Why There Would Be Fewer Entrepreneurs if Companies Offered Flexible Work Options

Back in 2007, when I created one of the first social media positions at a Fortune 200 company, I asked my manager if I could work from home at least occasionally. I justified not being in the office because I could conduct all of my social media responsibilities remotely. I had created and managed the company's Facebook, LinkedIn and Twitter accounts while contributing to their internal social media platform and helping various departments run campaigns. My manager wouldn't give me permission to work from home because, as he said, "it would make your teammates jealous". While a lack of work flexibility wasn't the sole factor in my entrepreneurial pursuit, it was a major one. If my manager had responded by granting me the privilege to work from home, my employment situation might have sufficed and I would have stayed with the company longer. Part of the entrepreneurial dream is the promise of freedom to work when, where and how you desire. As entrepreneurs, we trade long hours, unpredictable income, stress, and loneliness, for benefits like flexibility - the flexibility we DON'T have at most full-time jobs. I have confirmed this same feeling with my peers, who agree that they would be LESS LIKELY to be entrepreneurs if companies would more entrepreneurial, supporting flexible work arrangements.

When you're your own boss, you can create a flexible work arrangement that's custom to your preferences, family obligations and the type of business you're involved in. When you work for a company, they set the guidelines and your manager has to approve a flexible arrangement. Once you become self-employed, it's very hard to give up the flexibility you have in exchange for a full-time corporate job again, even if there's more stability. In all of my research over the years, flexibility has been one of the most consistent themes, yet not every company offers it. Still, I believe that flexibility will be as common an employee benefit as healthcare in the future. This belief is based on a study we conducted in partnership with Randstad that found that Gen Z's and Millennials actually desire flexibility over healthcare. While it's inevitable that they will desire healthcare more as they grow older, as those costs inevitably increase with age, flexibility will still remain a top priority for them.

Many employers have still not hopped on the flexibility train. As evidence, there's a gap between how much employees value flexibility and the benefits that companies are currently supplying. A study by Werk.co found that the majority of employees (96 percent) need flexibility, yet fewer than half (47 percent) report having access to the types of flexible programs they need, which is a gap of 54 percent. A separate study by WorkplaceTrends.com and CareerArc discovered that 75 percent of both employees and job seekers ranked "flexibility" as their top benefit compared to only half of employers who viewed it as their top benefit, a discrepancy of 25 percent. Companies can close this gap by first surveying their employees to identify their needs, then creating a flexibility program and offerings to suit those needs. Since flexibility is very personal, there also needs to be manager training so they know how to handle these conversations with their employees. It's easier to create flexible programs as a startup or small business, which gives them the advantage over large global enterprises that have to take many factors into consideration and change longstanding corporate cultures rooted in the status quo.

Employees are turning to entrepreneurship because the companies they work for aren't meeting their flexibility needs. A study by Upwork asked full-time freelancers what drew them to self-employment and 77 percent of them said flexibility and working from the location of their choosing. They found that in the past five years, four million more Americans have become freelancers (53 million in 2014 vs. 57 million in 2019). The rise of the freelancer marketplace is partially a result of people's need for the flexibility that they didn't receive with their former employer. Overall, people want control over how, when and where they work and will seek an employment situation that satisfies that need, even if it means sacrificing pay stability, healthcare benefits, a team, free coffee, and office space. When we worked with oDesk (now Upwork) on a different study, we asked why people would quit their regular job to work for themself and 69 percent said "freedom". What's more fascinating is when you compare their desire for freedom and flexibility with making more money. An entire 90 percent value the flexibility and freedom, while fewer than 60 percent are in it for better potential earnings. People are willing to trade at least some of their compensation for flexibility because flexibility is worth money (i.e. save on commuting costs, save on childcare, etc.).

For me, flexibility is priceless. I could book a flight today and leave for a different country tomorrow if I choose, and no one could stop me, really. But, if your corporate culture mandates you're in the office five days each week, you don't have that luxury. Flexibility is as much about freedom as it is about controlling your life. For women, the primary reason they start businesses is for the flexibility that allows them to accommodate their family needs. One study found that 74 percent of women said flexibility is more important than making the most money. They can stay home or travel with their children if they aren't tied to a physical office each day. Flexibility isn't just the reason why women are choosing the entrepreneurial path. Inc.com surveyed 462 small business owners asking them why they decided to own a company and one of the top ten most common responses was flexibility. Respondents desire the flexibility that comes with owning a business, "whether that be working from wherever you want, setting your own hours, wearing a nightgown or even sitting next to your pet while you work."

More full-time workers are quitting to start businesses to not just pursue a dream, but to gain the flexibility they never had but always wanted. Companies will continue to lose top talent - the type of talent that has the skills to be their own boss - if they don't provide flexible options. Flexibility is not just good for employees, but it serves companies because healthier, happier, lower stressed employees are more productive. It saves money, lowers absenteeism, builds trust and increases retention rates too. And, without flexible programs, companies will continue to struggle to remain relevant and compete for top talent. Gen Zs would work harder and stay at their employer longer if they supported flexible schedules and 41 percent of adults would only work for an employer that offers flexibility.

Flexibility is a mindset just as much as it is a need or program. All leaders need to adopt a flexible mindset to adapt to the needs of their workforce. If you expect the most out of your talent, then let them have control over their work arrangement. As long as your workforce delivers quality work, on time, and with tangible results, don't hold them captive in an office - let them free. In today's "do more with less" work environment, if employers continue to demand more out of their workforce, but without providing flexibility in exchange, we will continue to have a burnout crisis. Promoting flexibility serves humanity and benefits everyone!

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