As more and more employees say offering flexible working arrangements makes employers more attractive, companies are asking: does flexible working increase productivity? While the overall answer appears to be a resounding “yes”, there are nuances and caveats to flexible schedules in every organization.
Explore how flexible working increases productivity, when it can hurt and what flexible work means.
What is flexible work?
Flexible work is more than just working from home. Today, there are almost as many types of flexible work as there are companies. In broad strokes, flexible work means giving employees the choice of when and where they complete their tasks. This encourages a culture of trust and accountability where employees feel empowered to manage their time and responsibilities, leading to increased motivation and productivity.
5 Types of flexible work
The type of flexible work your company offers will depend on your industry, employees’ roles and how collaborative teams need to be. Some common types of flexible work include:
- Remote work – In most remote work settings, employees work from home. In some cases, remote employees can work from wherever they want, which can provide them opportunities to live as digital nomads or explore other geographic locations. Workplaces that offer fully remote work may not have a central office location at all, although many offer employees the choice to come into an office if they’d like.
- Hybrid work – In a hybrid work environment, employees split their time between a remote location or home office and a central office. Many organizations that offer hybrid work have set days when employees are allowed to work remotely, such as two days a week out of the office and three days in the office. Some hybrid workplaces allow employees to decide when their remote work days fall while others require everyone to be in the office on the same days.
- Compressed workweeks – Many organizations are starting to offer shorter workweeks to give employees more time off over the weekend. For example, some companies offer “summer hours” where employees work Monday through Thursday for 10 hours and have Friday off. In fact, some organizations offer this flexibility throughout the year. Others are embracing a shorter workweek in general, allowing employees to work 30 or 35 hours, noting new productivity tools and technology mean they get as much work done in a shorter time span.
- Flexible schedules – With flexible schedules, employees might not work the traditional 8 a.m. - 5 p.m., Monday to Friday schedule. For example, some employees might work around their children’s school schedules, from 9 a.m. to 4 p.m. and then 8 p.m. to 9 p.m. Others may have schedules that suit their creative peaks or sleep schedules, such as 11 a.m. to 8 p.m. or even overnight.
- Results-based work – In a results-based work organization, schedules are less important than work getting done. Employees are encouraged to perform their tasks whenever best suits their needs, as long as they get them done on time and at the right quality level.
The impact of flexible work on productivity
One of the main benefits of flexible work schedules is, yes, it’s been proven to increase productivity. Study after study has shown employees who have flexible working hours or schedules work more hours, feel more productive and have better morale:
- An Airtasker survey showed flexible schedules increase work time by 1.4 days extra a month per employee.
- The Gartner 2021 Digital Worker Experience Survey found 43% of respondents found work flexibility helped them be more productive.
- The Stanford Institute for Economic Policy Research found employees who worked from home were 13% more productive than those who worked in an office.
- Gallup’s 2024 State of the Global Workplace report found hybrid workers had a higher rate of engagement than in-office workers at 35%.
These findings align with the growing trend of organizations offering hybrid models where employees can split their time between home and office, reaping the benefits of both environments. These models cater to individual preferences while fostering a culture of trust and accountability, which amplifies productivity levels even more.
How flexible work increases productivity
Why does flexible work increase productivity? There are several reasons:
1. Freedom to adapt work schedules
With flexible schedules, employees can improve their productivity by choosing a work schedule better suited to their personal needs. For example, employees with children can accommodate personal obligations by working when their children are asleep or at school. Other employees may be productive at different times, such as “night owls” or “morning doves” whose circadian rhythms don’t necessarily align with traditional work hours.
2. Less time spent commuting
The U.S. Census Bureau estimates the average commuter spends 37.6 minutes traveling to work. Remote workers, on the other hand, save an average 72 minutes every day by skipping the commute to work, according to the National Bureau of Economic Research. Moreover, they tend to give 40% of that extra time back to their employers by working longer. Having more time to work means employees are more productive.
3. Fewer distractions
Workplace distractions pull down productivity in modern offices, from interruptions from colleagues to ambient noise and more. Employees who have the option to work remotely often cite reduced distractions as one reason they choose to stay home. A survey from Buffer showed 70% of remote workers said they could do more focused work from home while 50% of remote workers found it much easier to avoid distractions. Decreasing distractions allows employees to focus on their tasks and accomplish higher quality work and greater productivity.
4. Reduced burnout
Burnout is an increasing threat to productivity at work today. When employees are constantly overwhelmed by workplace stress like unattainable deadlines and never-ending assignments, there are serious mental health consequences, which impedes productivity for the entire team. According to the Future Forum Pulse survey, 53% of employees who felt they didn’t have flexible schedules at work also reported they had burnout.
Flexible schedules allow employees to have better work-life balance, which means they’re less likely to experience burnout. Additionally, employees with flexible schedules are less likely to call out sick, reducing absenteeism and improving productivity for their teams.
5. Increased job satisfaction
Study after study has shown employees want flexibility in scheduling, and when they get it, they have much higher job satisfaction. Employees who are satisfied with their jobs are more productive, as well as more loyal to their employer and more likely to offer creative solutions. Having happy employees also leads to reduced turnover and increases an organization’s ability to attract and retain top talent, which both boost productivity overall.
6. Improved work culture
One reason employees with flexible schedules are more satisfied with their jobs is because they feel trusted by their employers and have a more positive work culture. They tend to have better relationships with other team members, managers and leaders. This culture of trust creates a virtuous cycle of more engagement, more productivity and more innovation in the organization.
When flexible work can hurt productivity
If implemented incorrectly, flexible work has the potential to impact employees and organizations in negative ways. Flexible schedules can be counterproductive for a few reasons:
- Communication barriers: Workers with flexible schedules may miss each other if the right communication tools aren’t in place. For example, employees who are flexing from home may miss an in-person meeting and not get important updates to priorities. Additionally, if flexible policies aren’t communicated clearly, employees may not know how to tell their supervisors when they’re working remotely. This leads to confusion over productivity and a lack of trust.
- Differences in availability: Employees who work at different times or locations may not be available at the same time, which can cause bottlenecks in getting work done. Asynchronous communication tools like email, project management tools and calendars can relieve some of these issues to keep productivity humming smoothly.
- Suitability for different roles: Not every role is made for flexible scheduling. For example, call center employees may need to be on-site at set times to take customer service calls from a secure line, which may only be possible from an office. Several roles may not be suitable for remote or hybrid work due to the sensitive nature of the job. Offering some roles flexibility while denying others can create a sense of distrust in an organization, so it’s important to ensure policies are communicated and administered as fairly as possible.
- Blurred work-life balance: One of the biggest challenges with remote workers is knowing when to shut down for the day. Without the physical separation that comes from leaving an office, work-from-home employees may blur the lines between work and personal life, leading to increased stress and burnout.
- Lower visibility: Workers with flexible schedules may not be as visible to leadership or management as their in-office counterparts. This means they may miss out on possible promotions or development opportunities.
If organizations make addressing these issues a top priority when implementing flexible work schedules, they can avoid the pitfalls that arise and offer employees the flexibility they want and need to be more productive.
Streamline flexible workforce management and maximize productivity
While flexible working offers many advantages for both employees and employers, it’s important for leaders to address challenges effectively. Aligning flexible work policies with clear communication strategies and performance measures empowers organizations to leverage flexible work to increase productivity across the company.
Get the insights you need to harness the productivity benefits of flexible work for your organization with ActivTrak. With our productivity management solution you’ll be able to:
- Make informed decisions around flexible schedules,
- Optimize outcomes and support employee well-being,
- Gain visibility into how work gets done,
- Manage hybrid and remote teams effectively,
- And ensure your employees are engaged and productive
Join the 9,500+ customers who trust ActivTrak's award-winning solutions. Take the first step towards realizing your organization's full potential by contacting our sales team today.
