Flexible Working Hours – Why you should make it work for your business

Flexible working hours allow people to choose when and how much they work. This arrangement can benefit both employers and employees.

Human Resources Deputy Minister Datuk Awang Hashim announced that employees in Malaysia who would like flexible work arrangements (FWAs) could apply for it with their employers.

Moreover, Awang highlighted that having FWAs should be allowed for employees as part of the latest amendment to Malaysia’s Employment Act 1955, which will come into effect on 1 September.

Apart from the flexible arrangements, the Employment Act amendments will have working hours reduced from 48 to 45 hours from 1 September 2022.

The amendments safeguard workers’ welfare and provide flexibility in working hours, in line with the International Labour Organisation (ILO) Convention, said Awang.

The new law allows employers to offer flexible work arrangements to their employees if they wish to do so. 

All FWA applications must be in writing and can cover changes in working hours, working days, and the place of work.

The employer must answer the employee in writing, whether they agree or reject the application, within 60 days. They must give reasons for rejecting the application.

The announcement will be a source of excitement for the employees, but how does it affect the employers?

Is there any way you can benefit from the flexible work arrangement?

Employers need to recognise the business benefits of flexible working arrangements too. If implemented correctly, the organisation can reduce costs, improve output and increase loyalty.

What is the benefit of flexible working hours for your company?

There are several ways flexible working hours can benefit an employer. 

First, it allows them to attract top talent by offering competitive pay and benefits packages. 

Second, it helps retain employees who might otherwise leave because of demanding schedules. 

Third, it reduces absenteeism and turnover. 

Finally, it improves employee morale and productivity.

Type of flexible working hours sought by employees

Qualtrics, a global experience management company, recently carried out a study on employee experience.

Based on the study, here are the top answers for the type of flexibility provided by the employees. 

1. Flexibility to work however many hours and days I want.
2. Flexibility to work from wherever I want.
3. Flexibility to choose when to work a predetermined number of hours.
4. Flexibility to take a vacation whenever I want.
5. Flexibility to run errands or see a doctor during the workday.

Employees produce better results.

A Stanford survey found that the employees flexibly working from home raised their productivity levels by almost 13%.

According to the study, along with productivity, employee flexibility has helped increase:

1. Job satisfaction
2. Employee morale
3. Efficiency
4. Overall business profitability

Job satisfaction

Many employees cite work-life balance and flexibility as essential aspects of job satisfaction.

Employees are more likely to be happier when they have more control over their work hours. 

Thus, flexible working hours will encourage happiness, which drives better business growth and profitability.

A flexible working arrangement also builds a better relationship between employers and employees. 

Better retention in companies that offer flexible working hours

Employee turnover can be a costly affair. Furthermore, for millennials, perks and benefits matter more than salary. 

Studies show that flex workers are more satisfied than employees who work regular 9-5 jobs. 

Furthermore, flexible working hours ensure that employee engagement remains high.

Due to the job satisfaction that flexible work schedules provide, flex workers are likelier to stick around even during hard times.

Thus, to retain top talents, you need to get a bit more creative than the usual big fat paycheck.

Better Mental Health

The work environment can contribute to high-stress levels among employees.

Furthermore, Qualtrics said that 58% of employees in Malaysia say their job is the primary source of their mental health challenges.

In comparison, only 20 per cent of respondents with flexible work schedules felt the same way.

Stress is present even in people who love their jobs.

Sometimes you need a breather to do your job without noisy co-workers and office politics.

Better productivity can stem from an employee working in a peaceful working environment without any mental stress to bring them down.

Allowing employees to schedule work hours doesn’t mean they will grow tardy.

However, implementing flexible working hours requires careful planning.

For example, if you want to offer flexible working hours to your employees, you must determine whether they would benefit.

If they would, then you should consider offering them.