What are the benefits of flexible working?

Flexible working is any arrangement that allows employees to adjust when, where, and how they work. For some, that might involve:

• Hybrid working

• Working remotely from home or a different location

• Adjusting their start and finish times 

• Compressing hours into fewer days

• Sharing their role with another employee

While every business may define it differently, the essence of flexible working is the same across the board. It’s intended to empower employees with more control over their work schedules to aid them in being more productive and maintaining a healthier work-life balance.

For employees, the benefits of flexible working go far beyond convenience. Data from Personio’s 2025 Workforce Pulse Report shows just how powerful these arrangements can be when trust and autonomy are a core part of the employment package.

One of the key advantages of flexible working is the freedom it affords employees to fit work around their lives, rather than the other way round.

This level of independence is especially valuable for:

• Parents juggling school runs and childcare

• Caregivers supporting ill or elderly relatives

• Employees pursuing hobbies, volunteering, or studying

In the report, 29% of Gen Z employees cited flexible working as a top priority for long-term retention – second only to competitive pay and benefits.

When employees feel trusted to manage their own time, it’s reflected in the level of motivation they have for work.

• 59% of employees who work remotely report high motivation, compared to 23% who don’t.

• Productivity follows a similar trend – 69% report high productivity when trusted, in contrast to 42% when not.

The data shows that flexible working isn’t just a “nice to have” benefit – it has a direct impact on output.

Working from home, even for part of the week, can save employees hours in commuting and reduce travel expenses. This not only frees up more personal time but can also help improve their mental health and energy levels at work.

Flexible working arrangements can help employees remain in the workforce during challenging life stages, such as parenting young children, caring for ill or elderly relatives, or transitioning toward retirement.

For businesses, the benefits of flexible working can be just as significant as they are for employees, if not more so in the long run.

When location and rigid hours are no longer barriers, you can recruit from a broader geographic area and attract talent with highly specialised skills who might not be available locally.

Retention is one of the most tangible wins. The Workplace Pulse Report reveals that 41% of employees who feel trusted to work remotely plan to stay with their employer. That contrasts with the 34% who don’t feel trusted.

In financial terms, given the average cost of preventable income (£51,739 per organisation), reducing employee turnover quickly delivers ROI.

The autonomy given to employees by flexible working is strongly linked to high engagement. Organisations with these arrangements in place often see reduced absenteeism, better collaboration, and a more positive employer brand.

Remote or hybrid working can cut down on office space requirements, energy bills, and associated facilities costs.

While the advantages of flexible working are certainly compelling, there are some drawbacks to consider. These challenges often arise when flexible policies are poorly designed or not applied consistently.

Flexible working schedules can make it more difficult to arrange meetings, ensure coverage, and maintain smooth workflows. Without strong communication or leadership, teams risk becoming siloed.

If some roles offer more flexibility than others, resentment can build among those who don’t feel trusted. Transparent flexible working policies are the antidote to this.

The Workplace Pulse Report found that 36% of HR leaders don’t see managing remote or hybrid working teams as a priority. This lack of focus can undermine success if managers aren’t dedicated or equipped to lead distributed teams.

Without deliberate effort, company culture can be easily eroded as a consequence of people spending less physical time together. The result can be reduced collaboration and weaker social bonds between colleagues and teams.

The key to making flexible working a success lies in policy design and cultural readiness.

The data is clear. Employees who feel trusted are more motivated, more productive, and less likely to leave the business. Trust must be embedded into your flexible working approach, not just half-baked into your policy documents.

From attendance tracking to communication tools, clarity prevents misunderstandings. Define what your business’ core hours are, preferred collaboration channels, and performance metrics.

The Workplace Pulse report shows that less than half (45%) of employees reported being involved in discussions before hybrid work policies were introduced. Involving your people in these decisions can increase buy-in and create policies that reflect actual needs.

Leading hybrid and remote teams requires a specific set of management skills. Invest in training so managers can evaluate employee performance fairly while supporting their well-being and maintaining engagement.

The conversation around flexible working benefits often focuses on the employee side – but from a business perspective, having a well-crafted policy is essential for long-term success.

Employee retention – flexibility is now a baseline expectation for many employees, especially younger generations.

Competitive advantage – Organisations with clear, trusted, flexible working policies are more attractive to top talent.

Cultural resilience – A good policy supports your culture by making sure flexible work is a structured, integrated part of the business, not just an ad-hoc privilege.

The idea that flexible working is just a perk has long since sailed – it’s now a strategic tool. The benefits are more tangible than ever. Employees who are able to build a better work-life balance feel more motivated and enjoy career sustainability. Businesses can retain their best staff, boost engagement and efficiency while reducing costs.

That doesn’t mean flexible working doesn’t come without its own unique challenges. To unlock its full potential, businesses need to create clear, inclusive policies that build trust, set expectations, and equip managers with tools for success.

Done well, flexible working can create a more motivated workforce, a stronger culture, and a business ready to thrive in the modern world.