Everyone seems to want the option to work flexibly these days, especially after experiencing the benefits of remote work during the pandemic. While flexible work was already growing in popularity in the pre-pandemic days, now it’s one of the top demands for new hires in various industries.
As a matter of fact, 60% of employees expect the option to work remotely at least once a week, and 77% of employees now say that flexible work is more important than a pay rise when they are considering changing roles.
But as the manager, perhaps you’re not convinced. You fear that if you give workers too much freedom, they’ll end up sitting at home with their feet up instead of getting their work done.
It’s a reasonable concern—in the office, you have full control over what your employees are doing and when, but checking up on them when they work remotely is a challenge.
However, there are many statistics around flexible working and productivity that show the connection:
- According to the CIPD, 38% of organizations actually saw increased productivity when they adopted hybrid work models.
- A study published in Nature found that working two days each week from home doesn’t have a negative impact on performance.
- International Labour Organization (ILO) research suggests working shorter and more varied hours improves company productivity.
So what is the logic behind all this? How can flexible working increase productivity?
Let’s examine the business case.
Employee Engagement Levels
Employment engagement can have a big impact on productivity. After all, when employees are happier in their roles, it makes sense that their productivity increases.
If you have employees sitting around at their desks watching the minutes tick by until they go home, productivity will not exactly be thriving. When employees feel more engaged in their roles, they are likely to demonstrate higher levels of creativity and contribute more innovative ideas during team discussions.
And while lots of factors can increase employee engagement—doing a job they feel is valuable, feeling suitably challenged, and enjoying their work—how and where they work also plays an important role.
In fact, a New Possible study suggested that employee engagement is 6% higher when they have flexible schedules, which is a significant increase in such a competitive job market.
Greater engagement leads to increased productivity in several ways:
- When employees are given more control over how they work, this leads to greater job satisfaction. As a result, they are more invested in the success of the company.
- Flexible work gives them a feeling of greater responsibility. You are showing trust when you allow employees to work flexibly, and this encourages them to trust you in return and make a meaningful contribution to the company.
Employee Well-Being
Flexible work arrangements can boost productivity due to the positive impact on employee well-being, leading to a happier and healthier workforce overall.
When employees work from home, they can create the perfect working environment where they are comfortable. Some employees simply work better in less conventional settings. For example, some people like to listen to music while others like to stand up to work.
In addition, they have more freedom to work at the times of the day that suit them best. Rather than taking up their most productive morning hours with a commute, for example, they can be behind their desks getting work done.
Flexible work arrangements allow them to work during their most productive hours instead of the rigid working hours set by many companies.
Creativity and Innovation
When employees have greater freedom in how they work, they will be more committed to finding creative and innovative solutions with greater energy. With increased autonomy in their working conditions, employees will often feel more empowered to experiment and take calculated risks that can lead to innovative breakthroughs.
They won’t see their role as just another job or just a way to receive a paycheck, and they will be more involved, more enthusiastic, and committed to the company’s advancement.
You might worry that when employees are working remotely, they will get less opportunity to brainstorm with other team members, but modern technology has made it easier than ever to collaborate from anywhere. You could ensure that everyone works from the office one day a week, giving them the option to meet, talk, discuss ideas, and come up with solutions.
And with the technology available today, you could even have daily brainstorming sessions where people in the office can join those working remotely using interactive displays. High-quality screens, audio, and interactive whiteboards make it feel like everyone is present in the same room, so there is always the opportunity to meet up and collaborate.
Absenteeism & Retention Rates
Empty office with desks and chairs
Absenteeism is a productivity killer. When people are ill or forced to deal with personal issues, they’re not working—and productivity takes a dive. Furthermore, studies have shown that a positive work environment, enhanced by flexible arrangements, can significantly reduce turnover rates, which is a major cost for businesses.
Flexible work arrangements can have a positive impact on absenteeism.
When employees are more engaged, as already discussed, they enjoy their work more and are more likely to avoid taking days off, which ultimately contributes to a more productive workplace environment.
Also, they are more comfortable and less stressed. They can work in their ideal environments, meaning there’s less chance of getting work-related stress and physical ailments.
It can also have a positive effect on retention rates, helping the overall productivity of your business. If you’re constantly spending time and money hiring new employees, this will take its toll on overall productivity because you’re using up resources you would rather redirect into greater productivity.
A Gallup study found that 54% of office workers would leave their jobs for a role offering greater flexibility. People want the option of flexible work—and you need to provide them with what they want, otherwise they’ll find another position that gives it to them.
In addition, offering flexible work can help to attract the best talent, which also boosts productivity. You get the best people to fill your positions, who are most likely to work hard, become involved, and do a great job.
Business Agility
Busy workplace with black monitors
One of the direct benefits for your business is the increased agility that flexible work can provide. It allows you to adapt to market changes more quickly and effectively, and scale up or down your business based on demand.
This adaptability not only enhances your operational efficiency but also positions your business as a forward-thinking entity in a rapidly evolving marketplace. You could bring in remote contract workers or part-time flexible workers, and they can effortlessly integrate into your team if everyone is already working flexibly.
Flexible work can also lead to cost savings because you may be able to rent a smaller office or buy less equipment if more employees work remotely.
While this is not directly related to productivity, it might allow you to direct resources into other areas, like employee training and new tools, to make your business more productive overall.
Time to Offer Flexible Work?
It’s clear that there is a relationship between work productivity and flexible hours, which is becoming increasingly important for modern businesses to consider.
While you may be tempted to offer flexible work arrangements to your employees simply because it is becoming more popular and requested, don’t dismiss the direct productivity benefits it can bring. By recognizing the profound impact that flexible work can have on various aspects of business performance, you can strategically position your organization for long-term success.
Keeping your team happy leads to a more engaged workforce, while reduced absenteeism and the redirection of resources into training and new tools can all have a big impact on productivity. It should be clear that flexibility is a strategic asset, but the only way you’ll be able to know for sure is by implementing flexible work in your own business and seeing the benefits for yourself.