Thanks to a flexible system of working arrangements called "smart working". For such a large production company with strong labour unions, this is quite a revolutionary system.
What is smart working?
Until recently BAE Systems Naval Ships employees working at the company's sites on the River Clyde in Glasgow, Scotland, had almost no possibility of working flexibly. Working hours were fixed and complemented by paid overtime.
Four years ago, however, the hard work of the company's 40-member HR team resulted in the launch of a programme enabling all office employees and managers, as well as half the production workers, to work flexibly. They can now determine their work schedules themselves and leave earlier if they have fulfilled their tasks.
The whole system is based on lengthy negotiations with managers and union representatives. It is built mainly on trust and measurement of results instead of hours. Office workers can choose when they come to work and leave every day. Managers, moreover, are not required to be present every day of the week if they have fulfilled all their obligations during previous days.
Production workers were set new weekly targets. 40 percent of them can take the rest of the week off once they have met these targets. Experience has shown that workers do not abuse this possibility; on the contrary, they are more willing to increase their efforts to fulfil properly all targets and standards of quality.
A fundamental change of culture
The biggest challenge within the implementation of "smart working" was convincing employees. The programme started with a group of 50 people; it was gradually expanded and brought more ideas on how to improve the system.
Employee productivity and engagement has increased in all areas of production where the system was implemented. In addition, other areas emerged in which the company was functioning less efficiently and more effective solutions are being sought.
Fundamental changes have occurred throughout the entire corporate culture toward personal responsibility and trust. Employees' interest in voluntary activities has grown as well. Production operators, for example, now spend part of their free time training new recruits.
The position of HR in the company has changed too. Thanks to the implementation of "smart working", HR has stepped out of its traditional role and is now perceived as a business partner.
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