1. Flexible Work Arrangements Modeler
Concept and Framework Definition
Zinnov
www.zinnov.com
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2. CONTENTS
I. STRATEGIC IMPORTANCE OF FLEXIBLE WORK ARRANGEMENTS ......... 2
II. THE FWA MODELER: AN INTRODUCTION ................................................... 3
III. THE FWA MODELER ...................................................................................... 4
Recruitment Savings Framework ............................................................................................................... 5
Sick Leave Savings Framework .................................................................................................................. 6
Environment Savings Framework .............................................................................................................. 7
IV. ZINNOV’S FWA SOLUTIONS OFFERINGS ................................................... 8
Benefits of the FWA Modeler ...................................................................................................................... 8
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3. I. Strategic Importance of Flexible Work Arrangements
Flexible work schedules are alternative approaches towards work that include unorthodox work
hours, locations and job profiles. Today, with the
growth of new geographically disperse markets and To imbue work with
ever-increasing competition it is imperative for passion and to draw
companies to accelerate innovation and optimize savings by ensuring
employee engagement
productivity to stay ahead of the curve. To a large
and optimizing
degree, this is determined by employee empowerment, innovation and
motivation, satisfaction and retention. The new HR productivity
strategy of flexible work arrangements looks at
maximizing employee engagement and thereby promoting innovation by affording flexibility in
workplace.
Our interviews with employees and HR professionals from over 40 companies about practicing
flexibility reveals that there is an increasing call for flexible solutions such as work from home one
day a week, part time, and even full remote work. We also gathered that the idea of flexibility is
undermined by some wrong notions having their rationale in the success of the industrial
revolution. So, the ensuing belief that a bunch of smart people in an office equipped with correct
tools will produce. But as we understand now, growth and innovation, far from being mechanical
phenomena, are driven by genuine passion and inspiration which should be cultivated to put forth
a powerful business case.
Let us take a comprehensive look at the multivalent benefits of FWA. Our research shows that
flexibility contributes considerably towards better work-life balance of employees which is held at
priority by the young and upcoming working population. This in turn imparts the three-fold
advantage of higher job satisfaction, greater productivity and lower attrition. Higher job
satisfaction comes from a sense of good balance between work and life. This contributes towards
decreased stress levels and therefore fewer sick leaves. Flexibility solutions therefore enhance
productivity and efficiency by giving employees the freedom to choose their most productive work
time. While this implies reduced healthcare costs for the employee, it extends the benefits of
business continuity, reduced attrition, replacement and facilities cost for the employer.
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4. For such reasons flexibility attracts young minds that have enormous innovative potential and
prefer autonomy at work. Similarly flexibility provides a
supporting environment to women who are crucial to any Environmental benefits
business, and is reported to have reduced attrition post of reduced fuel
maternity leave. In addition to financial savings realized consumption, reduced
carbon emission and
from reduced attrition, replacement, healthcare and
lesser number of cars on
facilities costs FWA finds current relevance from its the road
positive environmental and societal impact. Such
advantages when translated into financial gains make a
huge difference given the tough times and hence the need to optimize resources, cut down on
costs and step up the innovative potential.
II. The FWA Modeler: An Introduction
This document defines the Flexible Work Arrangements Modeler, which is a tool for global
organizations to assess and measure the effectiveness of implementing Flexible Work Options to
their business model.
With the economic downturn and global organizations facing tough competition, there has been a
paradigm shift in the new US workplace in terms of outlook. The focus now is on output as
opposed to face time, control on work as opposed to total control over work and processes,
empowering as opposed to delegating with the spotlight on innovation and inclusive work
environment. Flexible work arrangements is a key HR strategy that helps organizations struggling
to juggle growth, profitability, sustainability goals, diversity goals as well as maintain employee
engagement. The FWA modeler is a framework that helps organizations quantify their dollar
gains across each impact parameter and thereby estimate the gains of applying FWA on their
business model. These parameters fall under four broad impact areas.
 Employer Impact
 Employee Impact
 Environment Impact
 Society Impact
This document also looks at some of the vital parameters across which the impact of
implementing FWS can be calculated. Figure 1 gives a view of the parameters across the four
broad areas impacted from alternative work schedules.
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5. Figure 1: Flexible Work Solutions - Parameters
III. The FWA Modeler
In order to make the most of flexible work solutions, it
is essential for global organizations to estimate the
The Modeler helps in
establishing, tracking
effectiveness of this strategy across parameters and and periodically
align it in accordance with their business model to reviewing the prescripts
derive greater value at an optimal cost. The FWA of Alternative Work
modeler is a framework for organizations to identify
Arrangements
their parametric financial gain from implementing
workplace flexibility. The web-based modeler, for instance, can quantify gains across parameters
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6. for every 1000 employee in an organization. The modeler is equipped with key metrics across
parameters based on which an impact analysis can be done.
Recruitment Savings Framework
From our research and case study of organizations for savings from reduced attrition and
replacement costs, we arrived at the assumption that FWS affords an average reduction of 40
percent in attrition and a reduction of 150 percent on employee replacement cost. Our impact
analysis encapsulates the variations in a best case and a worst case scenario to enable a more
precise and comparative view of the impact. This is applied to the company variables to arrive at
the savings derived after implementing FWA. Figure 2 is a snapshot of the impact analysis.
Figure 3 gives an illustrative view of the recruitment savings framework.
Figure 2: An Illustration of the Impact Analysis
Figure 3: Recruitment Savings Framework
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7. Sick Leave Savings Framework
Workplace flexibility extends greater work-life balance reducing stress and resulting in fewer sick
leaves. The sick leave savings unit of the modeler operates on the same lines. Our industry
research on stress brought forth some interesting data regarding stress related losses and costs.
Over one million workers are out with stress everyday which implies a huge loss to the industry.
Stress which costs the US business USD 200-300 billion annually brings down productivity and is
the foremost cause of increased absenteeism. In its
The cost of a day’s sick
effort to combat this, a telecom giant reported a 63
leave is approximately a
percent reduction in sick leave by implementing FWA day’s cost to the
while a department stores chain recorded a 33 percent company.
reduction in sick leave by adopting flexibility. Based on An employee will avail all
the sick leave allotted in
assumptions from research, we arrived at the premise
a year
that there is a 50 percent reduction in sick leave due to
FWS. The impact analysis chart derived from this figure
represents 60 percent reduction as ‘best case’ and 40 percent as ‘worst case’. This data along
with the company variable and our data derived from modeling generated the impact analysis in
terms of savings per 1000 middle level employees. Figure 4 is an illustrative snapshot of the Sick
Leave Savings Framework.
Figure 4: Sick Leave Savings Framework
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8. Environment Savings Framework
Flexible work schedules address the current issue of global concern around environment,
reduced carbon emission and reduced fuel costs. Options like telecommuting and work from
home reduce employee commuting and cut down on fuel costs in addition to contributing towards
reduced carbon emission. Staggered shifts and compressed work schedules save the trouble of
undertaking trips at peak hours. Industry study brings out concerning figures. A leading telecom
organization reported saving 64 kms per employee per day and the study of a top US
transportation institute indicated that over 6 billion gallons of fuel was wasted in 1996 due to
traffic congestion.
The assumption derived from research shows the average distance traveled per employee per
day as 40 miles, the corresponding fuel cost as USD 3 and the mileage per gallon as 20.
Relevant figures applied to the modeler indicated that flexible work practices could realize a total
annual saving of USD 3,456 per employee, per year due to fuel. Figure 5 is an illustrative
snapshot of the modeler.
.
Figure 5: Reduced Fuel Cost Savings Framework
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9. IV. Zinnov’s FWA Solutions Offerings
Zinnov follows a collaborative and consultative approach to build a model that best fits the
client’s immediate and long-term needs. Our flexible work arrangements modeling solutions help
our clients measure the benefits of deploying flexible work models in their workforce before they
make a financial commitment. Our flexible workforce solutions offering is targeted to a
company’s individual workforce scenario and its potential Return on Investment (ROI)
implications. Zinnov specializes in helping its clients identify and target these particular issues.
Using a combination of research, modeling and analytics, Zinnov works with its clients to outline
the problem, identify key contributing factors, analyze the data and develop possible
resolutions. Zinnov uses sophisticated spreadsheets and modeling tools to illustrate for clients
the cost-benefit of each scenario, enabling its clients to evaluate each flexible workforce solution
before they make significant and potentially costly changes to their workforce.
Benefits of the FWA Modeler
 FWA modeler helps to understand how the flexible work schedule is functioning in an
organization.
 It is a self assessment framework for companies that when applied to organizational
variables gives a precise view of the benefits of alternative work schedules.
 It acts as a ready model for tracking savings from time to time by applying the relevant
figures.
 The modeler helps in developing policies aligned to job categories suitable for FWA
 It helps in drawing up schedules in keeping with client demands
 The inferences drawn from the modeler help to determine whether flexible work hours,
telecommuting, compressed work schedules or part-time would best serve the business
model.
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10. About Zinnov
Founded in 2002, Zinnov – meaning Zeal in innovation - is a leading management consulting
company providing services in the area of Offshore Advisory, Market Expansion and Human
Capital Optimization to Fortune 1000 companies. They work collectively with clients to tackle
prevailing Organizational challenges by analyzing the changing dynamics, improving
performance, and building institutional capability. The services delivered to their clients through
advanced reasoning and analytical techniques, provides solutions that help in integrating
Organizational vision, business definition & processes.
Web: www.zinnov.com
Email: info@zinnov.com
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