occupy the Cubicles” movement may never materialize. But the energy and intensity of these millennials should not be ignored – or underestimated.  What’s
your experience in your company?

Posted in Flexible Scheduling, Flexible Work Arrangements, Millennials, Work/Life Balance | Leave a comment

Flex: A Talent Magnet?

This blog deals with the mechanics of the flexible workplace – myths, best practices and unique methods. Issue #1 assesses flexibility as a recruitment and retention force.

Read a hundred flex websites, research reports and consulting prognoses and one benefit always rises to the top: the recruitment and retention of talent. (Remote work and space savings take a close second place.)

By survey hundreds of thousands of employees will say that they are staying with their current employer because they have the flexibility they need. And a smaller number will say they have been attracted to their current employer by the prospect of greater flexibility.

But how solid are these numbers? How “sticky” are the flexible options? What percentage of those who would like to be retained by flex are actually “retainees?” To what extent are potential recruits offered the flex they want upon entry or soon after? Is flex a powerful or limited attraction tool?

We believe that flexibility is a retention tool – but not anywhere near as effective as it could be. And the “recruitment and retention” mantra is seriously imbalanced on the attraction end. The mantra might better be “retention possible, attraction not so much.” Why is that? The widest possible retention results from the widest feasible use of formal fully supported, business-beneficial flexible work arrangements. Holes in any of these elements reduce the usage of flex. And there are quite a few holes.

Most firms report a pattern of mixed enthusiasm for flexible schedules among managers. Some version of the bell-shaped curve typically applies: a modest number of enthusiasts, a similar number of serious skeptics and a great middle meandering between the two. There is often little active process for moving the hesitant middle toward the enthusiastic cohort. As long as that’s true, the usage rate will remain well below potential.

Another constraint comes from the recent retreat of many companies from formal to informal flexibility as an easier way to achieve changes in where and how people work — especially occasional work from home. Informal flexibility is a good thing and can satisfy the needs of many employees. But it is often highly manager-dependent rather than driven by policy and systematic practice. And there can be a negative impact on options that demand formality, such as part-time, job sharing and compressed weeks.

The challenge with flexibility as an attraction or recruitment tool starts with a much lower level of use. The fact is that most companies begin with a policy statement that requires any applicant for a flexible schedule to have a minimum tenure before they are eligible. While there are rare differences in policy and case-by-case exceptions for desirable high performers, most companies set the bar at one year, and a far smaller number at 6 months.

This severely limits the recruitment power of flexible schedules. Imagine a Total Rewards offer to a new hire that included the following elements: 1) “a generous salary + bonus, with both to be determined at the end of your first year; 2) fully-paid health insurance, with coverage beginning sometime after six months but before the end of the 2nd year; 3) up to 10 vacation days based on manager decision; and 4) the opportunity to request a flexible schedule after one year, always based on manager preference.

Sooner or later, flex for new hires will be more business-like and be part of a normal Total Rewards offering. Existing policy and practice in some firms eliminate eligibility requirements, offer trial arrangements with clear objectives and then assess and integrate them into a normal proposal process after six months or a year. Whatever system a company chooses, a shift toward options from the beginning is needed to make the recruitment portion of recruitment and retention have power and significance.

How does your firm deal with flex for new hires? Is your retention impact growing or receding?

Posted in Compressed Work Week, Flexible Scheduling, Flexible Work Arrangements, Informal Flexibility, Job Sharing, Part Time, Retention | Leave a comment