Faux-flexibility vs. the real deal
"Because of the recession and because of the global economy and because of technology, work has become so much more demanding," says Ellen Galinsky, president and co-founder of the Families and Work Institute. Galinsky says that successful companies have begun to tackle these challenges by legitimately loosening their hold on their employees rather than resorting to halfway measures.
For instance, companies that replace a 9 to 5 schedule with "flexible" hours of 7 to 3 aren't necessarily accommodating employees' need to handle personal affairs, whether it's a sick child, leaky bathtub, or car repair. Other businesses are redesigning work such that incentives and rewards are aligned with the results that an employee delivers -- not the hours that they show their faces in the office, Galinsky says.
Take Ryan, a tax services firm based in Dallas. A few years ago, a resignation letter from a rising star in the company prompted CEO G. Brint Ryan to reevaluate the firm's focus on long hours and face time.
The result: MyRyan, a software package that displays the performance objectives that truly matter for each employee and the team, whether it's revenue targets, 360 review scores, customer service ratings, or other things. Ryan employees no longer need to account for their time -- as with MeetingMatrix, staffers can take unlimited paid vacation and sick days.
"Hours no longer are the key focus," says Delta Emerson, a senior vice president at Ryan. When the compensation committee met this year to evaluate performance and decide on pay raises, employee hours were not even mentioned.
Voluntary turnover at Ryan decreased to 6.5% from 18.5%, and involuntary turnover (in other words, firing poor performers) increased to 6.9% from 4.3%. Despite the recession, the firm posted record profits and revenue in both 2009 and 2010. "In the past, somebody who was putting in a ton of hours could be performing poorly, but the hours would carry them. That no longer happens," Emerson says.
