Attracting and Retaining Top Talent Through Virtual Work

These contributing factors are challenging employers to rethink, adapt and forge new frontiers to keep their high-performing employees and attract future stars for their organizations.

Companies that are re-assessing their recruitment and retention strategies recognize that a ‘one-shoe fits all’ approach no longer attracts or maintains the loyalty of high performing workers. Talented and experienced employees are more in control of their professional lives and many of them change employers with more ease than ever before. Not only are they more transient, they place a high priority on achieving work/life balance in a frenetic world. They are also more socially and environmentally aware. According to recent surveys, workers—especially the younger ones—would prefer to work for an employer that is environmentally responsible and that demonstrates a commitment to corporate social responsibility.

So how do companies gain an advantage in the war for talent? Total rewards give optimum choice to employees. For companies to succeed in attracting and retaining top talent in a tightening labour market, they must provide choices in benefits, investments, pension plans, and flexible work arrangements, along with a healthy workplace and opportunities for personal growth. They must create a workplace that is gratifying and that stimulates high employee engagement.

One aspect of a winning total rewards strategy is the inclusion of a virtual employee program. With rising commuting costs and concerns for the environment, workers are looking to work for employers that provide the flexibility to work from home.

Several misconceptions about the effectiveness of virtual workers abound. These include:

• They are less productive
• They are distracted by family commitments, thereby spending less time working
• Their manager/employee relationships are undermined
• They experience increased family conflicts because the employee is spending too much time working
• They have decreased opportunities for promotion because virtual workers’ performance is not routinely observed

However, academic research, forward-thinking organizations and an increasingly volatile economic environment are slowly eroding preconceived notions that employees working from home are ineffective and unproductive. Substantive evidence exists that debunk these misconceptions and provide a favourable case not only for the virtual worker, but also for the company.

According to the Journal of Applied Psychology, “decentralized work arrangements are being touted as a way to reduce real estate expenses and as a means for employees to adjust their schedule to meet household and family demands, and commuting costs. Digital technologies have enabled common, even synchronous activities to be distributed across employees at remote locations.”

Additional studies indicate benefits for both company and employee:

For the company

• Ability to attract and retain talented employees without location being a factor
• Reduced turnover, which reduces recruitment and training costs
• Increased employee productivity
• Reduced absenteeism due to minor illnesses, transportation and weather issues
• More efficient work routines without office politics and interruptions
• Growth of the company without expanding office space
• Reduced existing space
• Increased time for employees to interact with customers/clients

For the employee

• Improved work/life balance
• Reduced stress
• Appreciation of, and increased loyalty to, the company
• Reduced expenses for transportation, clothing and food
• Tax advantages

Speaking from first hand experience, Ceridian Canada, for the past four years has woven a virtual work program into its culture of work/life balance. The program was seen and continues to be viewed as an integral part of Ceridian’s total rewards approach to attracting and retaining talented people.

Some observations from Ceridian’s experience with virtual workers include:

• On the annual Hewitt 50 Best Employer Survey (in which Ceridian ranked 14th), the overall engagement level of virtual employees was significantly higher than the Ceridian average and the average of the Best Employers in Canada
• In 2007, more than 3,000 unsolicited resumés were received from applicants seeking employment with Ceridian
• The voluntary termination rate of virtual employees is less than one-sixth of the company’s rate
• More than half of the positive comments Ceridian received from its customers were about the excellent service they received from our virtual employees

Companies that have successfully implemented a virtual work program recognize that the era of the standard nine to five workday is ending. The information revolution has allowed them to release time and task from one place, creating a positive and healthy triple bottom line: financial, environmental and reputation. Most importantly, these companies are paying attention to the needs of employees—young and old—who are seeking flexibility in how and where they do their jobs. This strategy not only pays dividends in attracting and retaining employees, but also scores high in the all important criterion of employee engagement.

Jim Thomson is a seasoned human resources leader with a strong business management background. He was appointed director of human resources operations at Ceridian Canada in 2004. His responsibilities are national in scope and include oversight of all human resources functions, programs and initiatives throughout the company.