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As China’s workforce reaches new levels of maturity and wealth, flexible working arrangements are an increasingly important part of HR strategies
Rising office rents, increasing traffic problems, and a recent rapid decline in air quality have led some foreign firms to offer flexible working arrangements to white collar employees in China. According to a survey of more than 20 US-China Business Council (USCBC) member companies, many are now allowing flexible start and finish times, working from home, and opportunities to transition to part-time work (USCBC is the publisher of the China Business Review). Though most of the companies surveyed offer some form of flexible working arrangements, policies are rarely publicized and benefits are often only available to middle and upper management.
What types of arrangements are available?
The majority of companies interviewed allow only two types of arrangements: flexible start and finish times and telecommuting. A small but growing number of firms offers more creative arrangements. For example, one company gives its employees the opportunity to choose their working hours once a year, with three different options. Another company encourages employees to work from home one day each week. Another company said that as long as employees are in the office during the core hours of 10:00 a.m. – 4:00 p.m., coming in late or leaving early is “acceptable.”
Why do companies allow flexible working arrangements?
US companies operating in China allow flexible working arrangements for a variety of reasons, but the following are the most popular:
Who is eligible for flexible working arrangements?
Among the companies interviewed by USCBC, nearly all now employ flexible working arrangements, but some allow only certain groups to utilize this benefit. For example, some allow only management (employees at the director level and above) to engage in flexible working arrangements, while a smaller percentage of interviewees allow all employees to apply for flexible working arrangements.
A new solution?
Talent recruitment and retention is one of the key issues faced by US companies operating in China, and flexible work arrangements have emerged as one way human resources departments have responded to recruitment and retention challenges. Non-compensation-related factors—such as flexible working arrangements—are gaining increasing importance in retaining or recruiting talent in China. Earlier this year, the MRI China Talent Report reported that employees indicated for the first time that “improved benefits” and “work-life balance” were key to their decision to stay with a company. As China’s workforce reaches new levels of maturity and wealth, flexible working arrangements are an increasingly important part of HR strategies.
[author] Jake Parker ([email protected]) is chief representative of the US-China Business Council’s office in Shanghai. This article originally appeared in USCBC’s members-only newsletter, China Market Intelligence. To learn more about becoming a USCBC member, visit www.uschina.org/about/join. [/author]