The two major opportunities in establishing a flexible work program are recruiting competitiveness and employee retention. WorldatWork said employee retention plays a key role when companies are competing for market share and talent. When competing for market share a company must be able to keep key talent because they play a big part in a company’s organization. Key talent is employees with strong performance that have high potential. Key talent also helps an organization with current and future performance. Losing these employees can be very costly to an organization. WorldatWork reports that the estimated turnover cost can range from 50%-200% of the employee’s annual salary based on the type of level the employee holds (Scott, McMullen, Royal). These costs can have a huge impact on an organization and the turnover impacts businesses performance. Keeping talented employees is going to increase the ability of an organization to expand and maintain a competitive advantage in the market now and in the future (Scott, McMullen, Royal). Many organizations are taking the necessary steps to retain key employees. Some of those steps are providing key employees with rewards like stock options, equity awards, bonuses, and competitive compensation plans. Also, they provided work-related things like enriching job designs, job rotations, mentoring, and work-life balance (Scott, McMullen, Royal).
Inc. com said that flexible work arrangements can be very critical for a company. Having flexible work programs can make a company very attractive to prospective employees and help a company retain current employees. Some flexible work programs include flextime, compressed work week, flexplace, job sharing, work sharing, expanded leave, phased retirement, partial retirement, and work/family programs. Flexible work programs give a company a competitive advantage and the single most important reason is employee retention. This trend towards flextime is not for every...
Please join StudyMode to read the full document