The Rewards of Work/Life Balance
Punching the clock is an obscure concept at ACUITY. In fact, the Midwest insurance company is so committed to helping its employees achieve a healthy work-life balance that more than a quarter of its employees work from home, and the company has abandoned set workplace hours.
"We have people starting at five in the morning and leaving at one in the afternoon," says John Signer, vice president of human resources at the Sheboygan, Wis.-based company. "As long as the work gets done, [the employees'] managers can be as flexible as they want with their schedules."
And the work is definitely getting done. The company consistently outpaces its competitors in profitability, has expense ratios much lower than industry averages, and scores productivity marks that are among the highest in the industry. Many attribute this success to the company culture, one that trusts and listens to the employees as it helps them balance their professional responsibilities with their personal commitments.
John Dyer, an area sales manager, recently took advantage of the company's flexible hours to visit his sick father in another state. "The work environment enhances my job performance as I am a happier employee," he says.
Ironically, it was a cost-cutting measure that ushered in ACUITY's flexible culture. In the late 1990s, ACUITY closed down 12 of its 13 branch offices to save money, sending those employees to work from their homes instead. The company also implemented its current flextime policy of no official work hours.
"Our productivity has not suffered at all and has even improved," Signer says. Compared to the industry average, for example, it takes 30 percent fewer ACUITY employees to produce the same number of written premiums. "We're not working our employees to death "“ we just run a more efficient operation."
Using performance metrics rather than face time to measure productivity, ACUITY relies on technology, open communication and trust to maintain high professional standards in such a flexible environment. Nearly a third of ACUITY's staff now work from their homes, and the company equips all of these employees with the technology they need, such as satellite Internet access or the latest computer software. Those who work on the road not only get a company car and cell phone, they also receive a $100 allowance for books on tape.
Back at company headquarters, the new flexible environment posed early challenges as managers worked to juggle schedules and still maintain necessary coverage in the office. Fortunately, ACUITY gave them time and room to structure their departments as they saw fit.
"Different managers do it different ways, whether by seniority or by first come, first serve," Signer says. When ACUITY rewrote its employee handbook a few years ago, only 20 percent of the original text remained as the company turned more decision-making power over to its managers. "We'll provide the training and the tools to help, but it's up to them to run their departments," Signer says.
Such employee empowerment and flexibility has led to a decrease in volunteer turnover rate from the "upper teens" about four years ago to just four percent today. The company also made Fortune magazine's list of "100 Best Companies to Work For."
Long-time employees such as Dyer recognize and appreciate ACUITY's efforts. "The company culture has significantly changed for the better from 10 years ago," he says. "ACUITY is much more employee-oriented compared to other companies in the industry."
Many aspects of ACUITY's employee-focused culture can be translated to smaller companies, Signer says. Along with flexible work hours, ACUITY maintains an open-door policy so employees have easy access to managers and executives, and the company hosts town hall meetings three times a year to bring employees up to date on the latest developments from each department.
"Develop a culture where employees feel good about going to work because they're being treated fairly, they're given an opportunity to speak their minds, they have accountability, and they're recognized for their efforts," Signer advises. "Our culture helps us retain top producers and key employees, which has an overall great result to the bottom line."
Company: ACUITY
Web site: www.acuity.com
Industry: Insurance
Location: Sheboygan, Wis.
Number of employees: 650
Sales: $400 million (2001)
