ROWE

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A results-only work environment (ROWE) is a work approach in which employees are entirely autonomous and responsible for delivering outcomes. This managerial tactic redirects attention from the hours spent at work to the results generated.[ citation needed ] Leaders mentor performance and oversee the work itself, instead of micromanaging employees' time. [1]

Contents

A results-only work environment provides employees with complete autonomy over the timing, location, and methodology of their work. Instead of being bound to a specific workplace or schedule, personnel are responsible for achieving desired outcomes. [2]

A results-only work environment (ROWE) is a modern work culture that rests on the principle that individuals are recruited to produce clear, measurable results. [3] Managers focus on managing the work being accomplished rather than how other people work. [4]

Origins

In 2003, Best Buy headquarters in Minneapolis, Minnesota, initiated an innovation experiment called ROWE. [5] Two employees, Jody Thompson and Cali Ressler, questioned the effectiveness of their work approach in generating optimal outcomes for both the company and its employees. They aimed to facilitate the employees, enabling the company to attain its desired results. [3]

Some researchers refer to this as a dual agenda. [6]

Claimed advantages

Certified ROWE organizations report higher productivity, increased revenue, reduced turnover, and more successful recruitment. [2] After achieving ROWE certification, JL Buchanan reported increases in employee engagement, productivity, profits, and top line sales. [7] Early adopters of the ROWE system at Canada Mortgage and Housing Corporation (CMHC) showed consistently higher employee engagement scores compared to their co-workers as measured by quarterly pulse surveys; [8] ROWE is purportedly the 'number one reason' new employees choose to work there. [9]

Research

Biomarker data (blood pressure, body mass index, a pre-diabetes marker evident in blood, and more[ clarification needed ]) was collected to create a cardio-metabolic risk score to predict the likelihood of a cardiovascular event.  Employees who had higher risk scores at baseline reduced their risk of having a heart attack, stroke or other cardiovascular event by working in a ROWE when compared to a control group of employees not working in a ROWE. [10]

Researchers collected saliva samples to measure cortisol levels before and after a ROWE implementation, and found a positive physiological effect on employees after the implementation. [11] According to a Harvard Business School case study of a large organization, employees stated they "could not imagine returning to the old way of working". [12]

According to eWorkplace, a study conducted in the Twin Cities metro area found that no longer requiring employees to drive to and from the office during rush hour traffic, reduces carbon emissions as well as wear and tear on roads. [13] A Canadian government agency reported reduced gas emissions of 5.3 million kilometers. [9]

Working in a ROWE also assists employees dealing with family crises. [14]

Diversity, equity, and inclusion

McKinsey & Company recognized the results-only work environment as an example of diversity-enabling infrastructure. [15] CMHC uses all of the data it collects to inform its D&I strategy and create targeted interventions to address pain points. CMHC’s transition to a results-only work environment is an example of this. [16]

Return on investment

The estimated return on investing in ROWE is 1.68, meaning for every dollar invested, the company saves $1.68, including reduced absenteeism, reduced presenteeism, lower medical costs, and reduced voluntary turnover. [17]

ROWE-certified companies tend to reduce real estate costs by decreasing dedicated work spaces for all employees. [7]

Post-pandemic

Watt Publishing closed its offices during the COVID-19 pandemic in 2020. Once public health conditions allowed them to re-open their office building, CEO Greg Watt did not change any policies or create complex re-entry plans. Watt reported that the company did not experience any kind of employee rebellion from unhappy employees. [4]

Daniel Pink called ROWE the future of work. [18] In his book, Drive, Daniel Pink recognizes Jody Thompson as one of the six business leaders who offer wise guidance for designing organizations that promote autonomy, mastery, and purpose. [19]

Criticism

Less than a year into his job, in which he was tasked with turning around a company considered on the brink of bankruptcy, former CEO Hubert Joly said that Best Buy’s program had given employees too much independence. [20]

CMHC reported that employees spend less time socializing with coworkers at the office and that ROWE focused too much on the individual. [21]

Related Research Articles

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<span class="mw-page-title-main">Canada Mortgage and Housing Corporation</span> Canadian national housing agency

Canada Mortgage and Housing Corporation is Canada's federal crown corporation responsible for administering the National Housing Act, with the mandate to improve housing by living conditions in the country.

<span class="mw-page-title-main">Safety culture</span> Attitude, beliefs, perceptions and values that employees share in relation to risks in the workplace

Safety culture is the collection of the beliefs, perceptions and values that employees share in relation to risks within an organization, such as a workplace or community. Safety culture is a part of organizational culture, and has been described in a variety of ways, notably the National Academies of Science and the Association of Land Grant and Public Universities have published summaries on this topic in 2014 and 2016.

<span class="mw-page-title-main">Workplace violence</span> Assault, abuse or threat that occurs in the workplace

Workplace violence, violence in the workplace, or occupational violence refers to violence, usually in the form of physical abuse or threat, that creates a risk to the health and safety of an employee or multiple employees. The National Institute for Occupational Safety and Health defines worker on worker, personal relationship, customer/client, and criminal intent all as categories of violence in the workplace. These four categories are further broken down into three levels: Level one displays early warning signs of violence, Level two is slightly more violent, and level three is significantly violent. Many workplaces have initiated programs and protocols to protect their workers as the Occupational Health Act of 1970 states that employers must provide an environment in which employees are free of harm or harmful conditions.

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<span class="mw-page-title-main">Mortgage</span> Loan secured using real estate

A mortgage loan or simply mortgage, in civil law jurisdictions known also as a hypothec loan, is a loan used either by purchasers of real property to raise funds to buy real estate, or by existing property owners to raise funds for any purpose while putting a lien on the property being mortgaged. The loan is "secured" on the borrower's property through a process known as mortgage origination. This means that a legal mechanism is put into place which allows the lender to take possession and sell the secured property to pay off the loan in the event the borrower defaults on the loan or otherwise fails to abide by its terms. The word mortgage is derived from a Law French term used in Britain in the Middle Ages meaning "death pledge" and refers to the pledge ending (dying) when either the obligation is fulfilled or the property is taken through foreclosure. A mortgage can also be described as "a borrower giving consideration in the form of a collateral for a benefit (loan)".

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<span class="mw-page-title-main">Occupational stress</span> Tensions related to work

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<span class="mw-page-title-main">Affordable housing in Canada</span>

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Workplace health promotion is the combined efforts of employers, employees, and society to improve the mental and physical health and well-being of people at work. The term workplace health promotion denotes a comprehensive analysis and design of human and organizational work levels with the strategic aim of developing and improving health resources in an enterprise. The World Health Organization has prioritized the workplace as a setting for health promotion because of the large potential audience and influence on all spheres of a person's life. The Luxembourg Declaration provides that health and well-being of employees at work can be achieved through a combination of:

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<span class="mw-page-title-main">Psychological stress and sleep</span> Effects of stress on sleep patterns

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Phyllis Moen is an American sociologist. She is the McKnight Presidential Chair in Sociology at the University of Minnesota, and was previously the Ferris Family Professor of Life Course Studies at Cornell University. While at Cornell she founded the Bronfenbrenner Life Course Center, as well as the Cornell Careers Institute, an Alfred P. Sloan Working Families Center.

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References

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