Flexible or hybrid working — the ability to determine when, where, and how you want to work — is taking the world by storm. An overwhelming majority — 94% of employees — say they want to have flexibility in their work options!

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 by providing them with an impressive range of business benefits including increased employee productivity and engagement, less absenteeism, and improved retention rates.

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.

workers talking with each other

In fact, a 2022 study by Atlassian found that when employees have some work flexibility, 83% reported a positive outlook on their company’s culture, compared to just 47% of those who didn’t have any flexibility.

That same study found that employees with flexibility reported a burnout rate of 14%, compared to 36% in the group with no flexibility.

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 costs employers in the US $225.8 billion every year, which translates to $1,685 per employee!

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.

flexible work arrangement

Zippia reports that “At least 50% of employers believe remote work reduces absenteeism.”

And employee assessments reflect this number: “56% say they have reduced absences, and 50% use fewer sick days. Overall, a considerable 75% say they have a better work-life balance.”

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.

Post-pandemic, 68% of companies say they’ve seen increased employee productivity since the shift to remote work.

happy employee

Flexible working also impacts innovation. The Atlassian study mentioned earlier found that of employees who have workplace and work time flexibility, 71% considered their team to be innovative, compared to just 57% of employees who don’t have flexibility.

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 their employees to manage their time effectively — and providing the right kinds of time management software to do so remotely — employers can create a more productive work environment and foster a culture of responsibility and 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.

A survey conducted in 2022 found that since the pandemic, only 3% of professionals were interested in going back into the office full-time. A reason given by 87% was that flexible work options improved their overall work-life balance. That’s quite an impressive stat.

shaking hands

So, a hybrid work arrangement is a valued perk that companies can use to attract top talent. In a highly competitive labor market, it provides a competitive advantage over companies that can push the needle in their favor when it comes to being candidates’ top choice.

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.

One study found that companies that offer flexible schedules and remote work options experience a 25% decrease in employee turnover.

colleagues working form the office

A survey of over 2,000 professionals in early 2022 found that 43% would look for a new job if their current one didn’t offer remote work options.

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.

employees having a good time in the office

Hybrid work drives increased diversity in global workplace analytics as well.

A 2022 analysis by Future Forum found that “people of color, women, and working moms continue to value location flexibility the most.

In the US, 86% of Hispanic/Latinx knowledge workers and 81% of Asian/Asian American and Black knowledge workers would prefer a hybrid or fully remote work arrangement, compared with 75% of white knowledge workers.”

Additionally, remote work options enable companies to tap into talent from different regions and countries, thus further increasing diversity.

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.

hybrid work saves money

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.

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 Hybrid provides advanced tools to help you manage your hybrid work environment, including meeting room booking, desk booking, collaboration-boosting features, and advanced analytics.

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.

Get started for free with OfficeRnD Hybrid or book a live demo and talk to our workplace experts!


What Are the Benefits of Flexible Working for Employees?

The benefits include a better work-life balance, reduced commuting time and costs, increased autonomy and control over work, core hours, improved job satisfaction, and reduced stress levels.

How Does a Flexible Work Environment Benefit Both Employees and Employers?

A flexible work environment and flexible workplace can improve productivity, reduce absenteeism and turnover, and enhance employee morale and job satisfaction. It also allows for better use of resources and reduced overhead costs for employers.

Why Do Employers Value Flexible Employees?

Employers value flexible employees because they can adapt to changing work demands, are more productive, and demonstrate better job performance. They also tend to have higher job satisfaction, which can lead to increased loyalty and retention rates.

Is Flexibility the Most Empowering Benefit for Employees?

While flexibility is an empowering benefit for employees, other factors such as fair compensation, opportunities for growth and development, and supportive work culture are also important.

Why Is Flexibility Important to Employers?

Employers value flexibility because it can lead to improved employee engagement, reduced absenteeism and turnover, and increased productivity and profitability. It also allows for better use of resources.

How Does Flexible Working Improve Employee Performance?

A flexible work schedule can improve employee performance by allowing employees to work during their most productive hours, reducing distractions, and promoting a better work-life balance.

How Does Flexible Working Affect Organizations?

When flexible working is implemented in a way that supports employees, the resulting impact on company culture can be huge. This, in turn, can lead to increased engagement and productivity.

Asen Stoyanchev
Senior Content Marketing & SEO Specialist | OfficeRnD
Asen is passionate about flexible working and the future of work. He firmly believes that work flexibility directly impacts one's health and well-being. When he's not writing, Asen spends his time devouring business literature, hiking, and parenting.