There has been much speculation over the past several months as to what impact the recession will have on Corporate Social Responsibility (CSR) with many predicting that companies will devote less time, attention and resources to it. Yet given the current economic climate, responsible business practice is more important now than ever with the credit crisis resulting in a loss of trust in large businesses – especially in the financial sector.
With an increased threat of redundancies and the need to achieve more with less, there is unprecedented pressure on staff. While businesses must prioritise during a recession, CSR policies and practices should be seen as fundamental to the way companies operate – not an afterthought. Companies that are able to restore consumer confidence and build workplaces that engage and motivate staff are the ones that will be best positioned to ride the storm.
Even before the economic downturn there was growing concern about the intensification of work in HK with the majority of people working in stressful environments, characterised by long hours and heavy work loads. Annual surveys repeatedly show that employees in HK spend little time on their personal life and that poor work-life balance is impacting their health and productivity.
Key Statistics from Community Business’ State of Work-Life Balance in Hong Kong Survey 2008:
- Average number of working hours in Hong Kong is 48.8 hours – 22% higher than recommended by International Labour Organisation (ILO).
- Almost 73% of employees spend less than two hours per day on personal or private activities.
- Over 60% of employees state that they are suffering from prolongued fatigue and extreme tiredness due to poor work-life balance.
- Just under half say they have no time for their partner and family.
- The percentage of employees who report that their productivity and work quality has reduced dramatically due to long working hours has risen significantly from 33% in 2007 to 38% in 2008.
The current economic crisis is likely to exacerbate the problem with large scale redundancies, mass restructuring and general uncertainties, putting a huge amount of pressure on remaining staff. Recent research has shown that as many as 62% of employees said they suffered prolonged fatigue and extreme tiredness and 30% said they get sick regularly due to heavy workload. Subjecting staff to intense work levels and disregarding their personal needs is not sustainable, and poses a huge threat for companies, effecting morale and corporate reputation.
The cost to businesses of poor work-life balance is very evident, leading to absenteeism, poor performance, lack of motivation and an increase in errors or faults – ultimately impairing productivity and impacting financial performance. If these are not compelling reasons enough, according to Community Business’ 2008 Survey almost one third of employees in Hong Kong would consider leaving their current job for better work-life balance and over 20% would consider leaving Hong Kong for the same reason.
The benefits to promoting work-life balance include enhancing reputation, attracting and retaining staff, increasing productivity and raising morale. If employees are less stressed, their productivity and quality of their work is likely to improve. A company that supports work-life balance policies is likely to foster a more positive perception as an employer, thereby leading to better relations with employees and greater staff loyalty, commitment and motivation, reducing staff turnover and recruitment costs. In the current economic environment the business case for work-life balance - and flexible work-arrangements, are evolving. Companies are increasingly look at flexibility to address economic challenges and navigate the difficult times. Traditional reactions to economically challenging times - such as large scale redundancies - should be examined closely exploring whether the move will be strategically beneficial, or have negative effects on morale, loyalty, commitment and trust between employers and employees, particularly looking to the future.
Flexible working, i.e. reduced hours or periods of unpaid leave, can be used to redistribute work and reduce salary costs. This also has the advantage of retaining talent and knowledge for a time when business picks up and avoiding the costs of redundancy. At the same time staff who feel they are valued sufficiently by the organisation to have been retained, are likely to reciprocate with increased commitment and effort. For companies committed to corporate social responsibility, work-life balance is a critical issue. It is not just about ‘treating employees with respect’ but engaging a healthy and productive workforce which will help the company ride the storm and emerge even stronger.
Paul Arkwright
Publisher
