Menu
Business.com aims to help business owners make informed decisions to support and grow their companies. We research and recommend products and services suitable for various business types, investing thousands of hours each year in this process.
As a business, we need to generate revenue to sustain our content. We have financial relationships with some companies we cover, earning commissions when readers purchase from our partners or share information about their needs. These relationships do not dictate our advice and recommendations. Our editorial team independently evaluates and recommends products and services based on their research and expertise. Learn more about our process and partners here.
Learn how implementing a flextime policy can benefit your business.
The employee experience is top of mind for employers and employees alike these days. How do you treat your staffers? Is your compensation competitive? What benefits do you offer? These are some of the most important issues a company must perfect; workers aren’t willing to settle for anything less than “great” anymore.
For example, what was once seen as a luxury benefit is now considered a must-have for many employees: flextime. But this isn’t a perk that helps only workers. When implemented correctly, flextime can be advantageous for both you and your team.
Flextime is also known as flexible working hours or flexible schedules. It’s a benefit that allows each employee to define their work schedule within certain parameters. The specifics of how flextime works and what kind of schedule flexibility is permitted typically vary depending on the business.
Some common types of flextime include the following:
Flextime has advantages for both employers and employees; many of these benefits lead to higher employee morale. Here are some of the upsides for workers.
Flextime is very valuable to employees; it gives them the autonomy to create a work schedule that integrates cohesively with their personal life. This freedom can result in an improved work-life balance.
“At the heart of flextime is the ability for employees to be in control of their work and personal life,” Darrell Rosenstein, founder and managing partner of recruiting firm The Rosenstein Group, told us.
With the freedom to create a personalized work schedule on their own terms, employees have more opportunities to focus on their physical and mental health. Instead of working a schedule predetermined by someone else, they can modify their working hours around activities that foster good health, e.g., going to the gym, spending time with family or taking a yoga class.
Flexible work arrangements are also great for employees who want to engage in professional development opportunities they might otherwise not have time for.
“With a flexible schedule, employees can pursue professional development opportunities, such as attending college — something that can be difficult to do with a traditional 9-to-5 schedule,” Rosenstein said. “Access to such opportunities is especially important to millennials, who consistently prefer professional development over a salary increase.”
Giving your staff the flexibility to create their own work schedules isn’t advantageous only to employees; it can be beneficial for employers, too. Here are some of the upsides for businesses.
Since it’s one of the most popular benefits among employees, flextime can help attract and retain top talent.
According to Todd Brook, offering flextime can open up a candidate pool for high-demand roles you otherwise would not have had access to because of time demands.
“It gives you a level of differentiation, and you can end up with incredible, high-performing and loyal employees,” said Brook, managing director at the employee engagement platform Engagement Multiplier.
Employees look for more than just a competitive salary when determining whether to work for an organization. They often place a high importance on work-life balance, which flextime fosters. Ensuring team members have a positive work-life balance can also help keep them around for the long term.
“It goes without saying that when employees are happy, they are more likely to stay with you for longer,” Rosenstein said. “Every employer understands the high cost of losing and hiring a valuable employee. Allowing them to initiate a work arrangement that works for them directly minimizes turnover and the disruption it causes.” [Find out how to calculate your employee turnover rate.]
Using flextime to let employees work during the hours they are most physically and mentally available can also increase productivity.
“When they can plan their time in a way that aligns with their needs, employees are more likely to feel less stressed and burnt out, which leads to greater productivity,” Rosenstein said.
Taken together, the benefits of flextime for employees improve morale and performance. This, in turn, makes for a happier, more satisfied workforce — one where staffers enjoy their work environment. Facilitating and maintaining such a company culture is definitely to an employer’s advantage in both the short and long term.
Flextime can be a valuable benefit, but it does have some drawbacks. Watch out for these potential disadvantages when implementing a flextime policy.
It can be difficult to organize and manage your team when everyone is operating on different schedules. For example, it can be challenging to plan meetings and other collaborative activities with asynchronous work hours. If scheduling isn’t managed properly, it can ultimately hurt your company’s bottom line.
“Without a tight arrangement, allowing employees to choose their working hours can lead to operational disruption, such as inadequate staff at any given time,” Rosenstein said. “If several employees are unavailable at certain times, projects might delay and customer service might take a blow, all of which have negative consequences for the company’s bottom line.”
If too many employees use their flextime to work remotely or work opposite schedules, your team may also lack the face-to-face time needed to feel connected.
Flextime can also lower employee morale if it is offered only to certain employees. While the team members who do get flextime may have high morale, those who don’t get to enjoy such flexibility may feel the opposite.
“If your policy only offers certain employees a flexible work schedule, others who are left out might feel resentful [and] less valued, and this could have negative implications for their productivity and long-term commitment to the company,” Rosenstein said.
To reduce the potential for scheduling complications or preferential treatment, employers should carefully consider the guidelines around how their flextime policy works.
Flextime schedules can be a good fit for roles that prioritize outcomes over hours worked. This is often seen in industries such as sales, marketing, design, tech and content creation. Flextime schedules are also useful for roles that work within industries with nonstandard operating hours, such as health care, retail and hospitality.
Here are some roles best suited for flexible scheduling.
Flextime works best in roles where trust, self-management and clear communication are key to achieving success.
After consulting with Brook and Rosenstein about the best way to successfully implement flextime, we recommend the following four-step process:
The first step in implementing a flextime policy is to choose the type of flextime you want to offer. Because flextime arrangements can vary, it is critical to determine what kinds of schedules will best suit the needs of your employees and your business. Consult with the necessary stakeholders (e.g., HR team, employees, vendors) to figure out an approach that will ensure business operations continue uninterrupted.
Rosenstein said to consider offering various forms of flexible work arrangements to find what ultimately works well for your entire team. For example, experiment with options such as job sharing, telecommuting and compressed workweeks. Over time, you can home in on the frameworks to use going forward.
After you have an idea of what kind of flextime you want to offer, review your business processes, staffing patterns and operational needs. This way, you can determine the necessary guidelines that will inform your policy.
Brook said to decide whether there are any nonnegotiable periods during which team members need to be available; such instances include weekly meetings, specific events (e.g., an IT deployment) or particularly busy times (e.g., the holiday season). You should also decide how many employees from each team or department need to be available at any given time.
Write a comprehensive flextime policy that outlines how your flextime benefit works. Include important details about eligibility, request and approval procedures, and employee rights and obligations.
Brook advised employers to set clear expectations around how, when and where communication occurs, as well as what to do if something isn’t working. It’s also essential to establish performance metrics so you can track how productivity is impacted. Outlining these specific components will help with team organization, employee accountability and scheduling predictability.
“Clear accountabilities are crucial,” Brook said.
After your policy is written, you may want to consult an attorney to ensure it complies with federal, state and local labor laws. Present the final policy to your employees, and have them sign a flexible-work-arrangement form to confirm their commitment to following the guidelines.
Lastly, any time you implement a new employee benefit, it is important to update the information in your employee handbook accordingly. Be sure to also incorporate the policy into future onboarding material so new hires are aware of how flextime works at your company from day one.
Source interviews were conducted for a previous version of this article.