DTI minister Patricia Hewitt explains the benefits of flexible
working practices
From the boardroom to the office, the modern working environment is
increasingly populated by employees who are making decisions to
gain more control in their working lives. This desire to achieve a
balance between work and other aspects of their lives has led many
people to put the issue of work/life balance at the top of the
business agenda.
However, work/life balance strategies are more than simply a
reactionary measure designed to satisfy an increasingly demanding
workforce. Society and the working world have changed
significantly, and businesses are continually adapting their
working practices accordingly.
The fact that almost half of the UK workforce are women, alongside
an increasingly ageing population, has created a number of
pressures and incentives for employers. For example, if just 10% of
non-working mothers returned to work after maternity leave,
employers could save up to £39m a year in recruitment costs.
For companies with large IT departments, the problem is
particularly acute. Research by the Women in IT Champions Group
found that in the first quarter of 2002, women accounted for only
36% of new IT recruits but, during the same period, 46% of people
leaving the industry were women.
Loyalty and commitment are priceless commodities for employers,
many of which have become aware that people are their most
important asset. Many businesses have realised that recruiting and
retaining the best people can be achieved through well considered
work/life balance policies. In a poll conducted earlier this year,
three in 10 IT workers said they would rather have flexible hours
than a £1,000 pay rise. Almost half of respondents working in IT
chose flexible working as the benefit they would most look for in
their next job.
This research is symptomatic of a society looking for more control
over the way its time is organised. Nine to five is no longer the
norm - consumers and businesses are demanding access to services 24
hours a day, seven days a week, and employees in the IT industry
are often expected to facilitate that 24x7 access.
Yet the problem lies deeper than a desire to cut working hours.
People in the UK work the longest hours in Europe - one in three
fathers, for example, works more than 48 hours a week. Although
many people are rebelling against the idea of spending their lives
in the office, the macho culture of long hours and "presenteeism"
is still prevalent in many industries in the UK.
The government is addressing these issues through the introduction
of new rights for working parents. Parents with young or disabled
children have the right to ask for flexible working, and employers
have a statutory duty to consider those requests seriously.
Maternity pay and leave has been improved, paid paternity leave has
been introduced for fathers, and adoptive parents have gained
comparable rights. These are in addition to the existing rights to
take parental leave and to take time off to care for dependents.
The right to ask for flexible working and improved parental leave
conditions offers support for parents with young children. However,
we will only succeed with these rights if business leaders realise
that flexible working is not just for young mothers. Improving the
work/life balance can benefit all employees and businesses.
For example, Xerox UK estimates that the introduction of new ways
of working has saved the business £1m over the past five years
through enhanced staff retention. At BT, work/life balance
initiatives have saved the company hundreds of thousands of pounds
in recruitment, retention and development costs and more than £200m
in accommodation costs.
Although there is proof that work/life balance policies can have a
positive impact on the bottom line, the benefits of a successful
work/life balance strategy should not be measured in purely
economic terms. Employers should recognise that their greatest
assets are those who walk out of the workplace at the end of the
day and spend time on other aspects of their lives, whether it be
golf or the family.
A motivated and healthy employee is more valuable to a business
than someone who suffers from high stress levels. Stress-related
illnesses have become an increasingly common cause of high absence
rates in UK organisations.
According to the latest figures from the Health and Safety
Executive, stress-related absence costs UK industry about £7.1m a
week.
However, while businesses are becoming more attuned to the dangers
of stress, the real key to work/life balance lies in developing
practices and policies that prevent employees from reaching this
state. A number of companies have demonstrated that offering
flexible working arrangements can reduce health risks as well as
have a measurable impact on the bottom line.
Companies from across the public and private spectrum have
implemented working practices that have helped to boost morale,
reduce absenteeism, and increase productivity. Royal Bank of
Scotland, Asda, GlaxoSmithKline and Fox's Biscuits are just some of
the UK's work/life pioneers that have reaped the rewards of a
work/life balance strategy.
The success of these companies owes much to the level of management
support for a coherent work/life balance strategy across all areas,
including IT, human resources, marketing and finance.
Employees need to see the working culture change from the top down,
as many feel uncomfortable about asking for flexible working
because they think it may harm their careers, despite evidence to
the contrary.
Recent legislation to help working parents find solutions to their
work/life problems should help to raise awareness of the many ways
of working available to businesses. In addition, through the work
of the Department of Trade & Industry work/life Balance
Campaign, the government is promoting the benefits of work/life
balance to employees and employers, and is offering practical
advice to businesses about how to implement the right policies in
the workplace.
However, the responsibility for introducing successful work/life
balance policies lies ultimately with senior management - and only
by consulting with employees can they begin to contemplate the
introduction of such arrangements.
As long as the policies under consideration help to meet core
business objectives and employee needs, then businesses will reap
the rewards of a more loyal and committed workforce which, in turn,
will help to boost productivity.
By learning from the best practice demonstrated by companies such
as the Royal Bank of Scotland, businesses in the UK will be in
better shape to accommodate the changing demands of the working
world.
www.dti.gov.uk/work/lifebalance