Rising Work-Life Balance Concerns Tied to Employee Turnover across the Globe, New Hay Group Research Finds

Thursday 27 June 2013 17:45
More than one in four employees (27 percent) at organizations that are not perceived to support work-life balance plan to leave their companies within the next two years, according to new research from Hay Group, the global management consulting firm. For an organization with 10,000 employees, a 10 percentage point reduction in turnover over two years would result in savings of $17.5 million (assuming an average salary of $35,000 and an average replacement cost of 50 percent of salary).

At the same time, work-life balance concerns across the globe are on the rise, with 39 percent of employees in Hay Group Insight’s 2012 normative data indicating that they did not have a “good balance” between work and personal life, compared to only 32 percent who reported the same in 2011. Concerns also persist about the number of workers available to complete the work required, with the majority of employees (52 percent) reporting that there are not enough people to do the work in their area.

“Organizations across the globe continue to ask their employees to ‘do more with less’, leading to increasing dissatisfaction with work-life balance,” said Mark Royal, senior principal at Hay Group Insight. “Tactical solutions like telecommuting options or flexible work schedules will not be enough to successfully address these mounting concerns. Organizations must also focus on long-term solutions to work-life balance issues by helping employees work more productively and identifying opportunities to begin rebuilding their workforces. By providing enabling work environments and additional people resources organizations can help employees accomplish work tasks as efficiently as possible, leaving more time to attend to personal responsibilities and garnering higher levels of organizational loyalty.”

Hay Group Insight’s research also found that employees who perceived work-life balance support from their organizations reported greater confidence in their companies’ ability to recruit top talent. When employees were asked about “the ability of the company to attract high quality employees,” 71 percent of those from leading organizations for work-life balance provided ratings of “good” or “very good,” compared to only 45 percent of employees in laggard organizations for work-life balance. Employees who perceived support for work-live balance also reported more satisfaction with their compensation. 58% of them agreed with the statement “I believe I am paid fairly for the work I do.” That’s compared to only 36 percent of employees in organizations ranked in the bottom quartile for work-life balance.

“We need to start by asking ourselves why our employees are unable to achieve work-life balance first,” said Nongnuch Obsuwan, senior consultant at Hay Group. “There are many factors that obstruct work-life balance. Organizations should provide a clear direction and role for their employees on their first day, so they know what they have to do and can focus their efforts accordingly. Putting the right man on the right job is also important, if we know what our employees are good at and provide them with the appropriate work and support to develop essential skills, they would be more efficient and effective and able to achieve work-life balance. Moreover, organizations should create a climate that enables employees to work effectively with minimal distraction, for example, creating an organization culture which is supportive and respect for each other.”

Other major findings from Hay Group Insight’s research include:

Central America Ranks Highest in Work-Life Balance

According to Hay Group Insight’s 2012 data, organizations in Central America ranked the highest in work-life balance, with 70 percent of employees saying their organizations support them in achieving a reasonable balance between work and personal life.

North America followed close behind with 65 percent, followed by Eastern Asia (63 percent), Latin America and the Caribbean (63 percent) and Southern Asia (62 percent).

European Work-Life Balance Perceptions are Mixed

Employee perceptions of company support for work-life balance are mixed across Europe. In Western Europe, only 44 percent of employees said their organizations support them in achieving a reasonable work-life balance, an 11 percentage point drop from 2011. That’s compared to 56 percent of employees in Eastern Europe who said their organizations support them in achieving work-life balance.

Africa and the Middle East Report Bleak Perceptions of Work-Life Balance

Work-life balance perceptions ranked the lowest in Africa and the Middle East, Hay Group Insight data found. In Africa, only 44 percent of employees perceived work-life balance support from their companies. Southern Africa ranked the lowest among the regions with only 43 percent of employees perceiving work-life balance support from their company, a 9 percentage point decrease from 2011. Similarly, in the Middle East, only 52 percent of employees felt support from their organizations around work-life balance.

“In Thailand, most employees do not perceive that their organizations support work-life balance,” Nongnuch added. “Only 47% of employees feel that their organizations support them to achieve work-life balance. Organizations need to ensure better support more than ever before and be aware that the importance of work-life balance to employees is increasing. Direct managers need to proactively address this issue otherwise your best people would burn out or walk away.”