The traditional workplace has vanished. Flexible work arrangements, tele-commuting, changing attitudes toward the employer/employee contract, and increased competition for an educated and trained workforce has prompted companies to take a closer look at the impact of work/life initiatives. To be an “employer of choice” and maintain a competitive edge, companies are looking at employees as their most important asset and are instituting work/life policies and benefits on a company-wide basis.

“Individual energy and creativity are unleashed when changes in work practices benefit employees’ personal lives,” says Paul Allaire, CEO of Xerox Corporation. “At a time when corporate America is being assailed for putting profits above all else, it is gratifying that the best business strategy recognizes that greater employee satisfaction means greater productivity and, in turn, better business results.” As companies strive to achieve a balanced and productive workplace, offering work/life benefits is only half of the solution. Companies need to evaluate the impact of these initiatives in order to substantiate their existence. By monitoring their initiatives and measuring their impact on the workforce, companies can assure the quality of their work/life efforts and ensure that the program is meeting the needs of their employees.

Managing By Measuring

In fact, a recent report highlighted in American Management Association (March, 1996) revealed that organizations that are “measurement-managed” --- where senior management concur on measurable criteria for determining strategic success and review and update these criteria regularly --- are industry leaders. Financially, they are in the top third of their industry and because they are better able to anticipate the future, they excel at being able to successfully manage change. Companies that manage by measurement surpass their counterparts for a number of reasons.

 

(1) There is agreement in strategy. 

The ability to translate the organization’s vision or strategy into measurable objectives helps the organization remain focused on its goals. Forming a consensus on strategy causes disagreements to surface, which enables management to confront and deal with differences before they impede progress.

(2) Measurement focused companies do a good job of communicating the strategy throughout the organization.  Sometimes the strategy itself may be unclear, but establishing ways to measure progress toward meeting strategic goals can result in clarity. Measurement also provides a common language for communication. According to Sears’ Quinn, “People talk about how they’re being measured. It is almost the language in which communication occurs in an organization.”

(3) Effective organizations are interconnected. 
The goals and performance measures of the individual departments and business units are linked to each other and to the company’s strategic objectives and the ways in which achievement of these goals are measured. In essence, the sum of the parts is greater than the whole.

(4) The culture in measurement-managed companies is based on teamwork and cooperation among the management team. 
This camraderie leads to an increased willingness to take risks to accomplish objectives. 

 

Monitoring and Measuring Work/Life Initiatives

In 1995, DuPont conducted a comprehensive study that revealed the correlation between employee commitment to business success and the company’s efforts to support employees in balancing work and family responsibilities. The study of roughly 18,000 employees provided a 10-year comparison with the results from two previous studies, and offered insights into such issues as how well employees feel supported by management, their commitment, and their level of burnout. Major findings of the research include:

• Employees who use or are aware of work/life programs are the most committed employees in the company, and the least likely to feel overwhelmed or burned out. 
• Employees who use work/life programs are 45% more likely to strongly agree that they will “go the extra mile” to assure DuPont succeeds than those who do not use the benefits. 
• An additional 33% are more likely to feel supported by the company. 
• Employees have fewer concerns about their dependent care arrangements than they did 10 years ago.

What Can be Measured

Companies need not conduct such elaborate studies to evaluate work/life programs. What is important, however, is to work with qualified individuals to design and implement an ongoing evaluation effort. There are a variety of ways to measure the effectiveness of work/life programs. Which you choose to explore will depend on the goals originally set by the organization.

Baseline Needs Assessment

Employee surveys: 

Benchmark specific questions and conduct periodic surveys to measure how the company is doing in certain areas. Areas to explore might include:

• Flexibility of work schedules 
• Quality of worklife 
• Feeling of job security 
• Sense of commitment to the organization 
• Involvement in decision-making 
• Ability to balance work and family life 
• Communication 
• Training 
• Career advancement 
• Diversity

Quantitative data which supports or substantiates the qualitative data of surveys.

Interviews: 

One-on-one interviews with key leaders of the organization provides valuable insight as to how things get done and how change is managed.

Return on Investment: 

An increase in the return on investment indicates that the program is making a positive contribution to the company’s bottom line.

Cost per hire:

A decrease in the costs per hire signifies a decrease in recruiting costs, training time, etc.

Customer defections: 

A decrease in the number of customers leaving you and going to your competition means an increase in customer satisfaction. Keep in mind that customer defections can be a result of a number of factors including lack of resources, errors, or inability to commit to promises. You need to delve further into why customers are going elsewhere so that these issues can be addressed and remedied.

Lost intellectual capital: 

Turnover rates in excess of 10% and low retention rates indicate that organization is not making the proper investment in managing needed knowledge, skills, and behavior.

Productivity impact/program effectiveness: 

Measure the payback various programs, such as dependent care programs, offer in terms of dollars, employee time saved, or reduced absenteeism or tardiness. A dollar value can be assigned to improved employee morale and public relations.

Putting it all Together

Ann Vincola is President of Ann Vincola Consulting. She has been consulting in the work/life field for nearly 20 years, and is nationally recognized for her work in the development of work/life initiatives and strategies for companies of all sizes. Ann can be reached at 508-693-6493