Employee Benefits: Pros and Cons of Flex Time

Written by Catherine Banich Tuesday, May 17 2011

The recession is causing employers to rethink approaches to virtually every aspect of their businesses – from purchasing to accounting to human resources. And companies are finding ways to reduce costs and increase productivity with varied success. With a growing body of research supporting the use of flex time in the workplace, businesses are increasingly finding that flex-time policies that are crafted the right way can benefit both the employer and the employee.

What Exactly is Flex Time?
A recent report from the Society for Human Resource Management included a glossary of 13 different terms that encompass a form of flex time. While most employees think of flex time in terms of a compressed work week (four, 10-hour days instead of five, 8-hour days) or telecommuting, there are additional approaches that include regular adjustment of work schedule, job sharing, and moving toward a results-oriented environment where outputs are more valued than seat time.

Even instituting a leave policy that does not distinguish between personal, sick, and vacation leave is considered flex time.

As your company considers creating or expanding flex-time options, it is critical to understand the different types of flex time and determine which options fit the unique work characteristics of the firm.

A Recruiting Tool
As the economy improves, employers will increasingly compete for available talent. Many job seekers, particularly working mothers, are choosing to look for work environments that offer more flexibility. In a time where cost pressures are forcing cutbacks in benefits, adding flex-time options can be a cost-effective addition to a firm’s benefits package.

While many may perceive all the benefits of flex time to be only for the employee, these kinds of policies can lead to positive outcomes for the employer as well. As working mothers shift toward companies that offer flex-time policies, they are more likely to be happy, satisfied employees who will remain in a job longer and contribute more.

Are There Any Concerns?
The key to drafting a successful flex-time policy is to ensure it is enforceable. There must be a clear understanding between the employer and employee of the details and expectation for the staff member’s work schedule.

Also, companies must be careful to stay within federal and state regulations. For example, if an employee is required to read and respond to work email either on a computer outside of the office or on a smart phone, that could be considered compensable time under federal law (particularly if the employee is considered “nonexempt”).

Contract vs. Employee Status
Of course, the ultimate flex-time work arrangement is to enter into a contract relationship with specific deliverables and time frames. However, the freedom afforded by signing a contract instead of bringing an employee in-house has several drawbacks. First, recruiting may be difficult because many employees look for full- or part-time employment for stability and access to benefit packages. Also, contractors may have other engagements, which can impact their ability to quickly respond or accelerate a project.

A Win-Win Situation
Companies should not enter flex-time arrangements lightly. However, policies that are developed with input from employees and emulate successful practices that are already in place can lead to a work arrangement that is satisfying for the employee and beneficial for the employer. These policies can also assist companies in putting together a diverse work force that mirrors their client and/or customer base.

The reality is today’s work force is different – more mobile, less likely to stay in one career, and preferring an exciting, dynamic workplace over long-term opportunity. Companies that keep up with the demands of today’s work force, including offering flex- time options, will be more successful in recruiting and retaining talented employees.

Catherine Banich is an attorney at Stites & Harbison, PLLC, a regional law firm with offices in Atlanta where she concentrates on employment and business litigation law. She can be reached at This e-mail address is being protected from spambots. You need JavaScript enabled to view it .