How Does Flexible Working Benefit Employers? [7 Top Facts]

Flexible working is a work arrangement that lets employees choose when, where, and how they work, usually through hybrid schedules, remote options, or adjustable hours.

Six in 10 employees with remote-capable jobs want a hybrid arrangement, about a third want fully remote work, and fewer than 10% prefer to be fully on-site, according to Gallup.

Many employees love the freedom to work flexible schedules to better balance their work and personal lives. Flexibility arrangements generate benefits such as less work stress and commuting time, more time with family, and a greater sense of well-being in general.

So clearly, flexible working is beneficial for employees.

But what about the businesses that employ flexible workers? How does flexible working benefit employers?

Quick Answer: Flexible working benefits employers through higher engagement, lower absenteeism, better retention, a wider talent pool, and lower office costs. In the largest randomized trial to date, hybrid work cut quit rates by 33% with no drop in performance (Nature).

This article discusses the top seven findings regarding how flexible working benefits employers. Keep reading to see how your own business can tap into these employer benefits!

How Does Flexible Working Benefit Employers – The Facts

Here’s exactly how employers benefit from providing hybrid and flexible work schedules and why you should do it too.

1. Improved Employee Engagement and Job Satisfaction

Flexible work arrangements and flexible hours significantly impact the overall work climate and morale of a company.

When employees have the freedom to work from home, adjust their work hours to their schedules, and take time off when needed, they feel more valued and trusted by their employers.

This can lead to increased job satisfaction and motivation, which in turn can improve productivity and reduce the company’s turnover rate.

Gallup’s Q12 meta-analysis, covering 183,806 business units, found teams in the top quartile of engagement have 23% higher profitability and 78% lower absenteeism than bottom-quartile teams.

Flexibility feeds that engagement directly. Hybrid employees name improved work-life balance (76%), more efficient use of time (64%), and less burnout or fatigue (61%) as the top advantages of their arrangement (Gallup).

However, it’s important for companies to implement flexible scheduling policies in a fair and consistent manner. If some employees are given more flexibility than others, that can cause resentment and negatively impact morale.

Make sure that communication remains strong and that employees still feel connected to their colleagues and the company culture even when working remotely.

2. Less Absenteeism

Absenteeism drains payroll through missed deadlines, overtime cover, and lost output. When one person is out, teammates absorb the work.

Workplace absenteeism can have many causes, including illness or injury, a family emergency, personal issues such as doctor appointments, getting stuck in traffic, or weather-related difficulty in getting to the office.

But workers also skip work for less tangible reasons, including mental health issues. “Sources” of these issues can include the following:

• Stress or burnout
• Poor job satisfaction
• Lack of motivation or feeling engaged in one’s work
• Workplace bullying or harassment
• Poor work-life balance

Clearly, worker stress is a major contributor to absenteeism. Fortunately, though, hybrid work arrangements can help improve this situation.

Teams with the highest engagement have 78% lower absenteeism than the least engaged teams (Gallup Q12 meta-analysis). And 61% of hybrid employees say less burnout and fatigue is a top advantage of their arrangement, cutting into one of the biggest drivers of missed days.

On a side note, working remotely impacts taxes. Educate employees and yourself about that.

3. Increased Workforce Productivity

How does flexible working benefit employers in the area of workforce productivity?

Many employers have expressed concerns about the potential for decreased productivity and responsibility among employees who work from home or have flexible schedules.

However, research has found that employees who have more control over their schedules are often more productive and engaged in their work. They also benefit from fewer interruptions and a greater ability to focus on their work.

The strongest evidence comes from a randomized trial of 1,612 employees at Trip.com, published in Nature. Employees working from home 2 days a week performed no differently on performance reviews over the following 2 years than their fully in-office colleagues, and were no less likely to be promoted.

Employees agree: 52% of hybrid workers name higher productivity as a top advantage of their arrangement (Gallup).

Lastly, when given the freedom to manage their own time, employees are more likely to take ownership of their tasks and be accountable for their performance.

So, by trusting employees to manage their time effectively, and providing the right time management software to do so remotely, employers create a more productive work environment and a culture of accountability.

4. Attracting Highly Skilled Employees

Many highly skilled employees prefer flexible work arrangements. Hybrid work allows them to better manage their personal and professional lives, which can result in improved work-life balance and higher job satisfaction.

In the FlexJobs 2025 State of the Workforce survey of over 3,000 US professionals, 85% named remote work the top factor motivating them to apply for a job, ahead of salary and benefits (72%). Only 2% prefer to be in the office full-time. And 69% would accept a pay cut to keep working remotely. More in our hybrid work statistics roundup.

So a hybrid work arrangement is a valued perk that companies can use to attract top talent in a competitive labor market.

5. Improved Retention Rates

It’s not just about attracting top talent – it’s also about keeping them.

Hybrid or flex work arrangements can positively impact retention rates since remote workers tend to experience greater work autonomy, a better work-life balance, and less workplace stress.

The Trip.com trial in Nature measured this directly: hybrid work cut quit rates by 33%, with the biggest effect among non-managers, women, and employees with long commutes.

The reverse also holds. 76% of workers say they would look for a new job if remote work were eliminated (FlexJobs), and 6 in 10 exclusively remote employees told Gallup they are extremely likely to leave if remote flexibility is taken away.

In short, offering flexible work arrangements can generate a sense of greater loyalty and commitment to the organization, resulting in higher retention rates and lower turnover costs.

6. More Workforce Diversity

Flexible arrangements and remote work options can help a workforce become more diverse. It removes entry barriers for individuals who may face challenges in traditional office settings.

For example, employees with disabilities, caregivers, and those living in remote areas may find it easier to work from home or have flexible schedules.

The clearest evidence is on disability employment. Research from Stanford’s Nicholas Bloom and co-authors (NBER) found the post-pandemic rise in working from home explains 68% to 85% of the record rise in full-time employment among people with physical disabilities, largely by removing commutes and giving workers control over their working conditions.

Remote work options also let companies hire from different regions and countries, which widens the talent pool further.

7. Reduced Facility Costs

How does flexible working benefit employers in terms of cost?

Well, companies can benefit financially from having fewer workers in the workspace in several ways.

Higher employee job satisfaction and productivity generated by flexible schedules may result in fewer missed deadlines and higher-quality work, leading to increased revenue.

Having fewer employees physically present in the office reduces the amount of office space needed, which can result in lower rent and utility costs.

Read our hybrid work cost savings article for more details on how employers can save up to 40% – and sometimes even 50% – on office costs when going hybrid.

So, yes, companies do save money with remote employees.

What Are the Challenges of Flexible Working for Employers?

Flexible working has costs, and employers manage them best by naming them. Hybrid employees themselves report the top challenges: less access to work resources and equipment (31%), feeling less connected to company culture (28%), and decreased team collaboration (24%) (Gallup).

Each challenge is smaller than the corresponding benefit. Gallup notes the top advantages of hybrid work are selected 2 to 3 times more often than the top challenges. Clear scheduling, intentional in-office days, and the right workplace software address most of the gaps.

Who Should Decide Your Flexible Work Policy?

Teams that set their hybrid policy together get the best results: 90% of employees on those teams say the policy is fair, and 55% say it improves collaboration, the highest of any approach Gallup measured. Yet only 11% of employees work on teams that decide this way.

The lesson for employers: don’t hand down a blanket mandate. Let teams agree on anchor days and quiet days, then give them the tools to coordinate.

How to Manage Flexible Working Arrangements

Introducing hybrid work at your company may feel like upsetting the apple cart, but it doesn’t have to.

The best approach is to use modern software solutions for tasks such as time management and collaboration that make flexible and remote working arrangements manageable and productive.

OfficeRnD Workplace is workplace management software that gives employers desk booking, meeting room scheduling, visitor management, and workplace analytics in one system. It shows you how your space is actually used, so you can right-size your office as your flexible work policy evolves.

Check out the video below:

Employers, Tap Into Your Own Flexible Working Benefits

The word is out: flexible working arrangements can offer great benefits for both employees and employers!

Going hybrid will bring your company great benefits – and it’s very doable when you use the right technology to manage it effectively.

At OfficeRnD, we help our customers enable and manage flexible working arrangements and a hybrid work model by creating an easy-to-use, embeddable, and reliable software solution that positively impacts their employees and boosts collaboration – and all in a cost-efficient way.

Book a live demo and talk to our workplace experts!

FAQ

How does flexible working benefit employers?

Flexible working gives employers higher employee engagement, lower absenteeism and turnover, a wider talent pool, and lower office costs. In the largest randomized trial to date, hybrid work cut quit rates by 33% with no drop in performance.

Does flexible working improve productivity?

The research says it doesn’t hurt it. In a randomized trial of 1,612 employees published in Nature, people working from home 2 days a week received no different review ratings over 2 years than fully in-office colleagues. And 52% of hybrid workers name higher productivity as a top advantage of their arrangement.

Does flexible working reduce absenteeism?

Indirectly, yes. Flexible work supports engagement, and Gallup’s meta-analysis shows the most engaged teams have 78% lower absenteeism than the least engaged. Read more on flexible working and absenteeism.

Why do employees want flexible working?

Hybrid employees name improved work-life balance (76%), more efficient use of time (64%), and less burnout (61%) as the top advantages of their arrangement, according to Gallup.

Do companies save money with flexible working?

Yes. Fewer people in the office at once means less space, lower rent, and lower utility costs. Employers can save up to 40% on office costs when going hybrid. See our hybrid work cost savings article for the details.

What are the disadvantages of flexible working for employers?

The main ones are reduced access to office resources, weaker connection to company culture, and less spontaneous collaboration. Team-level policies and scheduling software keep them manageable.