W HI T E PA PER
Streamlining Flex Time
Streamlining Flex Time:
Staying Competitive
Summary
Today’s employees consider benefits to be a top contributor to job
satisfaction, influencing employee loyalty, engagement and morale.
But as the economy continues to struggle, employee benefits suffer.
How can an organization recruit and maintain top talent with a
flagging benefits package? Unfortunately, many organizations
overlook a key benefit that employees value highly that also offers
significant advantages to employers at a relatively low cost. What is
this benefit? Flex time. If the thought of implementing and managing
a flex-time policy seems to outstrip its considerable advantages,
the process can be significantly streamlined with a timekeeping
system, improving the consistency, measurability, accessibility and
accountability of any flex-time arrangement.
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Streamlining Flex Time
Economic Impact on Employee Benefits
In 2011, the Society for Human Resource Management (SHRM) reported that
77 percent of surveyed HR professionals said the state of the economy had negatively impacted employee benefits—a 5 percent increase from 2010.1 Consequently,
cost-cutting measures leave employees more responsible for managing personal
benefits such as retirement, leave and health care.2
Importantly, SHRM also reported employees ranked benefits as a top contributor
to job satisfaction.3 This combination of factors, cost-cutting measures caused by
a sluggish economy coupled with the influential role benefits play in employee
satisfaction, leaves many employers in the lurch when it comes to recruiting and
retaining employees. How can organizations attract new talent and retain quality
workers with an attractive yet affordable benefits package?
One benefit growing in employee popularity can help increase overall productivity
and satisfaction and reduce turnover and absenteeism.4 Best of all, it’s a low-cost
benefit for an employer to offer.
What is this “miracle” benefit? Flex time.
Flex Time: A Benefit on the Rise
Mark J. Schmit, SHRM’s Director of Research, reports that flex time is on the rise:
“The addition of workplace flexibility programs has been one of the primary tactics
organizations are using to offset the benefit losses. These programs can have positive outcomes for both the employee and the organization.”5
SHRM’s employee benefit survey showed that workplace flexibility benefits
increased in 2011 with more than half of surveyed HR professionals claiming their
organizations already offer flexible schedule benefits (up from 49 percent in 2010).
Twenty percent reported offering full-time telecommuting, a 3 percent increase
from the previous year.6
SHRM has been researching the wide-reaching impact of “flexible work arrangements” (FWAs) since 2008. Notably, in the executive summary of its 2011
Employee Benefit survey, flex time is one of four strategies (and the only benefitspecific strategy) SHRM recommends organizations adopt to stay competitive.7
Flex Time Defined
So what exactly is flex time?
Although ultimately defined by the individual organization according to the
business’s needs, flex time can include part-time hours, a compressed workweek,
telecommuting, break arrangements, shift flexibility, job-sharing, phased retirement, part-year work, alternating locations or flexible schedules (with or without
established “core hours”).8
Taking these variables into account, SHRM defines flexible work arrangements as
offering employees greater flexibility in three areas: (1) the workplace in general,
(2) the scheduling of hours worked, and (3) the number of hours worked.9
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Streamlining Flex Time
The Advantages of Flex Time
Flex time offers a surprising number of benefits to both employees and employers.
Employees
Better work/life balance.
Accounting firm Ernst & Young implemented flex time for employees during its
busiest time of year: tax season. Because it gave employees more opportunity
to balance their work and personal time, allowing them to handle family and
personal obligations as well as take time off, employees found their personal
relationships were less strained during tax season.10 Improved work/life balance
can help reduce stress levels and increase productivity at work.
Improved employee morale and higher job satisfaction.
In 2010, 67 percent of HR professionals reported that flexible work arrangements giving employees more control over when, where, and how long they work
had a positive impact on employee morale, job satisfaction and overall work
engagement.11
Positive impact on health and wellness.
The United Kingdom’s Durham University studied the physiological health
benefits related to flex time. University researchers found that flexible work
arrangements seemed to improve employees’ mental health, sleep quality, job
alertness, and even lowered blood pressure.12 These findings could position flex
time as a possible solution to help employers lower health care costs with programs
shown to increase employee health and well-being.
Clearly, flexible scheduling is meant to offer significant advantages to employees.
However, many organizations that implement flex time enjoy a number of benefits
as well.
Employers
Improved employee retention.
When considering which employees would benefit most from flex time, working
mothers are likely the first group that comes to mind. However, according to Cathy
Benko, a vice chairwoman at Deloitte, the company found male employees held a
similarly high opinion of flex time: “Flexibility is the number one issue for women,
but it’s also the number two or three issue for men.”13
Powerful recruiting tool.
Even in a down economy, the demand for some workers still outstrips geographical
supply. An organization that offers telecommuting as part of their flex time
package is no longer limited by geography, allowing them to recruit top talent
globally with no need to pay for relocation. Flex time not only makes it easier to
recruit new employees, but it also makes the organization more attractive to them,
giving the company a competitive advantage over other organizations that only
offer traditional work arrangements.
Increased levels of employee commitment.
Employees who take advantage of their employer’s flex time policies can feel more
in control of their schedule and more respected by their employer, increasing
the chances they stay with their current organization. A survey by AstraZeneca
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Streamlining Flex Time
showed 80 percent of women and 61 percent of men said flexibility was very
important in their decision to stay with their current employer.14
Inexpensive benefit.
Many employers think compensation and opportunities for advancement are the
major motivators for employees. However, Accenture reports flex time was consistently ranked in the top three benefits employers could offer.15
Accommodates a diverse workforce.
Some organizations limit flex time to exempt employees, but research shows
flex time can also benefit low-wage hourly workers. For example, in the retail
sector low-wage hourly workers have very little control over work schedules
that tend to be erratic, unstable and rigid, causing turnover rates to be as high
as 80–500 percent.16 Flexible work arrangements alleviate the rigidity, giving
employees more control over their schedules, which helps reduce the high turnover and absentee rates typical for this employee segment.
So, if flex time offers so many advantages to both employees and employers, why
aren’t more organizations taking steps to offer flexible work arrangements?
Clearing the Hurdles
Despite multiple benefits to both employees and employers, many HR professionals see flex time as nothing but a headache. Even while flexible schedules can
be crafted to support the organization and still provide employees with highly
valued work/life balance, how can flex time be successfully implemented and
managed without significant administrative upheaval?
Once an organization has outlined a flex-time arrangement that meets the needs
of the business and its employees, HR professionals must look to their timekeeping system to help streamline flex-time administration. Timekeeping systems
provide flexible work arrangements with consistency, measurability, accessibility
and accountability.
Consistency
A timekeeping system can bring consistency to flex-time management by
reflecting an organization’s flex-time policies, allowing employees to enter work
time and make schedule changes according to the organization’s flex-time
program. If an organization’s flexible scheduling requires employees to work “core
hours” each day (hours that every employee must be available) the system can be
configured to flag exceptions if an employee’s schedule conflicts with core-hour
requirements. Predefined flex schedules can also be made available, letting
employees choose which schedule they’d like to work.
Measurability
An important aspect of implementing flex time is measuring its effectiveness. The
ability to generate reports with a timekeeping system on scheduling trends by
department, group or team can be useful in determining how flex time is being
used. Reports that provide quantitative flex-time usage can correlate with qualitative flex-time data such as employee satisfaction surveys. They can also detail
historic data for benchmarking initiatives.
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Streamlining Flex Time
Accessibility
The key component of a successful flex-time policy is the ability to give employees
more control over their work schedules. A timekeeping system must reflect this
tenant, offering round-the-clock system accessibility. The system must offer an
employee portal that allows workers access to their own personal information
including work schedule, time card and benefits information, allowing employees
to make changes easily and communicate with their supervisors about schedulerelated issues.
Accountability
A timekeeping system that features a manager dashboard assists supervisors in
overseeing efficient flexible scheduling in their department, team or group. A dashboard that flags time card exceptions and errors helps supervisors identify and
correct scheduling mistakes quickly. Organizations that employ a point system can
use their timekeeping system to assign points to employees who misuse or abuse
flex time or reward employees demonstrating positive flex time use.
Staying Competitive—Streamlining Flex Time
While the economy causes many employee benefits to nose dive, flex time is one
benefit that offers advantages to both employees and employers. Employees gain
better work/life balance, improved morale and job satisfaction and even better
health and well-being. Employers gain a powerful low-cost recruitment tool that
improves employee retention and commitment in both salaried and hourly workers.
Organizations looking to capitalize on the advantages of flexible work arrangements but avoid the headaches and hassle of administering a flex-time policy
must look to their timekeeping system. The right timekeeping system streamlines
flex-time management by offering consistency, measurability, accessibility and
accountability, allowing an organization to strengthen their flex-time program into
a highly prized employee benefit.
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Streamlining Flex Time
About Attendance on Demand, Inc.
Attendance on Demand supports the labor management needs of thousands
of companies and more than a half million employees across North America.
Launched in 2006, Attendance on Demand is a rapidly deployed, cloud-based
solution that minimizes a company’s risk and technology investment while
providing advanced features for securely managing labor data—calculating pay
rules, scheduling employees, budgeting labor, and automating recordkeeping for
labor law compliance. With standard uptime over the industry average of 99.995%
and above average customer retention rates, Attendance on Demand removes the
worry of maintaining expensive infrastructure. An extensive North American
distribution network helps organizations use Attendance on Demand to reduce
labor expenses and improve decision making.
References
To find out how Attendance
on Demand can help your
1 SHRM. 2011 Employee Benefits: Examining Employee Benefits Amidst Uncertainty. 2011.
http://www.shrm.org/research/surveyfindings/articles/pages/2011employeebenefitssurveyfindings.
aspx
2 Society for Human Resource Management (SHRM). “Economy Negatively Impacted Employee
Benefits More in 2011.” PRNewswire.com. 26 June 2011. <http://www.prnewswire.com/newsreleases/economy-negatively-impacted-employee-benefits-more-in-2011-124572623.html>
3 Ibid.
4 Javitch, Dr. David G. “The Benefits of Flextime.” Entrepreneur.
5 Jun 2006. <http://www.entrepreneur.com/article/159440>5 Society for Human Resource Management (SHRM). “Economy Negatively Impacted Employee Benefits More in 2011.” PRNewswire.com.
26 June 2011. <http://www.prnewswire.com/news-releases/economy-negatively-impacted-employeebenefits-more-in-2011-124572623.html>
6 SHRM. 2011 Employee Benefits: Examining Employee Benefits Amidst Uncertainty. 2011.
<http://www.shrm.org/research/surveyfindings/articles/pages/2011employeebenefitssurveyfindings.
aspx>
7 SHRM. Workplace Flexibility in the 21st Century: Meeting the Needs of the Changing Workforce.
3 Aug 2009. http://www.shrm.org/Research/SurveyFindings/Articles/Pages/WorkplaceFlexibilityinthe21stCenturyMeetingtheNeedsoftheChangingWorkforce.aspx
8 SHRM. “SHRM Research Spotlight: Workplace Flexibility in the 21st Century.” Oct 2010. < http://
www.shrm.org/Research/SurveyFindings/Documents/10-WorkFlexFlier_FINAL_Spotlight.pdf>
9 Greenhouse, Steven. “Flex Time Flourishes in the Accounting Industry.” The New York Times. 7
Jan 2011. <http://www.nytimes.com/2011/01/08/business/08perks.html?pagewanted=all>
10 SHRM. Workplace Flexibility in the 21st Century: Meeting the Needs of the Changing Workforce.
3 Aug 2009. Same note as above
11 Fiore, Kristina. “Employees Healthier When Boss Is Flexible.” ABCNews/Health. 21 Feb 2011.
<http://abcnews.go.com/Health/Wellness/flextime-means-healthier-employees-study-finds/
story?id=9890759>
12 Greenhouse, Steven. “Flex Time Flourishes in the Accounting Industry.” The New York Times.
7 Jan 2011.
13 Tarkan, Laurie. “The Benefits of Flex Time (to Employers).” BNET. 22 Jul 2011.
< http://www.bnet.com/blog/health-fit-tips/the-benefits-of-flextime-to-employers/1283>
14 Tarkan, Laurie. “The Benefits of Flex Time (to Employers).” BNET. 22 Jul 2011.
< http://www.bnet.com/blog/health-fit-tips/the-benefits-of-flextime-to-employers/1283>
15 Ibid
16 O’Brien, Michael. “Balancing Work/Life by the Hour.” Human Resource Executive Online. 11 Jul
2011. <http://www.hreonline.com/HRE/story.jsp?storyId=533339754>
organization, call
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