Flexible Working Arrangements

Non-contractual work, e.g. supply teaching or seasonal work. Casual workers can be used when there is likely to be a spike in demand, for example retailers who need extra sales assistants during the busy Christmas period, or farmers who require fruit pickers during the summer season.

Advantages

Disadvantages

• ready-trained people are employed as and when a particular job needs doing
• can be suitable for those who only want occasional earnings and want to work when it suits them, e.g. retired people, students

• casual workers may not be as motivated as fully contracted employees
• casual workers are not usually entitled to the same benefits as employees

Flexitime

Allows employees to arrange the times they work themselves within prescribed limits, e.g. core hours [2] Employees set up what is effectively a 'time bank', accruing hours (credits) and owing hours (debits). Employees can turn accrued hours into time off (the amount of hours which can be accrued, and when they can be taken will be established by their employer). However, employees need to be careful about owing too many hours, as they could be disciplined or lose pay.

Many UK businesses have flexitime arrangements and the system has proved immensely popular with employees and employers alike.

Advantages

Disadvantages

• useful recruitment and retention tool: people unable to work standard hours (e.g. parents or carers) may be more likely to apply for jobs in organizations that offer flexitime
• employees can benefit from more free time during the day and can schedule work to suit their home lives
• employees are likely to feel more supported by, and committed to, their organization, leading to improved motivation, productivity and performance

• potential increase in administration costs, such as record-keeping, and extra utility costs (heating, lighting, electricity) during late/early hours

Time off in lieu (TOIL)

Time off in lieu allows employees to take paid time off as compensation for extra hours worked and is often given instead of overtime pay.

Advantages

Disadvantages

• relatively easy to implement
• good way of ensuring there is adequate staff cover when demand requires it
• employees benefit from extra time off when it suits them (within reason)

• could be problems with accumulation of owed time (which can be overcome by stipulating how much time employees can accumulate and when they need to use it by)
• need to ensure that employees do not work so many extra hours that they are in in danger of damaging their health or welfare

Duvet days/call in well days

A system which recognizes that people will occasionally call in sick when they need the day off work at short notice. Employees are allowed several days' leave at no notice each year.

Advantages

Disadvantages

• likely to reduce the number of 'sickies'
• can help to foster an environment of respect and trust between employer and employee
• employees will be more motivated and engaged at work, and this increased job satisfaction could lead to improved productivity

• people might take advantage at times detrimental to the organization: e.g. when the weather is good, or after a work night out, many employees might take time off simultaneously, leaving the business short-staffed
• may not be appropriate for some types of job or organization

Part-time working/reduced hours

Employees are contracted to work for only a certain part of the working week/month/year, e.g. 20 hours a week, and are paid on a pro rata basis. [3] Part-time workers are used in many industries, particularly those that are required to operate 24/7, such as customer service and healthcare.

Advantages

Disadvantages

• can help with recruitment and retention and is a particular favorite among employees who are balancing a career with family life
• may be possible to extend organizational operating hours using part-time workers during evenings/weekends

• possible increase in recruitment, training and administration costs (e.g. it may take longer to recruit and train two part-time employees than one full-time employee to cover the same hours of work)

Job-sharing

Two people share the responsibilities of one post. The most common ways of splitting the post are:

• split weeks (each employee works two full days and one half day a week)
• split days (one employee works every morning and one works every afternoon)
• two days one week and three days the next (each employee alternates to cover the week)
• alternate weeks (one employee works one week, the other works the next week)

Many different roles and sectors currently benefit from job-sharing arrangements, including financial organizations, local authorities, energy companies, academia and retailers.

Advantages

Disadvantages

• one role benefits from the skills and experience of two people
• can be easier to find cover at short notice (e.g. when one of the job-sharers is absent due to illness or annual leave)
• can help when workloads are heavy, as both job-sharers can be used
• good recruitment/retention tool: it is often attractive to parents or carers, and can make it easier for women to return to work following maternity leave
• enables employees to balance personal commitments with work
• two people are more likely to be able to develop creative solutions to problems

• may incur increased costs in induction, training and administration
• potential problems with recruitment if one sharer leaves - finding someone to complement the hours worked by the remaining sharer could be tricky
• communication difficulties between job-sharers could cause problems
• if the job-share role is a management/supervisory one, there may be an issue with employees who could find it difficult to work for two managers
• job-sharing places an additional burden of responsibility on managers who need to manage two employees: they must ensure that work is allocated fairly and that sharers communicate effectively

Phased/flexible retirement

Employees retire over a fixed period (e.g. six months), taking some or all of their pension while continuing to work part-time. Industries suffering from skills shortages may take advantage of flexible retirement, in order to recruit/retain valuable knowledge and expertise from a wider talent pool.

Advantages

Disadvantages

• retention of skilled employees, which means knowledge can be passed on more readily
• cost savings from lower salary and benefits expenses, due to employees shifting from full-time to part-time work
• the opportunity for employees to manage their exit from the workforce gradually rather than making a sudden change
• employees may be able to supplement their retirement income or to increase future retirement benefits by deferring current retirement income
• more free time for personal lives

• could be complicated to implement
• issues around stereotyping of older workers, including negative assumptions around outdated skills
• possible perception of 'blocking', i.e. preventing younger employees from progressing
• could be a problem with retirees becoming 'back seat drivers' [4]

Portfolio working

Individuals elect to work part-time at several different jobs, utilizing their full range of skills and experience. Portfolio workers can be brought into organizations to meet intermittent or short-term needs for specific areas of expertise (e.g. marketing, advertising, book-keeping).

Advantages

Disadvantages

• portfolio workers can provide a source of flexible talent
• portfolio workers can help energize and motivate existing teams, often brining a new perspective and a creative spark
• portfolio workers benefit from increased job satisfaction and a greater sense of self-fulfillment
• greater autonomy and control over work activities
• greater variety of work for individuals and the ability to pursue multiple interests simultaneously

• individuals may experience feelings of isolation, with limited opportunities for team working and interaction with colleagues, and a loss of camaraderie
• issues around the unpredictability of work, with periods of 'feast or famine'
• financial insecurity and uncertainty
• the loss of full-time employee benefits, such as pension contributions and continuity of employment, which can affect entitlement to redundancy and sick pay

Compressed hours

Employees work their contracted hours over extended days but a shorter working week/month. For example, working four ten-hour days rather than five eight-hour days, or shortening lunch/other breaks and leaving earlier.

Advantages

Disadvantages

• can help with recruitment
• may reduce overtime, turnover and absenteeism
• can provide more free time for employees
• may be possible to extend organizational operating hours

• may be difficult to schedule work and provide sufficient cover
• some employees may suffer from increased fatigue or stress-related disorders

Staggered hours

Employees have flexible start and finish times, but unlike flexitime, the employees do not accrue extra hours.

Advantages

Disadvantages

• useful recruitment and retention tool: people unable to work standard hours (e.g. parents or carers) may be more inclined to apply for jobs in organizations that offer staggered working hours
• may be possible to extend organizational operating hours
• could reduce the incidence of staff arriving late

• potential increase in administration costs, such as record-keeping, and extra utility costs (heating, lighting, electricity, IT) during late/early hours

Voluntary/'V' time

A voluntary reduction by a set percentage (usually 5-50%) in working hours on a temporary basis. The employee's salary is reduced by the same percentage and benefits maintained on a pro rata basis. This reduction is usually for a specific period of time and the employee is contracted to return to full-time work on a given date. It is often used by people who who want to spend more time with their children, those who want to develop new skills, try something different or those who seek a change of pace.

Advantages

Disadvantages

• it brings more flexibility to the security of a full-time job, which can suit people with a wide range of needs
• can improve retention and employee morale
• can reduce turnover and other costs
• easier to implement than part-time working
• good alternative to compulsory redundancies

• employees may not be able to afford reduced salary and benefits
• distributing remaining workload may be problematic
• concerns over job security
• employees taking advantage of V time may be worried about looking less committed to their jobs

Annualized hours

A practice whereby the employee's working hours are averaged over a year. Employees commit to working a set number of hours per year rather than per week. It is often used in occupations with seasonal variations in demand and is particularly used to cover shift workers. The most common form of annualized hours is term-time working, where an employee works to either a full-time contract, taking unpaid leave during school holidays, or a part-time contract, working extra days during term-time, which can then be accrued and taken as leave during school holidays.

Advantages

Disadvantages

• greater employee flexibility
• can reduce overtime while maximizing productivity and efficiency
• term-time working solves childcare problems for parents
• employers are able to plan ahead to cover absence

• most annualized hours agreements specify that employees can be asked to work extra hours at short notice, which can reduce their freedom and flexibility
• long absences during school holidays may make it difficult to arrange cover (especially for specialist roles)
• can put undue pressure on colleagues who may feel unable to take annual leave during school holidays

Career break

An extended period of unpaid absence, taken at the discretion of the employer, which can be taken for various reasons, e.g. study/training/travel/voluntary work or in addition to parental leave.

Advantages

Disadvantages

• valuable retention and reward tool
• saves money on potential recruitment costs by allowing employees time out instead of resigning
• the employee has the freedom to do something different
• can rejuvenate employees and boost morale
• may improve employee skills and confidence

• the employee may decide not to return (implications for recruitment and training)
• need to ensure that workload is fairly distributed among remaining colleagues and that organizational needs are met
• may not necessarily be a suitable job available for the employee to return to
• may need to employ temporary staff to cover absence

Sabbatical

A period of special leave where employees are permitted time away from work, usually on full pay, to undertake study, work experience in another organization, or travel. Sabbaticals are generally granted to employees with a history of long service, or those working in jobs requiring sustained intellectual effort such as academics, creatives, researchers and knowledge workers.

Advantages

Disadvantages

• can help employers retain skilled staff
• organizations get employees with more skills in return
• employees can (within reason, and with the agreement of their employer) choose what they want to do, often on full pay, with the security of returning to their job at the end of the agreed period
• simple to implement
• improves morale
• can rejuvenate jaded employees

• usually only available to employees with a history of long service
• need to ensure workload can be fairly distributed among remaining colleagues and that organizational needs are met
• may need to employ temporary staff to cover absence

Location and Spatial Arrangements

Remote/mobile working

Also known as teleworking, telecommuting or e-commuting, this involves working remotely but being connected to colleagues and customers through information and communications technology. Typically this involves working from home.

Advantages

Disadvantages

• can save on office space and other facilities
• may improve morale, job satisfaction and performance
• can improve productivity (employees are not interrupted by office distractions)
• reduced travel time/costs
• lower absence and turnover rates

• employees may feel isolated
• some employees may put in more hours/take fewer breaks or vice versa
• can be hard for employees to switch off at the end of the working day
• provision of technology may be expensive
• implications for health and safety

Location independent working

Location independent working involves the removal of permanent desks for individuals - where everyone in the office shares a number of flexible working spaces. This works on the principle that most permanent desks are empty for a lot of the time. Often known as hot-desking or hotelling (an extension of hot-desking, where employees who spend a lot of time with customers are given desk space by clients and book desk time in their office when required).

Advantages

Disadvantages

• offers employees flexibility of location
• may reduce travel time and costs

• need to invest in technology to ensure it works (e.g. mobile phones and laptop computers)
• employees may feel deprived of privacy
• limited storage
• colleagues or clients may have trouble locating employees who are hot-desking

Virtual team working

Colleagues based in various geographic locations collaborate via email, teleconferencing, intranet, instant messaging, social networking and telephone. Virtual teams are used by a wide range of organizations, including universities.

Advantages

Disadvantages

• gives organizations access to a large talent pool
• can provide savings on office space and other facilities
• reduces travel time/costs
• organizations can operate across global boundaries
• can involve more people working on projects across different functions

• virtual workers may experience loneliness and isolation
• danger of overwork and burnout, as some virtual workers may feel they are 'not doing enough', leading to them working longer hours
• fewer opportunities to network
• challenges for managers who need to manage people they have never met