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Running head: NEW WAYS OF WORKING
New Ways of Working:
Benefits of Workplace Flexibility
Catalina Manzano Laina
Northeastern University
Managing Human Capital
Prof. Ladge
December 2018
2
New Ways Of Working
Millennials are conquering the workplace. Studies show that more than 30% of
American workers today are part of this disruptive generation, and so the workplace is not
anymore represented by Baby Boomers1
. Should companies adapt the workplace to new
generations? What benefits can be retrieved from these changes? How could they implement
them?
Companies are nowadays facing a diverse aging workforce. Four different generations are
currently working together to grow their countries’ economies2
. For instance, we can find the
Baby Boomers, born between 1946 and 1965. Loyalty to their firm is a key driver for these
workers, who are looking for a promotion within the company3
. People born between 1966
and 1977 make part of the so-called Generation X. They have experienced the appearance of
PC’s and other technologies that make them more aware of the importance of connection.
People in this group look for work-life balance and more independence in their job posts.
They are the first ones breaking with the tendency to stay fixed in one company as they are
open to new labor opportunities3
. This disruption leads us to the next generation, the largest
in the labor force since 2016, Generation Y, also called the Millennials3
. I am part of those
who have experienced the birth and exponential growth of smartphones and so the
importance of connectivity in the workplace3
. For us, work is a mean to an end, we want to
find a sense of purpose in it4
. According to PwC’s Millennials at Work Report5
, Gen Y is
expected to make up half of the workforce by 2020 in some countries, a figure that will be
increased to 75 percent by 2025. These numbers may suppose a threat to companies that are
used to generate offers for people who understood work in a different way that Millennials
do. Employers should consider catering to the new requirements in order to beneficiate from
this situation and here comes the New Ways of Working.
New Ways of Working, also found as NWoW, are all those disciplines that have an impact
on where, when, how and with whom we work. This includes initiatives promoting
flexibility, collaboration, or agility in the workplace.
We can find a large list of benefits that companies may encounter when putting NWoW into
practice. In fact, we could divide them in three groups: benefits regarding motivation,
productivity and financial results.
People spend a lot of time working in their offices each week. Therefore, motivation is a key
driver towards employee satisfaction. A lot of studies have been done regarding the
implementation of NWoW and the implications in regard to motivation. Let’s refer to PwC
Birmingham office and their implemented “lifestyle program”. Thanks to it, the company
became the number 1 graduate employer of choice, and 87% of its employees said the
company was a great place to work7
.
Motivation drives productivity. When an employee is satisfied with his job, he tends to work
more efficiently. We can call this phenomenon the “inner work life effect” as stated by
Amabile and Kramer (2011). It confirms that when people are happier at work they end up
being more productive and committed to it. In fact, multiple study cases prove that NWoW
can increase productivity by 10%8
. If you don’t believe these numbers, refer to the study
carried out on two Nike T-shirt factories in Mexico. The factory that gave workers more
freedom had better results regarding productivity and cost-reduction9
, which leads us to the
last point: economic growth.
The ultimate goal for companies is to boost their bottom line. How can NWoW make that
happen if it only produces employee satisfaction? The good thing is that there are proofs
supporting that increasing motivation and productivity implies increasing margins. Indeed,
Aon Hewitt found that companies with a highly engaged workforce had greater returns to
stockholders10
.
3
New Ways Of Working
New Ways of Working have proved to be beneficial for companies regarding employee
satisfaction, productivity and economic results. Companies can agree on this point, but they
sometimes struggle when trying to implement them. They usually don’t know where to start
and what to do in order to build a strategy adapted to their employees’ needs. Here comes the
key: flexibility.
In the past, the norm for most people was to have a fixed job post with a fixed location and
set of hours to be working. Today, young people question the culture of presenteeism,
valuing more personal freedom and independence1,11
. One in three millennials would
prioritize device flexibility and work mobility over salary when comparing two job offers12
.
Martin Norton, WorkSmart Project Manager, highlights that “flexible working is a vital part
of improving working lives and has a demonstrable impact on recruitment, retention and
return to work”13
.
As can be seen, flexibility is one of the most prominent words when describing the work of
tomorrow. We could define it as a new approach that aims to change the control employers
have on their employees. Individuals working under a flexible system would control their
own time, deciding not only when but also where to work.
The benefits that could be provided by implementing initiatives aimed to increase flexibility
are numerous. Work-life balance advantages, ability to schedule work independently,
avoidance of rush-hour commutes that imply delays, reduction of absenteeism, or lower
office space requirements are just some of them.
Now, how can we become more flexible? Flexible working hours may include flexi-time
schedules, compressed workweeks, part-time job and job sharing. Besides that, flexible
working location may include home and satellite offices as well as working on the move14
.
Changing workspace is another way to achieve flexibility1,15
. For instance, we can mention
multispace offices which combine different functionalities under one roof. Employees choose
where to work depending on their needs for each moment: concentration, teamwork,
meetings, etc.
If you are wondering if this is possible, here are some examples of companies that have
already implemented flexible initiatives. Ryan, the global tax services firm, launched the
MyRyan program, which allows employees to work anywhere, anytime, as long as the work
gets done. With this initiative the company won over one hundred workplace excellence
awards such as Fortune “Great Place to Work” in the US and Canada2
. Other companies such
as Microsoft and Deloitte have implemented flexible plans in order to promote career
advancement and have demonstrated to be highly effective16
. Finally, HP and Sun
Microsystems have implemented mobility plans, resulting in space reduction and lower
carbon footprint17
.
Let’s finish this article with a personal experience. In my previous internships, I have had the
chance to work for both a company that rigorously controlled employees and their working
hours and a company that promoted flexible working. The two experiences were totally
different, and the answer to which one was better is obvious.
In fact, the later was a NWoW consulting firm. As they were building strategies for
companies worldwide, they were the first ones implementing NWoW initiatives. As a worker
there, I could decide when and where to work. If I had a medical appointment one morning I
could arrive to the office afterward and I would leave later that evening. Also, if I wasn’t
being productive one day, I could go home earlier and I would not mind doing work from
home that weekend. The results were significant, workers were incredibly motivated and
4
New Ways Of Working
satisfied with their jobs and you could feel a collaborative and productive environment.
Employers trusted us, and we could prove them right with our results.
Diversity in the workplace is a reality. Changing requirements imply changing conditions and
so companies should focus on developing tools to implement New Ways of Working. By
doing so, they can take advantage of the multiple benefits that they can provide. Increased
motivation, productivity and margins can easily be achieved by putting into practice diverse
techniques that reinforce workplace flexibility. With this in mind, leaders cannot miss the
opportunity. NWoW are not anymore a trend, they are the New Normal.
5
New Ways Of Working
References
(* class materials)
1*
Dukes, E. (2016). Millennials Are Eliminating 3 Workplace Trends in 2017. iOffice.
Retrieved September 14th
from https://www.inc.com/elizabeth-dukes/3-workplace-trends-
millennials-are-eliminating-in-2017.html
1
Desilver, D. (2016). 10 facts about American workers. Pew Research Center. Retrieved
September 13th
from http://www.pewresearch.org/fact-tank/2016/09/01/8-facts-about-
american-workers/
2
Treu, W. (2018). An Easy Fix to Dealing with Generational Gaps in the Work Place.
Environments. Retrieved September 17th
from https://www.sgenvironments.net/single-
post/2018/02/28/An-Easy-Fix-to-Dealing-with-Generational-Gaps-in-the-Work-Place
3*
Ladge, B. (2018). Work-Force Trends. Lecture Presented at Northeastern University,
Boston, September 2018.
4
Sinek, S. (2016). Millennials in the Workplace. Youtube. Retrieved October 23th from
https://www.youtube.com/watch?v=hER0Qp6QJNU
5
PricewaterhouseCoopers. (2011). Millennials at Work. Reshaping the Workplace. Retrieved
October 12th
from https://www.pwc.com/co/es/publicaciones/assets/millennials-at-work.pdf
7
Harrington, P. (2005). Implementing a new culture, workstyle and lifestyle at PwC.
Presented at Workplace Trends, London, November 2005.
7
Oseland, J., McLean, R. (2011). PricewaterhouseCoopers, A Tale of Two Centers. The PwC
London Story. Presented at Workplace Trends, London, October 2011.
8
Kaczmarczyk, S. (2008). Telework: Breaking New Ground: Successful Tele- work
Programs Feature Active Top-Level Leadership, Clear Policy and Guidelines, Solid Program
Support, and Integration in Overall Agency Planning. Public Manager, March 22, 2008,
http://findarticles.com/p/articles/mi_m0HTO/is_1_37/ ai_n27964145/.
9*
Bock, L. (2015). Work Rules! Twelve. Hachette Book Group, NY. pages 12-13.
9*
Locke, R., Kochan, T., Romis, M., Qin, F. (2007). Beyond Corporate Codes of Conduct:
Work Organization and Labour Standards at Nike’s Suppliers. International Labour Review
146, no. 1-2(2007): pages 21-40.
10
Amabile, T. M., Kramer, S. T. (2011). The Progress Principle: Using Small Wins to Ignite
Joy, Engagement, and Creativity at Work. Harvard Business Review Press.
11
Thomson, P. (2014). “New Ways of Working in the Company of the Future." In
Reinventing the Company in the Digital Age. Madrid: BBVA, 2014.
12
Chartered Institute of Personnel and Development, Penna. (2008). Gen Up: How the four
generations work. Chartered Institute of Personnel and Development. B11039.
6
New Ways Of Working
13
BT. (2010). South Essex Partnership University NHS Foundation Trust: Flexible Working
Drives Efficiencies for High Performing NHS Trust. BT Case Study.
14
HRcouncil.ca. (n.d.) Workplaces that Work. Flexible Work Arrangements. Retrieved
October 14th
, from http://hrcouncil.ca/hr-toolkit/workplaces-flexible.cfm
15*
Clark, D. (2007). Why Silicon Valley Is Rethinking The Cubicle Office. The Wall Street
Journal. Retrieved September 26th
, 2016 from
http://www.wsj.com/articles/SB119240097861658633
16*
Cappelli, P. (2015). Why We Love to Hate HR ...and What HR Can Do About It. Harvard
Business Review. July-August 2015. REPRINT R1507C.
17
The Original Creative Co-op B.V. (2010). Making Flexible Working Work. CoreNet
Global Summit. Retrieved October 25th, from
http://www.workplaceunlimited.com/2010%20BCO%20Making%20Flexible%20Working%
20Work.pdf

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New Ways of Working: Benefits of Workplace Flexibility

  • 1. 1 Running head: NEW WAYS OF WORKING New Ways of Working: Benefits of Workplace Flexibility Catalina Manzano Laina Northeastern University Managing Human Capital Prof. Ladge December 2018
  • 2. 2 New Ways Of Working Millennials are conquering the workplace. Studies show that more than 30% of American workers today are part of this disruptive generation, and so the workplace is not anymore represented by Baby Boomers1 . Should companies adapt the workplace to new generations? What benefits can be retrieved from these changes? How could they implement them? Companies are nowadays facing a diverse aging workforce. Four different generations are currently working together to grow their countries’ economies2 . For instance, we can find the Baby Boomers, born between 1946 and 1965. Loyalty to their firm is a key driver for these workers, who are looking for a promotion within the company3 . People born between 1966 and 1977 make part of the so-called Generation X. They have experienced the appearance of PC’s and other technologies that make them more aware of the importance of connection. People in this group look for work-life balance and more independence in their job posts. They are the first ones breaking with the tendency to stay fixed in one company as they are open to new labor opportunities3 . This disruption leads us to the next generation, the largest in the labor force since 2016, Generation Y, also called the Millennials3 . I am part of those who have experienced the birth and exponential growth of smartphones and so the importance of connectivity in the workplace3 . For us, work is a mean to an end, we want to find a sense of purpose in it4 . According to PwC’s Millennials at Work Report5 , Gen Y is expected to make up half of the workforce by 2020 in some countries, a figure that will be increased to 75 percent by 2025. These numbers may suppose a threat to companies that are used to generate offers for people who understood work in a different way that Millennials do. Employers should consider catering to the new requirements in order to beneficiate from this situation and here comes the New Ways of Working. New Ways of Working, also found as NWoW, are all those disciplines that have an impact on where, when, how and with whom we work. This includes initiatives promoting flexibility, collaboration, or agility in the workplace. We can find a large list of benefits that companies may encounter when putting NWoW into practice. In fact, we could divide them in three groups: benefits regarding motivation, productivity and financial results. People spend a lot of time working in their offices each week. Therefore, motivation is a key driver towards employee satisfaction. A lot of studies have been done regarding the implementation of NWoW and the implications in regard to motivation. Let’s refer to PwC Birmingham office and their implemented “lifestyle program”. Thanks to it, the company became the number 1 graduate employer of choice, and 87% of its employees said the company was a great place to work7 . Motivation drives productivity. When an employee is satisfied with his job, he tends to work more efficiently. We can call this phenomenon the “inner work life effect” as stated by Amabile and Kramer (2011). It confirms that when people are happier at work they end up being more productive and committed to it. In fact, multiple study cases prove that NWoW can increase productivity by 10%8 . If you don’t believe these numbers, refer to the study carried out on two Nike T-shirt factories in Mexico. The factory that gave workers more freedom had better results regarding productivity and cost-reduction9 , which leads us to the last point: economic growth. The ultimate goal for companies is to boost their bottom line. How can NWoW make that happen if it only produces employee satisfaction? The good thing is that there are proofs supporting that increasing motivation and productivity implies increasing margins. Indeed, Aon Hewitt found that companies with a highly engaged workforce had greater returns to stockholders10 .
  • 3. 3 New Ways Of Working New Ways of Working have proved to be beneficial for companies regarding employee satisfaction, productivity and economic results. Companies can agree on this point, but they sometimes struggle when trying to implement them. They usually don’t know where to start and what to do in order to build a strategy adapted to their employees’ needs. Here comes the key: flexibility. In the past, the norm for most people was to have a fixed job post with a fixed location and set of hours to be working. Today, young people question the culture of presenteeism, valuing more personal freedom and independence1,11 . One in three millennials would prioritize device flexibility and work mobility over salary when comparing two job offers12 . Martin Norton, WorkSmart Project Manager, highlights that “flexible working is a vital part of improving working lives and has a demonstrable impact on recruitment, retention and return to work”13 . As can be seen, flexibility is one of the most prominent words when describing the work of tomorrow. We could define it as a new approach that aims to change the control employers have on their employees. Individuals working under a flexible system would control their own time, deciding not only when but also where to work. The benefits that could be provided by implementing initiatives aimed to increase flexibility are numerous. Work-life balance advantages, ability to schedule work independently, avoidance of rush-hour commutes that imply delays, reduction of absenteeism, or lower office space requirements are just some of them. Now, how can we become more flexible? Flexible working hours may include flexi-time schedules, compressed workweeks, part-time job and job sharing. Besides that, flexible working location may include home and satellite offices as well as working on the move14 . Changing workspace is another way to achieve flexibility1,15 . For instance, we can mention multispace offices which combine different functionalities under one roof. Employees choose where to work depending on their needs for each moment: concentration, teamwork, meetings, etc. If you are wondering if this is possible, here are some examples of companies that have already implemented flexible initiatives. Ryan, the global tax services firm, launched the MyRyan program, which allows employees to work anywhere, anytime, as long as the work gets done. With this initiative the company won over one hundred workplace excellence awards such as Fortune “Great Place to Work” in the US and Canada2 . Other companies such as Microsoft and Deloitte have implemented flexible plans in order to promote career advancement and have demonstrated to be highly effective16 . Finally, HP and Sun Microsystems have implemented mobility plans, resulting in space reduction and lower carbon footprint17 . Let’s finish this article with a personal experience. In my previous internships, I have had the chance to work for both a company that rigorously controlled employees and their working hours and a company that promoted flexible working. The two experiences were totally different, and the answer to which one was better is obvious. In fact, the later was a NWoW consulting firm. As they were building strategies for companies worldwide, they were the first ones implementing NWoW initiatives. As a worker there, I could decide when and where to work. If I had a medical appointment one morning I could arrive to the office afterward and I would leave later that evening. Also, if I wasn’t being productive one day, I could go home earlier and I would not mind doing work from home that weekend. The results were significant, workers were incredibly motivated and
  • 4. 4 New Ways Of Working satisfied with their jobs and you could feel a collaborative and productive environment. Employers trusted us, and we could prove them right with our results. Diversity in the workplace is a reality. Changing requirements imply changing conditions and so companies should focus on developing tools to implement New Ways of Working. By doing so, they can take advantage of the multiple benefits that they can provide. Increased motivation, productivity and margins can easily be achieved by putting into practice diverse techniques that reinforce workplace flexibility. With this in mind, leaders cannot miss the opportunity. NWoW are not anymore a trend, they are the New Normal.
  • 5. 5 New Ways Of Working References (* class materials) 1* Dukes, E. (2016). Millennials Are Eliminating 3 Workplace Trends in 2017. iOffice. Retrieved September 14th from https://www.inc.com/elizabeth-dukes/3-workplace-trends- millennials-are-eliminating-in-2017.html 1 Desilver, D. (2016). 10 facts about American workers. Pew Research Center. Retrieved September 13th from http://www.pewresearch.org/fact-tank/2016/09/01/8-facts-about- american-workers/ 2 Treu, W. (2018). An Easy Fix to Dealing with Generational Gaps in the Work Place. Environments. Retrieved September 17th from https://www.sgenvironments.net/single- post/2018/02/28/An-Easy-Fix-to-Dealing-with-Generational-Gaps-in-the-Work-Place 3* Ladge, B. (2018). Work-Force Trends. Lecture Presented at Northeastern University, Boston, September 2018. 4 Sinek, S. (2016). Millennials in the Workplace. Youtube. Retrieved October 23th from https://www.youtube.com/watch?v=hER0Qp6QJNU 5 PricewaterhouseCoopers. (2011). Millennials at Work. Reshaping the Workplace. Retrieved October 12th from https://www.pwc.com/co/es/publicaciones/assets/millennials-at-work.pdf 7 Harrington, P. (2005). Implementing a new culture, workstyle and lifestyle at PwC. Presented at Workplace Trends, London, November 2005. 7 Oseland, J., McLean, R. (2011). PricewaterhouseCoopers, A Tale of Two Centers. The PwC London Story. Presented at Workplace Trends, London, October 2011. 8 Kaczmarczyk, S. (2008). Telework: Breaking New Ground: Successful Tele- work Programs Feature Active Top-Level Leadership, Clear Policy and Guidelines, Solid Program Support, and Integration in Overall Agency Planning. Public Manager, March 22, 2008, http://findarticles.com/p/articles/mi_m0HTO/is_1_37/ ai_n27964145/. 9* Bock, L. (2015). Work Rules! Twelve. Hachette Book Group, NY. pages 12-13. 9* Locke, R., Kochan, T., Romis, M., Qin, F. (2007). Beyond Corporate Codes of Conduct: Work Organization and Labour Standards at Nike’s Suppliers. International Labour Review 146, no. 1-2(2007): pages 21-40. 10 Amabile, T. M., Kramer, S. T. (2011). The Progress Principle: Using Small Wins to Ignite Joy, Engagement, and Creativity at Work. Harvard Business Review Press. 11 Thomson, P. (2014). “New Ways of Working in the Company of the Future." In Reinventing the Company in the Digital Age. Madrid: BBVA, 2014. 12 Chartered Institute of Personnel and Development, Penna. (2008). Gen Up: How the four generations work. Chartered Institute of Personnel and Development. B11039.
  • 6. 6 New Ways Of Working 13 BT. (2010). South Essex Partnership University NHS Foundation Trust: Flexible Working Drives Efficiencies for High Performing NHS Trust. BT Case Study. 14 HRcouncil.ca. (n.d.) Workplaces that Work. Flexible Work Arrangements. Retrieved October 14th , from http://hrcouncil.ca/hr-toolkit/workplaces-flexible.cfm 15* Clark, D. (2007). Why Silicon Valley Is Rethinking The Cubicle Office. The Wall Street Journal. Retrieved September 26th , 2016 from http://www.wsj.com/articles/SB119240097861658633 16* Cappelli, P. (2015). Why We Love to Hate HR ...and What HR Can Do About It. Harvard Business Review. July-August 2015. REPRINT R1507C. 17 The Original Creative Co-op B.V. (2010). Making Flexible Working Work. CoreNet Global Summit. Retrieved October 25th, from http://www.workplaceunlimited.com/2010%20BCO%20Making%20Flexible%20Working% 20Work.pdf