Responding to the Changing American Workforce

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Responding to the Changing American Workforce

• Chapter 10

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Introduction

• An increase in the number of women entering the
  work force will keep family issues at the center
  of HR discussion
• Family issues are primarily womens issues
  because they continue to bear responsibility
• Previous assumptions are no longer valid
• Marriage and childbirth occur later in life
• More single parents
• Traditional families comprise 20 v 68

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Women after WWII

• Occupations available to women became varied
• Managerial decision making positions were still
  closed to them (glass ceiling)
• Women returned to traditional employment
• Changes in 3 areas began to alter nature of work
• Economy difficult to make ends meet
• Family structure increase in divorce rate
• Womens movement
• helped to make them equal partners
• enabled them to pursue careers
• Change in societys view
• Primary caregivers for children and parents

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Changing American Family

• While adding to work place diversity, the
  movement of women into the labor force poses
  challenges
• One is how to respond to new set of family
  related issues in ways that meet the needs of
  employees and employers
• 20 of women with children under age of 6 worked
  in 1960 by 2004 it was 62
• 46 of workers with children under 18 (2004)
• 80 hold traditional female jobs

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Facts and Figures

• 1990, 70 of men had wives working (32)
• Participation of women age 16 in the labor was
  68.5M (47) in 2004 as opposed to 31 in 71
• Female participation rate was 66 and that of
  males was 73 in 2005
• In 84, 50 of mothers with child age 1 or younger
  were in labor force
• In 84, 44 of African American families headed by
  women compared to 23 of Latinos and 13 of white
  families
• Women earn 70-90 cents for every dollar earned by
  man
• 75 of working women make 20K or less per year,
  half what a man earns

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Domestic Partners

• In 1920, 9 of married couples worked
• By 78, rate increased to 51
• By 87, rate increased to 60
• As high as 60 is, it ignores the existence of
  unmarried couples raising families
• 25 are single parents (80 are women)
• The concerns revolving around child care,
  unmarried couples has caused some difficulty as
  to benefit coverage

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Women, Education Work

• There has been a dramatic in proportion of highly
  educated professional women
• In 1971, 11 had 4 years of college compared to
  37 for men
• In 2004, 33 of both groups had 4 years
• Currently 60 of college students are women
• Equal percentages are entering professional and
  managerial occupations
• Many working women are sole source of family
  income and care-giving

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Human Resource Policies

• Personnel policies regarding benefits, hours and
  conditions of employment and career opportunities
  have been slow to respond
• Employers are being forced to develop policies
  and practices that are more responsive
• Many employers continue to have policies that
  assume that the workforce is homogeneous, that
  traditional families prevail
• There has to be a better fit between policies and
  todays workers
• Many employees face challenge of trying to manage
  personal responsibilities from work

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Subsidies

• Workers are more likely to want a balance between
  their on and off-the-job responsibilities
• From 1985 to 1998, subsidies for child care
  benefits grew from 2 to 23
• Flexible savings accounts
• In-house or contracted services
• Discounts or stipends for off site services
• Agency subsidized on-sire services
• Agency provided emergency back up care
• After school care for older children

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New Personnel Policies

• By 2000, 14 of U. S. workers had direct access
  to child care services
• 17 at the state and local level
• Policies that reflect and adapt to new realities
  and exploit new opportunities
• Creative approaches to the content and
  administration of benefit plans
• Flexible working arrangements
• Family leave
• Child care and elder care programs

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Responses to the Challenge

• Must empower employees so that they can possess
  the resources needed to balance work and family
  commitments
• Control over job what, how, when
• Policies and programs
• Day Care
• Elder Care
• Men are doing greater part
• Employers are making more of effort

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Flexible and Cost Conscious Employee Benefit Plans

• One size does not fit all
• Programs must be established so all employees may
  participate
• Employer benefit costs range from 20-40 of total
  compensation
• Health life insurance, retirement
• Emphasis is now on developing flexible
  combination of benefits that help attract and
  retain

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Flexible Benefits

• Object is to offer a variety of possible benefits
  and allow employee to select according to need
• Referred to as cafeteria benefits
• Where a single mother could opt for child care,
  trans or time management workshops might be
  preferable

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Costs vs. Needs

• Private sector benefits are less generous and
  participation rate lower (Table 10.1)
• Rapidly growing costs and changing employee needs
  have created an interest in cafeteria style
  benefit plans
• HMO, PPO, POS reduce health care costs
• 2003, 77 had PPO, 47 had HMO
• Use of indemnity plans dropped from 61 in 1990
  to 25 in 1998

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Retirement Plans

• Defined Contribution Plan involves a savings
  arrangement under which a tax deferred employee
  contributions are matched in some proportion by
  the employer
• Private sector 20 DBP, 40 DCP
• Defined Benefit Plans are formula based plans
  where employees are given a for each year of
  service

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Family Friendly Options

• Flex-Time
• Compressed Schedules
• Flexible Location
• Job sharing
• Permanent Part-Time Work
• Flexible Staffing
• Phased and Partial Retirement
• Voluntary Reduced Work Time
• Flexible benefits
• FMLA

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Flex-time

• Employees have a choice of setting arrival and
  quitting time but working 8 hours
• Total span of work hours is labeled the bandwidth
  time
• Core time represents the time when all employees
  must be present
• Resulted in decrease in tardiness and absences

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Examples of Flextime

• _____F_________C__________F_____
• 630 A.M. 930 A.M. 330 P.M
  630 P.M.
• -----------------------------------------------
  ------------------------- 81/2
• 81/2 -------------------------------------
  --------------------------------------
• ___F______C_____F_____C_____F___
• 630 A.M. 900 A.M. 1100 A.M.
  100 P.M. 300 P.M. 530 P.M.
• -----------------------------------------------
  ----------------------------------------- 81/2
• 81/2 ------------------------------------------
  ----------------------------------------------
• __F_____C____L____L____C_____F__
• 700 A.M. 900 A.M. 1100 A.M. 100
  P.M. 200 P.M. 400 P.M. 700
  P.M.
• ------------------------------------------------
  ---------------------------------------------
  8
• 8 -------------------------------------
  --------------------------------------------------
  -----

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Advantages/Disadvantage

• Advantages
• Increase in morale, job satisfaction and
  productivity
• Accommodates the needs of employees with children
  and other outside demands
• Flexibility to manage lifestyles and family
• Ease commuting and transportation congestion
• Valuable HR climate factor
• Reduction in sick/annual leave and turnover
• Disadvantages
• Impact of overtime pay and overtime hours
• Complexity of scheduling may cause difficulties
• Lack of supervision during some work hours

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Compressed Work Schedules

• A full week of work is accomplished in less than
  5 days
• 4 days of 10 hours
• 3 days of 12 hours
• 5/4 plan whereby the employee alternates 5 day
  and 4 day work weeks, working 9 hour days
• 8/9 hour days and 1/8 hour day (Michigan)
• Advantages reduction in trips to work, longer
  blocks of personal time
• Disadvantages Difficult to adjust for some
  workers

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Flexible Location

• A form of paid employment in which the work site
  is shifted away from the traditional workplace
• Home, satellite offices, telecommuting
• Management benefits
• Employees benefits
• Society benefits

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Management Benefits

• Reduction of employer costs
• Improved effectiveness and morale
• Reduced office space, parking, trans
• Improved communications
• Retention of skilled employee
• Reduced turnover rates
• Decline in absenteeism
• Accommodation of trained employees
• Carry over of results to other areas

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Employee Benefits

• Reduced commuting time
• Flexibility to coordinate schedules
• Capitalize on peak productivity periods
• More control over life
• Reduced costs in trans, food and clothing
• Improved communications

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Societal Benefits

• Reduction in commutes and traffic congestion
• Reduction in air pollution
• Conservation of transportation fuels
• Improved employment opportunities
• Reduction in problems associated with elder care
  and children

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Disadvantages

• Loss of esprit de corps/community aspect of
  company
• No way to check how and whether the time is
  actually being spent
• Not for everyone
• Supervision problematic Not for positions
  requiring control

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Job Sharing

• 2 part-time employees share a full time job
• Provide opportunities for women, disabled
  others unable to work full time
• Advantages
• Greater job satisfaction, Increased job
  performance, Lower turnover rates and sick leave
  usage, Retains valued employee, Little difference
  in cost/benefit data
• Disadvantages
• Disproportionate production of partners in work
  unit, Difficulty in supervision

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Permanent Part-Time Work

• Most positions require more than 20 hours/week
  but less than 40 and include job security as well
  as all rights and benefits but often on a
  pro-rated basis
• Advantages
• flexibility in work hours
• Trained employee retention
• Improved recruitment
• Disadvantages
• Increased benefit costs
• less chance for advancement

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Advantages of Part-time

• Helps older workers make transition
• Opens opportunities for others need for a
  reduced schedule
• Gives parents a chance to balance family
  responsibilities and make extra money
• Help students finance education
• Higher productivity and job satisfaction while
  reducing turnover and absenteeism
• Enhances management flexibility
• Benefits society unemployment, retaining skills

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Flexible Staffing

• Allows employer to schedule more/less employees
  based on need
• Converting full time positions to part-time
• Text example agency picks up 200 hours (20
  employees _at_ 10 hrs each) it could flex
• Employees with family responsibilities may
  welcome this flexibility
• job protection and benefits
• To attract and retain quality workers

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Phased and Partial Retirement

• Phased Provides for gradual retirement through
  reduction of full-time week in phases (over a
  number of years)
• Partial Senior employees are given part-time
  employment retirement income and salary may be
  combined
• Advantages Retains talented senior workers,
  while reducing burnout expense of health
  benefits and pension phased in over time
• Disadvantage May be abused in corporate
  downsizing

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Voluntary Reduced Work Time

• Option of reducing hours compensation for a
  specified period of time
• At the end of the agreement they can return
  either to return to full-time work or renegotiate
• Advantages Return to full time status guaranteed
  reduction of time is flexible and negotiated,
  Reduced labor costs
• Disadvantages Possible reduced commitment to job
  by employee, Abuse by employer as way of
  gradually getting rid of full time jobs

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FMLA

• To care for employees child, spouse, son or
  daughter, parent or own serious health condition
• Employers are required to provide up to12 weeks
  of unpaid leave/year
• Employee may be required to use paid leave
• Employees health coverage must be maintained
• Employees must be restored to original or
  equivalent position (pay, benefits, etc)
• Leave must not result in loss of benefit that
  accrued prior to start of leave
• Certification may be required (2nd opinion)
• Leave may be taken intermittently

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Day/Child Care

• Central problem for working parents, especially
  during school holidays
• IRS permits a tax deduction
• School developed before after school programs
• Employers may provide
• Child care resources or referral services
• Financial assistance (vouchers, subsidies)
• Facilities on or near job site
• Problems
• Finding quality care services who stays with
  kids, runs errands, transports
• Federal government has done little to help

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Californias Efforts

• State policy to encourage the development of
  services for dependent children
• State agrees to establish programs and provide
  financial assistance within budget
• State agrees to establish a Committee to assist
  in forming non-profit corporation
• To provide child care services
• To recommend as to who receive funds
• State may provide the use of its facilities for
  child care centers

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Elder Care

• 32 million over 65
• Between 23 and 30 of workforce have some
  eldercare responsibilities
• Affects getting to work/being productive
• Problems
• Work interruptions to deal with emergencies and
  phone calls
• Increased employee stress that leads to taking
  time off and resignations
• Reluctance to relocate or travel
• Lower morale

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Elder Care Programs Options

• Home visitors
• Elder care referral services
• Adult care facilities
• Financial assistance
• Leaves of absence
• Educational seminars
• Flexible spending accounts
• Job sharing and part-time work