Business

http://www.employeralliance.sg/forms/261005ea_launch_study.pdf

26 October 2005

News Release

Latest Study Links Work-Life Measures to better Business Performance

Local business leaders to spearhead adoption of Work-Life best practices across industries

A company’s Work-Life climate impacts voluntary staff turnover, employee performance and customer satisfaction. These are the findings of Singapore’s most extensive empirical research on work-life practices conducted by the Ministry of Manpower (MOM), together with the Nanyang Business School, Nanyang Technological University (NTU)1. The study was revealed today at the launch of Employer Alliance (EA), an association comprising business leaders in Singapore who seek to encourage greater work-life practices across industries.

Results of MOM-NTU Research

2 Spearheaded by the Tripartite Committee on Work-Life Strategy, the study identified reduced voluntary turnover as the critical link between Work-Life and business performance. Firms that are more advanced in Work-Life are found to enjoy lower levels of voluntary turnover consistently, which is in turn related to better employee labour productivity and profitability. In Sakae Sushi, based on 7-point scales, a single unit improvement in Work-Life Climate led to 6%-14% of a unit reduction in employees’ intention to quit2. In addition, other important benefits of Work-Life include increased employee engagement and performance, which in turn improved customer satisfaction. At the same time, it was found that top management support for Work-Life is critical to its development in a company.

1 “Studies on the impact of Work-Life Initiatives on Employee and Firm Performance” comprises two inter-related studies. The first

is based on data covering 7,000 companies from the Conditions of Employment (COE) surveys conducted by MOM from 1996 and

2003, and the second study is the first empirical model on Work-Life to be built in Singapore, involving 500 employees from...