Is the ROI of flexible work worth the investment? If done well, yes, it is worth every penny.

Happy and productive employees are two of the most important factors in a successful business. Happy employees are more likely to remain in your business, put their best effort forward, and attract other talent. Meanwhile, productive employees improve your production and profits. Together, you can build a strong business ready for growth if you find the key to employee satisfaction and productivity.

Flexible work could be that valuable key, unlocking opportunities to attract new talent, retain current employees, and grow your profits.

How does flexible work fit with your company and what are the advantages?

Why is being flexible important in the workplace?

A flexible work environment accommodates varying scheduling needs, commitments, and working styles. By offering flexibility at work, you recognize that your employees have unique work and personal obligations and trust them to make the best scheduling arrangements to maximize their productivity.

A flexible work arrangement refers to flexible schedules, working locations, or both. Employees who work remotely or work a schedule other than a 9–5, or have any combination of the two, benefit from a flex work arrangement. Be sure to clearly define any flexible working arrangements in your total rewards strategy and employee handbook to improve company consistency.

What types of work arrangements qualify?

About 63% of employees list remote work as important to job satisfaction, even above salary. In addition, 57% would consider leaving their job if their employer no longer offered remote work. Not all businesses are equipped to offer 100% remote work opportunities though. Many companies only function if the employees are present, especially in blue-collar jobs. Weekly meetings can also be crucial for business success, as they promote innovation and collaboration between remote and in-office teams.

Alternative flexible work environments can be a way to still offer employees flexibility when 100% remote work is not an option. It does not have to be an all-or-nothing proposition. According to HR leaders, some of the other popular flexible work arrangements are when companies offer:

• Hybrid work (27%).
• Fully remote options (10%).
• Flexible hours
• Compressed workweek
• Job sharing

Advantages of flexible working for employees

Employees have come to expect and prefer a flex work environment. Roughly half of workers want a fully remote or hybrid position, while only 5% prefer full-time in-office work. Women tend to choose remote work more than men, which may be due to women’s other home responsibilities, such as being caregivers to children. However, a higher percentage of men work remote than women. Specifically, 38% of men work remotely full time, and 23% part time. Comparatively, 30% of women work remotely full time and 22% part time.

Even with the remote preferences, employees still crave some form of social contact, which is why workers often choose hybrid positions or are attracted to companies with a strong company culture that brings employees, even remote ones, together.

Flex work is beneficial for employee health. One survey found that 96% of employees said flex work would be best for their mental health.

Flex-time benefits promote a healthy work-life balance by allowing workers to build a schedule around their other obligations, whether dropping children off at school, going to doctor appointments, or skipping heavy traffic. Ultimately, they spend less time commuting and more time focusing on work and family. They can also have a healthy work-life balance because they can work where they are most comfortable and least distracted.

Because a third of employees spend more than half an hour commuting, flex work can give them back a full hour each day to focus on reenergizing or completing work tasks. That time adds up to nearly three weeks a year, which the employee regains thanks to not having to commute.

Employees feel more engaged when they have flexible work arrangements. The key to higher engagement is fewer distractions compared to in-office work and less stress.

Employers and flexible work

Employees aren’t the only ones who realize the importance and value of flexible work environments. Employers also see potential health and productivity benefits, which all add to the return on their investment.

About 66% of employers say that advertising remote work is crucial in job applications.

Even though many employers recognize the importance of flexible work, many are still hesitant. Creating successful flexible work arrangements begins with strong leaders who can clearly convey expectations, motivate employees to remain productive, and regularly provide employee check-ins to keep employees accountable.

Offering flexible work arrangements, especially supporting remote work, will open the talent pool further, attracting more skilled applicants. On average, 73% of new grads said they would be more likely to apply to remote positions. A quarter of employees also listed flexible work arrangements as the most important benefits an employer could offer.

Adding flexible work or increasing your flex work options could be your key to targeting previously untapped talent and standing out from other employers. Having remote options will encourage new talent to apply, especially those with remote work at the top of their priorities list. In addition, you open the door for talent who might not be able to work a traditional 9–5. For instance, a mother with child-care obligations is more likely to work a flex job, or a worker with a part-time job can apply if they have control over their new hours.

While employees feel more engaged working remotely, 79% of employers also note a more productive team when they offer remote or flexible work options.

Although there are many benefits to having employees where you can supervise them and connect your teams, an office can often become a place filled with distractions. By allowing workers to complete their work at home, you may lose some of your control, but you will be rewarded with greater productivity as employees work in quiet, comfortable places.

Support future growth by embracing a flexible working environment

The future of employment will become synonymous with flex work and slowly move from a luxury to a staple. It opens doors to greater employee health, happiness, and productivity. You’ll see more employees stick around long term, and other talent will take note of your leading flex work benefits and be more likely to apply.

Mercer can help equip you with the knowledge and resources you need to understand the market for flex work and how to build a strategy around it based on the latest market research.

Learn more by emailing Mercer or calling us at 1-855-286-5302.