Although one-third of employers say the cost of implementing a flexible work arrangement for their employees has prevented them from doing so, a report by the Council of Economic Advisors argues that the benefits of implementing such a plan can outweigh the costs.
The authors acknowledge that flexible schedules are inappropriate in some instances, but argue that, for some employers, flexible work schedules can reduce turnover and absenteeism, and improve productivity. According to the report, workers with flexible schedules reported "higher levels of job satisfaction, more loyalty and commitment to their employers, and 'high likelihood[s]' of remaining with their employers for the following year."
The report cites a survey that shows 34 percent of workers have taken a day off simply because they didn't want to go to work that day. Another study found that workers who switched from a company with a flexible schedule to one without missed more work with their employers.
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Several studies exist to support the argument that flexible schedules improve productivity, but the authors point to another possible cause from a study of over 700 firms. "Well-managed firms both have higher productivity and tend to embrace flexible workplace practices," the authors write, adding that the same survey found no evidence that flexibility actually harmed productivity.
Furthermore, flexible work arrangements offer benefits beyond the employer and employee. Flexible schedules allow workers to join the labor force who would otherwise find it "too 'costly' to work or invest in workplace skills," increasing the number of workers paying taxes, and taking more people out of the "social safety net."
"Although the literature is small, the best available evidence suggests that encouraging more firms to consider adopting flexible practices can potentially boost productivity, improve morale, and benefit the U.S. economy," the authors conclude. "Especially at this time as the U.S. rebuilds after the Great Recession, it is critical for the 21st century U.S. workplace to be organized for the 21st century workforce."
The full report, "Work-Life Balance and the Economics of Workplace Flexibility," is available as a PDF.
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