IMPACT OF FLEXIBLE WORKING ARRANGEMENTS ON EMPLOYEE

SATISFACTION IN IT SECTOR

Abstract

Organizations have witnessed a noteworthy change in their companies. Innovation, technological

advancement, economic interdependence of nations has made the management to act and

workers to adapt the change quickly. Survival and sustainability of organizations in a global

economy poses a necessity to rigor new policies and work system and one of them is Flexible

Working Arrangements. This paper makes an attempt to understand and analyze the impact of

Flexible Working Arrangement on Employee Satisfaction. Employee Satisfaction is affected by

dimensions such as psychological well being, social relationship and physical health. Data was

collected from 100 respondents working in IT sector who are employed in Delhi NCR using

convenience sampling distribution method. To understand the relationship between Flexible

Working Arrangement and Employee Satisfaction descriptive study was conducted on

employees of IT sector. The results of the study showed positive relationship between Flexible

Work Arrangement and Employee Satisfaction.

Key Words: Employee Satisfaction, Flexible Work Arrangement and Information Technology

INTRODUCTION

With the advent of technology, flexibility in working hours is in demand and many organizations

are observing it in order to benefit the company and employees. By following the flexibility in

working, organizations are making an attempt to build the culture of trust at workplace. P.

Thomson (2010) alludes that strategy of flexible working enables work life balance for both male

and females. Flexible Work Arrangement is commonly known as Flexible work scheduling,

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which refers to altering the time and hours of working in a week. It is the benefit provided to the

employees to enable them to manage time clock and work place in the standard work day Hill

et.al (2001). It is classified into Flexi Time, Part time, Telecommuting and Compressed Work

Schedule. These options can be used individually or be combined and incorporated by the

organizations on the basis of their requirements. Organizations make an attempt to reduce the

risk of unemployment by such arrangements. However, there exist no standardized rule being

followed by the organization and it varies from company to company.

Employee Satisfaction is a behavior which reflects the extent to which employees are happy or

contented with the work they do in an organization and the environment which enable them to

perform the work as per the required standard. Employee satisfaction encompasses the primary

concern and needs of the employees. By encouraging good health, supporting good healthy

eating and providing physical activity at work employers are making an attempt to provide a

good work life balance and increasing the satisfaction of employees. Previous researches have

also shown that flexible working enables to have better mental health and stress reduction M.

Shapiro et al. (2009). For the current research study, Employee satisfaction is mapped under

three dimensions of well being i.e. Psychological, Social and Physical. In order to have more

creative, loyal and productive employees it is important to provide a good standard of well being

at work and Flexible Work Arrangement is one of the techniques followed by organizations

leading to increased work commitment (C. Kelliher and D. Anderson, 2010).

Psychological satisfaction refers to the happiness of the employees, by enabling employees to

balance the working and the social life effects positively. Happiness of the employees is

important for the well being of the employees. It is concerned with hedonic and eudemonic

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elements. Hedonic is concerned with positive and negative thoughts of employees and

eudemonic concept is concerned with fulfillment and realization of human potential.

Social Relationship refers to quality of social relationship with others and functioning within the

society. In an organization social relationship refers to the interaction that exists between

employees and environment. This element enables to enhance the productivity and efficiency of

the employee. However, research conducted by Olsen (1987) stated that a high amount of

flexibility in work arrangements will be negatively related to social relationship. The interaction

among the employees will be low when employees work from home or different work timing.

Physical well being has been considered as a vital factor in the working of the employee. For

employees to be in good physical condition, health plays an important part within the well-being

of the employee. First, the energy level of an employee is part of the physical well-being of an

employee, but also the amount of stress employees perceive has an effect on the health of

employees. Work can also be a source of stress which has a negative effect on the health of the

employee. The current study made an attempt to examine how Flexible Work Arrangement as an

independent variable influences the satisfaction of employee in IT domain and what relationship

exists between them.

LITERATURE REVIEW

Shagvaliyev & Yazdanifard (2014) investigated the association among working hours flexibility

and work life balance. The author identified the benefit of flexible working for both employer

and employee. By employing flexibility in working, organizations are making and attempt to

build the culture of trust. It enables the employees to keep a watch on his/her time duration of

working as well as location of their work. The policy of flexibility in working hours and location

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is the part of its part of work-life policy, which has been introduced by the organizations to

endeavor satisfaction of employees. This is primarily done with the motive to attract, recruit, and

retain highly qualified employees to their organizations and focus to build the well-being of the

employees.

Ahmad A., Hashim H. (2013) the authors made and attempt to examine the association among

flexible working hours and employee motivation. Spending more hours at work, affects the

safety, security and education of the children and family responsibilities. These challenges faced

by the employees can be reduced with the implementation of flexible working. Employees would

get an option to create a good balance in work and family responsibilities. The survey

questionnaire was used for data collection from 41 respondents to the staff. Correlation and

regression was used as a technique to examine the relationship and study showed that effective

application of Flexible working schedule results in the motivation of staff of the department.

Deshwal P. (2016) the author investigates the impact of flexible working arrangements on the

companies. Flexible working is different from the regular working pattern of employees.

Organizations are focusing to become flexible in the work timing to enable the employees to

meet up their daily family challenges. This support by the employer is helping to create a

trustworthy and better retained employee. The author has made an attempt to examine the

positive impact of workplace flexibility on organization and employees. The data was collected

through questionnaire and interview from 300 employees of MNC’s in Delhi. Flexible working

enables the employee to create balance in profession working and personal life. It also facilitates

to reduce stress of employees and build longer tenure at organization. Employees who are given

the facility of flexible working arrangement prefer to stay longer with the organization.

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Abid S.(2016) depicted in their study that the organizations which are offering the feature of

flexible timing have an advantage over the other organizations with reference to better

performance & productivity, lower absenteeism, retention of valuable employees, increasing

employees morale and motivation and building loyalty among employees. Implementation of

Flexible working focuses to develop a better general atmosphere among human relations and

build positive environment which improves the culture at work. The flexible time offer greater

advantage to the employees to deliver and work to meet the deadline and avail some rest in the

form of break to go home or to take lunch or take children from school etc. The daily flexi

timing options permits the employees to cope up with the contingency situations and also meet

up with their daily task at office securing their job and keeping them happy.

Jain and Swami (2014) investigated the benefits of flexible working arrangement and employee

retention in IT sector. The study depicted that organizations which are practicing flexible

working arrangement are able to retain and have employees stay for longer period. The data was

collected from both primary and secondary methods by questionnaire and interview method. 100

Respondents of the study were from Aon Hewitt w. showed that flexible work arrangement is

preferred by all levels gender, and is a benefit which is most sought. The author alludes that

flexible working time increases the retention of employees in the organizations. FWA enables

the employees to have long tenure with the company, be more promising and committed, reduce

stress and maintain work life balance.

Subramaniam, G., & Selvaratnam, D. P. (2010) the author investigates the function of state in

policy formation for working and non working employees in Malaysia in public organizations.

The influence of state is of vital importance not only to provide work/non work provision like

maternity and paternity leaves, however it is also to implement and support the benefits of work

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practices of flexi time and crèche. This study showed these arrangements are essential for those

workers who have young children. FWA is essential requirement of single working parent.

Rogier, A., Padgett, M. Y. (2004) the study made an attempt to investigate if there is a difference

in the career development of women who opt for flexible working schedule that that do not opt

for it. The respondents of the study were the women employees of account department who were

seeking promotion from manager. The result of the study showed those women employees who

are on flexible work schedule lack dedication towards job and have low advancement

motivation. Thought the variation in their capabilities with other employees may not be

observed.

Glass, J L. & Finley. A (2002) the study made an attempt to investigate the influence of family

responsive work policy on the commitment of the employees. The study focuses on the

understanding the market based model which accommodates the family responsibilities and

information. Gave the framework for future where better commitment can be attained with focus

on family responsive work policy.

OBJECTIVES OF THE STUDY

i) To identify the relationship between Flexible Working Arrangements and Employees

Satisfaction in IT sector.

ii) To analyze the impact of Flexible Working Arrangements on Employees Satisfaction

in IT sector

SCOPE OF THE STUDY

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The study is limited to the few companies of IT sector in Delhi NCR and this does not necessary

show the findings of the whole industry. The sample of the study includes the employees of

various departments of the organization such as Operations, Business Development, HR,

Marketing, Finance and administration. The rationale of the study was to analyze the relationship

of Flexible Working Arrangement and Employee Satisfaction of IT Sector.

RESEARCH METHODOLOGY

A descriptive research design was used for the study, where primary and secondary sources for

data collection were used. Questionnaire was adapted from the previous research of similar

nature. Sampling techniques applied in this study was convenience sampling. The study was

conducted with the sample size of 100. Primary data was collected by Questionnaire. More than

120 questionnaires were distributed and 100 of them were complete in all respect which was

considered for the study.

HYPOTHESES

H1: The relationship between flexible working arrangement and employee satisfaction is

significant.

H2: The impact of flexible working arrangement on employee satisfaction is significant.

H3: Significant relationship between flexible working arrangement and happiness.

H4: Significant relationship between flexible working arrangement and social relationship.

H5: Significant relationship between flexible working arrangement and physical health.

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DATA ANALYSIS & INTERPRETATION

Analysis of the data was carried out by using both MS Excel and SPSS (Statistical Package for

Social Science) to examine Flexible Working Arrangement impact on employees satisfaction in

IT sector.

Table No. 4.1: Gender

Gender In Figures Percentage (%)

Male 34 34%

Female 66 66%

Interpretation: The table above depicts that 66% were female and 34 %were male respondents,

which reflects that females want more flexibility in the working and look for such opportunities

from the company.

Table no. 4.2: Age

Age In figures In Percentage%

Below 20 3 3%

21-30 49 49%

31-40 25 25%

41 or above 23 23%

Interpretation: The table above depicts that 3% of the respondents were from below the age of

20, 49% of the respondents belong to 21-30 age group, 25% of the respondents were from 31-40

age group. 23% of the respondents were from 41 or above age group. This reflects that the

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respondents who are from the age group 21-30 look forward for more flexibility in the working

arrangement. These are the respondents who belong to the millennial generation which is more

demanding.

Table No. 4.3: Marital Status

Marital Status In Figures In

Percentage%

Married 40 40%

Unmarried 60 60%

Interpretation: The table above depicts that 60% of the respondents were unmarried

respondents and 40% were married respondents, reflecting majority of data has been collected

from unmarried respondents.

Questionnaire’s Reliability

Cronbach alpha technique was applied to check the Questionnaire reliability. The techniques was

applied on all 30 statements. There are two variables on which it is being checked i.e, Flexible

working Arrangement and Employees Satisfaction where in employees satisfaction covers

Psychological (happiness), Physical (health) and Social (relationship).

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Table no.4.4: Reliability

Variables Cronbach Alpha No. of items

Flexible Working Arrangement 0.711 9

Employees Satisfaction 0.761 21

Interpretation: Table 4.4 above examines the reliability of each variable separately. It shows
the value of 0.711 for Flexible Working Arrangement and 0.761 for Employee Satisfaction .

Correlation between Flexible Working Arrangement and Employees Satisfaction

Table No. 4.5: Correlation Coefficient - Flexible Working Arrangement and Employee Satisfaction

Variable FWA ES

Pearson correlation 1 0.625

N 100 100

**Correlation is significant at the 0.01 level (2-tailed).

Interpretation: The table above depicts that r value is 0.625 at p value of 0.000 thus reflecting

Flexible Working Arrangement and Employee Satisfaction in IT sector have a positive

correlation. So, hypothesis Ha1 is accepted.

Correlation between Flexible Working Arrangement and Psychological well being

(happiness)

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Table No. 4.6: Correlation between FWA and Psychological happiness

Variable FWA PSY

Pearson correlation 1 0.664**

N 100 100

**. Correlation is significant at the 0.01 level (2-tailed).

Interpretation: The table above depicts that r value is 0.664 at p value of 0.000 thus reflecting

that Flexible Working Arrangement and Psychological well being (Happiness) in IT sector is

positively correlated. So, hypothesis Ha2 is accepted. Happiness component is considered as an

important indicator in terms of employee satisfaction and organizations which provide the

feature of Flexible Working Arrangement are providing happiness to its employees.

Correlation between Flexible Working Arrangement and Social Relationship

Table No. 4.7: Correlation between FWA and Social Relationship

Variable FWA SR

Pearson correlation 1 .236*

N 100 100

**. Correlation is significant at the 0.05 level (2-tailed).

Interpretation: The table above depicts that r value is 0.236 at p value of 0.018, reflecting that

Flexible Working Arrangement and Social Relationship within employees in IT sector is weakly

correlated. So, hypothesis Ha3 is accepted. Social Relationship component is not an important

indicator in terms of employee satisfaction and organizations which provide the feature of

Flexible Working Arrangement cannot cater to building social relationship within employees.

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Correlation between Flexible working Arrangement and Physical Health

Table No. 4.8: Correlation between FWA and Physical Health

Variable FWA PH

Pearson correlation 1 .436*

N 100 100
**. Correlation is significant at the 0.01 level (2-tailed).

Interpretation: The table above depicts that r value is 0.436 at p value of 0.000 thus reflecting

a moderate correlation between Flexible Working Arrangement and Physical Health to its

employees in IT sector. So, hypothesis Ha4 is accepted. Physical Health component is

moderately important indicator in terms of employee satisfaction and organizations which

provide the feature of Flexible Working Arrangement can cater to building physical Health of

employees.

Impact of Flexible Working Arrangement and Employee Satisfaction

Regression analysis was conducted to examine how Flexible Working Arrangement impacts the

Satisfaction of employee. For the study Flexible Working Arrangement is independent variable

and Employee Satisfaction is dependent variable.

Table no.4.9: Model Summary

Model R R Square Adjusted R Std. Error of the

Square Estimate

1 .625a .390 .384 7.24092

a. Predictors: (Constant), FWA

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Table no.4.10: ANOVA

Model Sum of df Mean Square F Sig.

Squares

Regression 3285.211 1 3285.211 62.658

5138.229 98 52.431 .000b

8423.440 99

a. Dependent variable: ES

Regression analysis was conducted to examine how Flexible Working Arrangement impacts the

Satisfaction of employee. Table 4.9 shows r square is 0.390, reflecting that independent variable

(Flexible Working Arrangement) can predict 39% of variation in dependent variable (Employee

Satisfaction). As per Table 4.10 ANOVA shows F value of 62.658 and p value (0.000), which is

less than 0.05 thus H1 is accepted and that there exist strategically significant relationship among

Flexible Working Arrangement on Employee Satisfaction.

Employee Satisfaction = = 42.107 + 1.008 (Flexible Working Arrangement).

IMPLICATION

The present study examined that there exist positively strong correlation among Flexible

Working Arrangement and Employee Satisfaction of employees in IT sector. Furthermore, study

is also in conformity with previous researches; reflecting that female’s employee satisfaction

from Flexible Working Arrangement can be increased. It has been found that there are many

respondents who are in favor of Flexible Working Arrangement leading to creating positive

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employee satisfaction. For the employees of IT Sector companies the component Psychological

(Happiness) is the most important variable for employee satisfaction and social relationship

within employees is least important.

CONCLUSION

The study examined that there was a significant impact of Flexible Working Arrangement on

Employee Satisfaction of employees in IT sector. Thus, the organizations should give enough

considerations to various options of Flexible Working Arrangement as this impact the employee

work life balance and enable to build loyalty towards the organization. Psychological happiness

is an important component of employee Satisfaction that can be related to increased productivity

gained by Flexible Working Arrangement and length of service with the organization. Therefore,

to cater to the employees of today it has become imperative for the organizations to provide

different benefits where Flexible Working Arrangement is one of them. Also that

implementation of FWA has enabled the workers to fulfill their obligation of work life balance,

physical health.

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C. Kelliher and D. Anderson, “Doing More with Less? Flexible Working Practices and

Intensification of Work,” Human Relations, Vol. 63, No. 1, 2010, pp. 83-106.

Deshwal P. (2015) Impact of Flexible Work Arrangement in MNC’s of Delhi. International

Journal of Applied Research 1(13) 810 – 814

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