How Are Organizations and Managers Adapting to a Changing Workforce?

Because organizations wouldn’t be able to do what they’re in business to do without employees, managers have to adapt to the changes taking place in the workforce. They’re responding with workforce initiatives such as work/life balance programs and contingent jobs.

Photo of Citrix employees in their office.

Employees at Citrix Systems, a leading provider of virtualization, networking, and cloud computing technologies, enjoy flexible work schedules that help them balance their work and home life. Citrix gives employees the freedom to determine how, when, and where their work gets done and allows them to use their own devices for working at home or at the office.

Charles Trainor Jr./Miami Herald/MCT/Newscom

Work/Life Balance Programs

The typical employee in the 1960s or 1970s showed up at the workplace Monday through Friday and did his or her job in eight- or nine-hour chunks of time. The workplace and hours were clearly specified. That’s not the case anymore for a large segment of the workforce. Employees are increasingly complaining that the line between work and nonwork time has blurred, creating personal conflicts and stress.73 Several factors have contributed to this blurring between work and personal life. One is that in a world of global business, work never ends. At any time and on any day, for instance, thousands of Caterpillar employees are working somewhere in the company’s facilities. The need to consult with colleagues or customers 8 or 10 time zones away means that many employees of global companies are “on call” 24 hours a day. Another factor is that communication technology allows employees to do their work at home, in their cars, or on the beach in Tahiti. Although this capability allows those in technical and professional jobs to do their work anywhere and at any time, it also means there’s no escaping from work. Another factor is that as organizations have had to lay off employees during the economic downturn, “surviving” employees find themselves working longer hours. It’s not unusual for employees to work more than 45 hours a week, and some work more than 50. Finally, fewer families today have a single wage earner. Today’s married employee is typically part of a dual-career couple, which makes it increasingly difficult for married employees to find time to fulfill commitments to home, spouse, children, parents, and friends.74

More and more, employees recognize that work is squeezing out their personal lives, and they’re not happy about it. Today’s progressive workplaces must accommodate the varied needs of a diverse workforce. In response, many organizations are offering family-friendly benefits: benefits that provide a wide range of scheduling options that allow employees more flexibility at work, accommodating their need for work/life balance. They’ve introduced programs such as onsite child care, summer day camps, flextime, job sharing, time off for school functions, telecommuting, and part-time employment. Organizations such as Microsoft, Blackstone Group LP, and Credit Suisse Group AG, for example, have added generous paid-leave policies to give employees time off to bond with their newborns.75 Younger people, particularly, put a higher priority on family and a lower priority on jobs and are looking for organizations that give them more work flexibility.76 How about an employer that gives employees paid paid vacations...no, that’s not an editing error! Each employee at Moz, a Seattle software company, receives three weeks of paid time off, but also receives $3,000 a year to spend on vacation-related expenses.77 This is a company that recognizes the importance of work/life balance.

Contingent Jobs

We discussed the concept of flexible work and contingent jobs in the last chapter as we looked at designing efficient and effective flexible work arrangements. We saw that the labor force has been shifting away from traditional full-time jobs toward a contingent workforce—part-time, temporary, and contract workers who are available for hire on an as-needed basis. Many organizations have converted full-time permanent jobs into contingent jobs. It is one way that organizations can control the supply and demand for labor.

What are the HRM implications for managers and organizations? Because contingent employees are not “employees” in the traditional sense of the word, managing them has its own set of challenges and expectations. Managers must recognize that because contingent workers lack the stability and security of permanent employees, they may not identify with the organization or be as committed or motivated. Managers may need to treat contingent workers differently in terms of practices and policies. However, with good communication and leadership, an organization’s contingent employees can be just as valuable a resource to an organization as permanent employees are. Today’s managers must recognize that it will be their responsibility to motivate their entire workforce, full-time and contingent, and to build their commitment to doing good work!

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