ASIAN JOURNAL OF MANAGEMENT RESEARCH

Online Open Access publishing platform for Management Research

Copyright 2010 All rights reserved Integrated Publishing association

Research Article ISSN 2229 3795

Work-Life Balance: The key driver of employee engagement

Susi.S1, Jawaharrani.K2
1- Research scholar, Bharathiar University, Coimbatore
Lecturer, Bharathidasan Engineering College, Nattrampalli
2- Professor, St. Josephs College of Engineering, Chennai
susviji@gmail.com

ABSTRACT

A changing economy and an aging workforce can join together to create an employment
environment where competent employees who are unhappy in their current situations are
motivated to find a new place to "hang their hats." A highly engaged workforce is 50% more
productive than an unengaged workforce. The majority of HR professionals (78%) feel
employee engagement is important or extremely important to business success. Employee
engagement has emerged as a critical driver of business success in today's competitive
marketplace. Employee engagement is increasingly viewed as a win-win strategy for
companies, employees, and their communities alike. In addition, work/life balance is
increasingly important for engagement and affects retention. This paper will examine some of
the literature on Employee engagement, explore work-place culture & work-life balance
policies & practices followed in industries in order to promote employee engagement in their
organizations to increase their employees productivity and retain them. Work-life
balance is key driver of employees satisfaction.

Keywords: Employee Engagement, Work-place culture, Work-life balance Policies &

practices.

1. Introduction

Nowadays, most companies do agree that engaged employees those willing to go the extra
mile can have a very strong effect on the success of a business and so are seeking effective
techniques that will allow them to build engagement.Employee engagement has generated a
great deal of interest in recent years as a widely used term in organizations and consulting
firms (Macey & Schneider, 2008) especially as credible evidence points toward an
engagement-profit linkage (Czarnowsky, 2008).Towers Perrin, looking at over 35,000
employees across dozens of companies, showed a positive relationship between employee
engagement and sales growth, lower cost of goods sold, customer focus, and reduced
turnover.

In todays knowledge economy employees today are looking for: opportunities to learn and
improve their skills and to have an open valve for imagination, creativity and ideas; senior
management interest in employee wellbeing; and to work for an organization with a
reputation as a good employer. Research shows that organizations that provide a workplace
culture with the psychological conditions of meaningfulness (job enrichment, work-role fit),
safety (supportive manager and co-workers) and availability (resources available) are more
likely to have engaged employees. Work-life balance is increasingly important for

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engagement and affects retention. By being aware of the unique needs of diverse groups, as
well as by recognizing individual differences within these groups, HR can better understand
the challenges of increased diversity in the organization's workforce (e.g., different
generations, more females) and work toward designing and implementing work-life balance
policies and practices to engage diverse employee groups.Many businesses are concerned
about increasing employee engagement during this time of financial uncertainty. One might
think that the economic downturn and the job insecurity it brings would translate into
increased employee job focus and engagement. This paper explores the notion of Employee
Engagement and also some of the rhetorical assumptions associated with workplace culture.
Further, it outlines the implementation of work-life balance policies & practices adopted
industries for developing employee engagement.

2. Relevant related literature

2.1 Definition

Employee Engagement

The extent to which employees commit to something or someone in the organization, and
how long they stay as a result of that commitment(2).Engagement is the state in which
individuals are emotionally and intellectually committed to the organization as measured by
three primary behaviors: Say, Stay and Strive.

Workplace Culture

The workplace culture includes the employee's attitudes, belief systems, value systems, work
ethics, behavior that characterize the functioning of a group or organization etc.
(e) .Workplace culture includes the beliefs, attitudes, practices, norms and customs (how
things are done around here) that characterize a workplace. They can be both obvious and
implied.

Workplace culture is also known as organizational or corporate culture. It is defined as a

shared belief system of values and processes within an organization. It's been described
simply as "the way we do things around here." It is a powerful component to any organization
and has both explicit and implicit characteristics.

Work-life Balance policies & practices

Work-life balance, in its broadest sense, is defined as a satisfactory level of involvement or

fit between the multiple roles in a persons life (Hudson, 2005).There is no one accepted
definition of what constitutes a work-life balance practice, the term usually refers to one of
the following: organizational support for dependent care, flexible work options, and family or
personal leave (Estes & Michael, 2005). Hence these practices include flexible work hours
(e.g., flextime, which permits workers to vary their start and finish times provided a certain
number of hours is worked; compressed work week, in which employees work a full week's
worth of hours in four days and take the fifth off), working from home (telework), sharing a
full-time job between two employees (job sharing), family leave programs (e.g., parental
leave, adoption leave, compassionate leave), onsite childcare, and financial and/or
informational assistance with childcare and eldercare services.

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Work-life balance policies can assist employees achieving a balance between their work and
personal commitments that is right for them. The policies need to be supported by the
workplace culture, which reflects the beliefs, values and norms of the whole of the
organisation from the CEO to staff members. Other important factors in the success of work-
life balance policies include proper communication of commitment to the policies to existing
and future employees , raising awareness of the policies, education of managers about the
importance of policies, and training of managers on how to implement these policies.

2.2 Engaged employees are a competitive business advantage

The most successful companies recognize that their employees are their most valuable asset.
Employee engagement is not just a buzzword it has a clear link to increased business
success. Efficiency and productivity are prerequisites for success on a fiercely competitive
market. Healthy, capable and engaged employees are a companys capital and a major
competitive advantage. Linkage research (e.g., Treacy) received significant attention in the
business community because of correlations between employee engagement and desirable
business outcomes such as retention of talent, customer service, individual performance, team
performance, business unit productivity, and even enterprise-level financial performance (e.g.,
Rucci at al, 1998 using data from Sears). Some of this work has been published in a diversity
context (e.g., McKay, Avery, Morris et al., 2007). Directions of causality were discussed by
Schneider and colleagues in 2003.

The Corporate Executive Board surveyed 50,000 employees in 59 organizations worldwide.

Employees with lower engagement are four times more likely to leave their jobs than those
who are highly engaged. Even more important, moving from low to high engagement can
result in a 21 percent increase in performance. "The key to engaging employees comes from
targeting the right employees with the right programmes. Companies that segment employees
based on commitment and 'line of sight' can find the right drivers that will retain and motivate
their most valuable employees. Programmes that increase trust, empowerment and customer
focus increase engagement and therefore provide a competitive advantage. Employee
engagement has emerged as a critical driver of business success in todays competitive
marketplace. Thus, to gain a competitive edge, organizations are turning to HR to set the
agenda for employee engagement and commitment.

2.3 Work-life balance drives Employee engagement in diligences

Over the last couple of decades we have seen a dramatic shift in the workforce and the needs
of employees to effectively manage demanding work schedules and their personal lives. The
McCrindle Research study of 3000 Australians shows that work-life balance is the number
one factor of job attraction & retention (even above salary). Employers seeking scarce staff
are increasingly touting their commitment to work-life balance in recruitment advertising.
But apart from attracting someone into a job, do initiatives to encourage work-life balance
also stimulate employee engagement. HR Partner can explore options and create
recommendations for making change around programs, such as paid and unpaid time off
plans, flexible work arrangements and child and elder care resources. The increased demand
for work/life balance and the changing relationship between employers and employees are
driving the need for HR professionals and their organizations to truly understand what
employees need and want and then determine how to meet those needs while at the same time
developing and leveraging workplace talents at all levels.

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A New Zealand study, commissioned by the Equal Employment Opportunities Trust in 2007
concludes: organisations which encourage work-life balance in principle and in practice will
reap the benefits of increased employee engagement, discretionary effort and therefore
productivity. A strategy to encourage work-life balance or a series of work-life initiatives is
not sufficient to increase discretionary effort and employee engagement. Work-life balance
must be supported and encouraged at all levels of the organisation, including senior
management, line managers and all staff. (Work-life balance, employee engagement and
discretionary effort a review of the evidence. A literature review by Dr Mervyl McPherson
of the EEO Trust.)

2.4 Workplace culture sets the tone for employee engagement

Organizations that create cultures that value balance, and assist employees to achieve life
balance will be rewarded with highly engaged employees. By developing more unified and
compassionate workplace cultures, organizations will be more attractive to people of all
generations. Such studies provide valuable insight and information to HR professionals to
assess HR policies and programs for the multigenerational workplace (see Figure 1).

Table 1: HR Policies and Programs for the Multigenerational Workforce

HR Policies and Examples
Programs

Work/Life Benefits Flexible hours, telecommuting, family

leave, work/life balance policies,
allowance
For religious holidays, etc.

Rewards and Compensation, rewards programs

Recognition

Health Care Long-term care, dependent care ,elder care,

EAPs, wellness programs

Training and Professional development, mentorships,

Development temporary
work assignments, job sharing , Succession
Planning.
Formal leadership development programs,
temporary work assignments

Sources: Author compilation from two sources.

IBM, one of Australias largest IT companies, is one of the countrys most female-friendly
workplaces. Table under provides a summary of EOWA Employer of Choice for Women
initiatives undertaken by IBM. Such initiatives lead to the organization receiving an award in
2006 from the Federal Governments Agency for Equal Opportunity for Women in the
Workplace for being the most Female-Friendly organization.

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Table 2: Summary of IBM Australias Female-Friendly Workplace Strategies(Source:

IBM lauded as most female friendly workplace. 08/11/2006. World Today, The ABC.
(accessed from Australia/New Zealand Reference Centre database 22/1/2008))
IBM Australia Female Friendly Workplace Strategies
Initiatives Achievements and Benefits
Flexible Hours options to work Technology enables women to work and
from home. care for children at home.

Paid Maternity Leave Financially stable whilst on maternity

leave. 97% of women have returned
from maternity leave over the last 10
years.
Conducts three camps for young 36% of IBM Australias graduate recruits
women nationally. Duration: 1 week are female, compared to less than 15%
and is primarily about the IT industry studying IT at university.
and what it entails.

Vacation care program for IBM Gives working mothers peace of mind
children that their children are being cared for
during the school holidays.
Flexible leave offers additional four The additional four weeks gives
weeks of annual leave, purchased employees the option to take more leave
through salary sacrifice. if required, and contributes to less stress
and work overload within the
organization.

In India, the concept of hierarchy has traditionally strongly influenced business decisions,
such as strategy, promotions and communications. Yet, in today's Indian workplace, older
workers view hierarchy as more important than do people of the younger generation.
Additionally, it should be noted that the concept of the Baby Boom generation exists only in
the developed world, with other nations not having the concerns resulting from this large
generation. For example, many countries (e.g., Latino Christian, Arab and African nations)
did not have a significant reduction in fertility rates, nor did they embrace factors such as
access to contraception, the changing role of women in society and more recent focus on
work/life balance.

2.5 Work-life Balance policies & practices stimulating employee engagement in

industries

Over the last decade the evidence for the business benefits of work-life balance policies has
been growing in volume and strength. The studies show strong links between work-life
balance policies and reduced absenteeism, increased productivity and job satisfaction. Other
benefits include improved recruitment and retention rates with associated cost savings,
reduced sick leave usage, a reduction in worker stress and improvements in employee
satisfaction and loyalty, greater flexibility for business operating hours, an improved
corporate image.

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The Workplace Employee Relations Survey 1998 suggests that the workplaces that are doing
best on a number of dimensions were those with 'high commitment management practices'
well embedded in the labour process, and where a large proportion of employees feel
committed to the organisation. They defined high commitment management practices to
include policies on communication with employees and family-friendly working practices.

2.6 The impacts of work-life balance practices

Positive Impacts Agree/Agree strongly

Fostered good employment relations 88%

Helped retain more female employees 79%
Helped reduce absenteeism 66%
Improved staff motivation and
Commitment 64%
Helped lower labour turnover 60%
Helped increase productivity 50%
Eased recruitment 49%

Negative Impacts

Increased managerial workloads 37%

Increased overall costs 31%
Led to shortages of staff at key times 27%
Base: 267(number of authorities responding to the question)
Source: DETR survey of local authorities, 2000

2.7 Industries prominence towards work-life balance policies & programs

Businesses and HR professionals have also shifted with many aligning work-family/work-life
balance practices with a broader, more strategic focus on fostering employee engagement,
i.e., motivating, recruiting and retaining employees in a highly competitive environment.
Flexible work arrangements, telecommuting, and a variety of leave, family support and
wellness programs are more often integrated and aligned with business objectives.
Researchers have noted that organizational culture and supervisory support are key factors in
accounting for the availability and effectiveness of work-life balance practices.

The Indian IT industry is becoming increasingly conscious of the work-life balance and
have therefore devised several initiatives that would help strike a balance in improving
employee commitment, productivity and motivation, said Rosita Rabindra, Executive Vice-
president and Head of HR, NIIT Technologies. She pointed out that work-life programs and
policies are designed to create more flexible, responsive environments to support a
productive workplace by maximizing employee work-life effectiveness. There is a significant
body of evidence provided by major UK and world-wide employers such as IBM,
GlaxoSmithKline, BT, Lloyds TSB and others, which shows that work life balance policies
and practices can bring clear benefits to their business (see The Business Case, DTI, 2001
and A Good Practice Guide, DFEE, 2000). There is a wealth of information that outlines the
advantages of offering flexible and special leave arrangements to employees in terms of
improving staff recruitment, reducing turn-over, absenteeism and the costs associated with all
this as well as increasing employee satisfaction and productivity.

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According to European Diversity Research & Consulting the most frequently implemented
work-life balance programs in Europe are:

1. Part-time work (employee) - 97.4%

2. Flexible start and finish times- 94.8%
3. Flexible break times- 93.0%
4. Phased out/phased in part time- 88.7%
5. Health checks - 81.8%
6. Part-time work (managers) - 81.7%
7. Seminars (stress, time) - 80.9%
8. Telecommuting- 76.5%

(As cited in Parflraman, D. (2007). Europe's progress in promoting work-life and diversity in
the workplace. Executive Action Series. Ottawa, ON: The Conference Board of Canada.)

Work-life balance policies in France are very well developed. Indeed Aybars (2007) suggests
that along with Denmark, France is one of the pioneers of family-friendly
measures.(Ibid.)The combination of an ageing workforce and a falling birth rate led Japan to
encourage the establishment of flexible work-life balance practices. Cole (2006).Family
supportive organizational cultures have been associated with an increase in use of work-life
balance practices.Moreover, employee perceptions that an organizational culture is family
supportive are related to lower job stress and WFC and higher positive spill over between
work and home, as well as to higher job satisfaction and organizational commitment and
lower turnover intentions. Indeed, in a study of organizations with more than 250 employees
in Qubec, Gurin et al. (1997) reported that the most important impact of work-life balance
practices was an improvement in job satisfaction.

Landauer (1997) has reported that in a survey conducted by IBM in 1992, employees in
general rated work-balance practices as sixth out of 16 factors that encouraged retention
compared to the highest performers who rated work-life balance practices as second. Lewis
and Cooper (2005, p.10) observe, work-life balance policies are associated with offering
employees the chance to work flexibly, and notions of flexible working were originally
considered within equal opportunities programmes, with a particular focus on working
mothers. Swan and Cooper (2005) and Worrall and Cooper (1999) observe that the best way
of reducing sickness levels among working parents in managerial and professional roles
would be to reduce working hours and to offer men and women more opportunities to work
flexibly.

2.8 Awards endowing by industries for operative work-life balance policies & practices

1. BT is sponsoring a Carers in Employment Award, in association with Carers UK.

2. The Ford Motor Company is sponsoring a Driving Diversity Award for work-
life balance initiatives which have enhanced the diversity of a workforce, in terms
of culture, ethnicity, gender, age, disability or other factors.
3. The NSPCC is sponsoring a Family Friendly Award for employers who have
policies and practices which enable ongoing flexible working and support for
working parents of older children.
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4. Lloyds TSB Scotland is sponsoring the Scottish Employer of the Year Award
for employers with the best work-life balance policy and practice in Scotland.
5. PARENTS AT WORK is also launching its own Innovation Award for leading
edge work-life balance policy and practice not covered by any of the other awards.

2.9 Impact of Family-Friendly policies towards Employee commitment

There is mixed evidence regarding the cost-effectiveness of work-life balance and family-
friendly policies. Some research links these policies with reduced levels of employee
turnover, increased employee satisfaction, commitment and productivity, and decreased rates
of physical and emotional disorders associated with work-life conflict (for a review see
Brough and ODriscoll 2005). For example, Glass and Riley (1998) demonstrated that a
positive relationship existed between the provision of adequate maternity leave and reduced
rates of turnover in US female employees. Similarly, Australian research found that 70% of
businesses that incorporated telework options reported a number of positive benefits, such as
increased business productivity and reduced costs, improved employee flexibility and work-
life balance, and increased workforce participation (Australian Telework Advisory
Committee 2006).

A major study funded by the Joseph Rowntree Foundation and carried out on a nation-wide
level by researchers at the university of Cambridge (Dex and Smith, 2002), concluded that:

1. There are positive effects on employee commitment from having family-friendly

policies.

2. Approximately nine out of every ten establishments with some experience of these
policies found them cost effective.

3. Increase in performance was associated with having one or other family-friendly

policy in the case of five out of six performance indicators. (Ibid: p.42)

Practices that are typically associated with family-friendly provisions that may ease the
stresses on employed parents and caregivers such as maternity, paternity, parental and
adoption leave, child care and elder care supports, and options to work at home or with more
flexible schedules to accommodate work and care.

3. Conclusion

Work-life balance and employee engagement becomes a visible benchmark among high-
performing organizations that reap the economic and reputational benefits of being publicly
recognized as a best place to work or an employer of choice. Many Family-friendly
organizations feel the need for work/ life balance which include recruitment and retention of
valuable work force, reduced absenteeism, reduced employee stress, health benefits, job
satisfaction, and better life balance. It has been suggested that an effectiveness of work-life
balance policies and practices must incorporate the effects of workplace culture and
supervisor support of employees efforts to balance work and Family
responsibilities.Developing and maintaining a culture that enables and supports the
opportunity to have a desired work life balance and to promote the benefits of the employee
& organization.(Wheeler et al. ,2006) agrees that a strong organizational culture increases
employees intent to remain in the organization. Work-life balance must be supported and
encouraged at all levels of the organisation, including senior management, line managers and
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all staff.An organization which encourages work-life balance policies and practices will win
the benefits of augmented employee engagement and also a positive outcome is dependent on
a workplace culture that is supportive of using work-life initiatives.

4. References

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6. McKay, Avery, & Morris (2008), mean racial and ethnic differences in sales
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7. Landauer, J (1997), bottom-line benefits of work/life programs. HR Focus, 74, pp 3-4.

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15. Tucker, E., Kao, T., & Verma, N (2005, July/August), next-generation talent
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