The Upside of Flexible Working Arrangements

FWAs could help tremendously with the recruitment and retention efforts of businesses.

In recent employee surveys, FWAs have been consistently ranked as one of the main factors that employees look out for. In fact, a Randstad 2022 study reported how 69% of surveyed Singapore workers listed FWAs as the second most important employee value proposition to them. The main driving force behind this demand is the better work-life balance that FWAs offer – replacing long commuting times with more flexibility and work-life balance in their personal lives.

Since FWAs are highly sought after by workers, offering such options could prove to be a highly effective tactic. Assuming higher compensation or other monetary incentives are out of the question, positing the FWA carrot can be an alternative.

FWAs can also introduce benefits that improve the performance and productivity of all personnel.

Firstly, everyone has their preferred working environments and individualised peak productive times. Some as early as 6am, some later in the day. In a 2021 Gartner worker survey, 43% of respondents reported that flexible working hours enabled them to become more productive, possibly attributed in part to their ability to plan their work schedules around their individual peak productive times. Notably, despite saving on commuting time, many remote-based workers reported how they are clocking in more working hours.

Secondly, FWAs could help foster employee engagement. A concept referring to an employee’s emotional connection to their work and organisation, employee engagement had been found to be strongly correlated with an employee’s performance and retention. For instance, organisations with high employee engagement could enjoy up to a 41% reduction in absenteeism, 17% increase in productivity, and 59% less turnover.

Providing FWAs, something that is highly sought after because of the better work-life balance they offer, help with driving up employee happiness. They can also enable the workforce to gain a deeper appreciation of their jobs. The positive effects can even be more profound if FWAs are part of a form of reward or concession to employees as it would make them feel valued.

The Downsides of Flexible Working Arrangements

Although FWAs could help foster employee engagement, they have the potential to bring about an opposite effect. This is especially if the FWA in question is remote work. Many personnel who opted for this have quickly discovered how their work had bled into their personal life. In fact, it is commonly reported how they cannot unplug from work after working hours as one of their main challenges. Two other major issues reported centre around the lack of social interactions with colleagues and difficulties in developing mutual trust with employers and colleagues. These challenges could result in lower employee engagement levels and, in turn, result in lower employee performance and retention.

Furthermore, while many workers are more productive when working remotely, there are some who become less productive. Whether it’s because of too many distractions at home or character issues, remote work is simply not the right fit for some.

Addressing the Downsides

To effectively deal with these distractions, businesses that offer WFA options should concentrate on efforts that improve internal communications. This includes:

#1: Engaging Unproductive Remote Workers

• Set individualised timelines and productivity standards for remote employees to meet. Consider using project management tools that make it easy to assign tasks and keep track of their real-time progress.
• Have early check-ins with workers identified as unproductive to determine if they’re the kind who require more supervision or if they’re experiencing problems.

#2: Difficulty with Unplugging After Work

• Consider establishing clear expectations or official company policy on after-hours work. For instance, forbid setting meetings after working hours (unless absolutely necessary).
• Remind employees that they’re not obligated to work outside of working hours and should not feel obligated to do so.

#3: Lack of Social Integration within the Organisation

• Set aside specific times for team-building activities, be it physical or virtual. Better yet, get your employees to give their suggestions and plan around them.
• Consider opting for a hybrid working arrangement instead of a purely remote working one, if possible, to facilitate social interaction. This is a must for new hires. For instance, have your employees return on-site every other week or every Friday.
• Conduct regular check-ins with your remote employees in a meaningful way. Keep them updated with their performance and latest company news, gather their feedback, and most importantly, engage in casual conversation.
• Implement a comprehensive onboarding process that goes beyond paperwork and basic introductions.
• An excellent onboarding process has the potential to fully integrate new hires into the organisation via:
• Familiarising them with the company’s operations, values, and, most importantly, its people
• Establishing clear expectations and responsibilities
• Enabling them to become confident in fulfilling their roles through the help of a reliable support system

Successfully addressing these potential downsides of FWAs involves fulfilling what employees want. Learn how Access People HR – our market-leading Human Resource Information System (HRIS) solution – can help manage employees more effectively from onboarding to employee engagement.