The Foreign Service Journal, May 2011

62 F O R E I G N S E R V I C E J O U R N A L / M A Y 2 0 1 1 their employers say management understands the problems they face and supports their need for a better work-life fit. For companies that want to reap the bottom-line benefits of having a diverse work force and being recognized as an “employer of choice,” the choice has become simple: embrace flex- ibility as a work culture, or lose out to competitors that do. Proven Productivity Gains, Cost Savings In addition to confirming that work flexibility differen- tiates companies from their competitors, a 2008 survey of chief financial officers revealed that 88 percent felt it had a positive impact on recruitment, while 53 percent cited decreased health costs as another significant benefit. Fully 75 percent of the CFOs surveyed also reported significant productivity gains, a finding that has been reinforced by numerous other studies. A 2010 Telework Research Network study on the ben- efits of remote work estimates it increases the productiv- ity of U.S. businesses by $235.4 billion a year, saving $46.3 billion in absenteeism-related costs and another $31.1 bil- lion by reducing turnover. Moreover, teleworking can also lead to a considerable reduction in overhead costs and in a firm’s “carbon footprint.” A visit to Accenture, a local technology company on both the Fortune and Working Mother lists, revealed that, with 80 percent of their em- ployees working remotely through the use of an advanced suite of IT tools, the company has saved tens of millions of dollars in real estate and travel costs. Companies like Accenture, IBM, Sun Microsystems and many others have been able to shed unnecessary leases and real estate holdings by moving to a “hoteling” system, where employees reserve space on an as-needed basis in a facility convenient to their home or customer site, rather than having a designated work place. At De- loitte, the largest professional services firm in the world, close to 90 percent of employees report they have the flex- ibility they need regarding where and when they work. While these new ways of doing business require a change in mindset, they can also result in increased team collaboration and work output, according to a Deloitte ex- ecutive. Many employees say working virtually has forced them to be more deliberate about keeping in touch, and that through the use of tools like so- cial media, they have, paradoxically, become closer than when they worked side-by-side. Citing fewer distractions, less stress from work-life conflict, bet- ter health and less burnout, as well as time and cost savings from not having to commute, workers across industries report they are better able to give the company their best work. Surveys also show that remote workers often put in longer hours than their counterparts, and are more likely to go the “extra mile” for the organization. In a knowledge economy where innovation drives prof- its, unleashing the creative and problem-solving abilities of a firm’s human capital in a sustainable way has become the ultimate goal — and the data show that this is exactly what happens when flexible work policies are imple- mented. It’s no wonder that the CEO of one Dallas com- pany says FWAs are not a perk, but rather “an incredibly powerful business strategy.” With so many measurable benefits, leaders in the pri- vate sector who have embraced the new approach are not likely to return to old ways of doing business. Even dur- ing the recent economic recession, most companies main- tained FWAs at existing levels, while others actually increased them. The question now is, will the public sec- tor will follow suit? FWAs in the Public Sector The federal government is the largest employer in the U.S., and many would like to see it become a model for a flexible workplace, in the same way it once led the way with workplace practices such as telecommuting. Al- though some hoped for movement toward legislating such practices, as many Organization for Economic Coopera- tion and Development countries have done, support for that is lacking. Experts from “Workplace Flexibility 2010,” a public pol- icy initiative of Georgetown University Law Center, have led the call for the government to play a leading role. Last November, Georgetown sponsored a forum for leaders in the private and public sectors to discuss “practical public policy solutions to support workplace flexibility.” The event underscored the high level of support for workplace flexi- bility in the public sector, including from Admiral Mike F O C U S Organizations offering family-friendly and employee- friendly policies have quickly become sought-after employers.