Out of sight, out of mind - that’s what many employers imagine might happen to an employee’s mindset when they’re out of the office. Most companies throughout the U.S. don’t offer flexible working arrangements for their staff. According to the Bureau of Labor Statistics, only 5 percent of employers offer flexible work schedules for a majority of their workers on a consistent basis, and that percentage has only gone up 1 percentage point since 2003.
Although traditional workdays are effective, it may be time for HR professionals and supervisors to update their employee management strategies, as an increasing amount of research shows flexible schedules benefit both employers and employees alike. Keep reading to find out five reasons to offer flexible working arrangements.
1. Attract Top Talent
Being able to work from home is considered a huge perk for prospective and current employees, and can act as an incentive to hire top-quality talent.
Entrepreneur and New York Times best-selling author Kevin Kruse said that the ability to work from home has helped him draw in top talent for more than two decades. Kruse wrote in Forbes that for 20 years he’s been telling new employees: “You can do your job wherever and whenever you want. You can even sit in a beach chair with a cocktail in hand for all I care, as long as you get our desired results.”
He goes on to say that offering a flexible schedule has allowed him to recruit star employees, and lure away talent from competitors without having to offer a raise in pay. A Census survey confirms this: people who work exclusively from home put in the same amount of hours as those in similar office-based roles, but made an average of $4,500 less per year than their counterparts.
When people have the choice to save money on commuting and have more freedom in their jobs, they’re far more willing to accept a lower salary.
2. Increased Employee Engagement, Happiness
On cold winter days, it’s difficult to find any joy in commuting – waiting for a bus or train, or climbing into a freezing car can be miserable, making employees dread going to work in the morning. On other occasions when a child is home sick, finding a way to care for them without missing work can be a real challenge. Offering flexible scheduling and the ability to work from home is a perk that should not be underestimated, as it increases job satisfaction and overall well-being.
Having the option to work from home gives employees the sense that their supervisors value their happiness and appreciate a strong work/home balance. Happy employees are engaged employees, and any HR professional or manager knows how important engagement is.
Gallup’s “The Relationship Between Engagement at Work and Organizational Outcomes” report revealed just how vital employee engagement really is. According to the study, companies with approximately 9.3 engaged employees for every disengaged one experienced 147 percent higher earnings per share compared to their competitors.
3. Improved Productivity
A major reason why most managers resist telecommuting is they believe productivity will take a hit. Studies show, however, that the opposite is true.
Researchers at Stanford University found that, at CTrip travel agency in China, when workers were given the option to conduct business from home, they took fewer breaks during the day, absenteeism dropped, and performance increased by 13 percent,. Of that 13 percent, 9 percent worked more hours per shift, making flexible arrangements a smart human resources solution.
4. Cost Efficiency
Workplace flexibility can save a company money, making the option a valuable investment. If on any given day at an office, 25 percent of employees are working from home, that’s 25 percent people using phones, computers, desk lamps, printers, fax machines, and other electronics, saving on energy and improving sustainability.
Operating electronically also saves money on office supplies – workers won’t be using company paper, pens, and pencils if they’re working from their living room. As any office manager knows, the cost of these items can add up quickly – having to place fewer orders for everyday items frees up valuable room in an organization’s budget.
Business owners can also opt for power-saving technologies when fewer employees are in the office, and can make the switch to time-based Power over Ethernet optimization. PoE allows individuals to turn a network on or off based on a company’s schedule, so if a workforce is operating from home or is encouraged to leave the office by a certain time each day, managers can disable the network to save money.
5. Better Communication, Stronger Results
Working from home requires increased communication between a team and supervisors. Improved communication creates a more equal workplace, and when working from home, this information flow makes employees feel respected and valued, without feeling like they are being babysat or micro-managed.
At the end of the day, sales numbers, productivity and increased revenues are what really matters to a company, and employees should be paid for the work they do, not just for showing up to an office everyday. If an employee can successfully operate from home, what does a company have to lose?