Diversity and Inclusion at P&G

Implementing Global Flexibility Danielle Hartmann BC Center for Work & Family Cindy Martinangelo Merck & Co. Ann Andreosatos Procter & Gamble CWF Mission Boston College Center for Work & Family is committed to enhancing the success of organizations and the quality of life of today's workforce by providing leadership for the integration of work and life, an essential for individual, organizational & community success Key differentiators: Bridge research & practice

Employ a global perspective Recognize changes in work-life needs through the career continuum Membership BP plc. Chevron Deere & Co.

Dow Chemical Company GlaxoSmithKline Kraft Foods Merck & Co Proctor & Gamble Prudential Financial Cadbury Dell Computers FM Global IBM Johnson & Johnson Novartis Pharmaceuticals PricewaterhouseCoopers

State Street Corporation What we have learned Many core concepts of leadership & managing the workforce translate well across cultures However, we need better understanding of differences Legal and Cultural Environment: France Fair Work Act 2009: Australia Emerging Markets: Brazil Talent and Flexibility: China Coordination of strategies across corporation is critical Universal Work-life Issues We have found that there are 4 universal work-life issues around

the globe. Resolving those issues takes creativity and sensitivity to local culture. Dependent Care Demand for Flexibility Work-load/Stress Health & Well-Being Legal and Cultural Environment: France

Employers have less legitimacy than the State in the work-life arena Employees seek to protect their personal life; hold a more distrustful view of employers and their vested interests Structure and focus of unions sometimes conflict with worklife ideals. Work-life is seen as a social issue, not an economic one that requires a business case HR managers must comply with complex legal requirements Ollier-Malaterre, Ariane(2009) 'Organizational work-life initiatives: context matters', Community, Work & Family,12:2,159 178. Fair Work Act 2009: Australia 1. 2. 3. 4. 5. 6. 7. 8.

9. 10. maximum weekly hours of work the right to request flexible working arrangements parental leave and related entitlements annual leave personal/carer's leave and compassionate leave community service leave long service leave public holidays notice of termination and redundancy pay provision of a Fair Work Information Statement What should employers do to ensure compliance with r2r? Prudent employers would educate their managers about the factors to be taken into account when determining such a request.

A checklist of factors would include: whether a work/family policy exists within the organisation whether a similar request has been granted elsewhere in the business the nature of the role and key performance indicators options for change (eg including modifications to the request) the impact of the change on the team/business unit the cost of the change vs the cost of not making the requested change (eg turnover). Aequus Partners: http://www.workplaceflexibility.com.au/r2r_NES_survey_report_1_Sept_2009_executive_summary. pdf Emerging Markets: Brazil Work-Life Trends in Brazil

Still many Brazilians work in the informal employment sector Continued inequity between genders Access to education is competitive Challenges in approving flexible work arrangements Demand for daycare exceeds availability Sharon Lobel, Work-Life in Brazil Executive Briefing: http://www.bc.edu/centers/cwf/research/publications/meta-elements/pdf/BCCWF_EBS-Brazil.pdf Talent and Flexibility: China Cultural norms and workforce expectations make flexibility

difficult to implement, yet demand for flexibility is increasing. Demand for top talent and global work environment make flexibility a business necessity Prevalent and successful programs include: Informal flexibility Core hours, flexible starting and ending times Working from home and telework No meeting Fridays Russell, Graeme, Work and Life in China, BC CWF Report, January 2008 http://www.bc.edu/centers/cwf/research/publications/meta-elements/pdf/China_Policy_Paper_Final.pdf Global Flexible Work Arrangements Working Mother Media October 29, 2009 Cindy Martinangelo Director, Global Work Environment Agenda

Global Constituency Group Model Business Case for Flexibility Results of Employee Survey Guiding Principles Project Timeline Global Implementation Challenges to be considered Key Learnings 10 Global Constituency Groups (GCG) representing all Merck Asian

Black Differently Able Women Generational Global Constituency Groups Native/ Indigenous LGBT Men Latino/ Hispanic

Inter-Faith Womens GCG initially made recommendation to Executive Committee to develop a global flexible work policy in Dec. 2007 Business Case for Flexibility & Results of Merck FWA Survey Employee input Focus Groups and interviews worldwide: a common concern a-mong Merck employees Flexibility Survey: a common diagnostic of benefits among employees and supervisors Benchmarking Research on Benefits

Productivity and Innovation (Center for Work and Family) Talent Attraction (Alliance for Work-Life Progress) Commitment and Health (Halpern) Reduced turnover Better productivity in parttime Sales Division Increased commitment Improved productivity Overview of Survey (conducted March 2008) Global Global participation participation (stratified (stratified random random sample, sample, 61% response rate, more than 7000 employees globally)

Designed Designed to to access access satisfaction satisfaction with and interest in flexible work options. Addressed perceived barriers and impact to productivity & careers. Key Outcomes Business Case Confirmed Use/availability of FWA varies by location/division/local manager Employee engagement is 29% higher when employees have FWA Many employees are unaware/dissatisfied with access to FWA Expected turnover rate for employees who do not have FWA they need is more than twice that for those

who do Formal FWA used more by women & is viewed as an entitlement or individual accommodation for personal reasons Even access to occasional flexibility had a positive impact on employee satisfaction Occasional flexibility is used successfully in some part of the business by both men and women. Access to flexibility is a very important retention tool to 49% of employees. Mercks Global Guiding Principles Our Our competitive competitive environment environment requires

requires that that business business objectives objectives be be met met Flexibility is good for our business and good for our people. The reason for a flexible work arrangement request is not part of the process.

Equitable consideration is central to the Merck Flexible Work Arrangements approach. Flexible work arrangements are not an entitlement. Flexibility helps the company be a better place to work and become Employer of Choice.

Flexibility is a two-way street These principles provided guidance for the formation of our global policy. Results are what count, not "face time." Flexibility does not limit career opportunities or advancement. Flexible Work Arrangement Timeline Dec 07

March April 08 June/July 08 Aug/Sept 08 Oct 08 Nov 08 Dec 08 Global FWA policy approved

Global Survey Conducted & analyzed FWA Policy & Approval Engage Country HR and Line Leaders. Website & Tool Development Executive Briefing HR Communications to announce HR Webinars Deliver 3 WebExs to the HR community On line FWA Introduction for Managers and Q&A telecons Global communications of FWA policy, website & tools, translated as appropriate. Measure success and evolve model as required 17 Support tools are

available via the My/MerckFlex webpage 18 Challenging Issues and Solutions Workload of current environment doesnt allow for FWA Research clearly indicates that FWA enhances engagement, productivity, and creativity and reduces turnover Our expectation is that the majority of employees are looking for occasional flexibility, flex time or telework, not reduced hours. Entitlement/ Accommodation mentality Decisions are based on business need. Arrangements can be changed/terminated as the business needs change

Employees need to be available to others Decisions are based on business needs. Technology has made staying connected much more practical in a remote environment. Nature of the job is not conducive to a FWA Not all jobs may support FWA. Decisions are based on business needs. Managing in a flexible work environment is difficult Managers skills and comfort level will vary. Requires training, coaching and support. What we are seeing now: Requests by FLEX TYPE Hybrid Choices 13%

Other 2% Rem ote Work 13% Com pressed Work Week 8% Flextim e 10% Job Sharing 7% Part-Tim e 8% Telew ork 39% Requests by GENDER Male 17% Fem ale 83% Key Learnings

Work life integration is defined by the individual. Not one size fits all Communication Messages should be customized (at the country level and at the functional level) (Field, plant, office). Culture is set at the country level, not at the region. Dont underestimate the value of reason - neutral Ensure that employees understand website records/requests are confidential. Accessible only by administrators and direct managers

Highlight employees who are dedicated to their career and demonstrate effective use of FWA Use FWA as a way to be clear-headed and productive in the workplace, not to burn out. Provide people managers with guidance on how to manage by objectives (not about being seen, but results that are being delivered) Link FWA to employee engagement in a highly stressed environment Provide a manager toolkit for engagement. Expanding Flexibility on a Regional Approach Drivers of Work-Life Effectiveness Flexibility Energy Demands

Well Being Performance Survey Question Across the globe We ask employees if they have enough flexibility to manage their work and personal lives CEEMEA REGION Strategy for Re-launch of Flexibility The strategy is regional

. . . the action is local. The challenge is complexity and scope . . . the solution is clear, energetic central project ownership and management Resolve the significant issues through smart choices and a good strategic framework Availability Establish a minimum floor of policies that all countries should have in place

Awareness Communication strategies were owned by each local entity starting with engaging senior managers Resolve the significant issues through smart choices and a good strategic framework Utilization objectives and strategies for tracking and understanding utilization

Supportive Culture Expect availability, awareness, utilization and behaviors around flexibility to be fully integrated Power Lies in Measurement Favorable survey responses increased by 12 points versus from 2008 results 2,500+ employees (57% of survey respondents) report using some form of FWA. Flexible Hours (flexible start and start time) Work from Home (occasional use or set schedule) Personal Leave of Absence Less Than Full Time

Build a solid infrastructure and make it easy to accelerate flexibility The journey will continue: Partner with organization leaders to broadly deploy Set expectations with line leaders and managers Build greater education for employees

Internalize and role model behaviors that address needs, inspire and instill these new attitudes Policies may be adapted to meet labor and union requirements, and will be found in the countrys policy book or FlexPaths. Where differences exist between regional guidelines and local policies, local policies are to be followed.. Latin America Latin America

Thank youWed be happy to answer any questions Danielle Hartmann, BC Center for Work & Family [email protected] Cindy Martinangelo, Merck & Co. [email protected] Ann Andreosatos, Procter & Gamble [email protected]

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