One of the biggest priorities for every organization besides just hiring great talents is the need for employee retention. This aspect of employee retention is important because disengaged employees and turnover costs are generally expensive. Research shows that entry-level employees who make an average annual salary of $40,000 cost about 40% of their annual salary to replace.
According to a survey with 7,300 respondents, flexible working hours is a vital strategy for improving employee retention. More than 33% agreed that flexible working hours allow them to avoid the stress that usually comes when commuting between home and work. By eliminating the need to rise early for commuting, they spend less time on the road and can better focus on their job. Furthermore, 40% stated that flexible working allows them to avoid office politics and other forms of distractions. Introvert individuals can also perform better working in an environment that they are comfortable with, as excessive socializing can affect work performance to a certain level.
The survey also found that 76% are in favor of flexible working hours mainly to achieve work-life balance. This incentive can provide employees with a more fulfilling personal and professional life, as they also bear other responsibilities outside of the organization. On the hindsight, more than 30% have reported leaving a job due to the unavailability of flexible working options. This would cost companies financially due to the additional effort on hiring and training new recruits. It takes careful attention and maintenance to cultivate an engaged and loyal workforce, but the efforts for employee retention can go a long way.