Flexible workplaces: Good or bad for employee retention?

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A new study has found that flexible work arrangements can sometimes boost employee retention, but they can also lead to higher turnover.

Most people think of flexible work arrangements as an employee benefit. But giving people the opportunity to work from home and choose their start and end times seems to have both positive and negative effects on employee retention.

These are the findings from a study conducted by Victor Haines and Alain Marchand , two professors at the Université de Montréal’s School of Industrial Relations, in collaboration with Sylvie Guerrero from the Université du Québec à Montréal.

The study, which was carried out under UdeM’s observatory on workplace health and wellness (Observatoire sur la santé et le mieux-être au travail), examined the associations between flexible work arrangements and turnover intentions among more than 1,500 Quebec employees.

A double-edged sword

Flexibility generally gives employees an increased sense of control and autonomy, and is associated with better engagement. These two variables make workers less likely to want to leave their jobs.

"Flexible work arrangements respond to employees’ individual needs, demonstrating goodwill and caring on behalf of the employer. In return, employees show a stronger commitment to their professional duties," explains Victor Haines.

But the flipside is that remote work prevents workers from getting support from their colleagues, which leads to a sense of professional isolation. Remote work also increases the bi-directional conflict between work and family life. These factors make employees more likely to think about quitting.

"When employees feel less connection because they work different hours or at different locations (or both), there can be problems with coordination and motivation-both of which can have negative social consequences," adds Haines.

The researcher believes these findings should have employers asking themselves what advantages they hope to get from flexible work arrangements. "Offering this type of flexibility is a double-edged sword. What seems like a benefit can also backfire," he argues. "But it does seem that offering a flexible schedule is less risky than work-from-home arrangements."