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What are the advantages and disadvantages of offering flexible work arrangements to your employees?

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Flexible work arrangements (FWAs) are options that allow employees to adjust their work schedules, locations, or hours to suit their personal and professional needs. FWAs can include telecommuting, flextime, compressed workweeks, job sharing, or part-time work. As an HR professional, you might be wondering whether offering FWAs to your employees is a good idea. In this article, we will explore some of the advantages and disadvantages of FWAs for both employers and employees.

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Jori Hurula

HR Director at Stora Enso

1 Benefits of FWAs

FWAs can have positive impacts on employee satisfaction, productivity, retention, and diversity. Employees who have more control over their work-life balance tend to be happier, healthier, and more motivated. They can also save time and money on commuting, childcare, or other expenses. FWAs can also help employers attract and retain talent, especially in competitive markets or industries. Employees who value flexibility might be more loyal, engaged, and committed to their organizations. Additionally, FWAs can increase the diversity and inclusivity of the workforce by accommodating different needs, preferences, and backgrounds.

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Dimcy Hasija

Human Resources Administrative Specialist | HR Generalist Affiliation, HRCI, SHRM |
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Flexible work arrangements allow employees to better balance their work responsibilities with personal and family commitments, leading to reduced stress and improved well-being. Offering flexibility can make an organization more attractive to a wider range of candidates, especially those seeking better work-life integration. It can also improve employee retention rates by showing that their needs are valued. Employees working remotely can save on commuting costs and time, leading to increased job satisfaction and better work-life balance.

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2 Challenges of FWAs

FWAs can also pose some challenges for employers and employees. Some of the potential drawbacks of FWAs are communication difficulties, coordination issues, performance management, and equity concerns. Employees who work remotely or on different schedules might face isolation, miscommunication, or lack of feedback from their managers and colleagues. They might also have trouble aligning their goals, expectations, and deadlines with their teams or clients. Employers might find it harder to monitor, evaluate, or reward the performance of flexible workers. They might also have to deal with legal, tax, or security implications of having employees in different locations or jurisdictions. Moreover, FWAs might create or exacerbate inequalities or conflicts among employees who have different access or preferences for flexibility.

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Dimcy Hasija

Human Resources Administrative Specialist | HR Generalist Affiliation, HRCI, SHRM |
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Employees working remotely might feel isolated or lonely, leading to potential impacts on mental health and team cohesion. Some tasks require real-time collaboration and brainstorming, which might be hindered in a remote work setup. Maintaining a strong company culture might be more challenging when employees are not physically present in the same location.

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3 Best practices for FWAs

In order to implement FWAs successfully, employers and employees should adhere to certain best practices. This includes establishing policies and guidelines that outline eligibility, availability, approval, and evaluation processes. Furthermore, regular communication with flexible workers should be maintained via various tools and channels. Additionally, adequate resources and support should be provided for flexible workers, such as technology, equipment, training, and mentoring. Moreover, a culture of trust, accountability, and collaboration should be established between flexible and non-flexible workers by setting clear expectations, goals, and metrics. Finally, FWAs should be reviewed and adjusted periodically to ensure they are meeting the needs of both employers and employees.

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4 Examples of FWAs

To demonstrate how FWAs can be implemented, here are a few examples of organizations that have adopted FWAs for their employees. Shopify, an e-commerce platform, announced in 2020 that their employees could work from anywhere permanently, and provided a $1,000 stipend for home office setup. Netflix, a streaming service, has a flexible vacation policy that allows employees to take as much time off as they need with prior coordination with managers and teams; the company does not track hours or locations of its employees. KPMG, a consulting firm, offers various FWAs such as telecommuting, flextime, compressed workweeks, and reduced hours; they also have a program called FlexMatch that pairs up employees who wish to share a job.

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5 Future of FWAs

FWAs are not a new phenomenon, but they have become more prevalent and popular in the wake of the COVID-19 pandemic. Many employers and employees have realized the benefits and challenges of FWAs, and have adapted their work practices accordingly. However, FWAs are not a one-size-fits-all solution, and they require careful planning, communication, and evaluation. As the world of work evolves, FWAs will likely continue to be an important option for HR professionals to consider and offer to their employees.

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Jori Hurula

HR Director at Stora Enso
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If your organization has not yet intentionally explored the option of FWAs, best time to start is now to keep up with the competition and modern ways of working. Ask your employees for their preferences, draft out a common policy and give it a trial of 6 to 12 months.

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6 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?

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What are the advantages and disadvantages of offering flexible work arrangements to your employees?

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2

3

4

5

6

1 Benefits of FWAs

2 Challenges of FWAs

3 Best practices for FWAs

4 Examples of FWAs

5 Future of FWAs

6 Here’s what else to consider

HR Operations

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What are the advantages and disadvantages of offering flexible work arrangements to your employees?

1

2

3

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5

6

1 Benefits of FWAs

2 Challenges of FWAs

3 Best practices for FWAs

4 Examples of FWAs

5 Future of FWAs

6 Here’s what else to consider

HR Operations

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