Participation Rate in Flexi-Work Arrangements and Impact on Staff Morale, Productivity and Turnover
Ministry of ManpowerSpeakers
Summary
This question concerns the participation rates in Flexi-Work Arrangements (FWAs) and their impact on productivity and staff morale, as raised by Ms Foo Mee Har. Minister for Manpower Josephine Teo responded that over nine in 10 Singaporean employees work in companies offering some flexibility, a rate that compares favourably with OECD counterparts. She highlighted that FWAs improve employee engagement, reduce turnover, and have the greatest impact on staff retention among workplace practices, according to Ministry of Manpower studies. To promote adoption, the Government introduced the Tripartite Standard on FWAs, covering 410,000 staff, and enhanced the Work-Life Grant to a total of $100 million. Furthermore, employers are encouraged to utilize resources such as the job-sharing implementation guide to foster more progressive workplace cultures and better manage employee care-giving obligations.
Transcript
35 Ms Foo Mee Har asked the Minister for Manpower (a) what is the average participation rate in Flexi-Work Arrangements (FWAs) by employees at companies that have rolled out such arrangements; (b) how does the rate of Singaporeans participating in FWAs compare to those of other countries including OECD countries; and (c) whether there is a difference in productivity, staff morale and turnover for companies offering FWAs and those that do not.
Mrs Josephine Teo: Flexible Work Arrangements (FWAs) have become more common in Singapore. Based on a 2018 MOM survey1, about seven in 10 employees in Singapore now work in companies that offer at least one formal FWA, such as part-time work and flexi-time or staggered hours. In addition, about nine in 10 workers work in companies that allow their employees to take unplanned time-off to attend to personal matters, ad-hoc teleworking or both. Taken together, more than 9 in 10 employees work in companies that provide some form of work flexibility.
This compares favourably to the experience of other OECD countries. From a 2016 OECD report2 covering 35 European countries, three in four employees have access to some work schedule flexibility, including taking one or two hours off for personal reasons. In another 2017 OECD report3, about 55% of female and 53% of male employees in the US had access to FWAs.
FWAs benefit both employees and employers. For employees, FWAs allow them to better manage their obligations at work and their personal needs such as care-giving. For employers, studies4 have found that FWAs result in better employee engagement, reduced employee turnover and increased productivity. A 2018 MOM study5 also found that among workplace practices, availability of FWAs had the greatest impact on staff retention.
Among employees who required FWAs in 2016, seven in 10 were provided with the arrangement that they needed6. While this is encouraging, there is room for workplace cultures to become even more progressive. This is why MOM launched the Tripartite Standard on FWAs, to recognise employers who actively facilitate FWAs. To date7, around 1,600 employers, with total staff strength of about 410,000, have adopted the Standard.
The Government encourages and provides support to companies to implement FWAs. Employers may access the enhanced Work-Life Grant which has been raised to $100 million recently and make use of the new job-sharing implementation guide to offer FWAs to employees.