Study: Compatibility 2.0 means more return on investment
Underpinned by various scientific studies, there is now a broad consensus that work-life balance measures are worthwhile for companies. However, this usually refers to "classic measures" such as part-time work, working from home or childcare.
A study conducted by Roland Berger GmbH on behalf of the Federal Ministry for Family Affairs (BMFSFJ) now shows that the "potential return on investment of NEW reconciliation" (2016) is significantly higher than that of traditional reconciliation strategies, at up to 40 percent.
The study shows that positive returns are already being achieved with the "classic" work-life balance offers that are widespread today. According to the authors' calculations, the "compatibility return" on such investments in family friendliness is up to 25 percent, a result that is in line with earlier studies by Prognos AG (2002) and the Research Center for Family-Conscious Personnel Policy (2008). Effects result, for example, from a reduction in absenteeism and a faster return to work after family-related leave.
What does NEW compatibility mean?
In concrete terms, the NEW compatibility means that
- Companies tailor their measures to individual needs and circumstances
- Employers offer support services for all stages of life and employees, not just for parents
- managers exemplify compatibility and thus firmly anchor it in the corporate culture.
A NEW culture of reconciliation must therefore include significantly more employees and life phases than before. In addition to the traditional target group of mothers, the potential of other target groups must be better utilized. Figure 1 shows examples of the untapped potential that still exists in companies. It is clear that there is still a large discrepancy between the need for support measures and their actual use, particularly in the case of fathers (32% untapped potential) and employees with relatives in need of care (65% untapped potential).
Source: BMFSFJ 2016
The discrepancy between potential use and actual use is explained less by a lack of specific support measures offered by companies. Instead, the offerings are often not tailored flexibly enough to the individual needs of employees or leave too little room for personal choice and co-design by employees.
The range, accuracy and opportunities for co-designing reconciliation measures must therefore increase if the relief potential of Reconciliation 2.0 is to be exploited. However, it is just as important that a credible work-life balance culture is anchored in companies. If employees are concerned that the use of flexible working time models or parental leave, for example, could have negative consequences for their careers, they will be reluctant to take advantage of the support on offer. "According to the authors of the study, "the promotion of awareness and the role model function of managers is therefore crucial." (BMFSFJ, 2016: 29)
The gap between aspiration and reality is particularly clear when it comes to the opportunities offered by digitalization for a better work-life balance. "Although half of the workforce would like to work remotely, only 11% of German employees currently use a home office on a regular or sporadic basis. In a European comparison, this is a remarkably low figure." (BMFSFJ, 2016: 29). While more and more employees are also available to their employers outside of office working hours (BAuA, 2016), only a small proportion of employees are allowed to have a say in mobile working options.
How is the NEW compatibility return calculated?
Work-life balance measures cost money - whether subsidies for childcare center places, the provision of home office options or personnel costs for the administration and management of flexible working time models. However, work-life balance measures also result in cost savings: Family-friendly measures make it easier to reconcile work and family life, reduce the stress levels of parents and family carers and encourage parents to return from parental leave earlier. The result is less absenteeism, shorter bridging periods and therefore lower bridging and reintegration costs. If the benefits outweigh the costs, there is a positive return - a "return on reconciliation" on the investment in reconciliation measures.
To model the potential benefits of the NEW work-life balance, the two main benefit drivers, namely the average duration of parental leave and the average number of days of absence, were recalculated. As part of the NEW work-life balance, it was deduced that the average parental leave of employees in the family-friendly companies under review would fall from the current 11 months to 8 months. It was also deduced that companies can reduce their absenteeism to an average of 10 days (based on a national average of 15 days per employee) if they implement the NEW work-life balance. This is mainly due to more flexible working conditions, which help to avoid family-related absences.
Overall, implementing a NEW work-life balance culture can increase the return on investment by up to 40 percent.
Sources:
BMFSFJ (2016), Renditepotenziale der Neuen Vereinbarkeit, study commissioned by the Federal Ministry for Family Affairs, Senior Citizens, Women and Youth (BMFSFJ), Berlin: Roland Berger GmbH
Knittel, T. and Steiner, M. (2003), Betriebswirtschaftliche Effekte Familienfreundlicher Maßnahmen. Cost-benefit analysis, study commissioned by the Federal Ministry for Family Affairs, Senior Citizens, Women and Youth (BMFSFJ), Berlin: Prognos AG
Schneider, H., Gerlach, I., Juncke, D. and Krieger J. (2008), Betriebswirtschaftliche Ziele und Effekte einer familienbewussten Personalpolitik, Working Paper 5/2008, Münster: Forschungszentrum Familienbewusste Personalpolitik (FFP)
