1. THOUGHT LEADERSHIP SERIES
April 2013
FLEXIBILITY – A SERIOUS BUSINESS IMPERATIVE
OUR POINT OF VIEW Beginning June 1st, 2013, Yahoo employees will no longer be
A recent talent neuron able to utilize flexible work models. The announcement quickly
divided online bloggers and work place experts into two
survey shows that 65% categories: those who support working from home and those
of technology who do not support it. The fact that a majority of the
companies face discussions were centered on working from home vs. working
from office, indicates how flexibility is viewed as a tactical
difficulty in finding
initiative rather than a serious business imperative. Talent
relevant and niche Neuron has conducted several discussions with HR leaders and
skills. The era of global Engineering leaders on this topic. The general consensus is
talent competition will that, while working from the same office building may have
some visible advantages on the surface, in the current global
compel companies to
delivery model, companies will no longer be able to attract, hire
strengthen flexible work and retain quality talent by taking away the workplace
models in order to stay flexibility of knowledge workers.
relevant and improve In order to understand this, let us take a look at the key trends
innovation quotient. shaping up the technology companies in the last 18 months.
Key Trends
 Skill requirements are constantly changing. Technology
companies are routinely striving to figure out where to execute,
what to execute and how to execute work optimally (Source:
Talent Neuron primary interviews with HR and Engineering
leaders, Jan-2013). Talent acquisition is an equation of
matching demand with supply and this equation is constantly
evolving.
 Niche skill hiring is the current area of focus in talent
acquisition. (Source: Summary Insights, Confluence 2013).
Talent does not reside within a few “talent pockets” anymore.
Companies traditionally, were able to define a particular
“catchment area”, to set up office buildings and execute the
strategies leveraging a vast talent pool. Now companies are
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2. beginning implement strategies where new offices are opened near small talent pockets in order to
access niche skill sets.
 Employee demographics in the US are
changing. The current generation has
the dual responsibility of caring for
their immediate family and also
taking care of their ageing parents.
This means an effective and
productive worker has to manage a
significantly higher number of “family
related” situations in an optimal
manner. The natural argument from
those who do not support flexibility, is
that while at work, employees should
be focused only on work. While this
may be ideal, it is not feasible to
execute when faced with day to day
realities.
 Employees are more connected to work than ever before. As a result of the mobile revolution,
employees are going the extra length to deliver customer needs by extending the work schedule.
Tablets and smartphones are enabling employees to collaborate and communicate from remote
locations. It is estimated that by 2016, about 40-45% of the white collar work force in the US will
spend approximately 30-35% of their time working outside the central office.
 Global delivery models and acquisitions for talent and market space have given companies a
footprint that is large and wide spread. This trend is expected to continue as companies are focused
on innovation. Talent will drive the top line in this new global model and companies will have an
increasingly spread out talent base. Talent will not be office centric in the future enterprise.
 An essential talent strategy should focus on building trust and sending positive signals to the
employees in the company. Taking away flexibility sends the wrong signal. The argument that
people work well only when they are together in a building indicates an issue of trust in the work
environment.
A recent study led by David DeSteno at Northeastern University suggests that personality
traits such as honesty and fairness are linked to specific kinds of nonverbal cues, and
humans can pick up on these signals during interactions.
 Flexibility provides a comprehensive set of advantages. Our research indicates that there are
operational, societal and environmental benefits with respect to flexibility. Flexibility provides a
platform for new mothers returning to work. Additionally, it has a significant beneficial effect on
the environment. Imagine the number of cars that will be on the roads if organizations completely
remove flexibility.
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3. Why the resistance if the benefits are high?
In spite of all these benefits, our survey indicates more than 35% of Engineering leaders (director levels
and above) do not believe in flexible work models. There are genuine concerns that surfaced in our
focus group discussions
 Trying to run a collaborative meeting is still difficult. Even with the arrival of new technology on
collaboration, it still takes, on an average, 10 to 15 minutes, to bring everyone online and start
effective discussions
 A different set of skills should be learned and implemented by flexible work model employees.
Employees adapting flexible work models should communicate more when compared to the rest
of the workforce. Failure to respond to an email on time, has more negative effect for flexible
work model workers than it has on others.
 A significant fraction of first level managers are already mentally exhausted by working in the
global delivery model. When a variation of global delivery model (having to work with someone
in the same location without face to face interaction) is encountered, this exhaustion often
translates into providing less support.
 There are instances where flexibility is overused or abused. Like with any corporate initiative,
flexibility has had cases where poor judgment was involved by employees utilizing it. This has
led to a lack of support in multiple situations.
 Poor career progression of employees utilizing flexible work models, has resulted in some
employees abandoning this model. When they come back from the flexible work models, they
stand as testimonials to other employees in the organization that flexible work models are not
effective solutions.
Conclusions
If the existing limitations and psychological barriers of flexible work models are resolved, flexibility can
provide cost and innovation advantages. The issues around flexibility are often misunderstood. As the
great American historian, Daniel J. Boorstin, once said “The greatest obstacle to discovery is not
ignorance – it is the illusion of knowledge”.
For more information, please contact:
info@talentneuron.com
www.talentneuron.com
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