Dolly Parton lamented the woes of working 9 to 5. Today, regular business hours of 9 am to 5 pm, five days a week can still be found, but this isn’t the rule in every business. Employees want more flexibility so they can achieve a better work-life balance. And employers want to find ways to meet employees’ wishes in order to cultivate a loyal staff and improve productivity and profitability. Here are some of the ways in which small businesses can restructure how the workplace operates for a win-win outcome.
Ways to restructure your workplace
Flexible work arrangements
Flexible work arrangements give employees the ability to remain productive while also meeting personal needs. From the company perspective, offering these options can increase the talent pool and serve to reduce turnover. Other than requiring full-time on-site work, these are your options:
Fully remote work.
This arrangement lets employees work from home full time. During the pandemic, this work arrangement became the norm for many businesses. Afterwards, many large businesses required employees to return to the workplace. Small businesses that continue to offer this work arrangement can use it to their advantage. Currently, 28% of employees in the U.S. work exclusively remote.
Hybrid work.
This combines in-office and remote work. The in-office portion may be a set number of days (of the company or employee’s choosing) or just in and out. Currently, 51% have hybrid arrangements.
Hours
The average number of hours worked each week by employees in the U.S. is 34.2 hours. (Small business owners typically work considerably more hours.) Companies should look at how they deal with employees’ hours.
Flex time.
Employees must put in a set number of hours, but at the time of their choosing. Those who are early birds can avoid commuter congestion by starting work early, while night hours may feel more productive later in the day or into the night when there’s a quieter workspace. From the company perspective, extended hours of operation mean employees are working at their optimum time for productivity and, what’s more, there’s greater coverage for company business.
Scheduling predictability.
Gallup reported that most U.S. employees (62%) do not have “high-quality work schedules.” Three factors determine this: schedule predictability, schedule stability, and the level of control employees have over their schedule. So, high qualify means employees know their schedules at least 2 weeks in advance or have control over their schedule and total weekly hours don’t fluctuate by more than 25% within a month. Some locations have fair workweek laws that require predictive scheduling. Paycom lists these states and cities.
4-day work weeks.
Should employers adopt a 4-day work week (32 hours at 100% of pay)? It was reported that a recent study found that doing so produced less burnout, better sleep, and higher job satisfaction. And workers believed they were more productive despite fewer hours. Interested? Check out 4 Day Week Global for resources to help you.
Pay equity
According to a report entitled Executive Excess 2025, the average CEO-worker pay ratio is 632 to 1 (CEOs earn 632 times more than the median salary of employees). Disparity is even greater among some Fortune 500 companies (e.g., 6,666 to one at Starbucks). Experts, such as Peter Drucker (back in 1977), suggest that a good owner-to-employee pay ratio is 20:1 or 25:1.
There is no ideal ratio, but it’s clear that owners should give thought to their compensation vis-à-vis their staff. Why? This can prevent resentment and poor morale.
Aim for a good ratio. A number of large firms do it (e.g., Airbnb is 1:1; Expedia is 10:1), so small businesses can achieve a fair pay ratio. Every situation is different, but pay equity is something to keep in mind.
Note: Pay transparency laws have no impact on pay equity. These laws, currently in a dozen states and DC, require employers to disclose a range of salary and hourly rates for job openings and promotions.
Final thought
“The secret of change is to focus all of your energy not on fighting the old, but on building the new” — Socrates
Maybe it’s time to rethink some old standards and restructure your business for the future. Change is always a little scary, but it can produce favorable results.
