What is a ROWE? The acronym stands for results-only work environment, and the term refers to a workplace in which what’s most important for managers when evaluating an employee’s performance is having work completed on time and in a satisfactory manner. More specifically, how or where the work gets done is not an issue, which makes ROWE a good fit for companies that care about offering their employees more flexibility.
Could leveraging a ROWE be a smart strategy for your organization? Read on for some HR perspectives.
Outcomes Rather Than Hours
Harold Morton, HR Director of QATesting.io, believes that ROWE can be a great fit for organizations that prioritize results and value employee autonomy.
“By focusing on outcomes rather than traditional office hours, ROWE promotes flexibility and empowers employees to manage their work and personal lives more effectively,” Morton said.
He explained that when people have the freedom to choose when and how they work, they often experience higher job satisfaction, leading to improved performance and innovation.
“One of the key advantages of ROWE is increased employee engagement and productivity,” Morton said. “ROWE also attracts and retains top talent, particularly individuals who value work-life balance and flexibility.”
Trust in Employees Is Key
In order for ROWE to be effectively implemented, managers must shift their mindset, according to Morton.
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“Supervisors need to trust their employees to deliver results independently and establish clear performance metrics,” Morton said. “Effective communication and collaboration tools become vital for remote teams, ensuring seamless coordination and accountability.”
Felicia Shakiba, Founder and Global Senior Executive HR Consultant for CPO Playbook, explained that in determining the suitability of a ROWE, the effectiveness of a company’s performance management process plays a crucial role—along with trust in the evaluation and fairness of the organization’s performance solution.
“If employees lack confidence in the assessment of their work, implementing a ROWE may not be the best option,” said Shakiba, who is also the former Head of Performance Management for WPP, a 100,000-employee global organization. “However, if you can design and implement a performance management solution that is fair, accurate, and trustworthy, you have a greater chance of successfully adopting a ROWE and reaping its benefits.”
HR Specialist Talia Knowles added that while implementing a ROWE necessitates a high level of trust between management and employees, ROWE can also be a useful tool in building that trust.
“When employees know they have to work a set number of hours per week, they might not be motivated to work with maximum efficiency,” Knowles explained. “Not only does this waste time, but it can also encourage a culture of going through the motions. On the other hand, if employees know that their work will be held up to strict standards but can be accomplished on their own time, they will be motivated to work more efficiently and with higher quality.”
Knowles said if you don’t currently have a culture of trust or high levels of productivity among your employees, you might think that ROWE won’t work for your organization. However, in her experience, she has found that implementing a ROWE can create a positive feedback loop where employees feel trusted to produce their best work and are therefore motivated to live up to those expectations.
Fair and Transparent Evaluation
Since a good performance management strategy is essential for a ROWE to thrive, managers should keep in mind that a key element of a robust performance management approach includes a fair and transparent evaluation.
“Managers play a pivotal role in evaluating employee performance,” Shakiba said. “It is crucial that they demonstrate fairness and objectivity throughout the process. Employees should have a clear understanding of the criteria against which their work will be assessed, and evaluations should be conducted based on accurate and relevant performance indicators.”
Clear Performance Criteria
Well-defined performance criteria and expectations are also essential for effective performance management, according to Shakiba.
“Employees need to know what is expected of them in terms of goals, targets, and desired outcomes,” she said. “Clear communication and alignment between managers and employees on performance expectations foster accountability and support the success of a ROWE.”
Regular Feedback and Coaching
Regular feedback and coaching are integral to employee development and performance improvement as well.
“Managers should provide constructive feedback, recognize achievements, and offer guidance on areas for growth,” Shakiba said. “This ongoing dialogue helps employees stay on track, make necessary adjustments, and maximize their potential within a ROWE.”
Aligning Compensation and Rewards
Managers should also focus on aligning compensation and rewards with the goals and outcomes of the ROWE.
“Employees need to feel that their efforts and results are appropriately recognized and rewarded,” Shakiba said. “Aligning compensation structures with the organization’s overall performance and individual contributions reinforces the effectiveness and fairness of the ROWE.”
Leverage ROWE for More Productive, Satisfied Teams
Morton concluded that with enhanced productivity, increased job satisfaction, and the ability to attract and retain top talent, ROWE can be a game-changer for companies seeking to foster a results-driven culture and promote work-life integration. Yet he offered the following caveat: “Successful implementation relies on strong leadership support, open communication, and a supportive infrastructure,” Morton said.
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