Challenges of work-life balance

The fact that work-life balance is in fashion is a clear sign of our times. A few years ago, yuppies and stock options dominated the media and made many young people dream. But what do people want today? Time. Families need time to fulfill their role as creators and developers of human and social capital. It took several decades for ecological crimes to be legally sanctioned. Following Kyoto and the decisions made in the EU, awareness of the problem is now a reality. However, we are still at the beginning of raising awareness of a problem that affects us every day: attacks on human ecology. The most glaring consequence is the demographic winter we are experiencing in every European country without exception, since none reaches the population replacement rate: 2.1 children per woman of childbearing age. Cinco Días.com This is the consequence of multiple factors, one of the most significant being the lack of work-life balance. Protecting and promoting the family, whether through companies or public administrations, should be a social and economic priority. There is no other human factory that contributes human capital and prepares it for society while developing unconditional emotional bonds. When the family fails, the school is burdened with more responsibility than it can assume, leading to increased school failure, drug use, and juvenile delinquency, as well as the development of egocentric and antisocial behaviors that do not help build strong companies or fair societies. In fact, a large number of people would exchange some compensation and benefits for flexibility measures. Pay is no longer the only form of gratification; people also expect a mental salary, defined largely by the quality of private life that the company allows employees to enjoy. In job-selection criteria, remuneration is giving way to the possibility of continuing to learn and making work, family, and personal life compatible. The employee’s family is thus beginning to matter to the company as well, becoming a new stakeholder, alongside suppliers, customers, shareholders, and the local community. At IESE, we coined the term Family-Responsible Employer (EFR) to refer to companies that make it possible for their employees to balance professional, family, and personal life. The IFREI (IESE-Family Responsible Employer Index) is cited in the business press as the index that tracks the state of work-life balance in Spanish companies. From 1999 to 2005, the trend was clear: the number of companies with a work-family balance program tripled—from 7.3% to 22%—along with greater corporate awareness of the work-family conflict, which rose from 5% to 21%. This study measures not only flexibility and support policies, but also the existing culture and the enabling factors that ensure the program is effectively implemented. It is becoming increasingly clear that the social policies of the 21st century will be work-family balance policies. According to IFREI 2005, more than 60% of Spanish companies believe it is necessary to have flexibility policies (regarding starting and finishing times, part-time work, maternity and paternity leave, compressed workweeks, job sharing, annual accounting of hours worked, teleworking, videoconferencing, assistance with caring for dependents, and so on). More than 40% of companies believe that family problems will increase over the next three years and that this will bring about changes in the labor market. Data such as that presented at the First International Academic Congress held this summer on the IESE campus confirm this reality. Here are some of the conclusions reached by 60 academics from 20 countries across the five continents: l The youngest people—the so-called Generation X—spend one more hour a day with their children than baby boomers do. l The number of dual-centric workers has grown; that is, people whose lives are centered not only on work (workaholics), but also on their families. Studies show that dual-centric people and those who prioritize family enjoy better mental health, greater satisfaction with their lives, and greater job satisfaction. l Given the rigidity and increased demands in a large proportion of companies, the number of employees who want positions with greater responsibility is declining. l There is a widespread trend toward lowering aspirations for career advancement. l With new technologies, the barriers between our working time and leisure time are disappearing: employees feel overloaded, and mistakes, absenteeism, stress, voluntary turnover, and a lack of commitment follow. The EU highlights flexibility as one of the ten main parameters defining the quality of employment in a country. Integrating workplace diversity in an increasingly global and changing world requires flexibility in work arrangements and schedules. The issue is not working fewer hours, but working the hours devoted to our professional tasks more effectively. To achieve this, however, we need to move away from management by attendance control and develop genuine management by objectives and missions, while also making labor legislation more flexible so that the best solution can be implemented for each case and situation. In my recent appearance before the parliamentary committee of the Ministry of Labor on working hours, I highlighted the strong correlation between being an EFR and having lower levels of stress and absenteeism. What challenges remain? First, we need to move closer to the European timetable. To do so, we must train managers and employees in managing executive and personal time, so that flexibility and rationality in schedules translate into greater business productivity. Furthermore, EFRs should be encouraged through tax deductions in corporate income tax and by awarding them more points in public tenders. The EFR certificate can be a practical tool for making this reality tangible. Finally, the Administration should promote an ambitious program to reconcile work, school, and social schedules, as we suggested in the White Paper on schedules presented by the Fundación Independiente and INAP last December. All of this must be backed by clear care services: nursery places and home assistance must be a priority for this and any government that seeks to respond to the new needs of the constantly evolving triangle formed by family, business, and society.