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LTC 642-2019 Update on Flexible SchedulingM IAMI BEACH OFFICE OF THE CITY MANAGER LTC # 642-2019 LETTER TO COMMISSION TO: Mayor Dan Gelber and Members öf the City Commission FROM: DATE: Jimmy L. Morales, City Manager December 11, 2019 SUBJECT: Update on Flexible Scheduling BACKGROUND The goals that were included in the City Manager's employment agreement approved by the City Commission earlier this year include a number of objectives that will require innovative practices to be considered. One of those objectives is to "explore policies to better align City functions for the modern workforce, including work hours, travel, cell phones and social media." ANALYSIS In researching how other public sector organizations are aligning their policies to address the modern workforce, flexible work schedules, commonly known as flex time, seems to be a fairly well-established practice. Flex time is a scheduling arrangement that permits variations in an employee's schedule but does not change the total number of hours required to be worked per week or pay period, as applicable. While the definition of flex time is broad and includes a number of flexible staffing options, the most widely deployed option is schedules that are based on four (4) ten (1 O) hour days versus the more traditional schedule of five (5) eight (8) hour days. For the purposes of this memorandum, flex time scheduling will be defined as four (4) ten (1 O) hour day schedules. The City's Human Resources Department has surveyed local agencies to identify those that have implemented flex time scheduling practices, either agency-wide or on a limited basis. The survey only considers this practice among administrative departments, public safety and parks/recreation departments have been omitted. The table below indicates flex time practices at local agencies that responded to the survey. Aventura Some Department(s) Open 5 days Broward County City-Wide Open 5 days Broward Sheriffs Office Some Department(s) Open 5 days Coconut Creek City-Wide Closed Fridays Coral Gables Some Department(s) Open 5 days Coral Springs Some Department(s) Open 5 days Hallandale City-Wide Closed Fridays Hollywood City-Wide Closed Fridays Homestead Some Department(s) Open 5 days Lauderhill City-Wide Closed Fridays Margate City-Wide Closed Fridays Miami Some Department(s) Open 5 days Miami Gardens City-Wide Closed Fridays Miami Springs Some Department(s) Open 5 days Miramar City-Wide Closed Fridays Pembroke Pines City-Wide Closed Fridays 1-L TC Flex Scheduling Pom pano Beach City-W ide Closed Fridays South Miam i Som e Departm ent(s) Open 5 days Tam arac City-W ide Open 5 days W ellington City-W ide Closed Fridays W est Palm Beach Som e Departm ent(s) Open 5 days W ilton Manors Cityw ide Closed Fridays The management literature on the topic of flex time scheduling is robust. Most studies indicate that there are organizational benefits to implementing flex time programs but also advise of some of the pitfalls to avoid. Benefits include: increased employee morale and engagement; improved recruiting and retention; reduced tardiness and absenteeism; and improved productivity. Some of the pitfalls to avoid include: flex time does not work for all employees; and, the importance of carefully managing scheduling and cross-training to ensure service coverage. An important point that seems to be consistent across the literature is that, as millennials start to become the predominant cohort in the workforce, flexibility becomes even more important. Several sources indicate that millennials highly value flexible work schedules for a number of reasons (e.g., work-life balance, the fact that many are digitally connected to work at all times, and the desire to spend time on projects to which they ascribe meaning). In fact, flexibility appears to be so important to this cohort, even above money, that it can make the difference between accepting/staying in a job or going to another employer that offers flexibility. Another benefit of flex time scheduling is a reduction in commute-related vehicle greenhouse gas emissions and a reduction in traffic during peak times. For example, by eliminating one (1) of five (5) commute days from an employee's schedule, the total number of commute days and commute- related vehicle greenhouse gas emissions is potentially reduced by 20%. While some employees may utilize vehicles on the fifth day, trips are usually shorter and closer to their homes. The reductions on greenhouse gas emissions from commutes is most significant for employees that do not live nearby and may live at a significant distance from the City, such as a distant suburb or another county, as is the case for many City employees. Further, because employees on flex time tend to arrive earlier and leave later, the number of vehicles entering (mornings) or leaving (evenings) the City during peak times is reduced. Given the foregoing, the Administration has piloted flex time in two administrative departments - Human Resources (HR) and Procurement Departments. These departments were selected because they both service groups of stakeholders that typically do not include residents. Departments that service residents directly were excluded from the pilot because of the challenge of offering expanded service hours during the pilot phase that could later be taken away later if the pilots were not successful. The HR Department services internal stakeholders (e.g., employees, applicants). The Procurement Department services external stakeholders (e.g., city contractors and bidders). The current pilots are optional and not all employees are required or have opted for the flexible schedules, usually due to family scheduling limitations. It is important to note that the delivery of service to stakeholders has been and will continue to be at the forefront of any discussion on flex time scheduling. The pilot has been in place for approximately 120 days. Both departments have extended hours of operation from 8:30 a.m. - 5:00 p.m. to 7:30 am to 6:00 pm. Both departments have staggered schedules so that the fifth day off for employees is spread throughout the week rather than everyone being off on Friday or Monday. In the HR Department, the extended hours help provide better service to employees, particularly those who work night and evening schedules, as well as potential candidates considering employment with the City, who are often still working at their current jobs. In the Procurement Department, the expanded service hours are beneficial to vendors, especially small firms, that are busy during regular business hours and can now access department services early in the morning or later into the evening. 2-L TC Flex Scheduling E a rly o b s e rv a tio n s a p p e a r to in d ic a te th a t th e fle x tim e p ilo t h a s h a d a p o s itiv e im p a ct o n p ro d u c tiv ity . F o r e x a m p le , d u rin g th e p ilo t p e rio d p ro c e s s in g tim e s fo r p u rc h a s e o rd e rs a n d ch a n g e o rd e rs is s u e d b y th e P ro c u re m e n t D e p a rt m e n t fo r g o o d s a n d se rv ic e s n e e d e d b y C ity d e p a rt m e n ts h a v e im p ro v e d o v e r th e s a m e tim e p e rio d in 2 0 1 8 . A n e c d o ta lly , th e im p ro v e m e n ts a p p e a r to b e d u e to th e "q u ie t tim e " e ith e r e a rly o r la te r in th e d a y a s a re s u lt o f th e e x te n d e d d a ily h o u rs . F le x ib ility a ls o a p p e a rs to b e h a v in g a p o s itiv e im p a c t o n e m p lo y e e m o ra le , w h ic h is im p o rt a n t g iv e n th a t th e re s e a rc h in th is fi e ld in d ic a te s th a t m o ra le a n d jo b sa tis fa c tio n h a v e a p o s itiv e im p a c t o n e m p lo ye e p ro d u c tiv ity . A g a in , th e p ilo t p e rio d h a s b e e n s h o rt a n d is n o t p o s s ib le in s u c h a s h o rt tim e to fu lly a s s e s s im p a c ts o n p ro d u c tiv ity . F u rt h e r, b o th d e p a rt m e n ts h a v e e x p e rie n c e d a d e c re a s e in a b s e n te e is m , m o s tly b e c a u s e d o c to r a n d o th e r a p p o in tm e n ts c a n n o w b e sc h e d u le d o n th e fift h d a y . Wh ile th e re d o n o t a p p e a r to b e a n y m a jo r d o w n s id e s to th e p ilo t, th e d e p a rt m e n ts h a v e id e n tifi e d c ro s s tra in in g a s a n im p o rt a n t fa c to r in m a k in g s u re th e re a re n o g a p s in c o v e ra g e w h e n a n e m p lo y e e is a w a y fro m th e o ff ic e . H o w e v e r, th e la tt e r is tru e re g a rd le s s o f sc h e d u lin g m e th o d s u tiliz e d . CONCLUSION The purpose of this L TC is to advise the City Commission of the preliminary findings of the pilot program, and confirm that flex time as a potential practice for aligning work schedules with the modern workforce should continue to be part of the City's strategic initiatives to attract exceptional talent, enhance sustainability efforts and, most importantly, provide exceptional customer service to residents, visitors and businesses. Given the results of the pilot program, I will ask the assistant city managers to coordinate with their assigned departments to consider expanding flex time to other operational areas providing that the delivery of service to stakeholders continues to be of primary consideration. I look forward to providing periodic updates regarding flex time and other initiatives to better align administrative practices for the modern workforce. JLMiMS/AD 3-L TC Flex Scheduling