Impact of Work Flexibility and Incentives on Employee Performance and Wellbeing

This report identifies how job demands and resources have an impact on employee performance and wellbeing. Work arrangements when flexible in time and location along with incentives have a significant effect on productivity, performance and efficiency.

Running head: WORK FLEXIBILITY AND INCENTIVES
WORK FLEXIBILITY AND INCENTIVES
Name of the Student
Name of the University
Author note

1WORK FLEXIBILITY AND INCENTIVES
Executive Summary:
Flexibility and incentives have been known since long to keep people engaged in their
workplace. Most of the organisation prefers this mode for it is beneficial to them. On the
contrary, it has also been a challenge as they reduce collaboration and productivity. On the
basis of interview, existing literature, research, this report identifies how and to what extent
job demands and job resources have an impact on the performance and wellbeing of the
employees. Work arrangements when flexible in time and location along with incentives have
a significant effect on productivity, performance and efficiency. Absence of such factors can
lower morale and increase frustration. The aim and objective of the research is to assess the
impact of changes in work policy and changes in incentives on employee performance, a
qualitative method of analysis was used. A semi-structural style of interview with interview
protocol was applied. The interview was conducted on site in a quiet meeting room.
Questions were asked; the results were reported and recorded. It was found that flexibility in
work schedules and incentives play a significant role in employee morale and job satisfaction.
The employees are satisfied and this leads to increase in productivity. On the contrary, if they
are removed, it leads to frustration and low productivity. Based on these findings, it can be
recommended that managers should effectively communicate with the employees regarding
policy decisions and how it could affect them. They can treat each case on individual basis
and be open to the idea of flexibility and incentives.

2WORK FLEXIBILITY AND INCENTIVES
Table of Contents
Introduction................................................................................................................................3
Overview of Literature on the topic.......................................................................................3
Research Question..................................................................................................................7
Research Objectives...............................................................................................................7
Methods and Results..............................................................................................................7
Findings..................................................................................................................................8
Recommendations and conclusions:........................................................................................11
References:...............................................................................................................................13

3WORK FLEXIBILITY AND INCENTIVES
Introduction
Thrive Consultancy is a consultancy firm in business from past 15 years. It has a staff of
approximately 50 employees. It offers consultancy in three main areas namely Human
Resource Consulting, Strategic Planning and Advertising/Marketing Consultancy. The staff
comprises of ten people in HR department, one in Strategic planning and five in
Advertising/Marketing department. The company has a CEO and three people working as the
administrative staff.
The problem pertains to low morale of workers and employees resulting in lower
productivity and performance. The policy changes regarding working hours and reduction in
incentives seem to be building resentment under the surface and therefore resulting in
absenteeism.
Business problems:
Participants Problems facing by the participants
Participants 1 This participants thinks that he/she needs
training so that he/she can understand about
his/her roles and responsibilities in the
organization.
Participant 2
The new policy change of the organization has
affected this participant as he is highly
dependent on coffee and the organization has
taken away the coffee machine.

4WORK FLEXIBILITY AND INCENTIVES
Participant 3
The participant is incurring a huge expense as
he has to keep his children in the child health
care, which is very expensive.
Participant 4
The loud noise of keyboards and the phone
calls is affecting this participant as a result he
is not able to concentrate.
Participant 5
He is not affected by the policy change and
thinks that he will achieve the target by
working extra hours in the office.
Overview of Literature on the topic
This literature review has been carried out in order to focus on the perceived effects of
flexibility in work hours and incentives on improving employee efficiency and performance.
This report will critically analyse the present literature on the incentives and work hour
flexibility and tries to find solutions as to what extent this is applicable. The paper will detail
about nature of work of the employees in the consultancy firm, Thrive Consultancy and why
the productivity, efficiency and performance fluctuates as a result of changes in management
policies. It will also explain this in context of job demands and resources. The literature
review will analyse the benefits and disadvantages of work flexibility and incentives and how
they influence the employee. It will elaborate about the relationship and the theory will be
used to investigate this business problem, using Job demand-resources (JD-R) theory (Cheng
et al., 2014). Along with this, a decision statement, corresponding research objectives and
research questions will be stated.
The existing research focuses on job demands and resources, used to explain burnout
in employees but it can be used to explain the various types of employee well-being (Bakker

5WORK FLEXIBILITY AND INCENTIVES
& Demerouti, 2017). The interactions can be both positive and negative. Positive interactions
between job demands and resources lead to motivational processes while negative
interactions instigate health impairment. As a result, it may either lead to more productivity
and general wellbeing or stress and burnout.
Flexibility in work time arrangements such as remote working, shorter work weeks,
and flexibility in time hours was formulated because they were beneficial to the
organisations. Today, they have become a comprehensive area of the work culture due to the
changes in socio demographic structure of the society. Organisations strive to provide
flexible work arrangements as it can be advantageous to both organisation and employees
(Anitha, 2014) (Albrecht et al., 2015). But the way of application provides more benefits to
organisation rather than the employee. The organisation is not able to provide same flexibility
and incentives as it expects from them as the employees belong to different socio-economic
conditions with different work styles and profile. The incentivised employee is the happy
employee, more satisfied, more productive.
Flexi work hours give and create a good environment. For the organisation, it
promotes employee wellbeing, satisfaction, reduces absenteeism, and office infrastructure
costs (Swensen & Shanafelt, 2017). However, for the employee, it allows control of the day;
adjust family needs, personal time, and other things important for living well (Kossek et al.,
2014).
With flexible timings and incentives, colleagues may become friends and build
harmonious relationships (Hargreaves & O’Connor, 2018). On the contrary, too little
interaction because of different work times may lead to reduced face to face meetings and
aloofness. There may be health risks associated with flexitimes as employees will work
evening and off days impacting their personal and family life.

6WORK FLEXIBILITY AND INCENTIVES
Research Question
The research question pertains to identifying and finding the extent of impact of
flexibility in work hours and incentives on employee satisfaction, performance, productivity
and wellbeing.
Research Objectives
The objectives of this research are
1. Identifying the relationship between work flexibility and incentives and employee
productivity and efficiency.
2. Analysing and reviewing the literature on the relationship and the job demand and
resource theory.
3. Conducting an interview with employees.
4. Analysing and interpreting the data.
Methods and Results
This report aims to provide an answer to the impact of flexitimes and incentives on
work environment, it was imperative to choose a qualitative method. Apart from conducting
secondary research, reviewing existing literature on impact of work time flexibility and
incentives in the organisations, primary research was also conducted.
Qualitative analysis is basically an exploratory research analysis (Mayer, 2015). It
assists in the understanding of human behaviour, their feelings, values and reasons behind it.
A qualitative analysis helps in trying to find solutions and information by going deep inside
the topic under study (Ormston et al., 2014). The methods can be semi-structured or
unstructured and include focus groups (group discussions, individual interviews and
observation of participants. The size of sample taken is generally small and respondents are
selected to fulfil a given requirement.

7WORK FLEXIBILITY AND INCENTIVES
A qualitative method of research was conducted by interviewing the employees of
Thrive Consultancy. The interviews were conducted in a semi-structural style with an
interview protocol. The interview was conducted on-site in a quiet meeting room. So that new
data could be discovered. The validity and reliability of research was considered. The whole
research process and data was properly recorded and reported to maintain consistency and
transparency. The confidentiality and anonymity was maintained to generate truthfulness in
data. Detailed information was already shared with the participants, simpler questions to
build rapport with the participants have already been asked; this was assumed for the sake of
this assignment. For validity, a semi-structured interview was devised. The questions were
carefully devised to arrive and measure what was intended to be found out. The participants
had already been explained and their participation confirmed. The employees belonged to the
three departments of the organisation. The question was intended to arrive at descriptive
understanding of the topic which in this case is the work flexibility and incentives in the
organisation and the impact thereof.
Findings
This section presents the findings of the research. The flexible work times and
incentives are perceived to boost morale and motivation. The interviewees seem to be
satisfactorily pleased about their current work environment on the surface. On further
prodding and deeper discussions, there seemed to be some issues regarding feedback,
training, changes about work timings and facilities. The results showed that flexibility
although beneficial for work life but were risky as well because the employees may not be
able to prioritise and strategise their time well. Flexibility and incentives were found to have
a positive influence on the work environment and hence, employee productivity and
efficiency. Flexibility and incentives are commonly used in organisations to motivate them to

8WORK FLEXIBILITY AND INCENTIVES
work and increase productivity and the well-being of the employee is the premium concern. It
is imperative that the employers should know how people feel in their organisation as
employees. The findings can be used to find out solutions and give recommendations to solve
business problems.
Collection of research data:
The data is collected by the qualitative research methods. The qualitative research
methods helps to get the more accurate and exploratory data. The data was collected by
interviewing the each participant. The company database also helped to find the reason
behind the high rate f absenteeism in the organization.
Themes Sub-themes Examples
Job Demands Work load
Working longer hours
“I would really like some
help now and then”
“Or noise cancelling head
phones or a big sign that says
‘keep quiet’ or something.”
Work –Home Conflicts Flexibility of time
Flexibility of location
“I am finding it really hard to
come to work”
“I feel frustrated right now
and like they just don’t care
about me and other parents”
Job Satisfaction “It’s just hard here when you
don’t feel appreciated here.”
“Like do they even care
about us?”
“I am so happy working
here.”
Autonomy “ I am never really in the
office and get to do what I
please when it comes to
hours”
Incentives Facilities “ I get my own office which
is great”
“I also have a car park”
“They took away the coffee
machine.”

9WORK FLEXIBILITY AND INCENTIVES
More than 40 % of the participants were happy and satisfied about their jobs. But on
further in depth understanding, it was felt that deep down those who had office job were
resenting the policy changes while the 20% who had jobs which required them to stay out of
office had no issues with incentives and facilities. Working women forming nearly 30% of
the group under study had difficulties due to the rigid office timings because of the dual
responsibility of work and family. Autonomy and friendly environment apart, nearly, 45% of
the respondents felt that there should be some feedback and prompt addressing of issues.
Are the participants happy with the job?
Participants Responses Details
Participant 1 Satisfied The participant is happy but
sometimes the participant
feels that he needs some
guidance to help him
JobDemandswork-homeconflictsautonomyincentivesjobsatisfaction

10WORK FLEXIBILITY AND INCENTIVES
understand what he should be
doing. The participants think
that the supervisor is good
but she is busy sometimes to
reply to his emails.
Participant 2 Fully satisfied
This participant loves his job
and thinks that the people are
very friendly and
collaborative.
Participant 3 Disappointed The participant thinks that it
is a great workplace but he
has some issue with the HR
department and thinks that
the supervisor is not ready to
understand his concerns.
Participant 4 Moderately happy The participant is confused
whether he is happy or not.
He thinks that the workplace
sometimes gets loud due to
the phone call which affects
him to keep focus.

11WORK FLEXIBILITY AND INCENTIVES
Participant 5 Satisfied
This participant think that the
job is perfect for him and he
has no complaint against his
co-workers as he is likes to
work alone.
How changes in the workplace have affected the affected the participants and the office
workplace?
Participants Response Details
Participant 1 Not happy
The participant thinks that
the organization lacks the
flexibility.
Participant 2
Disappointed
The participant is angry and
frustrated as the organization
has taken the coffee machine.
Participant 3
Not happy
The participant is incurring a
huge expense as he has to
keep his children in the child
health care, which is very
expensive.
Participant 4 No response
The taking away of the
coffee machine have not

12WORK FLEXIBILITY AND INCENTIVES
affected the participant as he
thinks that the services is not
so good.
Participant 5 Annoyed but not affected by
the change
He is not affected by the
policy change and thinks that
he will achieve the target by
working extra hours in the
office.

13WORK FLEXIBILITY AND INCENTIVES
Recommendation by the participants:
Participants Responses
Participant 1
This participant thinks that he needs some
training for the job so that he can know
what he needs to do.
Participant 2
He has no recommendation he is happy
with the presence workplace.
Participant 3
This participant thinks that they do not
have any importance in the organization
and the organization has taken some
horrible decision like taking away the
coffee machines. The participant and some
of their friends have taken leaves as they
don’t feel that are well appreciated in the
organization.
Participant 4
This participant thinks that there should be
partitions or walls so that they don’t get
affected by the sounds.
Participant 5
This participant thinks that the HR
department needs to be more aware and
must answer the emails faster.

14WORK FLEXIBILITY AND INCENTIVES
Recommendations and conclusions:
Recommendations are made based on evidence collected from research, interviews
and previous existing literature.
Communication should be clear both ways and expectations should be clearly set and
managed. When introducing changes in policy, work environment, office settings, there is
need to communicate clearly the reason behind updating the policy and the expectations
should be set out from both the employers and employee. Communication is important for
establishing how colleagues will work with each other and with the seniors, gathering
information, and following norms. It is crucial so that work can blend together and results of
high productivity can be achieved.
Flexible work arrangements and incentives should be clearly articulated to gain
maximum benefits for the organisation. They should also create a feeling in the employees
that they are wanted. Managers can limit the amount of flexibility and incentives allowed and
expect formal arrangements with some informal arrangements clearly specified as to how
much and when.
Managers should be open to the idea of flexible work environment, and consider each
request on individual basis. This will reduce the perception of employees about injustice and
lack of concern on the part of employers. Managers should be able to create a mutual
environment of trust and facilitate result oriented work environment rather than rigid
procedures. Productivity should be measured on results rather than practise.

15WORK FLEXIBILITY AND INCENTIVES
References:
Albrecht, S.L. et al., 2015. Employee engagement, human resource management practices
and competitive advantage: An integrated approach.. Journal of Organizational Effectiveness:
People and Performance, 2(1), pp.7-35.
Albrecht, S.L. et al., 2015. Employee engagement, human resource management practices
and competitive advantage: An integrated approach.. Journal of Organizational Effectiveness:
People and Performance, 2(1), pp.7-35.
Anitha, J., 2014. Determinants of employee engagement and their impact on employee
performance. International journal of productivity and performance management, 63(3),
p.308.
Bakker, A.B. & Demerouti, E.., 2017. Job demands–resources theory: Taking stock and
looking forward.. Journal of Occupational Health Psychology, , 22(3), p.273.
Bakker, A.B., Demerouti, E. & Sanz-Vergel, A.I., 2014. Burnout and work engagement: The
JD–R approach. Annu. Rev. Organ. Psychol. Organ. Behav., 1(1), pp.389-411.
Chen, E.T., 2017. The Internet of Things: Opportunities, Issues, and Challenges. The Internet
of Things in the Modern Business Environment , pp.167-87.
Cheng, T., Mauno, S. & Lee, C.., 2014. Do job control, support, and optimism help job
insecure employees? A three-wave study of buffering effects on job satisfaction, vigor and
work-family enrichment.. Social Indicators Research, 118(3), pp.1269-91.
Dettmers, J., 2017. How extended work availability affects well-being: The mediating roles
of psychological detachment and work-family-conflict. Work & Stress, 31(1), pp.24-41.
Guest, D.E., 2017. Human resource management and employee well‐being: Towards a new
analytic framework.. Human Resource Management Journal, 27(1), pp.22-38.
Hakanen, J.J. & Bakker, A.B., 2017. Born and bred to burn out: A life-course view and
reflections on job burnout. Journal of occupational health psychology, 22(3), p.354.

16WORK FLEXIBILITY AND INCENTIVES
Hargreaves, A. & O’Connor, M.T.., 2018. Solidarity with solidity: The case for collaborative
professionalism. Phi Delta Kappan, 100(1), pp.20-24.
Kossek, E.E., Hammer, L.B., Kelly, E.L. & Moen, P., 2014. Designing work, family & health
organizational change initiatives. Organizational dynamics, 43(1), p.53.
Mayer, I., 2015. Qualitative research with a focus on qualitative data analysis. International
Journal of Sales, Retailing & Marketing, 4(9), pp.53-67.
Ormston, R., Spencer, L., Barnard, M. & Snape, D., 2014. The foundations of qualitative
research. Qualitative research practice: A guide for social science students and researchers, 2,
pp.52-55.
Starkey, K., 2017. Time and work: A psychological perspective. Time, work and
organization, pp.35-56.
Swensen, S.J. & Shanafelt, T., 2017. An organizational framework to reduce professional
burnout and bring back joy in practice. Joint Commission journal on quality and patient
safety, 43(6), pp.308-13.
Zheng, C. et al., 2016. Impact of individual coping strategies and organisational work–life
balance programmes on Australian employee well-being. The International Journal of Human
Resource Management, 27(5), pp.501-26.