Balanced Workload: The Benefits of Being a Flexible Employer

1. Balanced Workload:The Benefits of Being a Flexible Employer Nadia McKay, VP Sales October 1, 2008

2. Mom Corps’ Niche Expertise • Mom Corps is an innovative staffing solution • We provide corporations access to top-tier, experienced talent unavailable through tradition employment channels, while providing resources and training to professionals seeking non-traditional work arrangements • With over 30,000+ candidates nationwide, and a client base of hundreds, including many Fortune 500 companies, Mom Corps is the expert and market leader in the field of non-traditional employment • Mom Corps’ expertise and innovative philosophy has been sought and featured by a number of nationally recognized media outlets:

3. Agenda • Evolution of Today’s Workplace • Benefits of Integrating Flexible Work Arrangements • Social and Environmental • Productivity and Effectiveness • Profits and Bottom Line • Developing Flexible Work Arrangements • Case Studies

4. Workplace Evolution The concept of 9 to 5 has changed dramatically over the past decade. Workplace flexibility is more than an inevitable trend – it is becoming a business imperative to stay competitive. • Increasing corporate social responsibility • Top talent demands it • Technology allows it

5. Profile of Today’s Work Environment • Increased labor force participation rates for working families An additional 25% of workers also have eldercare responsibilities • Longer work hours • 24/7 work – 21% of high-end workers have “extreme” jobs which entail 60 + hours a week and intense time demands outside of work • Longer commutes • Americans spend well over 100 hours per year commuting to work

6. Profile of Today’s Workforce The Gen Y Worker: - Entrepreneurial - Tech-savvy - Value communication - “Emergent Workers” Less job loyalty < More balance • Intergenerational –Current workforce is the first-ever to face the demands of four unique generations their attitudes, management styles, and expectations • Shifting Demographics – In the United States, between 8-10,000 Boomers turn 60 everyday… they are being replaced by a younger workforce creating profound changes in the employment pool • Younger Mentality – Gen Y will constitute 45% of the workforce in a few years

7. Dramatic Changes In the workplace… • The economy is global and 24/7 • Work hours have increased • Jobs have become more demanding and hectic • Technology, voicemail, cellphones, BlackBerries, etc. are blurring the lines between when people are at work and when they are not • The job for life has been replaced with growing job mobility and job insecurity In the workforce… • More ethnically diverse and aging • Women are in the workforce in almost equal numbers as men • Women have achieved higher educational levels than men • Younger employees are more family-centric • Men are more involved in the care of their children than in the past • Significant numbers of both men and women provide elder care

8. Where We Are Today Today in the U.S. among all employees: • 39% of employees are not fully engaged in their jobs* • 54% are less than fully satisfied with their jobs* • 39% are somewhat or very likely to make a concerted effort to find a new job with another employer in the coming year* We are transitioning: • From a manufacturing-based economy to a knowledge-based and service economy with a greater gap between more skilled and less skilled jobs *Boston College Center for Work and Family

9. Shrinking Talent Pool % Percent workers 45 and older leaving occupation between 1998-2008 Accountants 46.4% Lawyers 27.7% Operations Analysts 74.2% Technical Writers 59.0% Public Relations 56.8% The U.S. Bureau of Labor Statistics estimates a shortfall of 10 Million Workers within the next six years – due to retiring baby boomers.

10. Flexibility is Inevitable As the workplace becomes a virtual, 24/7 environment As demographics in the workplace shift and increase demand for more life/work balance And as the professional talent shortage becomes a reality for hiring managers and corporations Flexibility is the new way for businesses to maintain a competitive advantage.

11. Defining Flexible Work Arrangements Flexible Work Arrangements • Interim Employees and Executives • Contingency workers provide labor flexibility to meet demand fluctuations, to attract specialized talent and to achieve higher productivity • Virtual Employees • The Work Design Collaborative estimates that five years from now, some 40 million workers will telecommute at least part-time, up from between 20 to 24 million now • Non-Traditional Scheduled • From millennials graduating from college and retirees pursing personal interests to women who are returning to work after starting families… life/work balance is achieved through part-time, job-sharing, phased-retirement, compressed work week, and full-time flex schedules

12. Growth of the Contingent Workforce The Human Capital Institute estimates that the contingent work force is expected to grow at three- to -four times the rate of the traditional work force and will make up approximately 25 % of the global work force by 2012. 25% Contingent 75% Traditional

13. The Business Case for Flexibility Diversity/ Inclusion Talent Management Work-Life Perspective Health/ Wellness Corporate Citizenship Total Rewards

14. Benefits of Being a Flexible Employer • The benefits of being a flexible employer abound – from social and environmental, to productivity and the bottom line. • Social and Environmental Impact • Corporate wellness, employee morale, differentiation from competition, going green • Productivity and Efficiency • Recruiting, retention, productivity • Profits and Expenses • Turnover costs, healthcare, vacation and overhead

15. Business Goals Through Flexibility According to the 2008 CFO Perspectives on Work Life Flexibility, CFO’s rate impact of work life flexibility as “high” or “moderate” in the following areas: 

16. Social and Environmental Benefits • Good for employee wellness, morale, and the environment • Better Health • Parents with more access to flexible work schedules report fewer physical and mental health problems* • Employees with access to flexible work schedules report high life satisfaction and low levels of negative spillover from work to home * • Increased Morale • According to a recent SHRM survey, half of employees cited ‘flexibility to balance life and work issues’ as very important to their overall job satisfaction *The Alfred P. Sloan Foundation – Work-Family Information for State Legislators

17. Social and Environmental Benefits • Environmental Benefits • 23% of companies are now offering some form of flexible work arrangements in order to combat rising gas prices* • Compressed work week – 4 day work week • Telecommuting – Ease traffic and air congestion during prime commuting times and counteract effects of gas prices on paychecks • 20% of companies provide employees a subsidy for public transportation costs - another 8% plan to offer it in the next 6 months* • Making the most of creative alternatives is good management practices, supports attraction and retention concerns, and cost-effective *www.WorldAtWork.org

18. Increases in Productivity and Effectiveness • Increase in Productivity • Employees with more access to flexible work arrangements are more willing to work harder than required to help their companies succeed* • Utilizing non-traditional or contract employees during peak times, frees up managers and full-time employees to focus on core, revenue-generating responsibilities • Employees feel valued and rewarded for their time and unique contribution to the workplace or a specific project • According to the Center for Work & Family, 70% of managers and 87% of employees reported that working a flexible work arrangement had a positive or very positive impact on productivity *The Alfred P. Sloan Foundation – Work-Family Information for State Legislators

19. Benefits to the Bottom Line Increase in Bottom Line Great Place to Work Institute and FORTUNE Magazine’s ‘100 Best Companies’ consistently outperform the S & P 500 – 99 of these companies have flexible work polices, and 84 allow employees to telecommute.

20. Benefits to the Bottom Line • Decreases in Recruiting and Retention Costs • Flexibility is becoming a more effective hiring and retention tool than above-market salaries, stock options, or training • In Mom Corps’ 2008 Database Survey, 72% of top candidates consider flexibility ‘Extremely Important’ when considering employment – more so than compensation (44%) • Turnover is expensive – especially when accounting for lost productivity, lost sales and lost human capital. Studies have shown that the cost to replace an exempt employee can be up to 200% of annual compensation* • Flexibility increases commitment. Over 80% of employees using flexible work arrangements report that such arrangements have a ‘very positive’ impact on their decision to stay with their employer* *The Alfred P. Sloan Foundation – Work-Family Information for State Legislators

21. Benefits to the Bottom Line • Productivity • Profits • Effectiveness • Employee Morale • Retention • Corporate wellness Health care Costs Real estate Costs Retention Costs Recruiting Costs Unscheduled absences

22. Steps to Implement Flexibility Conduct needed research Gain commitment and make a business case for flexibility Design the program and revise performance measures Implement the flexible work arrangements program

23. Developing Flexible Initiatives • Conduct needed research • Conduct research to understand employees’ needs and what flexible work arrangements can best meet those needs • Analyze the organizational culture and the level of supportiveness for the desired flexible work arrangement program • Identify obstacles that may occur and determine how to overcome them • Identify potential downsides to the flexible work arrangements being considered and think about ways to mitigate them Boston College Center for Work and Family

24. Developing Flexible Initiatives • Gain commitment for the program – the most critical • Culture needs to be well understood - crucial to the program’s success • Make a clear and compelling business case for the program: • Find out the business needs, what leaders are striving toward, what is driving the need for the program • Position the arrangement as a solution to a business problem • Connect the dots from the business need to the program • Try to calculate the cost of not implementing flexibility (e.g., turnover costs) • Be creative. Use terminology that will work for the audience (e.g., how effective people will be as opposed to work-life balance) Boston College Center for Work and Family

25. Developing Flexible Initiatives • Design the program • Adopt fairly flexible policies and guidelines that would meet a variety of situational needs • The flexible work arrangement itself must be flexible • Make the new way of working the expected way of working by integrating new work arrangements into the existing systems and encouraging use • Revise performance management systems so that objective goals are rewarded instead of face time Boston College Center for Work and Family

26. Developing Flexible Initiatives • Implement the program • Establish the needed infrastructure to put the program in place and begin to manage it • Pilot the effort before implementing it more widely and rolling it • Use teams or work units within the organization to facilitate implementation • Get support from IT and other departments, develop management models, provide training for managers and employees, and develop comprehensive and well-organized communication strategies to increase effectiveness of programs • Measure results and improve! Boston College Center for Work and Family

27. Case Study: Best Buy Boston College Center for Work and Family

28. Case Study: Eli Lilly Boston College Center for Work and Family

29. A Growing Trend • At IBM, 40% of the workforce has no official office • At AT&T, a third of managers are untethered • At Sun Microsystems Inc., an estimated $400 million over six years in real estate costs has been saved through allowing employees to work where they choose. • A recent Boston Consulting Group study found that 85% of executives expect a rise in the number of unleashed workers over the next 5 years The most innovative new product on the market may be the structure of the workplace itself. Boston College Center for Work and Family

30. Q & A Non-traditional work affects a number of areas within business – from financials, to human capital, to corporate responsibility. Mom Corps hopes to give corporations and managers the insights and strategies to better understand this imminent workforce trend.