Executive Presentations on Work-Life

Alliance of Work-Life Professionals
1997 San Diego Conference
February 6-7, 1997

Summary prepared by David H. Rodbourne ~ Director of Programs
Minnesota Center for Corporate Responsibility

Eli Lilly & Company

Randall Tobias, CEO of Eli Lilly, outlined his company's "compelling business reasons for committing to Work-Life" policies and practices. "To survive and thrive" Lilly must "create a working environment that is conducive to creativity, discovery and development" and a working environment that "attracts and retains the best talent." Tobias said, "you can't hire part of a person. You get the sore back [and other problems] along with the talent." Eli Lilly works to "alleviate off-the-job concerns in order to maintain on-the-job focus." Further, the company encourages employees to pursue meaningful lives. In return for what the company does in Work-Life, the company expects its employees to "stretch." They call it "reciprocity." Although Eli Lilly is a Work-Life leader, Tobias said "we have a long way to go in creating truly flexible environments and then behaving like we really mean it." Too often, policies on paper aren't part of daily practice.

AFL-CIO

Richard Trumka, Secretary Treasurer of the AFL-CIO, emphasized the need for American employers to pay a living wage, and he expressed great concern over the disparity between CEO compensation and the earnings on the factory floor. After noting the build-up in unused vacation time, the AFL-CIO mandates that its senior executives use their vacation time, in two week blocks. They are redesigning their headquarters and their practices to be more family friendly. The union encourages employees to get involved in outside activities. Trumka himself pays far greater attention to balancing his work and family life, and he makes it a rule to rarely leave town on Thursday or Friday so he can be with his family. Trumka, a long-time workaholic, says "when I do all these things (commitment to family) I am better on the job."

Patagonia

David Olsen, President and CEO of Patagonia, said that his viewpoint on Work-Life begins with "quality." "Patagonia cannot build great quality products without a great quality work environment. If you overlook any piece in the puzzle, there is a good chance you'll miss it all." Patagonia, which operates in a very competitive industry, provides extensive Work-Life options: two months paid leave for both mother and father after the birth of a child or adoption of a child; on-site child care with adult to child ratios that exceed state requirements plus a network of in-home providers that Patagonia developed; an on-site kindergarten; flexible release time for competitive athletes, etc. Why? It costs Patagonia approximately $90,000 just to find a new senior manager. Industry-wide employee turnover is 20% but at Patagonia turnover is 4.5%. Employee's stay because they are treated well not because of high salaries (Patagonia wages begin at $10 per hour which is more than twice what competitors pay. However, Patagonia's pay structure is relatively flat with executives earning substantially below industry averages.) Although Patagonia is a leader, David Olsen said "there is a lot more we need to do." One example - Patagonia is determining what Work-Life practices can be arranged at its retail sites around the country.

GTE Corporation

J. Randall MacDonald, Senior Vice President, Human Resources and Administration, GTE Corporation, argued that Work-Life is about quality. Success depends not just on having Work-Life "programs." It is important to "be adaptive and flexible" as an organization and a culture. MacDonald cited a variety of survey research as reasons companies should take act to help employees balance Work and Life:

• Most employees feel job demands are excessive.

• Sixty-two percent of employees feel rushed.

• Two-thirds would be willing to give back compensation for more personal time.

• Losses in the economy due to stress are estimated at $200-300 billion.

• Full-time employees work 163 hours more per year than in 1967.

MacDonald acknowledged that during the rush to downsize and restructure he lost sight of his role in advocating for employees. Today, he stresses the importance of measuring the benefits and costs of Work-Life practices and communicating how Work-Life impacts return on investment.

Trends and Issues

• Many employees in their thirties are deliberately limiting working hours to focus on family, according to David Olsen. They say "no." And they challenge the idea that working 14 hours a day is a quality life. Senior executives are role models who make it clear by their own behavior that it is OK to say no and it is OK to focus on family. Randall Tobias stated that appropriate role modeling by senior executives is far better than just having a written policy.

• Face time. Cars in the parking lot late at night or on weekends. Very long hours. Randall Tobias asks, "why are some managers so disorganized they can't get the job done in 40 hours?"

• The Eli Lilly workforce today is different than it was decades ago. Only 18% fit the Ozzie and Harriet mold - e.g., Dad works; Mom stays home with the kids. At Eli Lilly, 82% of employee families are completely different. The 7 a.m. to 4 p.m. workday of the 1930s (extended into the 1980s) is not right for 82% of employees.

• The reality - whatever the rhetoric about family values - is that in many companies people are penalized if they leave after 40 hours. Many, perhaps most employees have no control over their working schedules, stated Richard Trumka.

• Patagonia conducts unannounced audits of working conditions in its 40 manufacturing locations in 20 countries. And Patagonia demands that suppliers measure up to the company's environmental standards.

• Collaboration is critical. Even a company like Eli Lilly cannot do it all. For example, the firm works closely with schools and with YMCAs to offer an 8 week summer science camp for kids. Patagonia knows that the only way it can assist employees on Work-Life issues at its scattered retail locations is through collaboration with cities and community organizations.

Summary of Key Points

• Quality and competitiveness depends on creating a conducive working environment, and Work-Life practices are a key component.

• Work-Life practices can improve an organization's performance.

• Even the best companies still have a long way to go.

• Senior executives must be role models of Work-Life balance if middle managers and employees are to believe that this is truly important to the company. However, in company after company, success in Work-Life depends not on the CEO and not on stated policy but on the attitudes of immediate supervisors.

Observation: Many companies seem reluctant to encourage other companies to adopt Work-Life practices. They don't want to "preach." However, they demand that their suppliers meet stringent environmental or quality standards and processes. If, as many argue, Work-Life and workforce practices are directly related to quality, it seems logical that companies add discussion of appropriate Work-Life practices to their negotiation with suppliers. This would expand awareness and benefit the bottom line.

Summary prepared by David Rodbourne, director of programs, Minnesota Center for Corporate Responsibility for MCCR's Work/Life Task Force and The Work«Life Network. This summary is based on notes taken during conference presentations.

Center for Ethical Business Cultures

1000 LaSalle Avenue, TMH 331 ▪ Minneapolis, MN 55403-2005 ▪ USA

Phone: 651 962 4120 or 800 328 6819 Ext. 2-4120 ▪ Facsimile: 651 962 4042

Email: mail@cebcglobal.org

© 1978-2008 Center for Ethical Business Cultures. All Rights Reserved.

Business Partnering with the University of St. Thomas - Minnesota