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Abstract: The evolving nature of work in the 21st century has brought about significant changes in the relationship between employers and employees, with globalization, technological advancements, and economic uncertainties disrupting traditional career paths and placing new demands on organizations and their workforce. Lacking adequate job flexibility or security can have detrimental effects on employee well-being, leading to higher rates of depression, anxiety, stress, and burnout, as well as physical and social strains that spill over into non-work domains. However, research has demonstrated that by adopting flexible work policies, such as flexitime, compressed workweeks, remote work, and paid leave, and ensuring job and financial security through measures like living wages, retirement plans, and just-cause termination policies, organizations can foster greater employee well-being and engagement, which in turn benefits business performance and the ability to attract and retain top talent. Underpinning these efforts is the crucial role of a culture of trust between managers and workers, characterized by open communication, collaborative problem-solving, and fair, individualized consideration of employee needs and contributions. By championing these research-backed strategies at the leadership level, organizations can create a work environment that supports the evolving demands and whole-person well-being of the modern workforce.
The evolving nature of work in the 21st century has led to significant changes in the employer-employee relationship. Globalization, technological advances, and economic uncertainties have disrupted traditional career paths and placed new demands on both organizations and their people. Not having adequate job flexibility or security can leave many workers feeling depressed, anxious, and hopeless about their careers and financial stability. However, research shows that cultivating flexibility and security in the workplace enhances employee well-being and engagement while also benefiting business performance.
Today we will explore how organizational leaders can promote flexibility and security through supportive policies, programs, and a culture of trust to foster greater well-being among their workforce.
Lack of Flexibility and Security Negatively Impacts Well-Being
A growing body of research has established clear links between precarious employment conditions and poor psychological health. Studies consistently find higher rates of depression, anxiety, stress, and burnout among individuals with less stable, predictable work (Foley et al., 2002; Kelly et al., 2017; Schneider & Harknett, 2019). A recent survey of over 7,500 U.S. workers found those lacking flexibility or perceiving their jobs were at risk reported significantly worse mental health and life satisfaction compared to their secure counterparts (Sinclair et al., 2020).
The stresses of unpredictable schedules, inadequate leave policies, and constant concerns about downsizing or layoffs take both an emotional and physical toll. Workers in insecure jobs are more likely to experience sleep disturbances, physical ailments, substance abuse issues, and difficulties managing daily responsibilities (Benach et al., 2014; Broszeit et al., 2016; Hill et al., 2020). These strains spill over into non-work domains as well, harming relationships, social interaction, and overall quality of life (Kelly & Moen, 2020).
While lack of flexibility and insecurity threatens well-being at an individual level, it can also undermine organizational effectiveness. Insecurity breeds decreased engagement, motivation and performance as workers limit extra efforts when their commitment is not reciprocated (Broszeit et al., 2016; Schneider & Harknett, 2019). High turnover further taxes resources as recruitment and training costs mount (van Aerden et al., 2016). Winning the ongoing war for talent requires practices supporting whole health - physically, mentally and socially.
Flexible Work Policies Promote Well-Being
Providing flexible work arrangements has become a key strategy for enhancing employee well-being and retention. Flexibility allows balancing multiple life demands while still meeting work responsibilities. A large body of research attests to the psychological, physical and social benefits of flexible work policies (Butts et al., 2013; Kelly & Moen, 2020; Moen et al., 2016). Specific flexible options examined include:
Flexitime: Allows flexible start/end times within core business hours to better fit family/personal obligations. Workers report lower stress and improved moods with flexitime (Butts et al., 2013).
Compressed workweeks: Completing regular hours over fewer, longer days to gain an extra day off each week. Compressed schedules are linked to increased happiness, life and job satisfaction (Moen et al., 2016).
Remote work: Performing some or all job duties from home or third location using technology. Permits avoiding long commutes, getting tasks done around family care, and has been tied to better self-rated mental and physical health (Kelly & Moen, 2020).
Paid leave: Instituting paid vacation, sick/personal days, and family leave supports recovery and bolsters well-being compared to no-leave policies (Kelly & Moen, 2020).
Several case studies illustrate how specific companies have concretely improved employee wellness through flexible arrangements. For example, aerospace manufacturer Collins Aerospace transitioned 70% of its workforce to flexitime, compressed schedules or remote work during COVID-19. Employee surveys showed reduced stress and improved work-life balance with flexible arrangements (O'Brien, 2022).
Job and Income Security Reinforces Well-Being
Beyond flexibility, ensuring some degree of job and financial security also defends against strains on mental health and life satisfaction (Kelly et al., 2017; Schneider & Harknett, 2019). Specific security-enhancing policies and programs employers can adopt include:
Living wages: Paying above minimum wage to allow meeting basic needs reduces chronic stressors from financial instability.
Retirement plans: Offering 401k matching, pensions or other retirement savings vehicles gives long-term security for the future.
Continued education benefits: Supporting ongoing skills training and tuition reimbursement helps workers transition with changing industry demands.
Just-cause termination policies: Requiring substantial cause for dismissal and discouraging arbitrary firings promotes a sense of fairness, predictability and control.
Severance packages: Offering transitional pay and benefits if layoffs occur cushions losses and eases job search pressures.
For example, Technology company Anthropic provides unlimited paid time off, a minimum six months' severance for any layoffs or terminations without cause, substantial retention bonuses for remaining employees, and reskilling opportunities to instill a high level of security for its AI safety researchers (Egan, 2022). Retention of skilled talent at Anthropic significantly exceeds industry averages.
A Culture of Trust Enables Flexibility and Security
While policies are crucial, the values and actions of leaders also shape employee experiences of flexibility, security and well-being. Research points to one overarching driver - a culture of trust between managers and workers (Butts et al., 2013; Kelly & Moen, 2020; Schneider & Harknett, 2019). Several cultural elements matter:
Managers showing understanding of outside demands facing staff through open communication.
Departments collaboratively problem-solving around flexibility and leave needs rather than taking a rigid "one-size-fits-all" approach.
Transparency about business performance and stability to minimize uncertainty.
Fair, individualized consideration of employee responsibilities, skills and contributions when making work arrangements or critical decisions like layoffs.
For example, Tech company Buffer cultivated high employee well-being through adopting "unlimited vacation" yet found staff took 4-6 weeks on average once managers role modeled reasonable time off and openly discussed well-being impacts of rest (Hunnicutt, 2022). Freedom supported by trust built employee loyalty.
Leadership Actions for Organizational Change
Creating a flexible, secure and trusting work environment requires champions and advocates at organizational leadership levels. Some key actions leaders can take to embed flexibility and security include:
Reviewing current policies for flexibility, paid leave, termination processes etc. and identifying areas for improvement based on employee feedback and benchmarking.
Partnering with managers to operationalize new arrangements not as optional but standard practices through training, resources and accountability.
Communicating rationale for changes clearly to gain buy-in from skeptics and address concerns around impacts to productivity or costs. Research on business impacts can help.
Tracking utilization and impacts of new approaches through repeated, confidential surveys and actively problem-solving issues that arise to reinforce gains over the long-term.
Linking flexibility, security and trust to talent strategy by positioning them as core aspects of employee value proposition to attract and retain top performers.
For example, UPS reformed its attendance policy with union support to minimize penalizing workers for circumstances outside their control like emergencies or illnesses. Framing the "People First" redesign around dignity, understanding and employee well-being gained acceptance and improved attendance, engagement and retention (Kelly & Moen, 2020).
Conclusion
The modern workforce continues to evolve away from rigid structures of the past towards more fluid, diverse arrangements. However, flexibility must go hand-in-hand with reliable protections for security, predictability and quality of life. This essay has outlined a research-backed case that organizational leaders play a vital role in cultivating flexibility, security and trusting cultures through policies, programs and management practices that consider whole employee well-being. Demonstrating genuine care for people's mental health, work-life integration and resilience against uncertainties yields outsized dividends in commitment, performance and the ability to attract superb talent. A human-centric approach anchored by flexible yet secure employment supports both individual and organizational prosperity in today's dynamic environment.
References
Benach, J., Vives, A., Amable, M., Vanroelen, C., Tarafa, G., & Muntaner, C. (2014). Precarious employment: Understanding an emerging social determinant of health. Annual Review of Public Health, 35, 229–253. https://doi.org/10.1146/annurev-publhealth-032013-182500
Broszeit, S., Dowling, M., & Dolan, P. (2016). Leave policies and absenteeism: Causal effect or simply correlation? The Economic and Social Review, 47(2), 251–271.
Butts, M. M., Casper, W. J., & Yang, T. S. (2013). How important are work–family support policies? A meta-analytic investigation of their effects on employee outcomes. Journal of Applied Psychology, 98(1), 1–25. https://doi.org/10.1037/a0030389
Egan, S. (2022, June 29). How Anthropic builds trust to retain AI safety researchers. Axios. https://www.axios.com/2022/06/29/anthropic-ai-safety-research-retention
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Hill, E. J., Erickson, J. J., Holmes, E. K., & Ferris, M. (2010). Workplace flexibility, work hours, and work-life conflict: Finding an extra day or two. Journal of Family Psychology, 24(3), 349–358. https://doi.org/10.1037/a0019282
Hunnicutt, A. B. (2022, March 11). Buffer's unlimited vacation policy works because they have trust. LinkedIn. https://www.linkedin.com/pulse/buffers-unlimited-vacation-policy-works-because-they-have-hunnicutt
Kelly, E. L., Amstadter, A. B., Moen, P., O'Brien, K. M., & Sanchez, L. (2017). Social policy and workers' well-being: A qualitative analysis of paid family leave in the US. Social Science & Medicine, 192, 80–88. https://doi.org/10.1016/j.socscimed.2017.09.022
Kelly, E. L., & Moen, P. (2020). Overloaded and overworked: Strategies for addressing the stresses of work and family. The Stanford Center on Poverty and Inequality. https://inequality.stanford.edu/sites/default/files/media/_media/pdf/pathways/winter_2020/Pathways_Winter_2020_KellyMoen.pdf
Moen, P., Kelly, E. L., Tranby, E., & Huang, Q. (2011). Changing work, changing health: Can real work-time flexibility promote health behaviors and well-being? Journal of Health and Social Behavior, 52(4), 404–429. https://doi.org/10.1177/0022146511418979
O'Brien, M. (2022, June 2). Collins Aerospace survey finds flexible work arrangements improve well-being. CO - The Space Daily. https://www.spaceref.com/news/viewpr.html?pid=58056
Schneider, D., & Harknett, K. (2019). Consequences of routine work-schedule instability for worker health and well-being. American Sociological Review, 84(1), 82–114. https://doi.org/10.1177/0003122418823184
Sinclair, R. R., Probst, T. M., Hammer, L. B., & Lim, N. (2020). Let's bring work life back into the study of job insecurity and job stress. Academy of Management Perspectives, 34(3), 428–443. https://doi.org/10.5465/amp.2018.0143
van Aerden, K., Puig-Barrachina, V., Bosch, C., van der Molen, H. F., & Taris, T. W. (2016). Economic pressure, job insecurity and employee health: An analysis of European countries. Work & Stress, 30(1), 16-34. https://doi.org/10.1080/02678373.2016.1145160
Additional Reading
Westover, J. H. (2024). Optimizing Organizations: Reinvention through People, Adapted Mindsets, and the Dynamics of Change. HCI Academic Press. doi.org/10.70175/hclpress.2024.3
Westover, J. H. (2024). Reinventing Leadership: People-Centered Strategies for Empowering Organizational Change. HCI Academic Press. doi.org/10.70175/hclpress.2024.4
Westover, J. H. (2024). Cultivating Engagement: Mastering Inclusive Leadership, Culture Change, and Data-Informed Decision Making. HCI Academic Press. doi.org/10.70175/hclpress.2024.5
Westover, J. H. (2024). Energizing Innovation: Inspiring Peak Performance through Talent, Culture, and Growth. HCI Academic Press. doi.org/10.70175/hclpress.2024.6
Westover, J. H. (2024). Championing Performance: Aligning Organizational and Employee Trust, Purpose, and Well-Being. HCI Academic Press. doi.org/10.70175/hclpress.2024.7
Citation: Westover, J. H. (2024). Workforce Evolution: Strategies for Adapting to Changing Human Capital Needs. HCI Academic Press. doi.org/10.70175/hclpress.2024.8
Westover, J. H. (2024). Navigating Change: Keys to Organizational Agility, Innovation, and Impact. HCI Academic Press. doi.org/10.70175/hclpress.2024.11
Jonathan H. Westover, PhD is Chief Academic & Learning Officer (HCI Academy); Chair/Professor, Organizational Leadership (UVU); OD Consultant (Human Capital Innovations). Read Jonathan Westover's executive profile here.
Suggested Citation: Westover, J. H. (2024). Cultivating Job Flexibility and Security to Promote Employee Well-Being. Human Capital Leadership Review, 15(3). doi.org/10.70175/hclreview.2020.15.3.5