Lifetime Working Models Uncommon Amongst Service Providers in the Information Society

In theory, lifetime working models and time savings accounts are welcomed by service providers in the information society. Nevertheless, very few companies have actually introduced this instrument designed to ensure work flexibility, despite the fact that it is said to be so popular with employees.

Within this sector, architects and research and development (R&D) firms are the leaders when it comes to making use of lifetime working models. These two groups account for 40 per cent of the revenue generated by companies offering the use of time savings accounts to their employees. The respective revenue share for the overall sector of service-providing for the information society accounts for only around 15 per cent.

This is the finding of a business survey carried out among German IT-related service providers and conducted by the Centre for European Economic Research (ZEW), Mannheim, in cooperation with Creditreform, Neuss, in November and December 2002. Around 1,200 companies participated in the survey. The sector of IT-related service providers comprises the Information and Communication Technology (ICT) service providers (firms providing computer service and leasing, ICT-specialised trade as well as telecommunication services) and knowledge intensive service providers (firms in the branches of tax consultancy and accounting, management consultancy, architecture, technical consultancy and planning, research and development as well as advertising).

Service-providers require flexible work regulations in order to cope with extensive fluctuations in demand. These regulations must enable the workload to be expanded during economic peaks, but also allow the workload to be reduced, and overheads cut, when demand falls. Amongst a selection of 15 instruments designed to ensure work flexibility, service-providers for the information society regard extra hours, short-time work and fixed-term contracts as being particularly effective. The possibilities of laying-off staff and of training employees to broaden their skill range are also seen positively. On the contrary, the companies regard hiring marginally employed staff members as ill-suited to compensate for fluctuations in demand.

There is a significant discrepancy between companies' theoretical assessments of these instruments, and those which they actually use. This is particularly the case when it comes to the allocation of part-time contracts, and offering time savings accounts. In theoretical assessments, these instruments rank higher much more highly, than they do in terms of actual usage.

Contact

Dr. Margit Vanberg, E-mail: vanberg@zew.de