This paper circulates around the core theme of BUSN 160 write a detailed critical analysis following these instructions 1-Summary of the articles. 2-What makes these articles strong? (ex: based on research-good references together with its essential aspects. It has been reviewed and purchased by the majority of students thus, this paper is rated 4.8 out of 5 points by the students. In addition to this, the price of this paper commences from £ 99. To get this paper written from the scratch, order this assignment now. 100% confidential, 100% plagiarism-free.
and write a detailed critical analysis following these instructions (at least 3 pages):
1-Summary of the articles.
2-What makes these articles strong? (ex: based on research-good references……etc)
3-What makes these articles weak?
4-Conclusion: your opinion.
Work-Life Balance…
A Case of Social Responsibility o
Competitive Advantage?
2002 Worklifebalance.com, Inc.
Human Resources Dept, Dr. Parsons
Georgia Institute of Technology
Prepared by: Sunil Joshi, John Leichne, Keith Melanson, Cristina Pruna,
Nicolai Sager, Cathi Jo Story, Kevin Williams
WORK-LIFE BALANCE
INTRODUCTION
The role of work has changed throughout the world due to economic conditions and social
demands. Originally, work was a matter of necessity and survival. Throughout the years, the role
of “work” has evolved and the composition of the workforce has changed. Today, work still is a
necessity but it should be a source of personal satisfaction as well. One of the vehicles to help
provide attainment of personal and professional goals is work-life benefits and programs.
Implementation of these programs in the United States (“U.S.”) and the European Union (“EU”)
countries differs, due to fundamental beliefs about the goals of such programs. Are work-life
balance programs in existence as a result of a social responsibility to employees or to provide a
competitive advantage to employers?
Before we can answer this question, we need to define what work-life balance is. Many
people think of work-life balance only in the framework of what the company does for the
individual. However, work-life balance is a two prong approach. The other prong of work-life
balance, which many individuals overlook, relates to what individuals do for themselves.
According to Jim Bird, CEO of Worklifebalance.com
1
, “Work-life balance is meaningful
achievement and enjoyment in everyday life.” The primary way companies can help facilitate
work-life balance for their employees is through work-life programs and training. Achievement and
enjoyment at work is a critical part of anyone’s work-life balance. Furthermore, achievement and
enjoyment in the other three quadrants of one’s life (e.g. family, friends and self) is critical as well
(see Figure 1 in the Appendix).
1
Worklifebalance.com is an international work-life balance training and consulting company. Worklifebalance.com
provides training and tools that focus on stress management in the workplace, time management, customer service,
and change management. Jim Bird believes that to achieve better work-life balance, each individual needs to work
smarter – to get more done in less time.
1
WORK-LIFE BALANCE
WORK-LIFE BALANCEPROGRAMS IN THEUNITED STATES
Work-life balance programs in the U.S. have become increasingly popular through the years.
The following lists some of the more common work-life benefits:
Flex-time
Telecommuting
Child care
Elder care
Leave (e.g. paternity, etc.)
Job-sharing
Employee Assistance Programs
In-house store/services
Gym subsidies
Concierge services
Vacation
Work hours
In addition to the work-life balance programs listed above, primarily due to the internet boom in
the mid-90s and the growth in the economy, more companies offered other “perks” as well.
Items such as company cars and a set number of free flights per year were normal for many
companies. A four-day work-week as well as flexible hours and casual dress were common also.
These perks were primarily instituted to attract, motivate and retain a superior quality workforce.
According to a position paper published by Caux Round Table and written by David
Rodbourne in 1996, “While many leading U.S. companies have extensive work-life programs,
policies and practices, most have not yet changed their organizational cultures to support
employees and managers who want to use work-life options.”
2
This philosophy appeared to be
widespread in the 1990’s, because work-life programs were in place, however if an employee
wanted to be a manager, they were not allowed to work four day weeks.
In light of the recent economic conditions, there has been a dramatic change in how
corporations view work-life balance programs. Corporations are much more cost conscious
about these programs, but still realize their importance. Despite this more critical view about
work-life programs, according to Jim Bird , benefits such as “Employee Assistance Programs are
2
WORK-LIFE BALANCE
considered as a standard offering. I do not see them going away.” In the heart of the Internet
bubble, work-life balance programs were an added bonus to attract and retain quality employees.
Today, the work-life benefits have switched from company cars, significant bonuses, and other
perks to employee fitness centers and dry-cleaning services.
Now work-life balance programs are in place as “Recession Perks” according to
Challenger Gray and Christmas, Inc.
3
Many corporations can no longer afford the monetary
compensation they were handing out in the 1990’s. But with layoffs commonplace, these
companies are looking to use their inexpensive “Recession Perks” as tools to build loyalty and
encourage teamwork and camaraderie with coworkers. Through these benefits, along with the
traditional programs such as insurance and retirement plans, managing the remaining workforce
after layoffs is vital. When the struggling economy turns around, the remaining employees will
be responsible for bringing their respective companies “back to life”, and back to a competitive
force. Some of the more prevalent work-life programs listed above are discussed in more details
below:
Work Hours
America currently legally limits non-exempt workers from working more than 40 hours a
week without additional compensation. This legislation is a result of some of the earliest
lobbying efforts by labor unions. Exempt workers do not currently have such a restriction
resulting in a wide disparity in how exempt workers are treated. Some companies expect extra
2
3
“Learning as We Go, Work-Life Policies & Practices for Business”, David Rodbourne, July 1996. Published by
the Caux Round Table at internet site http://cauxroundtable.org/WF-CRT96.htm.
“recession ‘Perks’ May be Reawakening the Economy” Copyright 2001 American City Business Journals Inc.,
11/26/01, internet site http://sanjose.bizjournals.com/stories/2001/11/25/daily 8.html.
3
WORK-LIFE BALANCE
hours to be put in without extra compensation while at the other end of the spectrum some firms
compensate exempt workers as well as non-exempt for overtime.
Paternity Leave
Paternity leave is an issue that has recently received attention with the passing of the
Family and Medical Leave Act. The intent of the Family and Medical Leave Act was to
standardize the rights employees have to family leave. While originally intended to protect
working mothers, the scope of the law was expanded to incorporate the changing needs of the
American family. As more of the population deals with elderly parental care, single parenting,
etc., the mandated leave affords a broad spectrum of demographic groups’ coverage. The current
minimum in the U.S. is 12 weeks but 19 percent of companies currently go beyond the scope of
the law and offer more leave. 4
Childcare
Of conventional families (mother & father) in the U.S., 62.8 percent are dual-income
households. As a result, many companies offer child care benefits as an enticement to workers
with families. The methods used to support workers are
varied and few concepts are universally
accepted. In-house child care facilities, after school programs, subsidized child care, and referral
services are all ways that employers use to help employees care for their children. One fairly
common program is child care spending accounts. These programs take advantage of tax relief
provided by the federal government and are offered by over 90 percent of employers. 5
4
5
“U.S. Salaried Work/Life Benefits 2001-2002”, Hewitt Associates LLC.
ibid.
4
WORK-LIFE BALANCE
Vacation
Vacation time in the U.S. is one area where the federal government has not weighed in
with significant legislation. While most companies offer two weeks to new employees as a
standard, each company in the U.S. can determine their own vacation policy. Therefore,
disparities exist between vacation policies which are a source of competitive advantage.
Typically, those employees with more seniority receive more vacation time. Many companies
offer the ability to accrue more vacation time in relation to the length of service. However, very
few companies offer additional vacation time as a reward for good work.
Telecommuting
Telecommuting is a relatively new concept brought about by the widespread availability
of computers and the internet. This primarily allows workers in white collar jobs to work from
home by linking employees to a company’s network and completing work from home. One of
the primary purposes of telecommuting is to allow employees to spend less time commuting, as
well as allowing their schedule to be a bit more flexible. Currently 30 percent of U.S. firms
allow some form of telecommuting. 6
WORK-LIFE BALANCEPROGRAMS IN THEEUROPEANUNION
The countries of the EU have a different cultural viewpoint, than that of the U.S., with
respect to work-life programs. Often, programs came about as a result of government legislation
backed by public mandate. This demonstrates that European programs are based primarily on
social responsibility rather than competitive advantage.
6
ibid.
5
WORK-LIFE BALANCE
In contrast to the U.S., there are different approaches to work-life balance in Europe.
These approaches depend on cultural characteristics of the various member countries and the
level of development of the economies. However, the EU is trying to establish certain guidelines
for all countries that aim to reduce discrepancies between the work-life initiatives of the
countries.
According to Cary Cooper, professor of organizational psychology and health at the
University of Manchester Institute of Science and Technology, the “Americanisation of working
practices in Europe , including an increase in outsourcing, hours at work, delayering and
freelancing, is increasing stress levels.”
7
This Americanization had led the EU to investigate
guidelines regarding work hours, holidays, and parental/paternity leave. Telecommuting and
child care are also topics of interest to the EU in relation to overall work-life health of its
member countries.
The European Employment Strategy
8
emphasizes that member states should design,
implement, and promote policies which favor the family, including the establishment of
affordable, accessible and high quality child-care services. In March of 2000, the French
Presidency administered a set of questionnaires to the EU countries to gather data about worklife balance indicators so that overall EU guidelines could be recommended.
9
In the 2001
Employment Guidelines, member states were invited to set national targets for increasing the
7
8
9
Accountancy Age, October 19, 2000.
Commission of the European Communities, Joint Employment Report, 2001, page 2 – “Title VIII of the Treaty
establishing the European Community lays down the principles toward developing a coordinated strategy for
employment. Article 128 specifically details the steps leading to the formulation of such a strategy including,
on an annual basis, guidelines for employment, recommendations to the Member States and a joint report by the
Council and the Commission to the European Council on the employment situation in the Community and on
the implementation of the guidelines.”
Eurostat Working Papers – Feasibility Study on the availability of comparable child care statistics in the
European Union, 2002 edition, page 13. www.europa.int (official site for the European Union).
6
WORK-LIFE BALANCE
availability of care for children and other dependents. While the EU may want to establish
uniform standards for all its member countries, because the statistical data varies greatly from
country to country, individual goals are more feasible at this time. Some of the more prevalent
work-life programs in the EU are discussed below:
Work Hours
In 1995, the Council of the EU recommended a maximum 48-hour work week in order to
protect the safety and health of workers. However, hours that employees actually work among
the EU countries still varies. A report published in 2000 by the Trade Unions Congress found
British employees were working an average of 43.6 hours a week, compared with 39.6 in France,
38.5 in Italy and 40.1 in Germany.
10
While France’s average number of hours worked per week
is 38.5, France mandates time and a half or bonuses paid for working more than 35 hours per
week. According to a study by the European Community Household Panel, 12 percent of
workers believe they have a low number of work hours, and 44.8 percent believe they have a
high number of work hours.
Paternity Leave
Paternity Leave is a relatively new trend some EU countries but not in others. In
Denmark where paternal rights have existed for more than 20 years, regulations have been
refined to give fathers more rights in taking care of their children. In particular, under new rules
implemented in March 2000, parental leave is granted to fathers for the first time and leave
entitlement is extended to a total of 10 months leave at 30 percent of regular salary until the
child’s third birthday. Any period of leave cannot exceed six consecutive months. As of
7
WORK-LIFE BALANCE
December 2001, 40 percent of Nordic fathers actually took advantage of these rights, encouraged
by tax penalties if they did not and generous financing at about 80 percent of average salaries if
they did. 11
In contract the government in the UK recognized paternal rights at the end of the last
decade. For too long, family friendly policies were simply equated with policies for working
mothers. The EU Directive on Parental Leave has since put the UK on par with the rest of
Europe, and two weeks’ paid paternity leave is promised starting 2003. Some companies have
taken initiative to implement paternal leave prior to the EU’s directive. Four out of 10 UK
employers chose to make provisions prior to the Directive.
The next challenge to the scope of family leave comes from across the Atlantic. In the
U.S., family leave is not limited to care for young children but includes everyone in the family
from the spouse to elderly relatives through the Family and Medical Leave Act. 12
Vacation
In addition to a recommended maximum number of work hours, the EU also in 1993
formally recommended that employees receive four weeks mandatory vacation. Again, the
length of holiday varies among EU countries. Flexible holiday policies are a trend that some EU
nations are embracing. Under current Dutch law, employees who do not take their full holiday
entitlement cannot receive cash in lieu, other than as part of a termination package. New
proposals would allow employees to have surplus holiday paid off, provided that they actually
take at least 20 days holiday leave. Historically, companies would just close their operations and
have
all employees take holiday leave at the same time. With the increase in globalization,
10
11
The Engineer, February 2, 2001.
Personnel Today, December 11, 2001.
8
WORK-LIFE BALANCE
companies are interested in being open for business all the time which creates opportunities for
employees to take partial holiday leave and work the remainder of the holiday for the extra
income. However, holiday time is still valued by European workers. Facts 2000 survey claimed
that employees would rate having more than 30 days holiday as a more attractive benefit than
having a company car or a pension. 13
A quick scan of vacation time in the countries where U.S. firms do most of their
European business reveals that four weeks is below the average vacation time most Europeans
already enjoy. For example, in France 25 days is the minimum required by law, though 25 to 27
days is standard. Germany requires employers to give 20 days, though 30 is standard practice.
(Some Germans enjoy as much as 15 weeks of paid leave each year). The Netherlands likewise
requires 20 days but most employers offer between 25 and 27 days. Only the United Kingdom
had no mandated vacation time prior to the spring of 1998. At that time, Prime Minister Tony
Blair ushered in the European Working Time Directive, which set forth mandatory annual leave
and brought the country into compliance with EU regulations. While the new legislation marks a
shift from hands-off to hands-on governmental policy, it should not affect operations at most
companies in the U.K. The majority of employers already offered four to five weeks vacation
time.
Childcare
Developing childcare provision systems in the EU appears to have been an emerging
priority for the past 15 years. This concern is related to the need to promote equal opportunities
for men and women in the labor pool. In a published report in 1988, the European Commission
12
13
Ibid.
The Financial Times, Europe Intelligence Wire, January 25, 2001.
9
WORK-LIFE BALANCE
Equal Opportunities Unit recognized the need for consistent information about childcare as a
major component of the work-life equilibrium. As a basis for this, the EC Childcare Network
undertook a study of routine data already existing on the subject in the member states followed
by further reviews of the subject.
14
Despite discrepancies in statistics and information about
childcare available across EU member countries, the EU does its best to gather information and
recommend guidelines to benefit both working parents and children.
Childcare subsidies are available throughout the EU, but the cost of childcare remains a
controversial issue. In the UK, parents face the highest European childcare costs. The Daycare
Trust says, on average, parents in Europe contribute just 25 percent of the full cost of a nursery
place, compared the 75 percent paid by parents in the UK. Despite the large EU government
subsidies and tax credits (outside the UK), the Daycare Trust says that the high charges are still
preventing some parents from returning to work. 15
Telecommuting
Research from a UK Labor Force Survey, conducted by industry analyst Datamonitor
shows that 1.7 million people, about six percent of Britons, now telecommute at least one day a
week. The figure falls to 1.1 million or 4.2 percent if you exclude those who do it only
occasionally. The number of people working from home across Europe could jump by more
than 50 percent between now and 2005. The driving force is a desire among employees for a
better balance between work and life and, among employers, to hang on to their best people. The
14
15
Eurostat Working Papers – Feasibility Study on the availability of comparable child care statistics in the
European Union, 2002 edition, page 12. www.europa.int (official site for the European Union).
The Guardian, July 31, 2001 & Daycare Trust, UK national childcare charity, www.daycaretrust.org.uk.
10
WORK-LIFE BALANCE
events of September 11 added a third reason: even if they can get to work without delay and
disruption, many people would prefer not to work in a high-rise office tower. 16
Other EU countries expect telecommuting to become more prevalent as well. A survey
conducted in late 1998 shows the percentage of European executives that expect telecommuting
to become widespread in use by 2003. Asked about work practices they expect to be prevalent in
their own companies within five years, 53 percent of UK executives expected telecommuting to
be in widespread use. Percentages for other countries are seen in Table 1 below:
17
Germany
34%
Belgium
30%
Netherlands 29%
Italy
23%
Spain
13%
France
10%
Table 1
SUMMARY OFU.S.VS. EU
Work-life balance programs are a matter of interest in both the U.S. and EU. However,
the approach to implementing these programs is different in the two regions. In the U.S.,
companies implement work-life balance programs, and the government has little involvement.
For U.S. companies, work-life balance offers a competitive advantage, in that they are able to
recruit the best candidates and potentially increase their loyalty to the company. In the EU, the
different countries impose more strict regulations on employers which reduce their flexibility in
regard to programs such as vacation time, paternal leave, flex-time, telecommuting, etc.
16
17
The Financial Times, January 31, 2002.
“Executive use of technologies and executive expectations about telework,” European Telework Online,
http://www.eto.org.uk/eustats/opinion.htm.
11
WORK-LIFE BALANCE
Due to the fact that the social, political, and cultural factors are more closely tied in the
EU, work-life balance programs are commonplace and are thought more as a social
responsibility than in the U.S. However, the EU is behind the U.S. in regards to recognizing the
PERSONAL responsibility of the individual. In the EU, it is time to address the individual’s
need to have tools, through training for example, to better create their own work-life balance. 18
A direct comparison between the U.S. and EU is difficult to establish, because in the U.S.
there are few federal work-life balance policies. Companies ultimately shoulder the
responsibility for developing and implementing these programs. Although, there will probably
never be a single mandate for work hours, vacation, paternity leave, childcare and telecommuting
that applies to all EU countries, the EU does an excellent job of recommending policy with
members representing the different cultures and work values of the region.
Both the U.S. and EU can learn a lot from each other regarding work-life balance. The
market forces that significantly influence U.S firms are good for business. In addition, U.S.
firms must keep in mind that social change fuels much of the momentum behind these market
factors. EU countries and firms must realize that the “Americanisation” of Europe is a side
effect of market “globalization.” In other words, European countries and firms must realize that
in order to maintain a strong economic position, social responsibility is equally as important as
developing competitive human capital programs.
RETURN ONINVESTMENT
The argument for or against work-life balance programs often hinges on the company’s
ability to show significant financial gain as a result of these programs. Many corporate decisions
rely on a positive net present value to be shown for any project to move forward. Interestingly,
18
Jim Bird, CEO of Worklifebalance.com.
12
WORK-LIFE BALANCE
for all the emphasis on such financial justification, very few hard numbers exist on the success or
failure of work-life programs. More often companies have quantified the benefits of such
programs throug
h a variety of performance measures indirectly related to financial return. The
following paragraphs look at some ways companies have attempted to develop a justification for
programs.
Since work-life programs are a part of a company’s compensation and culture, their
benefits are most often seen on the human resources front. One of the first ways that firms have
shown a benefit is in recruiting. Effective work-life programs are an effective marketing method
for attracting employees. Additionally, oftentimes job seekers are drawn to “Best Place to
Work” 19 lists that are published in magazines such as
Fortuneand Working Mother
. Once
potential applicants are recruited, work-life programs are often a deal maker. They often sway a
potential applicant’s choice of job offers to the company offering the best programs.
Most importantly, effective work-life programs help forge a symbiotic relationship
between an employer and employee that leads to mutual benefits. Employees who are better able
to balance the demands on their time are more satisfied and content. This in turns leads to real
benefits for the employer in terms of productivity gains, lowered turnover rate, a stronger team
spirit, and loyalty to the employer. Operationally, a lower turnover rate leads to reduction in new
employee training costs, as well as the more elusive costs associated with informal training that
existing employees provide to new team members. While these gains have been sporadically
measured, no definitive study has been able to associate performance gains directly with
financial performance gains. The trends in the data do show improvements in the areas listed
19
In fact, a study by Vanderbilt University and Hewitt Associates found the companies on the “Best Place to
Work” list outperformed similar companies that weren’t on it, and also did better than the broad market,
showing “substantial financial performance advances.” (see Figure 2 in the Appendix)
13
WORK-LIFE BALANCE
and thus are related to greater profitability derived from the improved efficiency of the
workplace.
Concrete measurements are difficult to get for any indirect business effort – even the
impact of most technology. For work-life balance, there have been studies which indicate a
direct correlation between work-life balance programs and customer serv…
