Workplaces That Work
Benefits of Reduced Costs
Understand the costs of turnover
Most employers know that costs related to voluntary turnover can be great. A 1998 study of 225 organizations in the U.S. trucking industry15 showed that workplace cultures characterized by job stability, training and equitable processes had higher retention rates. Additionally, those firms that could take their pick from larger numbers of applicants per opening, also had higher retention rates. The illustration below shows the potential dollar impact of improving retention, even ignoring indirect benefits such as enhanced company reputation.
Satisfied employees lose fewer days
Workers who describe their workplaces as having satisfactory pay, benefits, training and job security, in addition to good advancement opportunities, flexible schedules and work-life balance, will lose fewer days due to illness and injury.16 On average, those who report good job quality on these indicators missed three days and those who reported gaps in five or more job quality indicators missed six days. Lost time due to injuries and illness can cost employers significantly.
Redesigning work processes to suit a wider range of physical capabilities can reduce costs through new efficiencies and lower injury rates
In many workplaces, direct operational cost savings are achieved when traditional work practices change as a result of women’s involvement in the work activities. Organizations that have modified their equipment or work practices to reflect the physical capabilities of women (and many men) have realized cost benefits and prevented employee injury. For example, when lifting requirements and practices are changed, back injury rates drop dramatically.
When maintenance standards are improved to make equipment easier to use, lost time due to equipment failures drops significantly. This is because when work practices are modified to be less physically demanding, they are often simultaneously redesigned to be more efficient.
Addressing the root causes of turnover and absenteeism improves performance
Many of the causes of turnover and absenteeism will be similar for men and women and have been briefly addressed in other sections. However, two issues have particular implications for women and deserve special note.
Workplace violence and gender-related harassment:
The International Labour Organization has pointed out that the negative consequences of workplace violence have a ripple effect well beyond the person who is the focus of the violence. “At the level of the workplace, violence causes immediate – and often long-term – disruption to interpersonal relationships, the organization of work and the overall working environment.”17 The impact includes direct costs of lost work and improved security measures, as well as indirect costs stemming from reduced efficiency and productivity, quality problems, loss in company image, difficulty in future recruiting and a reduction in customers.
Employers under-estimate the incidence of gender-related harassment and its impact on the organization’s performance.
Gender-related harassment can range from insulting jokes about women and workplace display of sexual material, to sexual coercion by hinting job benefits (or loss) in exchange for sex. One study indicates that approximately half of working women have experienced sexual harassment but fewer than one-quarter of them reported the incident to an authority and fewer than one in ten filed a formal complaint.18
Success story
An industrial employer in the Canadian natural resources sector reaped significant cost benefits when women were employed in occupations that were previously male-dominated. As one example, the firm found that as the percentage of women ‘in the driver’s seat’ of heavy equipment increased, maintenance costs significantly decreased. With some investigation, the employer discovered that women were more likely to bring the equipment into the maintenance facility at the first sign of trouble. This led to earlier repairs and preventive maintenance and ultimately to considerable cost savings across the equipment fleet.
Tip
Do not interpret a lack of formal harassment complaints as an absence of problems. Potential indicators of sexual harassment include a sudden request for a transfer, refusal to work with a certain individual, high absenteeism and sudden changes in the quality of an employee’s work. Ensure that workplaces are free from harassment by clearly defining inappropriate behaviours, holding managers accountable for reporting and responding to all potential incidents and providing employees with formal and informal means of redress. Enact a zero tolerance approach to gender-related harassment.
Dependant care and family responsibilities: One of the key causes of stress for many working parents is access to high-quality, affordable childcare, as well as personal leave. Assisting employees to find high-quality dependable childcare can lower costs by improving retention and reducing absenteeism.
Success story
Raising awareness is the first step required in creating real workplace culture change. The Aboriginal Committee of the Saskatchewan Federation of Labour has launched an innovative training course to build understanding of the issues Aboriginal women face in diverse working environments.
With funding support from the Government of Saskatchewan's Aboriginal Employment Development Program, Union Women on Turtle Island has been tailored from earlier successful programs to encourage participation in discussions of discrimination in labour movements and in unionized work environments.
One of the strengths of this five-day course is its success in encouraging participants to examine their own attitudes and beliefs about Aboriginal women and men. While the courses have been offered in shorter sessions, the five-day version has had the greatest impact on raising awareness and changing attitudes.
Workplaces with cultures that attract women are characterized by flexibility and practices that support work-life balance. These practices can financially benefit employers in many ways. Research has shown that costs of paid leave can be more than offset by significant savings in turnover costs.19
Parental leave and flexibility in scheduling can lead to cost savings through improved retention and decreased turnover.
Tip
Be proactive in helping employees find high-quality childcare. Join with other employers to support childcare options by providing subsidies or donating goods to nearby facilities. Talk to local childcare providers and develop partnerships with them to help meet employee needs. Develop and maintain a list of local childcare providers, including caregivers for evening, overtime and illness situations.
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