FACULTY OF BUSINESS AND MANAGEMENTRESEARCH PROJECT

IMPACT OF FLEXIBLE WORK ARRANGEMENTS ON WORK LIFE

BALANCE

BY

ADNAN AVDIBEGOVIC

INTERNATIONAL UNIVERSITY OF SARAJEVO

2016

FACULTY OF BUSINESS AND MANAGEMENTRESEARCH PROJECT

IMPACT OF FLEXIBLE WORK ARRANGEMENTS ON WORK LIFE BALANCE

BY

ADNAN AVDIBEGOVIC

A research project submitted for fulfillment requirements of the course

FACULTY OF BUSINESS AND MANAGEMENT

INTERNATIONAL UNIVERSITY OF SARAJEVO

APRIL 2016

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DECLARATION

I hereby declare that all information in this document has been obtained and

presented in accordance with academic rules and ethical conduct. I also declare that,

as required by these rules and conduct, I have fully cited and referenced all materials

and results that are not original to this work.

Signature: __________________ Date:_____________

Avdibegović Adnan

iii

INTERNATIONAL UNIVERSITY OF SARAJEVO

DECLARATION OF COPYRIGHT AND AFFIRMATION OF FAIR USE OF UNPUBLISHED RESEARCS

Copyright © 2016 by Adnan Avdibegović. All rights reserved.

ORGANIC ORGANIZATIONAL STRUCTURE IS NECESSARY FOR HPWS IN IT ENVIROMENT

No part of this unpublished research may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording or otherwise without prior written permission of the copyright holder and IUS Library.

Affirmed by: Adnan Avdibegović

________________ ________________

Signature: Date:

TABLE OF CONTENTS

iv

DECLARATION.........................................................................................................iiiCopyright © 2016 by Adnan Avdibegović. All rights reserved..................................ivABSTRACT................................................................................................................vi

Table of figures:......................................................................................................vii1. INTRODUCTION.................................................................................................81.1. Importance of the study.....................................................................................21.4. Data and Methodology......................................................................................31.5. Limitations of the study.....................................................................................32. Work Life Balance................................................................................................42.1. What is work life balance..................................................................................52.2. Why is it so important these days?....................................................................72.2.1. Workforce change........................................................................................112.3. Work-life balance and productivity.................................................................132.3.1. Work life balance and employee age...........................................................142.3.2. Work life balance and employee gender......................................................163. Flexible work location.........................................................................................183.1.1. What is flexible work location.....................................................................183.1.2. What are benefits of flexible work location.................................................193.1.3. What are problems with flexible work location...........................................193.1.4. Flexible work location and productivity......................................................203.1.5. Will flexible work location will improve employee work-life balance.......204. Flexible work time:.............................................................................................214.1.1. What is flexible work time...........................................................................224.1.2. What are benefits of flexible work time.......................................................224.1.3. What are problems with flexible work time.................................................234.1.4. Flexible work time and productivity............................................................244.1.5. Will flexible work time will improve employee work-life balance.............255. Conclusion:..........................................................................................................266. Endnotes..............................................................................................................27

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ABSTRACT

This proposal presents a quantitative method for analyzing flexible work

arrangements impact on employee work life balance.

After we introduce main characteristics of work life balance in first part, we will

provide overview of flexible work location and schedule, explain their problems and

benefits and try to understand how they will affect employee work-life-balance.

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Table of figures:

Figure 1: Work-life balance index (Groll, 2014)..........................................................8Figure 2: OECD Country Ranking (OECD 2016)........................................................9Figure 3: Comparison between Turkey, France and Denmark (OECD 2016).............9Figure 4: Percentage of employees working very long hours (OECD 2016).............10Figure 5: Life Expectancy (In Years) (OECD 2016).................................................10Figure 6: Average life satisfaction Index (OECD 2016)............................................10Figure 7: Percentage of households with children where both parents work full time (USEOCEA, 2014).....................................................................................................12Figure 8: Parents Average weekly time usage (USEOCEA, 2014)............................12Figure 9: Average age of retirees since the removal of DRA, by broad sector (UKDBIS, 2013).........................................................................................................15Figure 10: I maintain well a balance between my work and private life (Stankiewicz and Richert–Kaźmierska, 2013).................................................................................15Figure 11: Impact of limiting work location on TFP (Isamu and Toshiyuki, 2012). .19Figure 12: Impact of Flexible Time Policies on TFP (Isamu and Toshiyuki, 2012)..23Figure 13: Absence rate with and without flexible work scheduling (Dalton, Dan, Debra, 1990)...............................................................................................................25

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1. INTRODUCTION

Today, in globalization era, pressure on companies to make business running

and stay competitive is extremely huge. Business has to be alive 24/7 and project

delivery times are shorter and shorter. As company consists of people, all mentioned

have direct impact on employee lives.

To satisfy all mentioned business requirements, employees are usually

requested to work longer. In addition, if they collaborating with people in different

time zones they need to work even overnight. All mentioned make border between

work and personal life thinner and thinner. Thus, balancing between personal and

work life is becoming harder and harder for employees. Employee private life is

suffering and employee work-balance skills are challenged.

Lot of researches has shown that employee private life has huge impact on his

happiness and motivation. For employer, less motivation means less productivity.

Thus, employer need to develop strategies which will improve employee private life

quality and their work life balance occasionally.

One of latest trends in improving work-life-balance are flexible work arrangements.

Recent study made by Government of South Australia (2012) is showing that flexible

work arrangements are efficient in improving employee-child relationship, and

making employees more satisfied with their lives. International Labor Office noticed

that there is no more clearly border between personal and work life, which leads to

destroying employee personal life and recognized flexible work arrangements as

great possibility to prevent this (Fagan, Lyonette, Smith and Saldaña-Tejeda, 2011). In

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addition, Flexible work arrangements were suggested by Forbes as strategy to reduce

pressure on employees caused by work-life-balance (Hewlett, 2009).

1.1. Importance of the study

Recently, Sweden has introduced 6 hours working day (Martharu, 2015). Ultimate

goal of this strategy was improvement of employee work life balance. As results of

this strategy were very successful and employees form other neo-liberal capitalistic

countries are expecting this change to happen in their countries. Meanwhile, number

of companies, especially in IT sector, is trying to improve employee work-life

balance by enabling flexible work arrangements. This research should test previously

mentioned studies and show that flexible work schedule and location will impact

employee work-life-balance.

The presented study was designed to explain impact of flexible work arrangements

on employee work life balance. Two main flexible work arrangements are

considered:

flexible work location

flexible work place

Keeping in mind today’s business environment and the fact that private life quality

can have huge impact on employee motivation and productivity, work-life-balance

strategies are important than ever. This study should confirm that mentioned flexible

work arrangements could result in better work life balance for employee and

employee motivation inceasement.

1.2. Study goals

Goals of this study are to get answers on following questions:

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1.2.1. How will flexible work schedule impact employee work-life –

balance?

1.2.2. How will flexible work location impact employee work-life –balance?

1.3. Hypothesis of the study

This is descriptive research because it describes information originated in other

literature findings. Study consider following hypothesis:

H0: Flexible arrangements will improve employee work-life-balance

Ha: Flexible arrangements will not improve employee work-life-balance

This main hypothesis is composed from two supporting hypothesis:

SH10: Flexible work location will improve employee work-life-balance

SH1a: Flexible work location will not improve employee work-life-balance

SH20: Flexible work time will improve employee work-life-balance

SH2a: Flexible work time will not improve employee work-life-balance

1.4. Data and Methodology

This study will examine and compare findings of other studies in order to create

relationship between work life balance and flexible work arrangements.

1.5. Limitations of the study

Each study is limited on some way. Main limitations of this study are:

Study will consider only findings from other studies and no filed research

will be conducted

Study will consider only full time home office employees, frequent travelers

are not considered, as flexible work location is necessarily of the job for

them.

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Study will consider only flexible work time strategy, other flexible schedules

like Job sharing and part time job are not considered.

2. Work Life Balance

In past decade, technology has rapidly expanded. Besides huge number of

advantages came with technology expansion, we also get multiple drawbacks. One of

mayor drawbacks for employees is that they become always available. Thus, border

between personal and professional life is thinner than ever and employees are under

extreme pressure to balance between personal and professional life.

Survey made by OECD (Organization for Economic Co-operation and

Development) has shown that, in after work hours, many people still worry about

work related problems (Groll, 2014). Some people are not even enable to do leisure

activities in that time. In addition, because of heavy workload, lot of people said that

their family and friends suffer (Groll, 2014).

European Agency for Safety and health at work noticed increasing trend in of

constant accessibility for many German workers and recognize this as potential

health problem. Sixty-six percent of the workforce works regularly overtime, every

fifth person feels overloaded and every fourth person says that it will be available for

employee during their free time. In addition, every fourth person say that it has

reduce time spent with family and friends to be able to rest (Groll, 2014).

Studies show that “employees, who do not have enough time for their personal lives

according to their own feeling, feel at work exhausted and distracted. In addition, this

can cause burnout, problems in employee relationships with family and friends,

sadness and increased stress” (Riordan, 2013).

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Until now, common practice was to look at work time and personal time like devoted

parts of available time. Now experts are more focused on effectiveness. Researchers

Gary Powel and Jeffry Green House we should consider work life balance as one

topic. Differences caused by different roles (parent, partner, friend, and professional)

could improve employee physical and mental well-being. This is especially case

when all these roles are designed together as high quality roles (Riordan, 2013).” This

will also avoid negative spillover from personal to private life and vice versa.

With constant technological growth, it is expected that awareness about and need for

work life balance will increase in incoming years (Heidenberger).” It is common

opinion today that stress caused by non-stop working is damaging. This stress can

hurt health, relationships and overall happiness.” (Jian Lee, 2014) Bad work life

balance can have multiple consequences such as: (Mayo Clinic Staff 2016)

Fatigue: When employee is tired, his ability to think clearly and work

productively might suffer. This can cause lot of damage on employee

professional status and lead to costly or dangerous problems.

Poor health: When employee personal and work life are not balanced,

employee stress level is will probably incease. Under Increased stress,

immune system become weaker and weaker, and risk from disease is

increased.

Lost time with family and friends: long working days means that employee

usually have little time for their loved ones and might miss some milestones

or events. This might harm employee personal relationships and make him

feel left out.

Increased expectations: Employees who usually work extra hours might get

more responsibilities. This could lead to additional challenges and concerns.

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2.1. What is work life balance

Today, there is on exact definition of what work-life balance is. Usually, every

individual have different priorities and different lives. Thus, to every individual,

work-life balance means something different (Jian Lee, 2014). Because our various

personal and professional activities do not need equal number of hours, work-life

balance “does not mean an equal balance” (Bird, 2003).

Work life balance depends a lot from current family situation and employee carrier

aspirations. Married persons will probably need more time for family unlike singe

persons who will usually take more time to build up career. Also young people will

have more energy and be able to work more and harder unlike older ones. So,

individual work life balance will not be constant for entire lifetime of employee

(Bird, 2003). Work-life balance is built on two main principles: daily Achievement

and Enjoyment (Bird, 2003). Achievement is well-known word for employees and

employers. On the end, this is main principle, which employers use to grade

employees work. Strong orientation to achievements can explain huge number of

unhappy "Successful" people (Bird, 2003).

On the other hand, enjoyment is more related to private life, although modern

employees trying to incorporate enjoyment also in work. Only way to get full value

form life is to have achievement and enjoyment. If person achieve something every

day and enjoy something every day, he will have good day. Repeating this behavior

for the rest of employee life will make him have good life (Bird, 2003). With this

employee will feel „live” and will be more motivated.

Importance of adding enjoyment to work is same as adding achievements in private

life. They should not be separates. For example, Ryan smith, Qualtrics founder says:

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“Every week I take look at all categories of my life - father, husband, CEO, myself -

and look for the specific activities that make me feel better. This weekly ritual helps

me feel that I am doing everything what I can in order to meet needs of the people

around me myself.”(Riordan, 2013). Study made by Federal reserve bank also shown

that effective work-life-balance increase productivity for 10.6% (Robinson).

2.2. Why is it so important these days?

Harvard Business School survey show that enormous 94% of workers working

more than fifty hours per week and nearly 50% worked more than sixty-five hours

per week. (Jian Lee, 2014)

OECD made study about Better Life Index and examine how well can people in

the OECD countries balance between personal and professional life. Answers are

combined to create an average value on a scale of zero to five. Zero represents an

optimal balance between personal and professional life and five represents absolute

incompatibility. (OECD 2016) Study shown that balance between personal and work

life “getting worse through Europe” (Groll, 2014)

In 2004, when the figures have been compiled for the last time, Germany index

was at 2.62 points. In 2010, it is 2.74. Czech Republic has even worse situation as

their index was fall from 2.54 to 2.83 points. Unexpectedly, in Sweden, which

usually stands as a positive example of a good work-life balance society, index was

fall from 2,56 to 2,66. Only improvement is visible in Poland where work-life index

improved from 2.74 points to 2.62 points. (Groll, 2014)

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Figure 1: Work-life balance index (Groll, 2014)

According to OECD (2016), for the well-being of all members in households, it

is important that they successfully combine family commitments, personal life and

work. They suggest that important aspect of work life balance is employee worktime.

According to evidences, personal health, jeopardies safety and increased stress can

be caused by long work hours. Unlike Turkey, where 41% workers work 50+ hours

weekly, in OECD countries this percentage is only 13%. This brings us to conclusion

that employers in OECD countries already understand importance people’s overall

well-being. Research show that, besides improving people’s overall well-being,

amount and quality of leisure time “can bring additional mental and physical health

benefits”. Thus, 62% of full time workers in OECD countries spend, on average, 15

hours daily on personal care and leisure. On a next picture we can see OECD country

ranking.

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Figure 2: OECD Country Ranking (OECD 2016)

This research provide us with direct connection between long working hours and

work-life balance. If we compare last ranked Turkey, (where 43% of employees

work very long hours) with average ranked France (where 8% of employees work

very long hours) and top ranked Denmark (where only 2% of employees work very

long hours) direct bad impact of long working hours on work life balance can be

noticed.

Next picture will give us detail comparison of Turkey, France and Denmark,

regarding work life balance:

Figure 3: Comparison between Turkey, France and Denmark (OECD 2016)

If we use data from same study and compare average life satisfaction index,

percentage of employees working very long hours and life expectancy, we will notice

negative correlation between long working hours and life satisfaction. Same

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conclusion can be made for correlation between long working hours and life

expectancy. All this is shown on next three pictures.

Greece

Portugal

Turkey

KoreaJapan

Slovak R

epu...

FranceChile

United Kin...

Belgium

Germany

Sweden

Australia

Netherlands

Finland

Norway

Iceland

0

10

20

30

40

50Precentage of employees working very long hours

Figure 4: Percentage of employees working very long hours (OECD 2016)

Greece

Portugal

Turkey

KoreaJapan

Slovak R

epublic

FranceChile

United Kingdom

Belgium

Germany

Sweden

Australia

Netherlands

Finland

Norway

Iceland

70

74

78

82

Life Expectancy (In Years)

Figure 5: Life Expectancy (In Years) (OECD 2016)

Greece

Portugal

Turkey

KoreaJapan

Slovak R

epublic

FranceChile

United Kingdom

Belgium

Germany

Sweden

Australia

Netherlands

Finland

Norway

Iceland

02468

Average life satisfaction Index

Figure 6: Average life satisfaction Index (OECD 2016)

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2.2.1. Workforce change

One of reasons why work life balance becomes important in past decades is work

force change. In last decade, participation of female employees in workforce is

growing. Unfortunately, household responsibility patterns did not changed a lot

(Niharika and Supriya). Still, female employees are still undertaking majority share of

child rearing and domestic chores. According to UCLA study “Family Change and

Time Allocation in American Families” (Bianchi, 2011) mother’s childcare time was

increased form 10 hours per week in 1970’s to around 14 hours per week in 2008. In

addition, fathers are increased they childcare time in past two decades. According to

this study, involved of parents in children activities is bigger than ever before.

Despite that, parents also complain that they have to little time free time to spend

with their children. According to US. Bureau of Labor study from 2011 (Hall, 2011),

number of female employees working outside of the home, between 1970 and 2010

has been increased for more than 20%. According to same study, workforce structure

has changed a lot from 1970 to 2010. Female employee’s percentage has been raised

from 43.3% in 1970 to 58.6% in 2010. However, percentage of male employees fall

from 79.7% to 71.2%. Pew research center study form 2012 (Patten and Parker, 2012)

shown that young female employees percentage (ages 18-34) who consider career as

very important has been raised for 7% from 1997 (59%) to 2011 (66%). At same

time percentage of male employees has been raised only for 1% from 58% in 1997 to

59% in 2011. In addition, only 33% of young female employees are married in 2011.

In 1960 this rate was 73%. Recent study done for American President shown that

Another research shown significant changes in American society structure over the

last half century. In 1968, there were 52 percent of children raised in households,

xviii

with married parents,where the father worked full-time. In 2013, America had only

20 percent of children lived in such households. This means that trend of children

raising in households in which both parents work in the labor market is increasing

(Executive office of the president of the United states of America The Council of Economic

Advisers (USEOCEA, 2014)”

Figure 7: Percentage of households with children where both parents work full time (USEOCEA, 2014)

According to same study number of families with working mam and stay-at-home

dad has doubled, in past 25 years.

Figure 8: Parents Average weekly time usage (USEOCEA, 2014)

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2.3. Work-life balance and productivity

According to Strayhorn (Strayhorn, 2009) research, high rate of turnover and

dissatisfaction among student affair professionals can be noticed, if their work life

balance is bad. In 2003 Kuther (Kuther, 2003) concluded that diminished

effectiveness and personal detriment can occur when a person is not satisfied with

their work life balance. This can happen in at least in one of three areas of focus:

personal interest, career and family.

HR manager form Dayton-based firm LJB INC Laurie Iulg says that things

are going to work at work when an employee has things working at home. (Larsen,

2013). Survey done in 2008 by Corporate Executive Board (Corporate Executive

Board staff (CEB), 2009) on 50,000 employees shown performance improvement of

21% if employees have good work life balance. In addition, they are 33% more

likely to stay within same organization Also Research made by Mangel and

Konrad(Magel and Konrad, 2000) in 2000 found positive relationship between firm

productivity and work life balance. In contrast, study made from Bloom (Bloom,

2009) in 2009 on 732 manufacturing firms in US, Germany, France and UK and

found that, if management practices are controlled, relationship cannot be found

between firm productivity and work life balance. In 2003 Baughman (Baughman,

2003) show that firm productivity can be increased by WLB practices in following

areas: reducing turnover rates and absenteeism, and enchanting worker morale and

recruiting Thus, highest interest in implementing WLB practices is shown from

firms, which invest a lot of money in firm-specific skills or employee training. Study

made in 1997 by Sparks, Cooper, Fried and Shiroma (Sparks, Cooper, Fried and

Shiroma, 1997) provide indication that too many working hours can lead to reducing

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employee performance. Patagonia, Californian Outdoor clothing manufacturer, has

tripled their profits over past five years simply by introducing Work-life-balance

practices like flexible work hours (Friedman, 2014). Another research’s shown

positive relationship between work performance and work life balance (Lyness and

Judiesch 2008) (Pina and Rego, 2009). Study made on over 700 firms in the France,

United States, United Kingdom, and Germany, shown significant positive

relationship between total factor productivity and work-life balance practices

(Bloom, 2009).

2.3.1. Work life balance and employee age

Today, larger part of the workforce still belongs to older workers where many

of them work full-time into their 60s and 70s. There are two main reasons for that:

either they enjoy their jobs and want to keep contributing, or they cannot retire

securely because they don’t have enough savings. Today, more and more children

are growing up in families in which both parents work full-time. Thus, grandparents

take a larger role in childcare. In the time when they expected to be retired, many

parents have to provide financial support for their grown children. All this help us to

understand that work life balance does not get better just because people hit 62 (or 72

or 82) (Anon 2011). In UK, The national Default Retirement Age (DRA) of 65 is not

valid since October 2011, and thus there is no more forced retirement notices for

employees when they reach 65 (UK Department for Business, Innovation and skills

(UKDBIS) (2013). After that 47 percent of employers said that they noticed change in

their employee age profile. It is noticeable that more and more people continue to

work when the have 65+ years.

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Figure 9: Average age of retirees since the removal of DRA, by broad sector (UKDBIS, 2013)

Additionally, study made by Annamalai University in 2012 on 70 Garment industry

workers shown that significant difference in work life balance regarding of

participant’s age cannot be found (Meenakshisundaram and Panchanatham, 2011).

However, two other studies have found that there is improvement in employee work

life balance as employees become older. Survey made on 440 participants in Baltic-

Sea countries (Stankiewicz and Richert–Kaźmierska, 2013) did not found direct

relationship between employee age and their work life balance improvement.

Figure 10: I maintain well a balance between my work and private life

(Stankiewicz and Richert–Kaźmierska, 2013)

Study made by Ernst&Young (2016) shown that youngest generations made largest

sacrifices in order to manage private and professional life needs in various aspects of

their lives. Form this we can conclude that, for Younger population work life balance

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is more important. Additionally, if they life is balanced, they will have more time to

concentrate on their jobs and thus, be more productive.

Study made in 2000 by Akron university on 3000 participants confirm lower balance

for younger workers, “but age in itself is not predictive of future trends, since this

may be the effect of life-cycle and career stages rather than indicative of

generational changes (Tausig and Fenwick, 2000).”

2.3.2. Work life balance and employee gender

Analyzing Ernst&Young Global Generation Survey results made by Gwen in

2015 (Gwen, 2015) shows that, 33% of workers says that having a life and full time

job is become tougher over past years. Expectedly, 35% of female employees and

parents founded work life balance more important than male employees (32%) and

people without children (31%).

However, interesting finding from this research is that female employees are

less ready to scarify career in order to get better work life balance than their male

colleagues. Only 57% of female employees are ready to change job unlinked 67% of

their male colleagues. Similar results we have when we are speaking about scarifying

career (60% male versus 52% female), promotion (57% male versus 49% female).

Also female employees will less likely move to be closer to the family (46% male

versus 38% female), or move to a country with better parental leave benefits (26%

male versus 18% female).

Not only that family and social life is intruded by work, but also work performance is

affected by family pressures (Fu and Shaffer, 2001). In addition, irrespective of their

employee status, household tasks are still primarily assigned to female employees.

Thus, if they achieve more on the job, male employees feel more satisfied, regardless

xxiii

of impact which this can have on their family. Unlike them, family role is naturally

more important for female employees (as they are mothers too), and they will feel

frustrated, disappointed and unhappy if they cannot take care of their family because

of the work (Bruke, 2002). In addition, researches indicate different perception

across genders regarding work-life balance (Cornel, 2005)(Smithson and Stoke,

2005) (Blair-Loy and Wharton, 2002). According to Hyman, Scholarios and Bunze

(Hyman, Bladry, Scholarios and Bunze, 2003), greater job satisfaction is noticeable

for employees who have available family friendly arrangements, as these

arrangements will improve work life balance (Blair-Loy and Wharton, 2002).

Research made by Indian Anna University (Doble and Supriya) on 110 employees in

IT sector shown that male employees are more complaining about time they spend

with family because of work (73% male versus 52% female), and that work overlaps

with their leisure time (54% male versus 47% female). In addition, 55% of male and

50% of female employees say how work pressures affect their family life quality. In

addition, these findings are supported by findings from Greenhaus (Greenhaus, 2003)

and Pocock & Clarke (Pock and Clarke, 2005). Fifth European Working Conditions

Survey (covering 44000 workers inside EU) form 2010 (European Foundation for the

Improvement of Living and Working Conditions-EUILWC, 2010) shown that male

employees have longer working time with 40% of male employees weekly work 48+

hours. Male employees feel that working hours have negative impact on their social

or family commitments. Male employees would prefer shorter working hours. They

think that this strategy will help them to have for family. Same study shown that

female employees improve their balance by choosing to work shorter working hours

and part-time work. Additionally, research show that female employees would like to

work more hours unlike their male colleagues who would like to work less (33%of

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male employees would reduce their working hours unlike 29% female employees). It

is more problematic for male employees to achieve balance, especially in the middle

of their working career. As Gautam (Gutam, 2012) say: “Their gender and associated

role definitions, prevents men from being a part of the work life integration agenda at

the individual, organizational, and societal levels. This is male disadvantage.”

3. Flexible work location

Indian Anna University (Doble and Supriya) research revealed that 97% of

male and 92% of female employees found they work-life balance will improve with

flexible working hours. In addition, according to Felstead (Felstad, 2006), flexible

work time will enhance work life balance. Research done for US president, show that

flexible work time is common practice while flexible work location is not. Same

study also shows that these practices also vary across industries and occupations.

While 40 percent of workers in management, business, and financial occupations

have access to location flexibility, only 5 percent of workers in fishing, farming, and

forestry occupations have same privileges (USEOCEA, 2014)”. Research from 2000,

show technical possibilities to combine more than half of all jobs with

telecommuting, at least on a part-time basis (Potter, 2003).

3.1.1. What is flexible work location

Flexible work location allows employee to perform portion of the job out of

company site, usually at employee home. This is happening on regular, recurring

basis. It is most appropriate for work that does not require employee workplace

presence, has clearly defined tasks and measurable work activity. Usually, these

arrangements specify time frame and number of hours which should be worked from

remote location, and also occurrence of these agreements (e.g. specific days of the

xxv

week). These arrangements rely on computer technologies and appropriate

equipment and access should be provided to employee (The university of Chicago,

Human Resource Department 2015).

3.1.2. What are benefits of flexible work location

Cisco Systems Inc. starts in 1993 with tele-working implementation. Today

90% of their workers use this option. In 2013, company reported yearly savings of

195 million $ due the increased worker’s productivity (USEOCEA, 2014). Study made

in 2012 by Japanese Research institute of Economy (Isamu and Toshiyuki, 2012) on

1677 Firms shows that practices to limit work location within local areas have

negative impact on TFP (total factor productivity) as it is shown on picture below.

Figure 11: Impact of limiting work location on TFP (Isamu and Toshiyuki, 2012)

3.1.3. What are problems with flexible work location

One of mayor drawbacks regarding flexible work location, especially in case

of home office is that those employees tend to work longer working hours. This

includes work on evenings and weekends. In addition, if employee have Young

children, this also can be very stressful. According to Gunkel (2007), home working

is strongly impacted by employee gender. Study made for US. President show that

workplace flexibility has costs money. Every third company cite costs or limited

funds as mayor obstacle for workplace flexibility arrangements implementation

(USEOCEA, 2014).

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3.1.4. Flexible work location and productivity

Study made for US president shown that employers recognize huge benefits coming

from flexible work location such as better ability to retain and attract workers,

reduced worker absenteeism and turnover. All those positive changes are translated

into increased worker productivity (USEOCEA, 2014). Recent study made in Chinese

travel agency call center shows 13% increase in productivity for home based

workers. In this study workers are divided in two groups. Half of employees were

working from home four days a week. Rest of employees were working all five days

in the office. Additionally, study shown productivity increase of 22% if workers

were allowed to choose the optimal place to work on their own. SEOCEA, 2014).

Another Practical example is JetBlue airliner which allows his two thousand sales

employees to work from home. They concluded that employees are happier and more

productive crewmembers. Additionally, overhead is lower. As result, ticket prices are

lower, company profits are higher and profit-sharing is better for its crewmembers

(Konrad, Alison and Mangel, 2000). Another research, made by Indian Anna

University (Doble and Supriya) shown that 87% of male and 84% of female

employees find that their work life balance will improve with flexible working

location (home office).

3.1.5. Will flexible work location will improve employee work-life balance

According to International Telework Association Council in 2001 US had 28

million workers working from home, with yearly growing rate of 11% (Golden,

Vegia and Simsek, 2006). However, this research point that employee time to

manage family and work demands are finite. Thus, one domain will suffer if

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employee spends too much time and energy in other domain. Home working can

allow people greater flexibility and independence (Valcour and Hunter, 2005).

Research made by University of Texas shown that thirty percent of home workers

add additional 5-7 workhours to their work weekend, compared with their office

working colleagues. However, according to same research, this is potential threat to

breakup barrier between personal and private time (Walter, 2012). Recent study

made on 24,000 IBM workers in 75 countries found that flexible work location helps

employees to have better work-life-balance. Additionally, same study confirm that

home workers are willingness to work more hours per week than their office

colleagues. Also research reported greatest benefits from parents of small children

(O'Callaghan, 2010). Study made by Center for Work & Family shown that, unlike

26% of traditional workers, only 24% of workers who work from home say that their

balance is “good” or “very good (Hamilton) Scot Boyarn, professor form UAB

Collat School says that multiple factors have impacts on will employee successfully

work from home: employee personality, job and training which organization

provides to employee so he can do that role remotely”(Bakken, 2013).

4. Flexible work time:

Study made by Tausig and Fenwick (Tausig and Fenwick, 2001) shown that

flexible work time will enhance employee work life balance. According to study

made in 2015 (Wilson, Vilardo, Fellinger and Dillenbeck, 2015) positive correlation

can be found between flexible working time and job satisfaction. Mary Beth

McWright, HR director of one Virginia based company says that, since they

introduce flexible work time, employees tend to work lot harder (Dave, 2013).

Previously mentioned Corporate Executive Board study shown that every second

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employee is recognizing flexible schedule as the most important practice which their

employer could provide (CEB, 2009)”. Study conducted by Shepard in 1996

(Shepard, Edward, Thomas, Clifton and Douglas, 1996), found positive relationship

between flexible working hours and firm’s productivity.

4.1.1. What is flexible work time

Flexible work time is an alternative to traditional, 40 hour, 9-5 work week. It

allows employees variation in their arrival or/and departure times. Policies for

implementing this vary from one employer to another. Some employers allow

employees to work prescribed number of working hours during previously specified

intervals, called “core time”. These arrangements are usually matter of agreements

between employee and employer (United states Department of Labor (2015).

Usually, time management software solutions are used to register and track working

hours of employees. Supervisor usually request only sufficient office cover and allow

team members to work out acceptable schedules (Anon, 2009).

4.1.2. What are benefits of flexible work time

Study made in 2012 by Japanese Research institute of Economy (Isamu,

Toshiyuki, 2012) on 1677 firms shows that there is significant improvement in TFP

(total factor productivity) if there is higher adoption rate of flexible time policy

available. Common practice today is to see work obligations as necessities and

everything else as optional. This approach is dangerous as it can spoil personal and

professional aspects of employee life. Strong personal relationships with family and

friends reduce employee stress, improve health, and stimulate creativity. All these

things in turn make a better employee. Employee is happier, more fulfilled human

being (Boitnott, 2015).

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Figure 12: Impact of Flexible Time Policies on TFP (Isamu and Toshiyuki, 2012)

Corporate Executive Board (CEB, 2009) survey found that 63% of employees

mentioned flexible work schedule as most desirable employer practice. According to

Jennifer Allyn, managing director of gender advancement ad retention at Price Water

House Coopers, flexible arrangements are long term opportunity for business

because they increase a lot employee retention and satisfaction levels. According to

survey, which their made internally, 93% of workers using flextime said that was

mayor reason for them staying with the firm (Goudreau, 2009). According to study

made for US president, most important benefit from of flexibility is providing

employees control over they work. We have multiple examples of this and they

include flexibility in scheduling of breaks and overtime, time when a worker arrives

at or leaves work, and compressed workweeks. (USEOCEA, 2014)”

4.1.3. What are problems with flexible work time

One of main problems of flexible work time arrangements are employer’s

perception. This employers might find that employees are attracted to the job not

because their commitment to the role, but because of the flexibility. According to

Ernst&Young research (Gwen, 2015), 10% of employees (regardless of gender)

found themselves penalized for taking flexible time option advantages. For

millennials, this number is even bigger and it jumped to 16%. Employees says that

they are arraigned to less interesting work, lost their promotion, raise or even a job

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because of flexible schedules. According to David Lewis, chief executive of a human

resources consulting firm Operations Inc, says that flexible work time can stigmatize

employees who take part in it and create tension in the work environment Reason for

that is fact that businesses try to implement flexible schedules only for right

positions. However, other employees might consider themselves as untrusted as they

are not allowed to work from home (Schmitt, 2009). Additionally, some employees

fel strong relationship between flexible work arrangements result, lower income and

higher employment insecurity. Study also shown that female employees strongly

correlate flexibility with better work life balance. Unlike them male employees

correlate flexibility with a way to develop their organizational commitment.

(Hofacker and Konig, 2013)

Additionally, Lewis noticed that some employees even missed promotions as

they appear to be less dedicated to their work because their adoption of a flexible

schedules.

4.1.4. Flexible work time and productivity

Today, companies like Texas Instruments, Kraft Foods, and First Tennessee

Bank, together with other companies, realize that flextime boosts productivity. Thus

they are taking advantage of it. It is noticeable that employees stress level declines

when they can manage their own schedules. Additionally, employees have better

focus on their tasks. Recent study by Georgetown University found that employee

stress caused with too less time for their children correlates negatively with their

productivity and increased absenteeism. As a result, unplanned absences costs are

nearly $1 million in a year for some businesses (Schmitt, 2009). Another study show

that flexible work time is related with reduced employee turnover and absenteeism.

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Also, this study tells that increased productivity is directly correlated (Anon, 2008).

On picture below is shown average absence rate improvement caused by flexible

work scheduling.

Figure 13: Absence rate with and without flexible work scheduling (Dalton, Dan, Debra, 1990)

4.1.5. Will flexible work time will improve employee work-life balance

According to researchers, key thing to have flexible work time arrangements

really working it that companies apply “more data driven measurement and decision

making processes” (Gwen, 2015) on workplace. This will help companies to measure

employees by production, rather than working hours. According to Thomson,

flexible working practices improve work-life balance, and they are beneficial for

both female and male employees. (Thomson, 2008). Employees feels that employer

care about their non-working life and wellbeing if employer offer them flexibility to

schedule their work according to their preferences (Casper and Harris, 2008). As a

result, employee is more satisfied with the job and employer. Result of all this is

higher work commitment (Kelliher and Anderson, 2010). Study made at University

of Minnesota found that allowing employee’s greater control over their work time

resulted in “employees being less likely to say that they felt obliged to come to work

when they were sick or to not see a doctor even though they felt they should”.

Additionaly, it resulted in increased energy, improved sleep quality, and reduced

psychological stress among employees. (Work, Family, & Health Network, 2008)

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5. Conclusion:

According to literature, there is a multiple benefits of flexible working arrangements.

Some of them include better employee engagement, increased commitment, loyalty

and higher job satisfaction. Additionally, it helps to recruit and retain talented

employees (Kelliher and Anderson, 2010). Other researchers argue that flexible

working practices allow employees to better organize their work and life

responsibilities. As a result, their work life balance is becoming better (Shapiro,

Ingols, O’Neill and Blake-Beard, 2009). Additionally, employees believe that

flexible working practices improve workplace morale. This might have positive

influence on employee work life balance (Tipping, Chanfreau, Perry and Tait, 2012).

Flexibility in the workplace gives employees possibility to take care not only about

their work roles, but also about their private roles and improve their work and life

accordingly (Shagvaliyeva, Yazdanifard, 2014).

This research findings about flexible work time supporting already existing

research’s and we can conclude that flexible work time will have positive impact on

employee performance and motivation regardless of other factors. Unfortunately this

cannot be say for flexible work location as it depends from many other factors (job

description, job role, line managers…)

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