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Expert opinion
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The starting point
PepsiCo’s Work Life Quality (WLQ) program was launched in 2008 and respects that employees have interests outside their job, and that it’s in the organisation’s best interest to enable talented employees to be effective both at work, and in their personal lives.
The business case for the Work Life Quality initiative is simple - our belief is that talented employees are seeking greater flexibility from their employer, and if we are to be the preferred employer attracting the best and brightest talent, we must do the best job possible of promoting work/life balance.
What’s it all about?
The WLQ program is comprehensive consisting of a range of benefits and policies including the introduction of flexible work and leave policies, and a “No Leave, No Life” policy - to encourage employees to regularly take their annual leave. The initiative also includes an Employee Assistance Program to help employees when they need support; the promotion of ‘Wellness Days’ taken from accrued sick leave; and the ability to attend a Soft Tissue Centre – which provides acupuncture, chiropractic and physiotherapy for work related and non-work related soft tissue injuries at PepsiCo Australia’s manufacturing sites. Other initiatives which are also included in the program are reduced premiums on health insurance and health checks; 12 weeks paid maternity leave; and a “Helping Hands” program, which includes paid leave for volunteer work, and the ability to make tax-free charitable donations via payroll deduction.
The point of differentiation
The “One Simple Thing” commitment included in the Work Life Quality program – is an annual, manager-initiated conversation with every employee around the question: “What is the one simple thing I can do as your manager to improve your work life quality”? We have embedded the program objectives in managers’ written annual KPI’s that are linked directly to managers’ performance ratings and ultimately potential pay increases.
It’s not intended to change our focus on results and performance. The scheme recognises performance and results are not the same as “face time at the office,” and that employees can be just as successful in their jobs, even more so, if we give them greater flexibility in how they achieve their results. It also recognises work life quality is individually defined and it can often be the simple things, outside of formal policies, which can make the difference. Therefore we believe the institutionalisation of annual discussions is a key initiative in moving the cultural dial of the organisation.
The outcomes?
The overall results since implementing the program have been outstanding - a 50% reduction in voluntary employee turnover – increase in employee engagement by 14% and an increase in Manager Quality and WLQ specific engagement measurements.
This has validated the belief that flexibility is a talent and business issue, and providing greater flexibility, manager understanding, support and accountability will increase our attractiveness as an employer of choice, increase employee engagement and retention, and ultimately improve our business performance.
As some of our employees have put it:
“The Work Life Quality Program allows me to work from home one day a week. It’s a win-win – for me it saves me 3 hours of traffic stress and for the business it means a happier more productive employee!”
“I just took a wellness day and did at least some of those things on my get... around-to-it-one-day-list. I haven’t done anything like that for decades! Thanks PepsiCo”
“PepsiCo offer purchased leave... what a great idea... (PepsiCo) are leading the way in regards to looking after their people.”
"My One Simple Thing request was to reduce my working hours to a nine day fortnight and of those nine days to also work one day from home... I was really pleased to have this request granted by my manager... and think I am a better person... for having that one day to get my life together a bit better.”
"My One Simple Thing request... was to have no meetings before 9 so that I knew every day I could get up, do some regular training exercise and it could happen no matter what occurred for the rest of the day."
For more information email alexandra.richardson@pepsico.com.au
Alexandra Richardson, Human Resources Director, PepsiCo Australia & New Zealand