Work/Life Balance More than a Catch Phrase
October 1, 2007 -
By Jonathan E. Braunstein–For employers looking to attract and retain top talent in a competitive job market, work/life balance should be more than a catchphrase.
Some studies have shown that more employees, particularly those from younger generations, place increasing value on work/life balance when selecting an employer. However, observers say flexible work arrangements may not be as meaningful for employees in the fund industry, especially those from the investment ranks, where performance remains the bottom line.
USA Today recently reported that 15 million Americans now have to begin their commutes before 6 a.m. every morning. Commutes are longer than ever, leaving people with less time at home for their lives and families. That’s one of the reasons why companies are increasingly seeing the value of flexible work schedules and other “soft benefits” as a way to stand out from their competitors in the job market.
“If you are vying for the top talent and you are very competitive in salary, but the competitor is better with work/life balance, they are going to have a competitive advantage,” says Peg Buchenroth, senior vice president of human resources at Hudson Highland Group, an international recruiting firm.
In its studies, Hudson Highland has found that work/life balance is the fourth most common answer among workers when asked what would make them happier with their total compensation package.
A separate study by Blessing White found that people rank work/life balance ahead of financial reward when deciding where to work. At least 18% of workers say work/life balance is the single most important criterion in choosing their position, equal to doing meaningful work, but less than doing interesting work.
Flexible work schedules, summer Fridays and working from home do not really apply to some of the people in the mutual fund industry, says Dan Johnson, a managing director at executive search firm Fiderion Group. He says portfolio managers, analysts and chief investment officers are more focused on performance than lifestyle. Plus, he says, they believe in the benefits of forming a team.
“In developing a cohesive culture, the feeling is you need to have people working together in the same office,” Johnson says. While he allows for companies having different offices in different locations, Johnson believes most of the higher-level workers he deals with prefer to see and work with their colleagues on a regular basis.
Their motivation is the bottom line, he says. “They are driven by that and they are compensated and evaluated and promoted by performance. They live and die by what they can generate with their returns,” Johnson says.
Another potential pitfall of flexible work schedules is how it will affect an employee’s career path. An employee who works from home or leaves at an earlier hour may not appear as hardworking to his or her boss, observers say.
Companies have to establish clear criteria for these programs to make sure that employees are judged on their performance rather than more subjective optical standards, Buchenroth says. “If you have one person who works from home and one in the office, you have to have a means to measure their productivity,” she says.
Still, a back-office worker or marketing employee might find telecommuting to be an enticing option when choosing a company. Between the time it takes to get to work and the price of gasoline, there are plenty of costs associated with coming into the office.
“Today, technology affords us that option more than ever,” Buchenroth says. She cautions that offering a telecommuting option does not mean that an employee is going to work from home every day. Rather, she says, it is important for employees to recognize that for certain meetings and job requirements, working from home is not as good an option.
John Challenger, CEO of the recruiting firm Challenger, Gray and Christmas, says he sees these types of initiatives catching on. “People want to know their companies are giving them good work/life balance,” he says. “[For] more and more people coming off school, that’s the one thing they want from their company.”