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Over the last few years, the landscape and acceptance of flexible work models have changed dramatically. Having a choice of work environment and location is now a key factor for many job seekers when searching for a better work-life balance and evaluating new career opportunities. The desire for a healthy work-life balance and flexibility only rose during the COVID-19 pandemic. A Randstad 2023 Workmonitor survey revealed that 78% of workers feel they have a good work-life balance, and a majority would not accept a different job with negative work-life balance impacts. Significant data exists across many industries to make the business case for work-life balance, most notably the positive impact on retention and recruitment. In a 2022 annual survey by FlexJobs, 79% of respondents selected “work-life balance” as one of the top three factors when seeking a new position. In this same survey, the number one factor was “remote work options” at 84% of respondents, with 56% indicating “work schedule” as another top ten factor. Flexible work models, including hybrid and remote work options, benefit employees and companies alike. Gallup reports that, on average, it costs one-half to two times an employee’s salary for turnover and replacement. This article lays out the case for a discussion of flexible work models as part of an overall approach to a healthier and more successful work environment for both employees and companies.

What is Work-Life Fit?

Initially described as work-family conflict in the early 1980s, the term used to describe the dynamic between work and personal life has changed over time. The conflicts identified in the 1980s focused on marital conflict over work/non-work and home/non-home roles. The discussion focus changed to work-life balance in the mid-1990s as both parents took on career roles, and latch-key kids became a social issue.

The term “work-life balance” is what most people are familiar with today. However, the term “work-life fit” has resurfaced over the last decade and supports the idea that “work-life balance” is an outdated concept. “Work-life balance” is based on creating and maintaining clear boundaries between our personal and professional lives. In today’s world, the number of demands on our time has drastically increased, and a 50/50 split between work and personal life is not realistic or even necessary. The concept of “work-life fit” is based on flexibility: individuals fit their personal and work lives together in an effective way that works uniquely for them and achieves their personal business goals (image 1). It is worth noting that work-life fit is not about working less but working differently and more effectively.

Flexible Work Models

The COVID-19 pandemic changed the landscape and perception of flexible work models dramatically. The traditional model of a 40-hour in-office work week was challenged as both employers and employees realized the benefits of flexible work. As companies continue to redefine their work models moving forward, the physical space may not matter as much as providing resources tailored to help employees reach their full potential.

There are three main flexible work models identified by Zweig Group’s “The Right Fit” tool, developed as part of the elevateHER® program. Each model provides a range of implementation options that are applicable to any company.

  1. When people work: This model is based on providing flexible schedules using staggered hours, variable schedules with core hours, variable workdays, or a compressed work week.
  2. Where people work: This model focuses on flexible office locations via hybrid telecommuting (2-3 days in-office), remote working, or alternating locations throughout a specific period of time.
  3. How much people work: This model is less common but offers reduced hours through permanent or transitional part-time positions or job sharing.

Ultimately, employees and employers need to identify the right type of flexible work policy that addresses an individual’s needs while supporting the business case for their company.

Work-Life Fit Makes Good Business Sense

Creating a work environment that prioritizes work-life fit can result in more engaged employees, positively impacting the bottom line of a company. The World Health Organization defines employee burnout as exhaustion, negativity, and reduced professional efficacy. Lost productivity associated with employee burnout costs the global economy $1 trillion every year. In turn, burnout in the workplace most often results in employee disengagement, followed by decreased productivity and profitability. Gallup research shows that engaged employees have an 81% lower absenteeism rate, leading to 14% higher productivity. Data from 2022 indicated that 83% of workers supported a hybrid work model (defined as at least 10% of time worked at home, image 2), but only 26% of CEOs were ready to move into this work model (image 3). At that time, 49% of remote-capable workers were using this model. One year later, 59% of remote-capable workers were using this model, with no decrease expected in the future.

Flexible work options work for companies

Flexibility is becoming increasingly synonymous with successful companies. Companies offering flexible work are often high-growth companies that rank high in their professional categories. Professional services sectors, such as the Architecture, Engineering, and Construction (AEC) industry, have been identified as having a high potential for remote work with the right considerations. The KPMG 2023 Global Construction Survey, which surveyed representatives from over 300 engineering and construction companies, found that 46% of engineering and construction firms identified that implementing or updating the models for remote work and job construction job site travel played an important part in their response to unforeseen workplace disruptions, including inflation, supply chain issues, and other resource constraints.

Flexible work options attract and retain talent

Flexible work options are a benefit that ensures a business will keep attracting and retaining high-quality employees. In addition, flexible work options expand the talent pool and options for staffing. In Remote.co’s 2022 Work & Financial Wellness Report, 63% of global workers surveyed said they would look for a new job if remote work options were no longer offered.

Flexible work options increase job satisfaction

Built-in flexibility reduces employee burnout and improves work-life fit, leading to increased job satisfaction. Flexible work models empower employees by increasing their feeling of personal control over their schedule and work environment. Empowerment appeals to the entrepreneurial spirit and a renewed sense of health and vigor on the job, which is good for employees and businesses. In May 2023, Gallup survey data indicated that employees allowed to work remote or hybrid schedules tend to have significantly higher employee engagement than on-site workers. Furthermore, employees required to work on-site when their job is remote or hybrid-capable have experienced the largest drop in engagement since 2020, while on-site employees with jobs that cannot be done remotely have the lowest engagement.

Flexible work options are scalable for all company sizes

Whether a small, medium, or large office, there are financial benefits to the company using flexible work options. Reducing the office footprint and implementing hoteling policies saves money on rent. The larger the office, the larger the savings. Prior to 2020, at least two high-profile tech firms reported millions of dollars in savings due to reduced real estate needs based on flexible work models. A flexible work policy is often a low-cost way for small companies to improve a compensation package without offering larger salaries or bonuses, improving their ability to compete with big companies for top talent. Reducing commuting costs for employees can be an attractive portion of an overall compensation package.

Flexible work options allow companies to reduce their energy consumption. An environmentally conscious company appeals to a generation of job seekers who care deeply about social and environmental issues. A number of studies, including Global Workplace Analytics, have shown that job seekers are attracted to organizations with sustainable practices.

Moving Forward While Looking Backward

Flexible work models are not for everyone or every company but can be powerful tools for employees and employers to create meaningful change within an organization. There are a number of factors that should be considered for flexible work policies to be successful for both an individual and a company, including consideration of individual work styles, level of position, security issues, and IT infrastructure investment. Additional impacts, such as office culture, communication with coworkers and clients, and employee morale and engagement, should be taken into account when developing flexible work policies. Many companies have experience with some version of remote or hybrid work policies. Unfortunately, as we move farther away from the COVID-19 pandemic, more and more companies are mandating a return to the office, with or without some form of flexibility offered. Whether or not your company falls into this category, our industry should build its future on the lessons learned over the past few years – good and bad – and not underestimate the positive business impacts of healthy, happy, and engaged employees.

References

elevateHER®. n.d. “The Right Fit – Flexible Work: Talking Points & Data.” <https://zgelevateher.com/wp-content/uploads/2021/09/Talking-Points-and-Data.pdf>

Global Workplace Analytics. n.d. “Costs and Benefits: Advantages of Agile Work Strategies For Companies.” <https://globalworkplaceanalytics.com/resources/costs-benefits>

Harter, J., 2017. “Employee Engagement vs. Employee Satisfaction and Organizational Culture.” Gallup Workplace. <https://www.gallup.com/workplace/236366/right-culture-not-employee-satisfaction.aspx>

KPMG. 2023. “Familiar Challenges – New Approaches: Global Construction Survey.” <https://assets.kpmg.com/content/dam/kpmg/xx/pdf/2023/06/familiar-challenges-new-solutions.pdf>

Lund, S., Madgavkar, A., Manyika, J., and Smit, S., 2020. “What’s next for remote work: An analysis of 2,000 tasks, 800 jobs, and nine countries.” McKinsey Global Services. <https://www.mckinsey.com/featured-insights/future-of-work/whats-next-for-remote-work-an-analysis-of-2000-tasks-800-jobs-and-nine-countries#/>

Moss, J., 2019. “Burnout Is About Your Workplace, Not Your People..” Harvard Business Review. <https://hbr.org/2019/12/burnout-is-about-your-workplace-not-your-people>

Noordende, S.V., 2023. “Why ‘Flexibility With Intentionality’ Ends The Remote Work Debate.” Forbes. <https://www.forbes.com/sites/sandervantnoordende/2023/08/29/why-flexibility-with-intentionality-ends-the-remote-work-debate/?sh=5a7a27c82d62>

Pendell, R., 2022. “The World’s $7.8 Trillion Workplace Problem.“ Gallup Workplace. <https://www.gallup.com/workplace/393497/world-trillion-workplace-problem.aspx>

Randstad. 2023. “The evolution of work-life balance.” <https://www.randstad.com/workforce-insights/future-of-work/evolution-work-life-balance/>

Remote.co. 2023. “Report: 80% Say Salary Isn’t Keeping Up With Inflation.“ <https://remote.co/report-80-say-salary-isnt-keeping-up-with-inflation/>

Reynolds, B.W., n.d. “FlexJobs 2019 Annual Survey: Flexible Work Plays Big Role in Job Choices.” FlexJobs.com. <https://www.flexjobs.com/blog/post/survey-flexible-work-job-choices/>

McFeely, S. and Wigert, B., 2019. “This Fixable Problem Costs U.S. Businesses $1 Trillion.” Gallup Workplace. <https://www.gallup.com/workplace/247391/fixable-problem-costs-businesses-trillion.aspx>