Work arrangement mismatch raises employee turnover risk, report warns

New research underscores need to align work arrangements with employees' preferences

Work arrangement mismatch raises employee turnover risk, report warns

A mismatch between actual and preferred work arrangements could lead to higher turnover in organisations, a new study has warned, underscoring the need for employers to factor staff preferences into decisions on office setups.  

Researchers from UNSW Sydney, RMIT University, and the Hanken School of Economics recently carried out a two-year study on the implications of actual and preferred work arrangements on employee behaviour.  

"The key conclusion of the research is that when it comes to employee retention, it is about matching work arrangements to employee preferences rather than simply advertising or offering hybrid work," said RMIT University's Andrew Dhaenens, lead author of the research.

According to the study, when employees' actual work arrangements are aligned with their preferred arrangements, they are less likely to leave their employer.  

"The research study, which measured actual employee departures (and not just intentions to leave), found that when the proportion of time that employees spend working from home is aligned with individual preferences, remote work reduces turnover through improved work-family balance satisfaction," said Karin Sanders, professor at the UNSW Business School, in a statement.  

The findings come amid shifting expectations in organisations when it comes to work arrangements.  

A previous poll from Robert Half revealed that 15% of employers in Australia are planning to increase their mandated number of in-office days next year, while nine per cent plan to give more flexibility to work from home.  

But simply offering the option to work remotely may not be enough, as the study underscored the need to understand and manage work arrangements that match employee preferences.  

"A simple repeating survey or a conversation about their preferences can help and will make a big difference both for employees and the organisation," Sanders said.  

Weiting Zheng, an associate professor at the UNSW Business School, added that failing to meet this gap may result in consequences on employment outcomes.  

"Failing to close the gap between actual and preferred work arrangements results in negative consequences for crucial employee outcomes, including work-family balance satisfaction and actual employee turnover," Zheng said in a statement.  

Employees' preferred work arrangements  

The study, published in the Journal of Construction Engineering and Management, was conducted with 482 workers over two years across Australia and Europe.  

More than half of the respondents (57%) said they prefer splitting their time between home and office, while just seven per cent wanted a full office presence.  

Employees said they valued working from home because it helps them more effectively manage personal and work commitments (76%), save time on commuting (74%), and efficiently work on tasks that require more concentration (68%).  

However, just 15% of them agreed that remote work may not be the best for team collaboration, according to the report.

But variations continue to happen within the workforce, with women being more likely to prefer an additional day of working from home, as well as splitting their time between home and work.  

Family and caregiving responsibilities also introduced variations, with time spent working from home improving the satisfaction of caregivers.  

"Importantly, these variations reinforce that no single 'best practice' arrangement works for everyone," Sanders said.  

"Rather than putting individuals in boxes or assuming everyone has the same preferences, the authors show that it is best to ask them."  

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