Keeping your body & mind A⁺

How Flexible Schedules Improve Employee Wellbeing

Key Points

Flexible work is becoming a necessity rather than a perk.

In the September 2024 quarter, 898,700 people worked from home, with 240,000 remote workers and 651,800 hybrid workers¹.

More than 40% of businesses offer employees a work-from-home option.

Large businesses (100+ employees) are more likely to offer flexible working hours, with 90% providing this option².

Flexible work benefits physical, emotional, financial, career, social, and personal well-being.

The top industries supporting flexible work include information media and telecommunications, financial and insurance services, and professional, scientific, and technical services³.

Maintaining a strong workplace culture while adopting hybrid work is a priority for many organisations.

The growing importance of flexible work

Over the years, the nature of work has evolved dramatically, and employees increasingly seek flexibility to maintain a better work-life balance. In fact, flexible work is no longer seen as a luxury but as a fundamental requirement for employee well-being.

Recent data highlights that in the September 2024 quarter, nearly one-third of employed individuals in New Zealand worked from home at some point, with 651,800 classified as hybrid workers and 240,000 working remotely full-time⁴.

Businesses are responding to this shift, with more than 40% of organizations offering their employees the option to work from home. Larger businesses, particularly those with 100 or more employees, are leading the way, with 90% providing flexible work hours. The industries with the highest levels of remote work adoption include information media and telecommunications (27%), financial and insurance services (20%), and professional, scientific, and technical services (20%)⁵.

Why flexible work enhances well-being

Flexible work arrangements have been shown to positively impact multiple dimensions of employee well-being:

Physical well-being: Employees experience reduced stress levels, improved sleep, and increased opportunities for physical activity.

Emotional well-being: The ability to control work schedules results in lower stress, reduced burnout, and improved mental health.

Financial well-being: Employees save money on commuting costs, work attire, and other expenses associated with in-office work.

Career growth: Flexible schedules allow employees to focus on professional development, attend courses, and upskill at their own pace.

Social connections: Hybrid work arrangements help employees maintain social interactions in the office while also enjoying the autonomy of remote work.

Personal fulfillment: Employees with more control over their schedules can dedicate time to personal projects, hobbies, and family responsibilities.

Flexible work and workplace culture

As hybrid work becomes the standard, organisations are striving to maintain a strong workplace culture. The challenge lies in balancing remote work flexibility with in-office collaboration. In 2024, businesses began fine-tuning their hybrid models, increasing average office attendance from 3.2 to 3.3 days per week⁶. The shift toward increased office presence is particularly noticeable in the public and legal sectors, where attendance has risen significantly.

Despite this, flexible work continues to be a defining feature of modern workplaces. More than two out of five businesses offer their employees remote work options, and 14% of staff take advantage of this opportunity on any given workday⁷. Companies also recognise the importance of supporting employees through health and well-being initiatives, enhanced parental leave policies, and redundancy provisions beyond legal requirements.

The relationship between flexible work and mental health
While we’re still learning about the long-term effects of remote and hybrid work, early research suggests that rigid in-office policies can have negative consequences for employees who crave flexibility. Those who are required to be in the office full-time despite wanting a hybrid option often report:

Lower job satisfaction

Declining mental and physical health

Increased likelihood of job hunting

Higher risk of burnout

And it’s not just employees—leaders and managers also need flexibility to avoid burnout and stay effective in their roles. But they play a crucial part in shaping workplace culture. When leaders actively support and encourage flexible work, employees feel more comfortable using those options.

Right now, the most common flexible work arrangements are:

Choosing where to work (remote, office, or hybrid)

Adjusting work hours

Taking time off as needed

Future trends in flexible work

Hybrid work models are expected to remain a dominant workplace trend, with organisations refining their strategies to ensure optimal productivity and employee satisfaction.

While there has been a slight increase in office attendance, the demand for flexibility remains strong, with large businesses leading the way in offering work-from-home and adjustable work hours. Additionally, industries like professional services, telecommunications, and finance continue to set the benchmark for flexible work arrangements.

Organisations that embrace these changes will be better positioned to attract and retain top talent, enhance employee well-being, and foster a more engaged workforce. By prioritising flexibility, businesses can create an environment that supports both personal and professional growth, ultimately leading to greater job satisfaction and long-term success.