Want Happier Employees? Give Them More Flexibility, Not More Money

A new study from Cass Business School and Cranfield School of Management (both in the UK) found that flexible work hours can significantly boost employee satisfaction and their sense of commitment to the company.

The researchers conducted a survey among 2,665 employees from four private sector companies where flexible work hours are available to all workers, not just to parents of young children. The study examined the relationship between this flexibility and the employees' satisfaction and commitment to the company, as well as between flexibility and the quality of the performance of employees who benefited from it.

The results: The researchers noted a positive relationship between flexible work arrangements — formal and informal (i.e., those agreed upon in a contract and those agreed upon verbally between employees and their direct managers) — and job satisfaction and commitment to the company.

However, employee performance was better when the flexibility was 'informal': "The study found that employees with informal arrangements that allowed for flexibility received higher performance ratings. Such informal arrangements can allow for greater adaptation to each employee's individual needs, and informal negotiations with direct managers can also be a positive experience for the entire team."

And what is the source of the connection between flexible work hours and job satisfaction? The answer is simple. It turns out that employees — like anyone else — feel much more satisfied when they have more autonomy and control over their daily schedule.