Accounting Office Management & Administration Report

Work/life balance is a popular topic now in employment circles, if still something of a new concept for many CPA firms. Getting acquainted with work/life programs and options can help your firm improve morale, recruit and retain staff, differentiate itself from competitors, and enhance productivity.

To learn about how organizations are implementing work/life programs—and how well they are working—IOMA, AOMAR’s parent company, recently polled 242 companies. A number of respondents were professional services firms.

In the world of professional services, where long hours and stress are a way of life, work/life options are especially appreciated, although respondents indicated that it is often not possible to offer as many choices as firms would like. Nonetheless, the professions are increasingly recognizing what work/life programs can do for their firms.

"Work/life balance is becoming more important with each passing year," noted the administrator at a law firm with 14 full-time equivalent employees (FTEs). "If you take care of your people, they will take care of you and your organization. It is less costly to offer work/life balance initiatives than it is to hire someone to replace an employee who leaves."

Being flexible. More than half of all respondents (57%) offer flexible work hours year-round, and 35.1% offer seasonal flexible work hours (see Table 1). Telecommuting on a full-time basis is available at 20.7% of the respondents’ organizations, and is available part-time at 35.5%. Job sharing is offered by 21.5% of the companies, and almost three-quarters (74%) have part-time opportunities.

Most organizations (82.6%) offer leave in small increments that is not leave required under the Family and Medical Leave Act. And paid time off (PTO) programs combining vacation, sick, and other leave into one block to be used as the employee desires are in place at 55% of organizations. Most respondents (73%) provide flex options to all employees, while close to a quarter (24.6%) do so to certain departments or to certain jobs only (see Table 2).

Most respondents report favorable results with their work/life programs, including more retention, increased morale, and higher productivity. Few organizations are measuring the results of work/life initiatives yet, however.

Challenges include inconsistencies in which workers can have access to various initiatives (telecommuting, flex time); problems obtaining buy-in among all supervisors; and struggles to accommodate work/life requests in small organizations or those where the primary work focus is difficult to adapt. Increased costs to get the programs up and running were mentioned by several respondents.

Various approaches. Although certain methods are common, different organizations define work/life balance programs in different ways. The nature of professional service firm life means that there are restrictions on just how flexible and free a firm can be.

For smaller firms especially, avoiding a one-size-fits all policy may work best. "The practices are determined case-by-case and by department. These practices are working well for our firm," noted the HR manager for a CPA and consulting services firm with 215 FTEs. "We have a firm understanding that people have families and outside commitments that may often need some flexibility in the workplace." However, the HR manager noted, "not all positions are allowed the same flexibility."

Some organizations require "core hours" to be staffed. "We are a small group with major face-to-face client contract," wrote the firm administrator for a CPA firm with 11 FTEs. "Therefore, we have determined that management’s stand is that a core group—those with first-call client contact—will work standard hours."

PTO banks were cited by a number of respondents as a way to provide opportunities for work/life balance. "At my former company, all time was considered personal time—sick, vacation, and floating holidays. Time was banked on a biweekly basis and accrued through payroll," wrote the office services manager for a consulting firm with 16,000 FTEs. "It made it very easy for managers to manage time. Employees did not have to pretend to be sick. If they needed time off, they took it, and it made it much easier to ensure that workflow was consistent."

Some firms choose to keep flexibility "casual" and unofficial. "Flex time works well in our company—allows people to manage their work schedules and handle issues outside of work that may be required during the day," explained the director of HR for a professional consulting services firm with 700 FTEs. "We don’t have direct measures. Our turnover is low for our industry and employee satisfaction is in general high."

How work/life is working. Retention, morale, and productivity are the three areas most often cited by those respondents that use work/life initiatives.

"I believe that offering these types of programs has reduced our turnover and increased productivity and morale because our employees believe we are family-based," wrote the human resources director for an engineering and construction company with 250 FTEs. "Instilling this culture has taken time, but I believe overall it provides a good foundation for a company."

Inconsistency in the programs is probably the biggest challenge to be overcome. Sometimes it stems from a case-by-case application of the rules instead of set guidelines. At other times, organizations simply can’t offer the same level of benefits to all positions within the firm.

"Inconsistent application breeds resentment," wrote a partner in a law firm with 950 FTEs. "Clients speak favorably about the concept, but want their work done when they want it done, period. There is little tolerance for delays or slow start-ups caused by flex schedules."

Clarity of the arrangement is necessary, as the employee-relations associate in a consulting firm with 1,600 FTEs observed, "The only difficulty we’ve had is employees occasionally misunderstand their accountability to supervisors and coworkers. Once in a while, an employee will consider these things as ‘rights’ or ‘entitlements’ rather than ‘privileges.’"

Other potential problems to be aware of include managers who resist flexible hours and other work/life initiatives, resentment by single workers when married staff use the benefits, potential taxation issues if workers cross state lines to work from home, and abuse of the offerings.

Making work/life better. If you are just getting started or want to adjust your firm’s programs, consider the valuable advice from survey respondents below.

Communication and planning were the most frequently cited methods for success according to respondents. "I would recommend as simple a policy as possible, and a communications program that impresses upon all employees that such work/life programs are for the benefit of all employees and the organization," recommended the vice president of a consulting firm with 200 FTEs. "I would stress that abuse of the policies by anyone impacts everyone else, particularly in an organization of our size."

Part of planning includes considering any legal ramifications to your proposed programs, noted the HR manager for a CPA and consulting firm with 215 FTEs. "I would recommend that HR professionals review all scenarios before making decisions firm-wide. Depending on the state that you are headquartered in, I would look at the laws and regulations that pertain to your firm."

Especially for PTO programs, it is important to "make sure you’re specific when developing any new plan or policy, almost to the extent you cover any possible scenario to make sure it is fair to all," suggested the office manager for a law firm with 22 FTEs. "Perhaps offer a rewards program for unused time (if all sick or personal or vacation time is not used by end of year, firm pays them for unused time). I wish we’d reimburse/reward those who do not use up all their paid time off."

Other keys: Obtaining support throughout the organization, starting small and taking it slow, and making sure everyone is accountable. Research what competitors are offering, and then ask employees what they would value most.

Other suggestions: Involve employees in plan design, measure results and communicate them to management, and use job descriptions to help break out work that can be "flexed."

Most important of all, remember your firm is in business. "These programs are vital to having an engaged workforce," summed up the employee relations associate for a consulting firm with 1,600 FTEs. "Consider every option thoroughly before dismissing any. However, don’t get confused by the program’s intent and value. Adoption of these programs does not supersede an employer’s obligation to remain productive. This should remain the primary focus."

Table 1.  Work/Life Balance Programs Companies Offer Now and Will in Next 12 Months,
by Number of Employees
			Number of Employees
					More Than
		Overall	1 to 350	351 to 1,000	1,000	No Response
Flexible work hours (year-round)
	Now offer	57.0%	53.0%	61.5%	56.5%	66.7%
	Will offer	4.1	4.0	3.8	4.3	4.8
Flexible work hours (seasonal)
	Now offer	35.1	32.0	38.5	37.7	33.3
	Will offer	2.1	2.0	3.8	1.4	2.0
Telecommuting (full-time)
	Now offer	20.7	8.0	15.4	40.6	28.6
	Will offer	3.3	2.0	1.9	4.3	9.5
Telecommuting (part-time)
	Now offer	35.5	32.0	38.5	34.8	47.6
	Will offer	4.1	1.0	5.8	5.8	9.5
Job sharing
	Now offer	21.5	14.0	19.2	31.9	28.6
	Will offer	2.9	3.0	1.9	4.3	0.0
Part-time opportunities
	Now offer	74.0	65.0	88.5	78.3	66.7
	Will offer	5.0	3.0	9.6	1.4	14.3
Leave in small increments1
	Now offer	82.6	83.0	88.5	79.7	76.2
	Will offer	4.5	3.0	9.6	2.9	4.8
Paid-time-off policy2
	Now offer	55.0	62.0	48.1	49.3	57.1
	Will offer	6.6	4.0	7.7	8.7	9.5
Banks of time3
	Now offer	7.4	8.0	3.8	7.2	14.3
	Will offer	2.5	1.0	1.9	4.3	4.8
1for child’s dr. appointment, ball game, and the like.
2combines sick, vacation, and other time off.
3from busy periods to be ‘drawn on’ during slow periods.
(Source of tables: IOMA)
Table 2. Employee Types to Whom Companies Offer Work/Life Balance Programs,
by Number of Employees
		Number of Employees
				More Than
	Overall	1 to 350	351 to 1,000	1,000	No Response
All employees	73.0%	87.6%	64.4%	61.9%	57.1%
Manager/executive level only	2.4	1.1	0.0	4.8	7.1
Only employees in certain departments or in certain types of jobs	24.6	11.2	35.6	33.3	35.7