Business Impacts of Flexibility: An Imperative for Expansion Business and Professional Women’s Foundation Audio Conference May 23,2006

Corporate Voices n 52 company coalition n Founded in 2001 n Created to bridge the gap between private and public sector regarding working family policies. n Non-partisan, non-profit 501c3

Corporate Partners

What Is Flexibility? n Flexibility is the ability of the manager and the employee to determine when and where work gets done. n “Workplace flexibility is about how work gets done. It’s the 21 st Century’s response to a one-size-fits-all way of working.”

Overview of the Project n The Challenge Not an accommodation Not a women’s solution n Objective Measure and define the business benefit of flexibility Expand flexibility as a core business practice n The Findings There is a compelling business case to expand flexibility.

The Weight of Evidence n The body of data about flexibility’s positive impacts is substantial —more than generally realized n Sophisticated measurement and analytic tools: going beyond self-report n Positive business impact demonstrated independently by research in many companies

Cumulative Findings n Three kinds of business impact have been documented: Human capital outcomes Talent management Financial performance and operational outcomes

The Power of Human Capital Outcomes n Employee Satisfaction Validated research construct that predicts performance behaviors n Employee Engagement/Commitment Every 10% improvement in commitment can increase level of discretionary effort by 6% and performance by 2% - Corporate Leadership Council Double-digit growth companies have 39% more high engaged employees, 45% fewer disengaged employess – Hewitt Associates n Stress Stress is responsible for 19% of absenteeism, 40% of turnover, 55% of EAP cost, 30% of short-term and long-term disability costs, 10% of psychotherapeutic drugs, 60% of cost of workplace accidents and 100% of workers’ compensation and lawsuits due to stress

Impact of Flexibility on Human Capital Outcomes n Increased Satisfaction Higher flexibility score related to job satisfaction, rating of company, sense of accomplishment, rating of workplace as healthy – IBM Access to flexibility, both formal and informal, affects overall satisfaction and perception of the company – JP Morgan Chase n Increased Level of Engagement/Commitment Commitment scores 28% - 32% higher for employees with flexibility – AstraZeneca, Deloitte n Reduced Levels of Stress Employees with flexibility able to work more hours before feeling work-life stress – IBM Employees with flexibility scored 30% lower on stress and burnout

Impact on Talent Management n Improved Employee Retention Flexibility a “top three” choice – Accenture Flexibility issues second leading for considering leaving the company; number one issue for mothers – IBM 96% say flexibility influences decision to stay – AstraZeneca $41.5 million savings in turnover-related costs in Deloitte n Improved Talent Recruitment Unacceptable levels of turnover addressed through implementing flexibility - Deloitte 95% report that availability of flexible work arrangement is a critical factor in taking a job - Discovery

Flexibility Affects Recruitment Source: Bristol-Myers Squibb work-life survey Of Employees Hired in the Last 3 Years, % Who Were Influenced by Flexible Work Arrangements to Join the Company

Impact on Financial Performance and Operations n Increased Productivity, n Increased Revenue, n Business Process Improvement, n Client Service Improvement.

Summary n Robust research techniques have produced multiple data points n Positive people effects are proven n Flexibility has direct effect on business outcomes n Impact is widespread and diverse across industries n More than a business “case” – A BUSINESS IMPERATIVE to expand flexibility to: Stay competitive Get the best from people—and get the best people Improve business results