What are flexible working arrangements?

Flexible working arrangements include a broad array of schedules and work environments that differ from the traditional in-office, 9-5 work structure. A hybrid work arrangement in which employees only work in person some of the time and remotely the rest of the time is a common example of a flexible working arrangement. Research shows that an estimated 92 million people in the U.S. now have the option to work from home.

These arrangements generally give employees more freedom to meet their job responsibilities in the manner that works best for them. This guide explores the different types of flexible arrangements available, their benefits for employers and teams, and practical strategies for implementing them successfully in your organization.

What do employees expect from you as an employer? See our survey findings in Oyster’s Employee Expectations Report.

What are flexible working arrangements?

Flexible working arrangements are employment policies that allow employees to work outside the traditional 9-to-5, office-based structure. These arrangements give employees control over when, where, or how they complete their work responsibilities.

Types of flexible work arrangements

There are many different types of flexible work arrangements. Some examples include:

• Compressed workweek: A compressed workweek is an arrangement in which the employer allows their employees to complete their full 40-hour workweek in less than the standard five days. Working four 10-hour days is an example.
• Job sharing: When employers implement job sharing, an employee partners with at least one other employee to split the job responsibilities of a single full-time position. One person might do the job from 9 a.m. to 1 p.m. while the other works from 1 p.m. to 5 p.m., for example.
• Hybrid work: Hybrid work has become one of the most common examples of flexible work arrangements, with employees completing some work in the office and some work remotely. It’s up to each employer to lay out the exact parameters of how often hybrid employees must work in person.
• Remote work: In remote work arrangements, the employer allows the employees to complete their job requirements entirely from home or any other location of their choosing.
• Flextime: Similar to a compressed workweek, flextime allows employees more freedom over when they work. In a flextime arrangement, the employees can choose when to fit in their daily working hours instead of defaulting to a 9-to-5 schedule.

The rise of flexible working arrangements

The idea of flexible work isn't new, but the last few years have turned it from a rare perk into a core expectation, with 91% of remote-capable U.S. workers hoping their ability to work from home persists. The global shift to remote work showed companies that great work can happen anywhere.

Now, as businesses compete for top talent across borders, offering flexible arrangements is essential for attracting and retaining skilled workers. The autonomy that flexibility provides leads to better work-life balance and higher job satisfaction.

Benefits of flexible work arrangements

So, what's the actual payoff of implementing flexible work arrangements? The benefits go beyond just keeping your workforce happy—they create real business value.

Here are the key advantages:

• Talent attraction: Stand out in competitive hiring markets
• Cost savings: Reduce overhead with smaller office footprints
• Better retention: Keep top performers engaged and loyal

Attracting top talent

Attracting the best job seekers is always a priority for employers, and providing flexible work arrangements is one way to aid in those efforts. Increasingly, workers value and look for flexibility when searching for jobs; in fact, when people have the chance to work flexibly, 87 percent of them take it. An employer that offers employees greater flexibility will likely attract more top talent compared to one that only offers traditional work arrangements.

Saving on expenses

If a company's flexible work arrangements include hybrid or fully remote work, they may save on overhead costs, with one survey showing 77% of employers are acknowledging cost savings from hybrid models. With fewer employees working in the office, employers may be able to use smaller and more affordable office spaces as well as use less electricity. These reductions in overhead costs will add up over time and, as a bonus, the changes are more eco-friendly, too.

Increasing employee retention

It’s not enough to attract great employees—employers need to ensure that top talent stays at the company once they’re working there. Offering flexible work arrangements is an effective strategy for enticing employees to stay rather than hunt for new job options, as one study found that resignations fell by 33% among workers who shifted to a hybrid schedule. Employees appreciate the added freedom and flexibility, making them more loyal as a result. Considering the high cost associated with recruiting for and filling empty job positions, this increased employee retention can be a significant cost-saving benefit.

Best practices for flexible work arrangements

Developing and implementing flexible work arrangements requires careful consideration. Employers considering it should keep in mind the following best practices for flexible work arrangements:

• Use a pilot program: Start with a pilot program to discover any flaws and correct them before opening up the arrangement to the broader workforce.
• Clarify expectations: Employees should know exactly what their employers expect of them in these new flexible work arrangements. Clearly outline what they need to do and how they can make the new arrangements a success.
• Prioritize communication: Establish clear lines of communication between employees and company leadership so they can adjust the flexible work arrangements to meet everyone’s goals.
• Train managers: Offer training to managers and company leaders on successfully guiding employees through the new flexible work arrangements.
• Evaluate: Regularly evaluate the flexible work arrangements to gauge their success and determine if they should continue.

Managing flexible teams globally

Offering flexible work arrangements is the first step. The next is building the infrastructure to support your team, no matter where they are. From compliant payroll to localized benefits, managing a distributed workforce requires the right tools to ensure a fair and consistent experience for your global team. Oyster's global employment platform simplifies the complexities of international hiring, so you can focus on building a thriving, flexible team. Start hiring globally with confidence.

Book a demo to learn more.