FLEX-WORK PROGRAMS THAT ACTUALLY WORK by Frances Brooks Taplett, Matt Krentz, Jennifer Garcia-Alonso, and Leila Hoteit

FLEX-WORK PROGRAMS THAT ACTUALLY WORK By Frances Brooks Taplett, Matt Krentz, Jennifer Garcia-Alonso, and Leila Hoteit

ust about every aspect of work has likely to seek a new job at another compa- Jchanged in the past decade or so, but ny in the next three years—and men in the one thing remains the same: companies same situation are 30% more likely to move still require that most people do most of on. (Of course, that disparity may be due in their work at the office. This inflexible and part to women’s inclination to make the increasingly outdated approach holds best of any situation in which they find companies back, and for organizations that themselves.) don’t make needed changes the problem will only get worse. Seen in this light, flex work is becoming a business imperative. The payoff is signifi- Our research shows that flexible-work op- cant in terms of gender diversity but also tions—giving employees a say in when, in terms of retention, employee engage- where, and how much they work—is a key ment, and a company’s ability to differenti- lever in retaining female employees. Yet to ate itself in the war for both male and fe- view these programs as just a gender diver- male talent. Companies that don’t embrace sity measure is to underestimate their pow- flexibility will be left behind. For those that er. Flexibility is increasingly in demand by understand its power, we have identified men as well; it’s a trend that’s growing be- six steps that lead to success. cause of both demographic changes (millennial men are far more likely than previous generations to want flexible work When Face Time Is Overvalued, options) and the shift to a gig economy. In Women Pay the Price other words, companies that use flexible Traditional, always-in-the-office work mod- work solely as a means of boosting gender els can be challenging for many employees, diversity are missing the full picture. Our but particularly for women. The rise of research shows that women at companies dual-career couples, a culture of always-on with no flexible work option are 20% more work (fueled by technology), and other fac- tors mean that many employees feel over- Not Just for Women—and Not stretched in their efforts to meet all their Just for Parents work, family, and personal obligations. In In fact, flexible work is becoming more im- most families, women still bear the heavi- portant for both women and men. A Pew est burden in caring for children and ailing study found that 60% of working mothers parents and in running the household. feel that balancing work and family is diffi- Women in dual-career households are 1.9 cult, 52% of working fathers feel the same, times more likely than their spouse to have and many of both step back from, or off, primary responsibility for everyday chores. the career track as a result. That trend is If something has to give, it’s their job— likely to gain momentum because of demo- which is why many women step off the ca- graphic shifts. BCG research has found that reer track, at least temporarily. millennial men are more likely than men of previous generations to be involved at A Center for Work-Life Policy survey of home and to take on some domestic re- women with advanced degrees or sponsibilities so their wives can work. high-honors undergraduate degrees found They’re also more willing to adjust their that among those who had left work, 69% own ways of working to accommodate col- would not have done so had their work- leagues who work on flexible terms. place offered more flexible work arrangements. This is a big loss to companies, Flexibility has become so important to em- which sacrifice a major source of talent ployees that many say they would change and fall further behind in boosting gender jobs to get it. Global Workplace Analytics diversity (especially in senior roles). To be found that more than 80% of the US work- clear, flex-work models don’t necessarily force would like to work remotely at least mean that participants work less—they part-time. Another survey, by Gallup, found just have some say in when and where that 37% of workers would switch jobs to they work. accomplish this, and 51% of workers say they would switch jobs if they found one Companies clearly understand the value of that offered flexible working hours. gender diversity, which leads to increased innovation and better performance. And Young people place an even greater premi- companies are investing in measures to um on flexibility. These employees want to improve. A 2018 BCG survey of roughly advance their careers but do not want work 16,500 employees in 14 countries found to be all-consuming. They want to spend that 98% of companies have some form of more time on private projects such as con- gender diversity program in place. tinuing their education, devoting time to so- cial issues, or pursuing their passions. Yet there’s a disconnect between what companies offer and what employees The advantages of flexible work for em- want. In that survey, both men and women ployees are clear. But companies also bene- ranked flexible-work models as the sec- fit. Offering flexible work can help compa- ond-most effective intervention to increase nies attract the best talent and retain those gender diversity, out of a total of 31. (In people once they’re onboard. Reducing several countries, including Australia and turnover, in turn, reduces the cost and orga- the UK, flex-work models were ranked nizational friction involved in replacing first; in the overall global sample, antidis- staff. That effect is compounded for wom- crimination policies were ranked first.) en on track for senior-leadership roles, But only 34% of female respondents said where most companies realize they have that their company has a flexible-work significant work to do in creating more gen- program in place. (Of course, a company der-balanced executive teams. Overall, could have such a program without its fe- higher engagement and satisfaction mean male employees knowing about them, but a more motivated and productive work- that lack of awareness would itself be a force. (In some cases, flex work also allows problem.) companies to reduce their real estate costs

Boston Consulting Group | Flex-Work Programs That Actually Work 2 because they no longer need to provide successful if it boosts retention but not space for every employee every day.) advancement. Companies need to remove any unconscious biases that pigeonhole Flexible-work models also push organiza- employees based on their perceived tions to get better at measuring perfor- commitment to their careers. For example, mance on the basis of outcomes and out- they can communicate cases of employees put, rather than face time or the degree to at all levels working under flexible terms which employees speak up in meetings or and still succeeding at the organization. claim credit for their achievements (two This applies to promotions, bonuses, key metrics that give men an inherent and un- assignments, and other incentives. (See the fair advantage). In this way, they can help sidebar “Walking the Talk: BCG’s Flex- eliminate bias from decisions about promo- Work Journey.”) tion and advancement. 2. Involve employees in setting up the More broadly, offering flexible work sends policy. In many organizations, the flex-work an explicit signal to employees that compa- policy gets written by a small group of HR ny leaders understand their challenges and leaders. Then it gets launched and every- trust them to do their best work in whatev- one wonders why no one uses it. Support er way they think they can be most produc- across the company, from leadership to line tive. It creates a partnership that benefits management, is critical when the program both employees and the organization and is being developed. Companies should is perceived by both sides as a source of engage employees at all levels—and across value. business units, functions, and geographic regions—to set a collective vision for how the policy should function. Six Imperatives for Flex-Work Programs 3. Be flexible about flexibility. There is no Based on our research, here are six impera- one-size-fits-all model, and companies tives to make flexible-work programs truly should offer a variety of options for when, effective. Some deal with implementation, where, and how much employees work, while others deal with culture. But all are depending to their circumstances and the crucial for success. company’s business priorities. (See the exhibit.) For example, part-time work or a 1. Make sure that flexible work doesn’t job-sharing arrangement may be attractive hinder employees’ advancement opportu- to an employee with young kids or an nities. First—and most important—em- elderly parent who needs a period of ployees who take advantage of these sustained care. Another employee may programs shouldn’t be stigmatized for need to relocate, making remote work doing so. After all, flexible work won’t be more appealing. And an employee with a

Successful Companies Have Flex-Work Policies in Place Across Multiple Dimensions

When people ork Where people ork Ho much people ork

Flexible-ork schedule Flexible oﬃce location Part-time ith variable start and stop times Remote ork from Job sharing home or any other FLEXIBLE- ption for longer location Leave of absence K MLS breaks

Source: BCG analysis.

Boston Consulting Group | Flex-Work Programs That Actually Work 3 WALKING THE TALK: BCG’s Flex-Work Journey

Consulting is a tough field, with client- Men participate in FlexTime as well. For facing projects often involving long example, Alexander Kluger, a principal in hours and travel. In an effort to support Perth and father of five, works 80% of a wider range of work models and each week: “Flex has made a big differ- situations, BCG formally introduced two ence, and not only to allow me spending programs in 2014 that are available to more time with my kids as they grow all consulting staff with more than two up,” he says. “It has also helped me grow years at the firm. One is FlexLeave, into my leadership role as it forced me to which allows employees to take a plan, prioritize, and empower my teams two-month leave of absence—for any more.” Elliot Vaughn, a partner in reason—while retaining their position London, works part-time so that he can and benefits. In 2018, one in seven follow his passion outside of BCG. consultants across all levels made use Vaughn founded a nonprofit called of the program, in a steady increase over GiveOut that secures funding from the past several years. individual donors for LGBTQI causes worldwide. “I’m quite certain that The second program is FlexTime, and it because of the balance I’ve created— supports day-to-day flexibility. FlexTime finding a way to incorporate work I am allows people to work at a reduced passionate about—my career at BCG is capacity in whatever arrangement they better than ever,” he says. prefer. Some take a full day off each week, others take two half-days, and still In addition to FlexLeave and FlexTime, others take reduced hours each workday. BCG supports individuals who need Critically, employees who opt for Flex- other arrangements, with options such Time don’t lose ground in terms of their as short-term disability and flexible career track. For instance, an employee staffing, and it continuously looks to who works at 80% capacity would still leverage digital technologies to enable receive 90% credit for tenure at the firm, flex-work models, such as video confer- which is factored into future promotion encing, remote working, and related decisions. In some countries, more than solutions. half of female employees in upper management have taken advantage of the program, and it has led to increased retention.

sick family member—or one who’s simply azine’s best places to work for the past in need of an extended vacation—may opt three years. (For another example, see the for a leave of absence. sidebar “SAP Makes Flexible Work Part of Its Corporate Culture.”) Ryan, a global tax and consulting service based in Dallas, provides a good example. 4. Make sure the program works on a Ten years ago, the firm introduced myRy- day-to-day basis. If the program doesn’t an, a work environment in which perfor- work at a practical level, benefiting the mance is measured on the basis of results business as well as individual employees, instead of hours worked. Employees have it will fail. We know that it’s possible to flexible schedules and can choose their lo- reach both those goals: 86% of Dell’s cation. Flextime is now used by 100% of employees who participate in its remote- employees, remote working by 90%, and work program believe they are as or more Ryan has been named one of Fortune mag- productive than they would be if they

Boston Consulting Group | Flex-Work Programs That Actually Work 4 SAP MAKES FLEXIBLE WORK PART OF ITS CORPORATE CULTURE

At SAP, the German enterprise applica- The company routinely wins awards for tion software giant, flexible-work pro- its work environment. In 2019 alone, it grams are no longer an innovative was named a LinkedIn Top Company in program but a routine part of the five markets (Germany, the US, Japan, company’s culture. SAP offers a variety Mexico, and China), and FlexJobs, a of options for employees, including website for people seeking flexible-work flextime, remote work, and sabbaticals, options, added SAP to its list of the top among others. Any open position in 100 companies worldwide. “Flexibility Germany, the company’s home market, has always been part of our DNA. can be filled by a full-time or part-time Embedding it in the corporate culture is employee. The company also has a the key enabler to make flexible-work formal “work from anywhere” program models succeed,” says Stefan Ries, SAP’s that lets employees operate from any chief HR officer. “Our culture is charac- location with a reliable Internet connec- terized by mutual trust and individual tion. According to a survey that SAP freedom. Our employees are our most conducted in Germany, employees work important asset and we want them to 26% of their time from home, and 79% thrive. Flexibility is an enabler for say that working remotely improves their this—as it supports working when, quality of life. where, and how is best for every employee on an individual level” SAP also offers a flex program that many organizations face difficulties with: job sharing. Since 2018, all management positions can be shared by two individuals, who determine between them how to break down key responsibilities.

worked in the office each day. And 93% for wishing to work under flexible terms. feel that working remotely makes them And men should be actively encouraged to better team members. use the program, which will help remove any gender-based stigma associated with it. To ensure that employees stay connected, companies need to invest in IT and other 6. Ensure that employees in senior-leader- resources. Communication and change ship roles use the program. If most of the management are also critical, with fre- people who use a flexible-work program quent assessments and adjustments over are junior female employees in the HR time. Line managers need to be involved in department, the program isn’t working. and supportive of the program and clearly Instead, it’s critical that senior leaders— aligned with their team members. both men and women in key P&L and operational roles—actively participate. 5. Ensure that the program is “reason This sends a powerful signal that flexible neutral” and is used by men. Flex-work work does not take a person off the track programs need to be available to and to advancement. utilized by both women and men. They should not be gender-specific or designed Carnival Australia, part of the global Carni- to support one particular situation (such as val cruise line, offers a “nine-day fortnight” a woman’s return to the workforce) to the program, which allows employees to exclusion of others. It should therefore be squeeze their standard hours for every two- neutral regarding an employee’s reasons week period into nine working days, in-

Boston Consulting Group | Flex-Work Programs That Actually Work 5 stead of the usual ten. Initially, CEO Ann ot all flexible-work programs are Sherry encouraged others to take advantage Nfeasible for all industries. But every of the program but did not do so herself. company can incorporate more flexibility She soon realized, however, that she would for employees into its operating model. need to be a role model if the program was This will lead to a happier workforce and to be seen as a real option for ambitious also help organizations unlock their true employees. She started working nine days, potential. and almost immediately others did, too. Norms changed quickly, and Sherry now cites the program as one of the company’s most powerful tools for retaining staff.

About the Authors Frances Brooks Taplett is a partner in the Boston office of Boston Consulting Group and a coleader of the global diversity and inclusion topic. She scaled back her work at the firm to 80% for one year after re- turning from maternity leave and temporarily switched to an internal role. You may contact her by email at [email protected].

Matt Krentz is a managing director and senior partner in BCG’s Chicago office. He is the firm’s chairman of diversity and inclusion and leadership and previously led its global people team. He has championed the implementation of flex-work models within BCG and on his teams. You may contact him by email at [email protected].

Jennifer Garcia-Alonso is the global director of Women@BCG in the firm’s New York office. Earlier in her time at BCG, she took a leave of absence for family reasons; in her current role, she works from home some days to avoid commuting and to spend more time with her four children. You may contact her at [email protected].

Leila Hoteit is a managing director and senior partner in BCG’s Dubai office. To minimize nights away from home, she limits her travel time for the firm to three days a week. She mainly works from home on the remaining days in order to spend more time with her children. You may contact her by email at hoteit. [email protected].

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