Flexible Workplace Solutions for Low-Wage Hourly Workers

Spotlight on the Business Case
Although a number of reports have described a robust business case for workplace fl exibility in
general, until recently there was almost no research documenting the business case for providing
workplace fl exibility to low-wage hourly workers. 78 Here we synthesize and summarize results from the
leading reports, and discuss some of the challenges to businesses’ implementation of fl exibility.
Flexibility for Low-Wage Hourly Workers Improves Recruitment and
Retention, Employee Engagement, and Well-Being
● Workplace fl exibility improved employee retention in industries with typically high turnover
like sales and customer service, reducing recruitment and training costs of new employees. 79
● Employees with fl exibility were 30% more likely than employees without fl exibility to intend
to stay with their employers for more than two years. 80
● Job commitment was 63% higher among low-wage employees who felt their managers
provided suffi cient fl exibility to meet their personal and family responsibilities than among
employees who felt their managers did not offer suffi cient fl exibility. 81
Flexibility for Low-Wage Hourly Workers Benefits the Bottom Line
● The studies’ overall consensus is that providing fl exibility reduced absenteeism, enhanced
customer service, and led to higher profi ts.
● Providing fl exibility was found to be cost-neutral. Employee use of fl exibility was found
to result in signifi cant savings due to reductions in overtime costs resulting from
unscheduled absences. 82
● Flexibility for low-wage workers was found to lead to a return on investment equal to, if not
greater than, the return on investment associated with providing fl exibility to other workers. 83
Flexibility for Low-Wage Hourly Workers Poses Some Challenges for Business
The studies report several types of challenges, including:
● Management’s mistrust of employees, concern about the need for control over hourly
workers, and a fear of increased costs associated with providing fl exibility;
● Concerns about whether offering fl exibility to employees will jeopardize quality and
continuity of customer service, and about the need to balance employee requests with the
needs of the company; 84 and
● Questions regarding how to implement FWAs for non-exempt workers while complying with
the requirements of the Fair Labor Standards Act (FLSA).
There is also a growing body of literature examining how fl exibility works in union settings. Identifying
strategies for the successful implementation of fl exibility in the union context — either through formal
collective bargaining or informal “shop fl oor” negotiations — is an important addition to the business
case. 85 Identifying barriers to fl exibility in the union setting is also important.
Further research in this area is warranted to better understand employer challenges, and develop
strategies for overcoming management resistance. Likewise, much more could be done to document
the return on investment of providing fl exibility to low-wage hourly workers in a variety of jobs and
industries.
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