THOUGHT LEADERSHIP SERIES

April 2013 FLEXIBILITY A SERIOUS BUSINESS IMPERATIVE

OUR POINT OF VIEW

A recent talent neuron survey shows that 65% of technology companies face difficulty in finding relevant and niche skills. The era of global talent competition will compel companies to strengthen flexible work models in order to stay relevant and improve innovation quotient.

Beginning June 1st, 2013, Yahoo employees will no longer be able to utilize flexible work models. The announcement quickly divided online bloggers and work place experts into two categories: those who support working from home and those who do not support it. The fact that a majority of the discussions were centered on working from home vs. working from office, indicates how flexibility is viewed as a tactical initiative rather than a serious business imperative. Talent Neuron has conducted several discussions with HR leaders and Engineering leaders on this topic. The general consensus is that, while working from the same office building may have some visible advantages on the surface, in the current global delivery model, companies will no longer be able to attract, hire and retain quality talent by taking away the workplace flexibility of knowledge workers. In order to understand this, let us take a look at the key trends shaping up the technology companies in the last 18 months.

Key Trends
Skill requirements are constantly changing. Technology companies are routinely striving to figure out where to execute, what to execute and how to execute work optimally (Source: Talent Neuron primary interviews with HR and Engineering leaders, Jan-2013). Talent acquisition is an equation of matching demand with supply and this equation is constantly evolving. Niche skill hiring is the current area of focus in talent acquisition. (Source: Summary Insights, Confluence 2013). Talent does not reside within a few talent pockets anymore. Companies traditionally, were able to define a particular catchment area, to set up office buildings and execute the strategies leveraging a vast talent pool. Now companies are

beginning implement strategies where new offices are opened near small talent pockets in order to access niche skill sets. Employee demographics in the US are changing. The current generation has the dual responsibility of caring for their immediate family and also taking care of their ageing parents. This means an effective and productive worker has to manage a significantly higher number of family related situations in an optimal manner. The natural argument from those who do not support flexibility, is that while at work, employees should be focused only on work. While this may be ideal, it is not feasible to execute when faced with day to day realities. Employees are more connected to work than ever before. As a result of the mobile revolution, employees are going the extra length to deliver customer needs by extending the work schedule. Tablets and smartphones are enabling employees to collaborate and communicate from remote locations. It is estimated that by 2016, about 40-45% of the white collar work force in the US will spend approximately 30-35% of their time working outside the central office. Global delivery models and acquisitions for talent and market space have given companies a footprint that is large and wide spread. This trend is expected to continue as companies are focused on innovation. Talent will drive the top line in this new global model and companies will have an increasingly spread out talent base. Talent will not be office centric in the future enterprise. An essential talent strategy should focus on building trust and sending positive signals to the employees in the company. Taking away flexibility sends the wrong signal. The argument that people work well only when they are together in a building indicates an issue of trust in the work environment.
A recent study led by David DeSteno at Northeastern University suggests that personality traits such as honesty and fairness are linked to specific kinds of nonverbal cues, and humans can pick up on these signals during interactions.

Flexibility provides a comprehensive set of advantages. Our research indicates that there are operational, societal and environmental benefits with respect to flexibility. Flexibility provides a platform for new mothers returning to work. Additionally, it has a significant beneficial effect on the environment. Imagine the number of cars that will be on the roads if organizations completely remove flexibility.

Why the resistance if the benefits are high?

In spite of all these benefits, our survey indicates more than 35% of Engineering leaders (director levels and above) do not believe in flexible work models. There are genuine concerns that surfaced in our focus group discussions Trying to run a collaborative meeting is still difficult. Even with the arrival of new technology on collaboration, it still takes, on an average, 10 to 15 minutes, to bring everyone online and start effective discussions A different set of skills should be learned and implemented by flexible work model employees. Employees adapting flexible work models should communicate more when compared to the rest of the workforce. Failure to respond to an email on time, has more negative effect for flexible work model workers than it has on others. A significant fraction of first level managers are already mentally exhausted by working in the global delivery model. When a variation of global delivery model (having to work with someone in the same location without face to face interaction) is encountered, this exhaustion often translates into providing less support. There are instances where flexibility is overused or abused. Like with any corporate initiative, flexibility has had cases where poor judgment was involved by employees utilizing it. This has led to a lack of support in multiple situations. Poor career progression of employees utilizing flexible work models, has resulted in some employees abandoning this model. When they come back from the flexible work models, they stand as testimonials to other employees in the organization that flexible work models are not effective solutions.

Conclusions
If the existing limitations and psychological barriers of flexible work models are resolved, flexibility can provide cost and innovation advantages. The issues around flexibility are often misunderstood. As the great American historian, Daniel J. Boorstin, once said The greatest obstacle to discovery is not ignorance it is the illusion of knowledge.

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