United Way Recommendation to expand UWW alternative work arrangements March 10, 2009 Leadership Team Presentation

2 Context: Work/Life Balance Committee’s Work As a result of the 2008 All Staff Retreat, a Work/Life Balance Staff Committee was formed Topics to address included software upgrades, PTO, telecommuting, compressed work week, etc. The Committee prioritized issues based on urgent and relevant business needs; alternative work arrangements rose to the top –Remote work (telecommuting) and expanded compressed work Will move on to work on other topics identified

3 Achieving UWW’s Strategic Imperatives How can United Way Worldwide advance the common good, bring Live United alive, and increase efficiency and effectiveness of our business processes and structure? By planning for the workforce of the future: Attract and retain the best and most diverse workforce – flexibility is in high demand by today’s workers Address the changing needs of our work as increasingly being 24/7 operation Increase productivity and enhance results

4 UWW history around alternative work arrangements Flexibility for site-based employees has depended on: –Strategic imperatives of the organization –Departmental needs & goals –Employee performance ~25 employees already work remotely and have received this flexibility for almost a decade Summer time compressed work started in 2001

5 Benchmarked organizations cite these reasons for implementing alternative work arrangements Merrill Lynch: productivity increase of 15-20% among telecommuters, 3.5 fewer sick days, 6% decrease in turnover during the first year of the program Corporate Leadership Council: telecommuters work one extra hour per day, absent 2 fewer days per year on average Common Themes: –Increased employee productivity and results-orientation –Increased retention –Reduced absenteeism –Satisfied employees = satisfied customers/stakeholders –Business continuity and employee security at all times

6 Benchmarking organizations

7 Benchmarking findings Increasingly, businesses, government and non-profits are adjusting work arrangements to accommodate changing marketplaces and needs. Benchmark studies include: Leadership 18; Red Cross had robust telecommuting/compressed work week policy. Watson Wyatt Worldwide studied 1,000 companies in 22 countries 86% more inclined to stay with their organization and 88% more likely to recommend it as a place to work. Federal Government – Most Federal agencies have a telework program and have expanded or held steady since In ,643 Federal employees teleworked. NCL companies like IBM, Intel, Eli Lilly, Dow, HP, Motorola, etc. The Telework Coalition benchmarked against 13 organizations (collectively 77,000+ teleworkers and ~60,000 additional mobile workers). Recruitment and retention became a key driver for the majority; flexibility and mobility in high demand from employees.

8 Results of UWA employee survey on current Alternative Work Arrangements and direction for additional actions, 2/09 Supervisor feedback (76% response rate) 78% support virtual work arrangements; 82% feel arrangements created make it easier to manage global team 94% had positive experience with compressed workweek; 85% saw no problem scheduling around days off

9 Results of UWA employee survey on current Alternative Work Arrangements and direction for additional actions, 2/09 All employee feedback (67% response rate) 96% of employees who had teams with “virtual” employees view the experience positively; 89% see their own work not adversely affected by virtual work 86% see virtual teams as a valuable worker benefit and 87% feel norms created would make it easier to work on a global team 93% see compressed workweek as a valuable benefit and 96% felt it would increase productivity 93% have no misgivings working on a team participating on compressed schedules

10 Implementation Considerations and Challenges 1.Not everyone is eligible 2.There will be ramp-up time 3.Supervisors and employees will need training 4.Need to develop eligibility criteria 5.Resistance to change 6.Need to address office coverage and IT security

11 Eligibility and Participation Eligibility and participation – applies to both compressed work week and remote work: Neither of these are entitlements and subject to the nature of work as determined by job responsibilities, employee and supervisor suitability and stakeholder needs. –Must meet requirements on performance evaluation. –Waiting period for new hires: 90 days for compressed work week; 1 year for remote work. –No additional equipment or reimbursement will be provided to a remote worker. –Participation must be approved by supervisor, EVP and HR. One-year pilot from May 25, 2009 to May 24, Offer structured, flexible options that address business needs of UWW and work teams.

12 Recommendation: Compressed Work Week Compressed Work Week: Two options Option 1: minimum of 37.5 hours in 4 days with one day off each week year-round. Option 2: Extend current program year-round: 75 hours in 9 days with one day off every two weeks (with non- exempt exception) year-round. For both options: Day off must be consistent, but is not limited to Monday or Friday.

13 Recommendation: Remote Workers Remote workers Work remotely up to 15 hours (2 days) per week (to be determined by departmental goals). Review arrangement after 90 days and at supervisor’s discretion thereafter, but at least annually. Employees may select compressed work week or remote work week, but not both

14 Why this makes sense Benefits to the Organization 1.Promotes higher job performance 2.Positions UWW as a compelling place to work that values people and attracts diverse, passionate, committed, talented employees, aiding recruitment and retention 3.Decreases absenteeism and turnover 4.Addresses our 24/7 work schedule 5.Improves employee morale & productivity 6.Positions us for the future by controlling office space costs 7.Positions UWW as a good corporate citizen with “green” energy-saving strategy

15 Why this makes sense Benefits to Employees Greater ability to concentrate on work leading to increased productivity Enhanced employee quality of work life Reduced stress (easier commute, increased control over work hours) Savings in work-related expenses (gas/metro costs, meals) Increased flexibility in balancing work & home needs Reward for hard work/commitment to UWW

16 Thank You for your consideration! Leave with these thoughts.... American Express tallied a 20% gain in productivity for off-site employees. IBM Corporation’s telecommuting program led to $50 million in reduced annual real estate costs. AT&T reports that its telecommuting program helped in retaining employees who may otherwise have left the organization to pursue other job offers.