the future is flexible future is flexible - werk flexibility study.pdf · study on the state of...

T H E F U T U R E I S F L E X I B L E

T H E I M P O R T A N C E O F F L E X I B I L I T Y

I N T H E M O D E R N W O R K P L A C E

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p.06 p.08 p.10E X E C U T I V E S U M M A R Y A B O U T T H E R E S E A R C H W E L C O M E T O T H E

H U M A N E R AT H E M O D E R N W O R L D R E Q U I R E S A N E W E M P L O Y E R - E M P L O Y E E C O M P A C T

p.12 p.16 p.22U N D E R S T A N D I N G F L E X I B I L I T Y A N D T H E 6 F L E X T Y P E SS U C C E S S D E P E N D S O N A S T A N D A R D I Z E D A P P R O A C H T O F L E X I B I L I T Y

T H E F L E X I B I L I T Y G A P T H E C H A S M B E T W E E N F L E X I B I L I T Y S U P P L Y A N D D E M A N D

R O O M T O L E A D W H I C H T Y P E S O F F L E X I B I L I T Y W I L L G I V E Y O U R C O M P A N Y A C O M P E T I T I V E A D V A N T A G E ?

p.38 p.42p.24M I N D I N G T H E G A PQ U A N T I F Y I N G T H E I M P A C T O F T H E F L E X I B I L I T Y G A P O N B U S I N E S S O U T C O M E S

W H E R E T O G O F R O M H E R EW H A T C O M P A N I E S S H O U L D D O T O L E V E R A G E F L E X I B I L I T Y A S T H E H I G H I M P A C T S O L U T I O N I T I S

F L E X I B I L I T Y A N D T H E M O D E R N W O R K F O R C EQ U A N T I F Y I N G T H E I M P A C T O F T H E F L E X I B I L I T Y G A P O N C A R E , W E L L N E S S , A N D P R O D U C T I V I T Y

p.44 p.46T H I N K I N G B I G W H A T C O U L D T H E F U T U R E L O O K L I K E ?

C O N T A C T A N D S O U R C E S

Contents

Executive Summary

W E R K C O M M I S S I O N E D a professional

research firm to conduct a comprehensive

study on the state of flexibility in the U.S.

workforce. The research sampled 1,583 white

collar professionals who were determined to

be representative of the U.S. workforce at

large and spanned across industries, geogra-

phies, and other key demographics.

According to our research, there is a signif-

icant gap between the supply and demand of

workplace flexibility—96% of the workforce

needs some form of flexibility, yet only 42%

have access to the flexibility they need, and

only 19% have access to a range of flexible

options. We were able to quantify this gap for

the first time through the use of our propri-

etary flexibility framework which allowed

respondents to report interest in and access to

a standardized set of flexibility options. In

this paper, we explore how the flexibility gap

is impacting the workforce's health and well-

ness, performance and productivity, and abil-

ity to care for others. The study also examines

the demand for distinct flexibility types.

While specific flexibility needs vary among

employees, we found that the most in-de-

mand flexibility type for all demographics is

the option to work away from the office for

some portion of each week. Our study also

highlights differences in the supply of and

demand for flexibility across genders, genera-

tions, and organizational levels.

The research quantifies the impact of

flexibility on organizational metrics like

retention, engagement, and employee net

promoter scores (eNPS). Most notable was the

finding that employees with access to flexibil-

ity have net promoter scores 48 points higher

than those without access to flexibility.

Finally, we provide a practical path

forward for companies who are ready to

make the leap towards a more flexible future

of work.

6

About the research

Werk commissioned a professional research firm to conduct a comprehensive study on the state of flexibility in corporate America. The research sampled 1,583 white collar professionals who were determined to be representative of the U.S. workforce at large.

50%

39%

Male

Grad or Professional Degree

50%Female

61%Bachelor’s Degree

D E M O G R A P H I C S

F I R M O G R A P H I C S

G E N D E R

C O M P A N Y S I Z EB Y N U M B E R O F E M P L O Y E E S

E D U C A T I O NA G E

1 0 – 4 9

5 0 – 9 9

1 0 0 – 2 4 9

2 5 0 – 4 9 9

5 0 0 – 9 9 9

1 , 0 0 0 – 4 , 9 9 9

5 , 0 0 0 +

T E N U R EB Y Y E A R S

2 0 +

1 0 – 2 0

5 – 9

2 – 4

2 4 – 2 5 2 %

1 7 %2 6 – 3 0

4 1 – 4 5 1 2 %

2 5 %3 1 – 3 5

4 6 – 5 0 1 3 %

3 6 – 4 0 2 0 %

5 1 – 5 5 1 1 %

S E N I O R I T Y

E N T R Y 1 4 %

M I D D L E 6 8 %

S E N I O R 1 8 %

2 6 %1 0 %

9 %

1 2 %

1 3 %

1 1 %

1 6 %

2 3 %

3 4 %

3 0 %

1 1 %

8 9

T H E W O R L D O F W O R K looks radically dif-

ferent than it did a decade ago. We’re living

in a time of technological transformation,

accelerating connectivity and demographic

shifts. And while many of the innovations

that we’ve seen over the last decade have

improved workplace efficiency and fluidity,

the fact that we’re more connected than ever

through technology means that people are

working longer hours with less time to take

care of themselves and those they care for.

This new normal impacts employee health,

happiness, and productivity.

Companies are becoming increasingly

aware that they must adopt a more

human-centric view to succeed in today’s

modern landscape, one in which their

employees’ needs are front and center in all

that they do. This values shift explains the

recent rise in employee wellness programs,

better parental leave policies, extended vaca-

tion days, and more.

And yet innovation in terms of how the

workplace and jobs are structured has been

slow. If companies are going to truly adapt,

stay nimble, and poise themselves for growth

in the Human Era, they must reconsider the

fundamentals of how jobs are designed and

how, where, and when work gets done. Work

needs to be redesigned to accommodate the

complexities of modern life—without sacri-

ficing the stability, support, and opportunity

for promotion that are the hallmarks of tra-

ditional full-time jobs. It’s time to reimagine

the workday.

Welcome to the Human Era T H E M O D E R N W O R L D R E Q U I R E S A N E W E M P L O Y E R - E M P L O Y E E C O M P A C T

1 1

A C O M M O N U N D E R S T A N D I N G of flexi-

bility is needed to interpret the implica-

tions of this research. We define flexibility

as follows: A flexible job is a full-time

W2 role with a structured set of time or

location-based modifications that ensure

high compatibility between the needs of an

employee and the employer.

To be effective, time and location-based

modifications must be standardized within

a framework that can be broadly communi-

cated across an organization. Our framework

is comprised of 6 distinct flex types.

A flexible job is a full-time W2 role with a structured set of time or location-based modifications. Structured flexibility optimizes employee productivity and loyalty across genders, generations, and skill sets. The gig economy, on the other hand, is a labor market of short-term contracts and freelance work as opposed to permanent jobs. While gigging is flexible in nature, it is not the same as structured flexibility and is a failing proposition for some employee demographics: high fixed costs of living like child care, unpredictable revenue, and a limited opportunity to leverage earned social capital into a promotion make the gig economy an insufficient solution for many. Unlike gigging, structured flexibility provides the support and stability of traditional workplaces.

F L E X I B L E J O B S A N D G I G S A R E F U N D A M E N T A L L Y D I F F E R E N T

A flexible job is a full-time W2 role with a structured set of time or location-based modifications that ensure high compatibility between the needs of an employee and the employer.

When a company adopts and effec-

tively communicates a standard frame-

work for flexibility, ensuring that all

employees have equitable access

to those f lexibi l i ty types, we say

that company has a “structured flexibil-

ity program.”

This framework is the foundation for

this research—it allowed us to capture

structured data on flexibility for the

first time. Throughout this paper, we

will refer to the flex types as defined on

the next page.

Understanding Flexibility and the 6 Flex TypesF L E X I B I L I T Y S U C C E S S D E P E N D S O N A S T A N D A R D I Z E D A P P R O A C H

1 2

The 6 Flex TypesA F L E X I B L E J O B I S A F U L L - T I M E W 2 R O L E W I T H A S T R U C T U R E D S E T O F T I M E

O R L O C A T I O N - B A S E D M O D I F I C A T I O N S . W E H A V E S T A N D A R D I Z E D T H O S E

M O D I F I C A T I O N S I N T O A F R A M E W O R K C O N S I S T I N G O F 6 F L E X T Y P E S . T H E

F L E X T Y P E S B E L O W A R E M E A N T T O B E U S E D I N C O M B I N AT I O N —T H E AV E R A G E

E M P L O Y E E N E E D S A C C E S S T O 2 . 5 T Y P E S O F F L E X I B I L I T Y .

PartTime employees work on a reduced

hours schedule. PartTime does not mean an

individual is no longer in an advancement

track role—employees utilizing PartTime

have the experience and skills to meet their

objectives on a reduced hours schedule.

P A R T T I M ER E D U C E D W O R K L O A D

MicroAgility employees have the autonomy

to step away from their work to accommo-

date the unexpected in micro increments of

1-3 hours. Employees are responsible for

communicating their plans and meeting

their daily objectives.

Remote employees do not work at a com-

pany office—they can work from anywhere.

While many Remote arrangements are fully

location independent, some may have

location considerations, such as the need to

attend occasional in-person meetings or ser-

vice a region.

R E M O T E L O C A T I O N I N D E P E N D E N C E

TravelLite employees have minimal to

no travel, with a maximum of 10% travel

annually (2-4 days per month or its annual

equivalent). TravelLite employees can

reduce travel requirements by utilizing vir-

tual meetings.

T R A V E L L I T EM I N I M A L T R A V E L

DeskPlus employees are based out of a com-

pany office, but can work at a location of

their choosing for some portion of their

time. Utilizing location variety can enhance

productivity, reduce the burden of a long

commute, increase creativity, and/or meet

other needs.

D E S K P L U S L O C A T I O N V A R I E T Y

Employees reorder their working hours

to create an unconventional schedule that

optimizes productivity and performance.

Employees can use TimeShift to shift the

workday an hour to avoid a long commute,

to break the day into sprints, or in a formal-

ized condensed work week program.

M I C R O A G I L I T YF R E E D O M T O A D A P T

T I M E S H I F TU N C O N V E N T I O N A L H O U R S

1 5

The Flexibility Gap T H E C H A S M B E T W E E N W O R K P L A C E F L E X I B I L I T Y S U P P L Y A N D D E M A N D

T H E F L E X I B I L I T Y G A P

According to our research, there is a significant gap between the supply and demand of workplace flexibility. 96% of employees in the U.S. workforce need some form of flexibility at work, yet only 42% have access to the type of flexibility they need, and only 19% have access to a range of flexible options. This gap is even more pronounced for women, where only 34% have access to the flexibility they need.

T O T A L

M A L E

F E M A L E

M I L L E N N I A L S

G E N X

P A R E N T S

N O N - P A R E N T S

D E M A N D S U P P L Y

96%42%

97%51%

95%34%

97%50%

96%36%

97%48%

95%33%

5 4 % G A P

4 6 % G A P

4 7 % G A P

6 0 % G A P

4 9 % G A P

6 2 % G A P

6 1 % G A P

1 6 1 7

To better understand the flexibility needs of the workforce, we used our flexibility framework to look at how supply and demand varied for each distinct flexibility type. The data revealed some interesting trends about which types of flexibility are most sought after, and which groups needed them the most.

O V E R A L L D E M A N D B Y F L E X I B I L I T Y T Y P E

WO

ME

N

MIL

LEN

NIA

LS

MIL

LEN

NIA

L

ME

N

MIL

LEN

NIA

L W

OM

EN

ME

N

GE

N X

For information on our flexibility taxonomy, see page 15.

D E S K P L U S

8 4 %

2 1 %

M I C R O A G I L I T Y

8 2 %

2 6 %

R E M O T E

7 8 %

1 5 %

T I M E S H I F T

7 4 %

2 1 %

T R A V E L L I T E

5 6 %

1 7 %

P A R T T I M E

4 9 %

1 6 %

J O B S H A R I N G

4 1 %

1 6 %

Although not part of Werk's flexibility framework, we've shown job sharing here as a breakout of PartTime.

D E M A N D

S U P P L Y

S U P P L Y A N D D E M A N D G A P B Y F L E X I B I L I T Y T Y P E

T I M E S H I F T 74% 7 5 % 74 % 7 7 % 7 3 % 7 8 % 7 5 %

P A R T T I M E 49% 5 4 % 4 5 % 5 2 % 4 7 % 6 3 % 4 2 %

T R A V E L L I T E 56% 6 2 % 5 0 % 6 0 % 5 4 % 7 0 % 5 1 %

D E S K P L U S 84% 8 4 % 8 5 % 8 4 % 8 4 % 8 4 % 8 5 %

M I C R O A G I L I T Y 82% 8 2 % 8 2 % 8 3 % 8 1 % 8 3 % 8 3 %

R E M O T E 78% 7 8 % 7 9 % 8 0 % 7 6 % 8 2 % 7 9 %

J O B S H A R I N G 4 8 % 3 4 % 4 6 % 3 7 % 6 1 % 3 3 %41%

1 91 8

G I V E N T H E 5 4 % G A P between supply and

demand for flexibility overall, it’s not sur-

prising that we found significant gaps

between the supply and demand of each

flexibility type, indicating that companies

are significantly under-delivering to their

employees across every flexibility type.

K E Y I N S I G H T S

D E S K P L U S is the most in-demand flexibil-

ity type, indicating that today’s workforce

values location-based flexibility, including

access to location variety throughout the

workweek, above any other flex type.

M I C R O A G I L I T Y is the second flexibility

type with the greatest demand, suggesting

that traditional workdays are too inflexible

to accommodate ad-hoc appointments or

unexpected life events, or that bias or fear

prevents employees from stepping away

from work when necessary.

P A R T T I M E A N D J O B S H A R I N G (a version

of PartTime where an individual splits his or

her working hours with a colleague) were

the least-demanded flexibility types, suggest-

ing most employees need or want to commit

to a full-time role. Interestingly men, millen-

nial men in particular, had the highest inter-

est in PartTime work. This is likely due to the

fact that changing family structures are con-

tributing to men taking on an equal or larger

load of caregiving and housework responsi-

bilities. We’ll explore this trend in greater

depth below when we look at flexibility and

its impact on caregiving more broadly.

Men were more likely than women to believe that flexibility is offered consistently to all employees across their organization. This may be due to a gender bias effect in which women are more reluctant to ask for flexibility than men because of stigmas associated with workplace flexibility. Or, that men's requests for flexibility are more likely to be granted.

W E S A W I N T E R E S T I N G T R E N D S A C R O S S D E M O G R A P H I C S I N T E R M S O F H O W E M P L O Y E E S P E R C E I V E D T H E I R O V E R A L L A C C E S S T O F L E X I B I L I T Y

The higher the respondent's organizational level, the more likely they were to have access to flexibility, with Senior Manage-ment reporting significantly greater ac-cess to flexibility compared to entry-level employees. This is particularly important because it indicates that executives may be disconnected from the needs of their employees and may incorrectly assume that all employees, no matter their seniority, have equal access to flexibility. 2 12 0

Room to Lead

Based on the gap between supply and demand for each flexibility type, the figure to the right indicates which flexibility types will give your company room to lead, which types can be leveraged as points of differentiation, and which types can be deprioritized. It’s important to note that this analysis is based on U.S. aggregate workforce data, and priorities might look different in your unique company setting depending on your employees' needs and the types of flexibility you offer today.

W H I C H T Y P E S O F F L E X I B I L I T Y W I L L G I V E Y O U R C O M P A N Y A C O M P E T I T I V E A D V A N T A G E ?

OF

FE

RE

D (

AV

AIL

AB

LE T

O E

VE

RY

ON

E)

A P P E T I T E ( V E R Y / S O M E W H A T A P P E A L I N G )

Room to Lead

Higher Priority

Lower Priority

P A R T T I M E

T R A V E L L I T E

J O B S H A R I N G

R E M O T E

T I M E S H I F T D E S K P L U S

M I C R O A G I L I T Y

2 2

Flexibility and the Modern WorkforceQ U A N T I F Y I N G T H E I M P A C T O F T H E F L E X I B I L I T Y G A P O N C A R E , W E L L N E S S , A N D P R O D U C T I V I T Y

Our data tells a clear and quantifiable story about the gap between the supply and demand of workplace flexibility, but we also wanted to understand the impact of that gap on the U.S. workforce at large.

The research identified 3 areas that are negatively impacted when employees lack access to flexibility:

P R O D U C T I V I T YH O W T H E I N D I V I D U A L

W O R K S B E S T

C A R E G I V I N GH O W T H E I N D I V I D U A L

C A R E S F O R T H O S E W H O D E P E N D O N T H E M

H E A L T H A N D W E L L N E S SH O W T H E I N D I V I D U A L

T A K E S C A R E O F H I M S E L F O R H E R S E L F 2 4

CaregivingOur data suggests that lack of flexibility places a significant burden on working parents.

F A M I L Y S T R U C T U R E S look much different

than they did a century ago when men

served as breadwinners and women tended

exclusively to the home and childcare.

Today, more women are choosing to stay in

the workforce after having a child, and the

ranks of stay-at-home or single fathers has

grown significantly in recent decades.1

These more evolved gender norms are par-

ticularly salient amongst millennials who

are in the midst of a baby boom, requiring

companies to think about how they can

. . . B E T H E T Y P E O F P A R E N T I W A N T T O B E

. . . F U L F I L L M Y R O U T I N E M O R N I N G C A R E G I V I N G R E S P O N S I B I L I T I E S

. . . F U L F I L L M Y R O U T I N E A F T E R N O O N C A R E G I V I N G R E S P O N S I B I L I T I E S

. . . A T T E N D S P E C I A L E V E N T S F O R T H O S E I C A R E F O R

. . . R E S P O N D T O C A R E G I V I N G E M E R G E N C I E S A S T H E Y A R I S E

O F P A R E N T S A G R E E33% O F M O T H E R S

A G R E E

33% O F F A T H E R S A G R E E

33%


A G R E E


35%


A G R E E


33%


A G R E E


31%


A G R E E


33%

T H E S T R U C T U R E O F M Y W O R K D A Y M A K E S I T S O M E W H A T / V E R Y C H A L L E N G I N G F O R M E T O . . .

support both genders equally in their

transition into parenthood. As the data

illustrates in previous sections, millennial

men are particularly keen on exploring

flexibility as a way to take on a more equal

load of caregiving responsibilities.

Interestingly, the data also suggests that

mothers face fewer structural challenges

than fathers. One possible hypothesis for

this result is that because women are still

more likely than men to be primary caregiv-

ers, they must find ways to overcome or cir-

cumvent barriers to meet their caregiving

responsibilities. However, this often comes

at a career cost: a phenomenon sociologists

have named the motherhood penalty.2

But it’s not just about parenting—

recent research shows that millennials

are also taking on an even larger role as

caregivers more broadly, with the aver-

age millennial caregiver spending an

average of 21.2 hours a week assisting a

loved one whether that be a parent,

grandparent, or sibling.32 6 2 7

The structure of work was decided long before women made up a significant part of the workforce, when the typical American family consisted of one primary breadwinner. The inflexibility and one-size-fits all nature of traditional full-time work continues to disproportionately disadvantage ambitious women by forcing them to leave the work-force, or "opt down" into non-leadership roles, in a choice between care and career. As a result, many organizations have been unable to

achieve their gender diversity goals, especially in positions of leadership. Flexibility is a talent solution that addresses these diversity chal-lenges. Of the 30% of credentialed women who leave the workforce,4 70% say they would have stayed if they had access to flexibility.5 Achieving gender parity is a business impera-tive. Companies with meaningful numbers of women in leadership improve by every metric6 and gender diverse organizations are 15% more likely to outperform their peers.7

W E S A W I N T E R E S T I N G T R E N D S A C R O S S D E M O G R A P H I C S I N T E R M S O F H O W E M P L O Y E E S P E R C E I V E D T H E I R O V E R A L L A C C E S S T O F L E X I B I L I T Y

M E E T L I Z Z I E , a financial analyst who lives

in Boston. Her current employer does not

offer flexibility and requires employees to be

in the office every day from 8 a.m. – 5 p.m.

When working late hours, Lizzie is required

to return to the office after putting her son to

bed, because employees are prohibited from

taking their work home. With DeskPlus and/

or TimeShift, Lizzie would gain an additional

2 – 5 hours each day simply by starting her

workday earlier and not commuting in every

day. Too often, Lizzie feels stretched so thin

between work and caregiving responsibilities

Caregiving in Actionthat she can barely get through the day, let

alone make time for the personal and profes-

sional development needed to advance in

her career. Lizzie was recently informed that

she is the successor for an executive-level

role, but lack of work-life compatibility

would make it impossible for her to succeed

in that position, so she declined the opportu-

nity. Lizzie wants to take on greater leader-

ship responsibilities, but without access to

flexibility, she will have to consider leaving

her company—and possibly putting her

career ambitions on hold altogether.

*In each case study, names and identifying details have been changed to protect the privacy of featured individuals.

2 92 8

Health + WellnessOur research shows that lack of flexibility has a significant impact on employees’ ability to engage in preventive health measures.

C O R P O R A T E H E A L T H and wellness pro-

grams have proliferated over the last decade

as companies have sought to control health-

care costs. Originally believed to be the key

to employee health, these programs

spawned an $8 billion wellness industry,

and yet few companies have seen notable

improvements in health outcomes or

reduced healthcare costs8. The problem with

ex i s t ing programs i s that they a im

to address poor health and wellness by

adding incentives for being well rather than

removing the barriers to being well. If an

employee doesn’t have the flexibility to

attend a recurring appointment that con-

flicts with standard working hours, no

incentive is going to enable that employee

to effectively manage their condition.


. . . M A K E T I M E F O R E X E R C I S E / H E A L T H Y L I V I N G

. . . B E A V A I L A B L E F O R P E R I O D I C H E A L T H A P P O I N T M E N T S ( E . G . , D O C T O R S A P P O I N T M E N T S , U R G E N T C A R E V I S I T S , E T C . )

. . . B E A V A I L A B L E F O R R E C U R R I N G H E A L T H A P P O I N T M E N T S( E . G . , M E N T A L H E A L T H C O U N S E L I N G , P H Y S I C A L T H E R A P Y , E T C . )

. . . M A N A G E A P H Y S I C A L C O N D I T I O N O R C H R O N I C I L L N E S S

. . . G E T E N O U G H S L E E P E A C H N I G H T

O F P E O P L E A G R E E36% O F M I L L E N N I A L S

A G R E E

39% O F G E N X ’ E R S A G R E E

34%


A G R E E


21%


A G R E E


27%


A G R E E


25%


A G R E E


29%

3 1

M E E T W I L L , a marketing manager who has a

disability. For his particular disability, he must

receive frequent specialized medical treat-

ments to maintain his physical health. His

specialist closes every day at 5 p.m., so sched-

uling these sessions after work is not an

option. However, the appointments are quick

enough that he can leave the office and return

to his desk within 1 hour. Without access to

MicroAgility, Will’s physical and mental well-

being, as well as his productivity, suffer. As

Health and Wellness in Actioncompanies implement flexibility policies to

address matters of disability, it’s important to

remember one-size-fits-all flexibility policies

will be insufficient. For example, someone

who uses a wheelchair and relies on public

transit may need access to TimeShift to avoid

travel during peak times, and someone with a

chronic illness may need access to DeskPlus

during a flare up. If employers design pro-

grams that meet employee needs, the results

will speak for themselves.


According to The Wall Street Journal, "social distancing” measures during the 1918 flu pandemic made the difference between high and low mortality rates in U.S. cit-ies.9 David Gray, a former acting assistant secretary at the U.S. Department of Labor, says that during outbreaks “it is likely that many workers will be sick enough that they will need to stay away from work, if only to keep their coworkers from being impacted,

but they will be well enough to complete substantive work. Or many will be healthy themselves, but they will be needed at home to help care for a family member or a child.” 10 Remote and DeskPlus are two flexibility factors that can facilitate life-saving social distancing, and MicroAgility can help give employees time to schedule flu vaccines and monitor their overall health—not just during flu season, but all year round.

F L E X I B I L I T Y A N D T H E F L U

3 33 2

ProductivityOur research shows that lack of flexibility also negatively impacts the performance and productivity for a third of the workforce.

E M P L O Y E E S ’ A B I L I T Y to care for them-

selves and others is a fundamental need

that companies have a responsibility to

facilitate in the Human Era, but what about

the impact of flexibility on productivity

and performance? Our findings underscore

why flexibility is not just about meeting

basic needs, but also about empowering

employees to work in the ways and at the

times that are most productive for them.

Access to flexibility can create a thriving

and resilient workforce that performs at a

. . . P E R F O R M O P T I M A L L Y I N M Y R O L E

. . . P E R F O R M I N A S U S T A I N A B L E W A Y O V E R T I M E

. . . F E E L I N S P I R E D O R E N E R G I Z E D B Y M Y P H Y S I C A L W O R K S P A C E

. . . B R I N G M Y W H O L E S E L F T O W O R K

. . . F O S T E R S K I L L S T O D E V E L O P I N M Y C A R E E R

O F P E O P L E A G R E E29% O F M E N

A G R E E

31% O F W O M E N A G R E E

27% O F M I L L E N N I A L S A G R E E

31% O F G E N X ’ E R S W H O A G R E E

28%


A G R E E




26%


A G R E E




34%


A G R E E




26%


A G R E E




31%


high level, sustainably over time. This is

why flexibility must be considered a univer-

sal talent solution, not just one that

addresses the discrete needs of employees

who will fail without it. It’s interesting

to note that women reported fewer

structural challenges to productivity and

performance. One possible reason could be

that there are fewer women in leadership

positions and therefore the data does not

accurately reflect the unique challenges

facing women in more ambitious roles. 3 5

Productivity in Action...


According to a recent study by Stanford Graduate School of Business profes-sor Nicholas Bloom,11 the ability to work outside the office has a significant impact on employee productivity. To determine the effects of location variety, Bloom and his co-researchers, James Liang, John Roberts, and Zhichun Jenny Ying, studied Ctrip, China’s largest travel agency. Half of the volunteers for this study had access to location variety 4 out of 5 days a week for a total of 9 months, while the other half worked solely in the office. The results

were staggering: the group that worked outside of the office had a “massive” performance improvement of 13%, and resignations among this group dropped by 50%. Why? First, those with access to location variety are more likely to work their full shifts as opposed to office workers who might actually clock fewer hours due to long lunches with co-work-ers or sitting in traffic. Second, Bloom concludes that these employees are able to concentrate better since offices can be noisy or distracting.

L O C A T I O N V A R I E T Y A N D P R O D U C T I V I T Y

M E E T R Y A N , Director of Engineering for a

tech company headquartered in the Bay Area.

Ryan has been with her company for 7 years

and loves her job. Ryan started out as an indi-

vidual contributor who was quickly promoted

through the managerial ranks. Ryan now has

6 direct reports, and while she has continued

to be successful, she’s struggling to balance

her “manager time” and her more technical

“maker time.” Ryan finds that when she’s in

the office she is constantly being interrupted

by her team with requests or issues, which

can significantly disrupt her flow on “maker”

days. She’s also heard from a few of her direct

reports that the office setting can be distract-

ing and not conducive to coding. As a solu-

tion, Ryan recommends a DeskPlus policy for

those team members (including herself) who

need a reprieve from the office environment

to optimize their making time.

3 6 3 7

Minding the Gap barriers to wellness and preventative health

can drive costs down not just through reduc-

ing absenteeism, but by reducing healthcare

costs overall. The average company spends

upwards of $10,000 per employee on health-

care, and those costs are increasing due to

drivers like high-priced pharmaceuticals.

Flexibility allows employees to prioritize pre-

ventive healthcare, which can reduce acute

health issues, decrease absenteeism, and

help manage escalating healthcare costs.

P R O D U C T I V I T Y

Employees with access to flexibility are

more productive and can work in ways that

truly enable sustainable high performance.

Given that 29% of people said that the

structure of their workday makes it difficult

for them to perform optimally, flexibility

can be a key lever in optimizing their per-

formance. When it comes to balancing

“manager time” vs. “maker time,” flexibility

can enable employees to re-invest in maker

time, resulting in increased productivity

and innovation.

T U R N O V E R

Our research found that employees without

access to flexibility are 2x more likely to

leave their job for a more flexible alternative.

Turnover has a tremendous financial impact

on organizations in terms of short-term

productivity losses and longer-term costs

associated with hiring, onboarding, and

optimizing new hires. It is much less expen-

sive for a company to retain an employee

than hire a new one.

E N G A G E M E N T A N D S A T I S F A C T I O N

Our study showed that employees without

access to flexibility are 2x more likely to be

dissatisfied at work. On the other hand,

Our research clearly shows that access to flexibility has a positive impact on how employees care for themselves, care for others, and maximize performance and productivity. But what about other organizational outcomes? How does providing access to flexibility impact a company’s top and bottom line?

Q U A N T I F Y I N G T H E I M P A C T O F T H E F L E X I B I L I T Y G A P O N B U S I N E S S O U T C O M E S

employees who do have access to flexibility

have employee net promoter scores (eNPS)

48 points higher than those without access

to flexibility. This is a staggering number as

eNPS correlates not only with the engage-

ment and retention of talent, but also with

the likelihood that employees will advocate

for their company’s products and services,

which drives top-line dollars.

H E A L T H A N D W E L L N E S S

And then there’s the impact on health and

wellness—39% of millennials and 36% of

employees overall say the structure of their

workday prevents them from making time

for healthy living. Companies that remove

G E N D E R D I V E R S I T Y

A lack of flexibility is one of the top reasons

women leave the workforce, and flexibility

is a woman’s #1 search criteria in looking for

a new role.12 Our research found that the

flexibility gap was most pronounced for

women: 95% of women need access to flex-

ibility, but only 34% of them have access to

the flexibility they need—at 61%, this is the

largest flexibility gap among any employee

demographic. Previous research also has

shown that of the 30% of women who drop

out of the workforce after have a child, 70%

would have stayed if they had access to flex-

ibility.13 Companies with a more gender

diverse workforce tend to make better deci-

sions that are more representative of/inclu-

sive to the customer populations they serve.

Research shows that companies with more

women are more likely to introduce radical

innovations into the market.14

A N I N C L U S I V E W O R K P L A C E

Flexibility can facilitate further diversity by

creating workplaces that support all people

3 8 3 9

R E T E N T I O N

Employees without access to flexibility were 2x as likely to report being dissatisfied at work, and 1 in 2 employees said they would leave their job to find a more flexible alternative.

A D V O C A C Y

+48eNPS

inclusive of race, color, religion, sex, sexual

orientation, gender identity, national origin,

disability status, socioeconomic status, and

work style more broadly. We found that

employees with access to flexibility are 20%

more likely to believe they work in an envi-

ronment that fosters diverse points of view.

Taking the time to recognize employee needs

can increase an employee’s sense of belong-

ing in an organization, which is essential in

any diversity initiative.

E M P L O Y E R B R A N D

Once a company has implemented struc-

tured flexibility, it can be leveraged as a dif-

ferentiator to attract the best talent. Of the

companies who are doing flexibility well

today, few are proactively marketing their

flexible programs as part of their employer

Employees with access to flexibility had employee net promoter scores (eNPS) 48 points higher than those with-out access to flexibility. eNPS isn’t just a strong predictor of attraction, engagement, and re-tention, but is also directly cor-related with a higher likelihood that employees will also be net promoters of their company’s products or services, which is linked to top-line dollars.

E M P L O Y E E S W I T H F L E X I B I L I T Y W E R E . . .

E N G A G E M E N T A N D I N C L U S I O N

more likely to feel their ideas are valued 1 6 %

more likely to believe they work in an environment that fosters diverse points of view 2 0 %

more likely to believe their company is doing what it takes to improve gender diversity 2 6 %

more likely to feel their employer cares about them and treats them well

2 0 %

brand. Many make the mistake of waiting for

employees to join before communicating

what’s available to them. Given that flexibil-

ity is a top search criteria for all employees,

companies that can effectively leverage flex-

ibility as part of their talent attraction strat-

egy will be at a unique advantage.

R E A L E S T A T E P L A N N I N G A N D O P T I M I Z A T I O N

Understanding employees’ needs and appe-

tite for flexibility can also support compa-

nies with workforce and real estate planning

and optimization. As real estate costs soar,

it’s beneficial for companies to understand

what percentage of their workforce wants

and needs location-based flexibility modifi-

cations so they can create the efficiently

designed workplaces of the future.

4 0 4 1

Where to Go From HereW H A T C O M P A N I E S S H O U L D D O T O L E V E R A G E F L E X I B I L I T Y A S T H E H I G H - I M P A C T S O L U T I O N I T I S

S T E P 1U T I L I Z E A F L E X I B I L I T Y F R A M E W O R K

To close the gap between the supply and

demand for flexibility, companies and

employees must speak the same language. A

common framework or language for flexibil-

ity is needed for companies to articulate

what is offered, and for employees to advo-

cate for what they need. Without a common

language, employees and employers tend

to rely on the overly personal flexibility

discussions of the past, which can lead to

inconsistent implementation and low uptake.

S T E P 2A S S E S S N E E D S

Too many companies fail at flexibility

because they do not tailor their flexibility

policies to the needs of individual employ-

ees, and instead create blanket policies that

work for some, but not all. Instead, compa-

nies should conduct a thorough needs

assessment to understand what employees’

lives and workdays look like, what their lives

require of them outside of work, and which

location and time-based customizations

would address those needs (aligned to your

flexibility framework). If you need help,

Werk has tools that can support you with

this assessment.

S T E P 3C R E A T E C U S T O M I Z A T I O N S

Once you’ve determined which types of flex-

ibility your employees require to better care

for themselves and others and to perform

optimally, you can begin to design programs

and policies that create the customizations

your workforce needs most. You may choose

to start with the highest impact policies and

roll out others gradually, or you may choose

to offer all of the flexibility types upfront.

S T E P 4C O M M U N I C A T E B R O A D L Y

Our research demonstrates that perceptions

of access to flexibility vary across gender

lines and job levels. Take the guesswork out

of flexibility by communicating your com-

mitment to a flexible work environment

broadly, and by making information about

the programs and policies available widely

accessible. After you’ve communicated your

policies internally, let the world know: your

flexibility is a differentiator in your employer

brand and talent acquisition strategies.

S T E P 5M E A S U R E I M P A C T

Set yourself up to measure the impact of

flexibility through key metrics. Our research

indicates that flexibility has a significant

impact on employee advocacy (eNPS),

engagement, and retention. To quantify

results, measure a baseline on these metrics

before introducing flexibility. As you roll

out your flexibility policies, pulse your

employees regularly to capture new data. 4 3

Imagine a world where our workplaces have caught up to the demands of modern society, where every employee has the ability to customize their workday to meet their individual needs through structured flexibility programs. Imagine a labor market driven by a hybrid of our existing models: the support and stability of traditional workplaces, and the innovation and flexibility of the gig economy. In this new future, companies will unlock the talents, loyalties, and happiness of their greatest resource: their people. In return, people will be empowered to live and work in the way that works best for them. This future is upon us: companies and employees who adopt a standardized language of flexibility today will blaze the trail for the companies of tomorrow.

Thinking BigW H A T C O U L D T H E F U T U R E L O O K L I K E ? H E R E ’ S H O W W E R K C A N S U P P O R T Y O U .

Need Help?

T H E F I R S T A N D O N L Y P E O P L E A N A L Y T I C S P L A T F O R M F O R F L E X I B I L I T Y

Werk is the first and only people analytics software that helps companies improve their flexibility performance through data. Through a proprietary assessment methodology and analytics dashboard, Werk delivers the insights companies need to under-stand current flexibility baseline and gaps, the highest ROI flex investments to close those gaps, and the impact of flexibility on the most important business metrics.

4 54 4

S O U R C E S

1. K. Parker, G. Livingston. (June, 2017). 6 Facts About American Fathers. Pew Research Center. Retrieved from http://www.pewresearch.org/ fact-tank/2017/06/15/fathers-day-facts/

2. Miller, C. (September, 2014). The Motherhood Penalty vs. the Fatherhood Bonus. The New York Times. Retrieved from https://www.nytimes.com/2014/09/07/upshot/a-child-helps-your- career-if-youre-a-man.html

3. Millennial Caregiving Report. (June, 2015). AARP Public Policy Institute. Retrieved from URL. https://www.aarp.org/ppi/info-2015/caregiving-in- the-united-states-2015.html

4. Byker, T. (August, 2016). The Opt-Out Continua-tion: Education, Work, and Motherhood from 1984 to 2012. The Russell Sage Foundation Journal of the Social Sciences. Retrieved from https://www.rsfjournal.org/doi/full/10.7758/RSF.2016.2.4.02

5. Quast, L. (December, 2010). Career Off-Ramps are Taking an Increasing Toll on Women's Careers. Forbes. Retrieved from https://www.forbes.com/sites/work-in-progress/2010/12/13/career-off-ramps-are-taking-an-increasing-toll-on-womens-careers/#292a9bf6774e

6. J. Barsh, S. Cranston & G. Lewis. How Remarkable Women Lead: The Breakthrough Model for Work and Life. (2011). New York, NY: Crown Business.

7. McKinsey & Co. (January, 2018). Delivering Through Diversity. Retrieved from URL.http://www.mckinsey.com/business-functions/organization/our-insights/why-diversity-matters

Contact Us

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8. E. Fry. (March, 2015). Corporate Wellness Programs: Healthy or Hokey? Fortune. Retrieved from http://fortune.com/2017/03/15/ corporate-health-wellness-programs/

9. Quick, J. (January, 2018). An Action Plan for Averting the Next Flu Pandemic. The Wall Street Journal. Retrieved from https://www.wsj.com/ articles/were-not-ready-for-the-nextflu- pandemic-1516372986

10. Gray, D. (March, 2018). Flu Season Shows the Need for Workplace Flexibility, Huffington Post. Retrieved from https://www.huffington-post.com/david-gray/flu-season-shows-the-need_b_314978.html

11. Bloom, N., Liang, J., Roberts, J. & Zhichun, J. (March, 2013). Does Working from Home Work? Evidence from a Chinese Experiment. Stanford Graduate School of Business, Working Paper 3109. Retrieved from https://www.gsb.stanford.edu/insights/why-working-home-future-looking- technology

12. PwC. (March, 2017). Winning the Fight for Female Talent: How to Gain the Diversity Edge through Inclusive Recruitment. Retrieved from https://www.pwc.com/gx/en/about/diversity/iwd/iwd-female- talent-report-web.pdf

13. See footnotes 4 and 5.

14. D. Rock & H. Grant. (November, 2016). Why Diverse Teams Are Smarter. Harvard Business Review. https://hbr.org/2016/11/why-diverse-teams-are-smarter4 6 4 7

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