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Many companies have struggled to develop their flexible work policies, but what you may not realize is that many investors are watching — and judging them.
Indeed, a number of investors have explicitly and publicly integrated work-from-home (WFH) policies into evaluations of prospective investment targets. Dozens of investors have approached me for advice on assessing the effectiveness of such policies. In alignment with forward-thinking investors, I see employee buy-in and clarity around policies as crucial. If companies don’t get this right, they will undermine their long-term valuations.
Unfortunately, many companies fail in this arena. A recent study by Mercer showed that only one in three companies have solid rules for handling flexible work. They looked at 749 companies and found that nearly half rely on loose, informal guidelines, while 17 percent don’t really manage it at all. Only 34 percent have clear, formal rules. A vague approach can hurt both keeping and attracting employees — and, increasingly, investors.
It’s also essential to explore how well companies share their policies. A Fishbowl survey asked about 7,300 professionals how well they understood their company’s plan for hybrid work. The results? Just over half understood their company’s hybrid work guidelines, the other half were clueless. That’s not a great look!
The Connection Between Policy Clarity and Performance
Why is clarity so important? Because the success of WFH rules largely depends on how clearly they are shared and understood. A clear policy acts like a blueprint, guiding everyone in the company toward working well together, ensuring a steady flow of productivity across all teams.
Choosing the right flexible work style is crucial, but having a well-understood plan for that style is equally vital. Clear policies set the stage for how teams operate, aligning everyone toward shared goals. On a smaller scale, they clar... Read More
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