How flexible arrangements boost productivity and well-being

Flexible working arrangements, such as those implemented during the Covid-19 crisis, benefit not just employees but also productivity and, perhaps, a company's bottom line, according to the United Nations.

The UN's International Labour Organization (ILO) analyzed the effects of working time, working hours, and working time arrangements on employee well-being as well as corporate performance in its first report on work-life balance.

This report demonstrates that if we apply some of the lessons learned from the Covid-19 crisis and carefully examine how working hours are structured, as well as their overall length, we can achieve a win-win situation by improving both business performance and work-life balance, according to Jon Messenger, lead author of the report.

One of the key insights from the report is the potential for flexible working arrangements to foster innovation within companies. By allowing employees to tailor their work schedules to fit their personal lives, businesses can tap into a more motivated and creative workforce. This flexibility can lead to novel solutions and improvements in processes that might not emerge in a more rigid work environment. Moreover, companies that embrace such flexibility often find themselves more attractive to top talent, further enhancing their competitive edge.

The research looks at the crisis-response tactics that governments and businesses took as the pandemic expanded to keep organizations running and workers employed.

It discovered that a higher proportion of workers working reduced hours helped to prevent job losses. And it found that the widespread application of telework around the world has altered not only teleworking but also the nature of employment for the foreseeable future.

Furthermore, the shift towards remote work has also had environmental benefits. With fewer employees commuting daily, there has been a noticeable reduction in carbon emissions in many urban areas. This unintended positive outcome highlights an additional advantage of flexible work arrangements, aligning corporate practices with global sustainability goals. As companies continue to refine their remote work policies, they have the opportunity to further contribute to environmental conservation efforts.

According to the ILO, the Covid measurements gave compelling evidence that giving workers more flexibility in how, where, and when they work might benefit both workers and employers, including higher productivity.

However, the analysis discovered that constraining flexibility increased costs, including greater workforce turnover. There is a great amount of evidence that work-life balance rules benefit businesses significantly, it stated.

The report also underscores the importance of mental health in the workplace. Flexible working arrangements can significantly reduce stress levels among employees, leading to improved mental health outcomes. When workers have more control over their schedules, they can better manage personal commitments and reduce the stress associated with balancing work and life responsibilities. This, in turn, can lead to lower absenteeism and a more engaged workforce, ultimately benefiting the company's bottom line.

The ILO emphasized that teleworking and other flexible working arrangements helped to keep people employed while also supporting greater employee autonomy.

However, it stated that regulation, including so-called right to disconnect regulations, was required to mitigate negative effects.

Despite the many benefits, the report cautions against potential pitfalls of flexible work arrangements, such as the blurring of boundaries between work and personal life. To address this, the ILO suggests implementing clear guidelines and policies that protect employees' rights to disconnect from work outside of regular hours. Such measures are crucial to ensuring that the flexibility intended to enhance work-life balance does not inadvertently lead to burnout or excessive work demands.

According to the survey, not everyone in the global workforce works a regular eight-hour day, or forty hours per week. More than a third of people work more than 48 hours each week, while 20% work less than 35 hours.