ALTERNATIVE WORK SCHEDULES

James G. Beierlein / James E. Van Horn
Professor of Agricultural Economics / Professor of Family Sociology
Agricultural Economics and Rural Sociology
Penn State University

Copyright/Access Information


Instead of working a traditional 8:30 a.m. to 5:00 p.m. day, or a 5-day week, employees, depending on the option offered by the employer, adjust their arrival and departure times to suit their individual needs. This is called flex-time and requires only that the employee be at the workplace during specified hours or the "core hours." Employees also may work longer hours each day but fewer days a week, thus working what is popularly called a compressed workweek. A third option is for employees to work out of their homes instead of in the office or to participate in flex-place--telecommuting.

OPTIONS FOR ALTERNATIVE WORK SCHEDULES ARE:

FLEXIBLE LEAVE POLICIES: systems that allow accrued sick and annual leave to be combined for employees' use as they choose. Policies may include paid or unpaid "personal leave time."

PARENTAL LEAVE: sometimes called "family leave," a flexible policy that provides time off for mothers or fathers to care for newborn or very young children.

FLEX-TIME: work schedules that allow employees to vary their arrival and/or departure times as long as they work a prescribed number of hours per pay period and are present during a daily "core time" (usually peak business hours).

JOB SHARING: two (or more) workers share the duties of one full-time job, each working part-time; or, two or more workers who have unrelated part-time assignments share the same budget line.

COMPRESSED WORKWEEK: a work schedule enabling full-time employees to work the equivalent of a full week in less than 5 days or for employees on biweekly pay schedule to work less than 10 full work days.

PART-TIME EMPLOYMENT: can refer to portions of days, weeks, months, or years worked by temporary or permanent workers.

VOLUNTARY REDUCED WORKTIME: employees can reduce their worktime and salary by a specified amount (usually 5-50 percent) for a specific period (6-12 months) or permanently, while retaining benefits and seniority on a prorated basis.

FLEX-PLACE-TELECOMMUTING: employees work at home or at a satellite worksite
and are usually connected to their offices by computer and/or telephone.

PHASED RETIREMENT: enables employees to transition gradually from full-time work to retirement with an interim period of part-time work, during which the employee may train the replacement worker.

Flex-time is the most commonly known of the alternative work schedule options. The federal government began flex-time on an experimental basis in 1979; the program was permanently authorized by Congress in 1985. The private sector also has increasingly adopted the use of flex-time, not just to help employees balance their work and family lives, but for sound business reasons as well - such as better use of equipment and buildings; decreased traffic congestion; and improved attendance, punctuality, and productivity among employees.

Part-time employment has been used for a number of years by both the public and private sectors. Some of the other options for alternative work schedules discussed above are much newer but, where reports have been prepared, they have proven to be successful.

ADVANTAGES/DISADVANTAGES

ADVANTAGES:

- Alternative work schedules improve morale and reduce stress on parents.

- Contributes to lower absenteeism and higher productivity.

- Overtime costs are reduced.

- Recruitment is enhanced, particularly for those employees who might not be available for a traditional work schedule.

- Business hours can be extended through the flex-time and compressed workweek options.

- Flexible schedules allow for more economical use of office space and equipment.


DISADVANTAGES:

- Supervisors and employees may not work the same hours, requiring greater planning and control over workflow.

- Administrative problems may arise with timekeeping or with the way benefits are assigned, prorated, or split.

- Administrative costs may be high when an option is first implemented, depending on existing systems and how quickly they can be adjusted.

- Workplace coverage may be a problem with some options.

STEPS IN DEVELOPING ALTERNATIVE WORK SCHEDULES

1. CONDUCT A NEEDS ASSESSMENT

A needs assessment should be conducted among employees to determine the interest in this type of assistance. A sample needs assessment with suggested questions can be found in this file under "Questionnaire." This questionnaire may be copied and distributed among employees as it is written, or changes may be made to reflect the needs and interests of a
business.

2. CONSIDER ESTABLISHING A MANAGEMENT-EMPLOYEE COMMITTEE TO HELP PLAN THE PROGRAM OR SERVICE

A joint management-employee committee may be useful in developing the program to be offered. It can foster a sense of program ownership among employees and provide a forum for them to give input into design features of the program or service.

3. DECIDE WHICH ALTERNATIVE WORK SCHEDULE OPTION WILL BE IMPLEMENTED

A decision should be based on results of the needs assessment and input of the management-employee committee. Company goals should also be reflected in the decision. Small companies may find that offering part-time employment is more cost efficient and beneficial to them, as well as more responsive to their employees' needs. Larger companies may find flex-time or flex-place-telecommuting or even a combination of options better suited
to both company and work force needs.

4. ADVERTISE THE SELECTED ALTERNATIVE WORK SCHEDULE

Employees should be made aware of the alternative work schedule option being considered and how it will address their specific needs. Managers and supervisors should also be made aware of the option and how it will affect personnel decisions in their respective units. Publicity can be achieved through seminars/meetings, flyers, bulletin board notices, and articles in
the company's newsletter. Follow-up should ensure that all employees have been advised of the option available and understand how to make use of it. This can be achieved through supervisor/staff meetings or calls to employees, if in a smaller company.

5. IMPLEMENT NECESSARY POLICY AND ADMINISTRATIVE CHANGES

Employers should ensure that appropriate policy changes are made and disseminated throughout the organization. Changes to administrative systems should be carefully monitored to ensure both a smooth transition and that employees are not penalized by the impending change. For example, when an employer is switching from traditional sick and annual leave systems to a flexible leave approach, careful monitoring is necessary to ensure that employees' accrual rates are accurately recorded and equivalent to what they were earning before. Training should be provided to those employees who will be managing the administrative systems to ensure that they are comfortable with implementing and explaining the changes to other employees.

6. DESIGN AND ESTABLISH A REPORTING MECHANISM

A reporting mechanism should be designed that allows for accurate tracking of hours worked, benefits due, and other administrative provisions that may have been altered by the institution of an alternative work schedule. Costs can also be tracked to determine cost effectiveness to the employer.

TECHNICAL ASSISTANCE NEEDED

A company's benefits manager should be involved in setting up any alternative work schedule option. Companies considering options that impact a worker's benefits should consult legal counsel to ensure that there is no negative impact on the employee.

To gain insight into the pros and cons of a specific option, an employer may wish to talk with other employers, either in the same area or in the same industry, who have already implemented alternative work schedules.

You may want to consult with your local Cooperative Extension Service to help determine child care needs. The Cooperative Extension Service could also present educational programs on child care, parenting, and other work/family-related concerns.

Other people in your community may be consulted in planning a child care assistance option. You should consider: nursery school teachers, director or staff of a day care center, child care Resource and Referral agencies, local Cooperative Extension 4-H agents, retired persons with child development backgrounds, vocational technical schools with a child care curriculum, community colleges, and local child care sponsoring agencies (such as a child care council or community action agency).