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JANUARY 2006    COVER STORY

CPG Joblist

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How to reap the benefits
of family-friendly policies

Don’t look now but your executives are in a bind: As work hours and productivity pressures keep increasing, family time is getting squeezed.

Salaried workers now average more than 48 hours per week on the job. They spend more time commuting than on vacation. There are fewer stay-at-home parents. And Baby Boomers who delayed having children until their 30s or 40s have things especially hard: Many must not only care for school-age children but aging parents as well.

“Organizations that help employees balance the needs of family and work have a big advantage in recruiting,” according to Michael Carrillo, president of CPGjoblist. “The good news for employers is that there’s no conflict between the family and the bottom line.”

Solving the work-family bind is especially important in retaining women executives, who are leaving the workforce in large numbers to attend the needs of their families. According to an article in the Harvard Business Review, an astonishing 57 percent of the Stanford University Class of 1981 have left the workforce; a survey of three graduating classes at the Harvard Business School reveals that only 38 percent have full-time careers.

Women aren’t the only executives feeling the pressure of the work-family bind. More men than ever share care-giving responsibilities, and a surprising one in six single parents is male.

“Businesses that force employees to choose between their careers and families should not be surprised when they choose their loved ones,” Carrillo says. “To stop the talent drain we must help executives balance their personal and professional lives.”

According to Carrillo, these steps go far beyond legal compliance with the Family and Medical Leave Act, which grants up to 12 weeks of unpaid leave per year for the birth of a child, serious illness, or caring for a family member. “When it comes to this sensitive and important human issue, much more is needed than simple compliance with Federal and state regulations.”

Best practices

There are many additional steps that employers can take to help retain executives who have caregiving needs. These best practices include:

FLEX TIME: Allowing executives to come in early and leave early, or vice versa, allows them to get kids off to school or meet other family needs. It can shorten their commute times as well (see our article on Flex Time in our July issue).
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PART TIME: Many managers simply can’t work 40 or 50 hours a week and care for children or family members. But they can work a shorter schedule or share a job with another part-timer. In many cases this is a better option than losing an experienced manager altogether.

TELECOMMUTING: Surveys show that employees who work from home are just as productive as employees who work in the office sometimes more so. Telecommuting either full or part time can help retain valuable managers.

EXTENDED LEAVE: Aetna Insurance extended its unpaid leave policy from the federally mandated 12 weeks to 6 months and cut resignations of new parents in half. The increased retention saved more than $1 million in retraining and hiring costs.

ON-SITE CHILD CARE: A substantial investment is involved, but one that can pay big dividends. One company that offers daycare, First Tennessee Bank credits their family-friendly policies with increasing employee retention and increasing profits 55 percent.

HUMAN TOUCH: Many companies have on-site gyms so employees can save time and relieve stress. One company keeps its cafeteria open late so employees can get family dinners to go. Another offers expectant parents a support program, including emergency pagers for dad and a 24-hour nurse hotline. Bottom line: You increase employee retention when you incorporate your employees' families into your company family.

LOOSEN UP: Many employees don’t need shorter hours or extended leave just an hour or afternoon here and there to meet unexpected situations. “Most companies say they are flexible about family needs, but many supervisors don’t mean it,” Carrillo says. “Such practices should be formalized in HR policy so they stick.”

Carrillo says, “The benefits of family-friendly practices are proven -- better recruiting results, higher retention, reduced training costs, higher profits and increased productivity. These practices aren’t just big-hearted they’re smart business policies that pay lasting dividends.”

Michael Carrillo is president of CPGjoblist, the CPG industry’s leading candidate referral system for HR professionals and employers. You may contact him at Michael@cpgjoblist.com or call (626) 535-0143.

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