MACPA's Statement - October 2010 - 12

and keep appointments. Catalyst cites 76 percent of managers and 87 percent of employees reported that flexibility had a positive impact on productivity. A recent study from Cranfield School of Management suggests that workers given flexible hours by their employers tend to work more intensely than their counterparts who are keeping more rigid office hours. The researchers suggest that the reason for this phenomenon is a kind of payment to the employer from the worker in exchange for the freedom to choose where and when to work. Flexibility is not always about personal needs. Often, flexibility is requested for business reasons that directly increase productivity. Flexibility requests are increasingly about setting aside uninterrupted time to complete certain tasks and to accommodate urgent work requests and to address the following business needs: • • • To be available to colleagues and clients in other time zones. To address needs put aside during periods of heavy workload. To avoid long commutes of unproductive time.

number of individuals from maximizing their potential. In addition, the loss of talent from reducing the growth of this talent pool is short sighted. It is critical that outcomes, experience requirements and role responsibilities are not confused directly with hours worked. There are positions that are very difficult to execute with less than a full-time-plus level of hours. However, in reality many of these roles can be split or shared if viewed in a new light. In addition, many types of flexibility do not require a reduction of overall hours, and therefore there is no impact regarding fulltime-plus executive roles. If the team perceives lack of advancement as a consequence of flexibility, the competitive advantage and business case is lost. Improved client service and satisfaction: Flexibility can improve client service in a variety of ways that include extended hours, deeper bench strength, improved employee engagement and improved back up service. When our clients need extended hours of access to service providers, this does not always mean that the hours must be served by one person. Flexibility promotes service by the engagement team as a whole. Putting flexibility in place regarding work hours can be an improvement for clients and our engagement teams simultaneously. With a little planning and good communication, a flexible work culture can extend the number of hours we are available to our clients and the quality of that response. For example, an engagement team can agree that one individual desires to begin work very early in the morning and wrap up late afternoon, while other team members prefer to begin work late morning and wrap up in the evening. With both of these team members covering client communication, the client is covered for a 12 - or even 14-hour day on a regular basis while still matching the desired work hours of those on the team. These arrangements create a powerful productivity enhancer and barrier to exit within the team while simulta-

neously improving client service and building stronger continuity and relationships. In addition, the team members share client coverage and communication and develop stronger skills for future advancement. If there is turnover in the team at some point, the relationship with the client does not rest in the hands of one person. The team relationship protects the client relationship and increases client continuity, which will directly improve client retention, which is a top concern of accounting firms today. Client satisfaction and retention is a number one concern of firms, according to a 2009 PCPS survey. Serving current clients is much more profitable than acquiring and acclimating to new clients. Client retention is a significant bottom-line issue for all firms and one that can be improved by well-executed flexible work culture efforts. Employee engagement is improved when desirable career components such as flexibility are available. Flexibility fit is a powerful predictor of employee engagement for employees of all ages. Increased employee engagement has been proven to predict increased customer satisfaction. Effective management: A flexible work culture can positively impact the effective management of a firm, which is most significantly a bottom line issue and important component of the business case. Flexibility improves firm management by impacting the costs related to the peaks and valleys of work flow, both predictable fluctuations such as seasonal changes and unpredictable fluctuations such as timing issues,

In the accounting industry, there is often a question about how to structure a comparable schedule for those who may have some type of flexibility in order to protect firm metrics and promote fairness. In reality, a simple proration of billable hours to non-billable hours is directly translatable for those whose flexible arrangements involve a reduction in hours. For example, if a firm policy calls for an 85 percent to 15 percent billable-to-nonbillable ratio, then the same is true regardless if someone works 3,000 hours or 1,000 hours a year. Many firms alter these ratios of percent billable-to-non-billable depending on an individual role. Therefore, direct proration of hours is not necessary or practical in these firms. In addition, many flexibility arrangements do not involve an overall reduction in hours and therefore total billable hours may actually increase due to the increased productivity noted above. Firms should avoid removing individuals from advancement and promotion tracks as a result of flexibility. First and foremost, the number of individuals who desire flexibility is increasing, and these numbers suggest it is prohibitive to exclude the significant

sTATEMEnT

MACPA's Statement - October 2010

Table of Contents for the Digital Edition of MACPA's Statement - October 2010