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Industry News

 

Most Employees Open to Schedule Changes or Pay Cuts to Save Jobs

Monday April 20, 2009

 

Madison, N.J. — April 17
A new survey finds 94 percent of full-time employees willing to save jobs by changing or reducing their schedule, or taking a pay cut. The finding is from the 2009 Annual Work+Life Fit Reality Check, a telephone survey of a national probability sample of 757 full-time employed adults.

The Work+Life Fit Reality Check, which has a margin of error of +- 4 percent, also found:

• Nine in 10 employees reported the recession has forced them to change their employment plans including nearly half saying they're less likely to take a career break, for example to care for children or aging relatives.
• But what has not changed during the economic downturn is work-life flexibility. Most companies continue to offer the same or an increased amount of opportunities, and most employees reported their flexibility use has either increased or stayed the same during the past year.
• More than half of those surveyed are optimistic that during President Obama's administration there will be new national legislation or programs that would make it easier for organizations to offer, and for individuals to have, more work-life flexibility.

"Regardless of economic boom or doom, work-life flexibility is here to stay," said Cali Williams Yost, CEO of Work+Life Fit Inc. "Now we have to figure out how to use flexibility to help manage our businesses and our lives, both of which are forever changed by this recession."

In order to save their jobs and help their employers reduce costs, nearly eight in 10 employees would be willing to work a compressed workweek, while nearly 60 percent would take additional unpaid vacation days or furloughs (several weeks off without pay). Nearly half would share their jobs with colleagues (48 percent) or take a cut in both pay and hours (47 percent).

A little more than four in 10 would take a pay cut but work the same amount of hours or switch to a project-based contractor employment status (41 percent). Just under a third say they would take a month or more unpaid sabbatical.

"Organizations, who looked first at, ‘Who we can cut?’ instead of, ‘How we can change by using workplace flexibility?’ have missed an opportunity to reduce operations, equipment, real estate and health care costs. Future revenues are at risk, too, if organizations are not fully staffed when the economy improves," said Yost. "The mortgage industry was one of the first to shed jobs. Now they can't keep up with refinancing demands."

CEOs at the nation's 61 largest companies reported that they expect more job cuts. That's the highest level noted since 2002 when the Business Roundtable began the quarterly CEO survey.

"Layoffs will always be a possibility. It's not an all or nothing choice: flexibility or layoffs," Yost added. "Hopefully those 61 CEOs and others planning job cuts will learn that a 5 percent layoff can sometimes cost more than a 5 percent pay cut. All options need to be considered."

The same kind of flexibility that can be used to manage labor costs can also save other expenses. BDO Seidman, LLP, a national professional services firm, sees workplace flexibility as more than a way to minimize layoffs. Flexibility is the way BDO runs their business.

The firm's CFO, Howard B. Allenberg, estimated, "If our BDO Flex strategy allows us to reduce our space requirements or not take on as much additional space by just five percent going forward, we could save more than $1.7 million per year in office and equipment rentals and related occupancy costs."

Work-Life Flexibility Offerings
Only 2 percent reported they do not have any work-life flexibility. Of the 98 percent who do, nearly 20 percent reported they have more work-life flexibility now than at this time last year while 62 percent said they have the same and only 17 percent reported less.

These respondents noted that 90 percent of them work at companies who offer flexibility, and 85 percent of them noted the amount of flexibility provided has either increased (19 percent) or stayed the same (66 percent) during the past year.

"Workplace flexibility has repeatedly demonstrated a remarkably tenacious streak during previous economic downturns," according to Kathie Lingle, executive director of the Alliance for Work-Life Progress. "Erroneously labeled 'soft' by the uninformed, flexibility practices appear to be holding their own in these particularly tough times. Flexibility requires little to no monetary investment because, at its core, it's a management philosophy. It may morph and adapt, but it will most definitely survive."

Job insecurity, for an overwhelming majority, has not scared employees away from flexibility. Despite record levels of layoffs, 85 percent said there was either an increase (11 percent) or no change (74 percent) in the likelihood they would use work-life flexibility.

While the recession has had little effect on work-life flexibility, it has forced 90 percent of those surveyed to change their employment plans. Nearly 60 percent expect to stay with their current employers longer than first planned (58 percent) and do some form of work during retirement (58 percent).

More than half (56 percent) reported saving more and spending less in anticipation of future job changes. And in what could have significant consequences for child and elder care, 47 percent are less likely to voluntarily leave the workforce for a period of time. Women (56 percent) were significantly more likely than men (40 percent) to say they are less likely to voluntarily leave the workforce.

"Both businesses and individuals face unprecedented financial demands, but that doesn't mean there has to be less workplace flexibility. In fact, it's the opposite," said Yost. "We need to learn how to structure and use flexibility so it meets personal and business goals. Flexibility is not about working less, it's about working differently. That's what most people want, and business needs."
For more info: http://www.worklifefit.com