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THOUGHT LEADERSHIP SERIES April 2013

FLEXIBILITY – A SERIOUS BUSINESS IMPERATIVE

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

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.

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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.

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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”.

For more information, please contact:

info@talentneuron.com

www.talentneuron.com