I would like to start this paper with a quote from the American president: “[Workplace flexibility] is an issue that affects the well-being of our families and the success of our businesses. It affects the strength of our economy -- whether we’ll create the workplaces and jobs of the future we need to compete in today’s global economy” (Obama, 2010, p.1).
The World at Work report states that “employers in advanced economies could face a shortage of 16 to 18 million college-educated workers in 2020 … many nations can narrow the skill gap raising the labor force participation rate of college-educated women and keeping older high-skill workers [emphasis not in original] in the labor force” (Dobbs et al, 2012).
One of the possible ways to handle this problem is to implement work place flexibility and telework opportunities for these two groups of employees.
Commerzbank is the second largest bank in Germany and Poland with more than 54,000 employees around the globe (Commerzbank, 2014, p.1). Its business is influenced by world labour trends, as well as the business of other organisations. The purpose of this paper is to demonstrate a theoretical basis of flexible work arrangements and telework for Commerzbank. The implementation of work place flexibility should definitely help Commerzbank retain its competitiveness and attractiveness on the international labour market.
Table of Contents
1. Introduction
2. Main definitions of work place flexibility and telework
3. Overview of telework in Germany and the EU
4. Impact of work place flexibility and telework on organisations’ key performing indicators
4.1. Impact on staff turnover and retention
4.2. Impact on absenteeism and health
4.3. Impact on productivity and organisational costs
5. Disadvantages of work flexibility and telework for employees and organisations
6. Conclusion and recommendations
7. List of references
8. Appendix
Research Objectives and Focus Areas
This paper examines the economic implications of workplace flexibility and telework on organizational performance, specifically tailored to the context of Commerzbank. The primary goal is to evaluate whether implementing flexible work arrangements can enhance the bank's competitiveness and profitability by analyzing trends, performance indicators, and potential organizational challenges.
- The theoretical and practical definitions of workplace flexibility and telework.
- A comparative analysis of telework development in Germany versus the broader European Union.
- The impact of remote work on key performance indicators, including staff turnover, absenteeism, and productivity.
- The critical organizational and social challenges, such as innovation constraints and career development issues associated with remote working.
Excerpt from the Book
4.1. Impact on staff turnover and retention
The process of hiring people in an organisation includes several stages. When an employee leaves an organisation, HR professionals need to replace them with some other person. They must advertise the position, select appropriate candidates and conduct interviews. The search for personnel for senior positions also requires paying certain fees to head-hunting agencies. In addition, in some cases fresh employees need to be trained to use company-related computer software. According to a study by PriceWaterhouseCoopers, the average cost per hire is estimated to be $1,923 as of 2012 (PricewaterhouseCoopers LLP, 2013, p.13).
Telework can reduce turnover cost through decreasing attrition rates and increasing retention rates of staff. Confirmation of this thesis can be found in several research papers. For instance, in the study of Stanford Graduate School of Business, the researchers compared attrition rates of two groups of call center operators, serving clients during a 9-month experiment in different working conditions. One group of operators was working 4 days a week from home and one day in the office. The second (control) group consisted of employees, who worked the whole week only in the office. The result was the following: “attrition fell sharply among the home workers, dropping by 50% versus the control group” (Bloom et al, 2013, p.3).
Another study claims that the opportunity to work from home can also decrease staff turnover of women and probably of men after maternity/paternity leave. According to McKinsey&Co: “flexible-time arrangements help to keep women in the company” (Davillard et al, 2013, p. 14) and “must become compatible attributes of a top career, benefiting both men and women” (Davillard et al, 2013, p.16).
Summary of Chapters
1. Introduction: Introduces the growing need for workplace flexibility in the modern economy and outlines the purpose of applying these concepts to Commerzbank.
2. Main definitions of work place flexibility and telework: Establishes clear definitions of flexibility in working hours and location, specifically distinguishing telework within the broader framework of work flexibility.
3. Overview of telework in Germany and the EU: Compares telework adoption rates across European countries and analyzes why Germany has seen a decline in remote work participation.
4. Impact of work place flexibility and telework on organisations’ key performing indicators: Evaluates how flexible arrangements positively influence organizational profitability by reducing turnover and absenteeism while boosting productivity.
4.1. Impact on staff turnover and retention: Details the high costs of hiring and provides empirical evidence that telework significantly increases employee retention rates.
4.2. Impact on absenteeism and health: Examines the correlation between flexible work environments, reduced sick days, and improved employee well-being.
4.3. Impact on productivity and organisational costs: Analyzes financial performance gains and cost savings in office space and operations derived from successful telework programs.
5. Disadvantages of work flexibility and telework for employees and organisations: Discusses the risks of remote work, including potential feelings of isolation, barriers to career advancement, and reduced collaborative innovation.
6. Conclusion and recommendations: Summarizes the findings and provides strategic advice for Commerzbank to adopt flexible work models while managing associated risks.
7. List of references: Provides a comprehensive list of all scholarly sources and reports cited in the research.
8. Appendix: Presents detailed statistical data regarding telework percentages in European countries from 2004 to 2013.
Keywords
Workplace flexibility, Telework, Organizational performance, Staff turnover, Retention, Absenteeism, Productivity, Human capital, Remote work, Commerzbank, Financial sector, Employee health, Work-life balance, Career development, European Union
Frequently Asked Questions
What is the core focus of this research paper?
The paper investigates the economic impact of workplace flexibility and telework on organizational performance, specifically exploring how these arrangements can benefit large organizations like Commerzbank.
Which specific areas are covered regarding organizational impact?
The research focuses on how flexible work affects staff turnover and retention, employee absenteeism and health, and overall productivity and organizational costs.
What is the primary goal of the author?
The primary goal is to provide a theoretical and analytical basis for implementing flexible work arrangements to increase Commerzbank's competitiveness in the international labor market.
What research methodology is employed?
The paper utilizes a quantitative analysis and literature review based on data from the European Commission, Eurostat, and various academic and industry studies to evaluate telework trends.
What does the main body of the paper discuss?
It covers the definitions of telework, its adoption trends in Germany and the EU, its positive economic impacts on profitability, and the significant organizational and social challenges involved.
Which keywords best characterize this work?
Key terms include workplace flexibility, telework, organizational performance, staff turnover, productivity, and human capital.
How does the author view the trend of telework in Germany?
The author observes a negative trend, noting that unlike in many other European countries where telework has increased, participation in Germany has decreased over the last seven years due to corporate culture and structural factors.
What is the author's stance on the disadvantages of telework?
While acknowledging the clear economic benefits, the author warns that organizations must address challenges like employee isolation, potential barriers to promotion, and the risk of reduced collaboration and innovation.
- Quote paper
- Yulia Pinter (Author), 2014, Impact of Work Place Flexibility and Telework on the Performance of Organisations, Munich, GRIN Verlag, https://www.hausarbeiten.de/document/299890
