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A BUSINESS CASE FOR FLEXIBLE WORKING ARRANGEMENTS?
Clare Kelliher
Professor of Work and Organisation
Current evidence fails to demonstrate an unequivocal business case for the use of FWAs.
The subsequent literature review was guided Interest in the outcomes of flexible working arrangements (FWA) dates from the mid-
1970s when researchers attempted to assess the impact of flexitime on worker performance. by the question: What is the relationship between flexible working arrangements and performance or related outcomes? The
Given the current unstable economic climate where perhaps the work-life balance agenda may be downplayed, it is important to assess the extent to which a real business case exists for FWAs that are designed to accommodate employees’ preferences. This paper reviews studies selected focused on flexibility for employees, rather than those concerned with flexibility of employees and thus on the notion of employee choice.
The authors found in summary, from the evidence at the organizational level that the the literature on the link between FWAs and performance-related outcomes and attempts to explain the mixed findings.
Flexible working arrangements (FWAs), which accommodate employees’ preferences and needs, have been widely advocated in UK strongest case would seem to be for a potential reduction in absenteeism, especially in relation to remote working. There is also increasing support for a positive impact on retention. The link with productivity and other
Government reports and information directed at employers and employees. It is argued that
FWAs can contribute either directly or indirectly to improvements in individual and/or organisational performance and therefore would be good for business. However, this link between FWA and a strong business case in terms of performance or well-being has not been established in the academic literature. financial measures is less clear, although more recent studies indicate a positive association with both remote working and schedule flexibility.
The majority of studies examining individual performance focus on the relationship with productivity, but some include measures such as performance ratings or indicators of quality
(e.g. customer complaints, errors made by employees). Although this outcome has been
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the most researched, the findings are not uniform and the evidence also fails to demonstrate a clear link.
The link with job satisfaction has attracted significant interest, and the general evidence is supportive of a positive link with FWAs.
However, the perception of availability may be as important in establishing a link with employee outcomes. Perceptions of availability, irrespective of whether employees take advantage of the FWAs available to them, may influence employee outcomes such as job satisfaction, or organizational commitment and thereby have an indirect impact on performance.
The authors raise a number of conceptual and methodological issues which, in part, may explain the mixed findings, but do make any generalisations problematic. Taken together the evidence fails to demonstrate an unequivocal business case for the use of
FWAs.
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By analysing the theoretical and methodological perspectives adopted, a research agenda is developed and the authors advocate that: we need research specifically designed to examine the impact of allowing employees some degree of choice over their working arrangements. research designs must include more detailed measures of FWAs (e.g. degree of formalization, use, length of use, extent of change in working arrangement).
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• we identify the need for different types of studies e.g. larger and more diverse samples; studies over a longer period of time the organizational culture and whether the Human Resource Management
(HRM) system is supportive are contingent factors that deserve further attention, since they impact on real employee choice and as such on the effectiveness of FWAs. de Menezes, L. & Kelliher, C. (2011), ‘Flexible
Working and Performance: A Systematic Review of the Evidence for a Business Case’ ,
International Journal of Management Reviews , vol. 13, no. 4, pp. 452 –474.
For further information on this paper please contact Lilian M. de Menezes, l.demenezes@city.ac.uk
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