Employees leave employers when their work arrangements fail to match their preferences, according to new research that tracked 482 workers over two years across Australia and Europe.
While research on working from home has grown substantially since the COVID-19 pandemic, this study is the first to consider the implications of actual and preferred work arrangements together.
Published in the Journal of Construction Engineering and Management, the research study found that one-third of employees experienced a mismatch between their actual and preferred work arrangements. When this mismatch (or gap) exists, employees are considerably more likely to leave.
The research paper, written by UNSW Business School's Associate Professor Weiting Zheng and Professor Karin Sanders together with RMIT University's Dr Andrew Dhaenens and the Hanken School of Economics' Professor Jennie Sumelius, said that when employees perceive a balance between their work and family lives, they feel energised and satisfied with their work and are more likely to stay in the organisation. The study findings strongly support this.
"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 Prof. Sanders.
In examining actual turnover rather than intentions, the research offers some compelling insights and reminders for policymakers and organisational leaders, particularly during widespread employee shortages.
Dr Dhaenens, lead author of the research, said: "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."
What drives flexible working arrangements?
The benefits behind remote work are clear. Among employees surveyed, 76% valued working from home because they could more effectively manage personal and work commitments. Another 74% appreciated saving time on commuting, while 68% found they worked more effectively on certain tasks from home, particularly more focused work requiring concentration.
At the same time, only 15% viewed remote work as effective for team collaboration, showing workers recognised trade-offs in different arrangements.
The results clearly support the popularity of hybrid work arrangements as more than half (57%) of employees in the study preferred splitting their time between home and office. Only 7% preferred a full-time office presence, while just a few others wanted to work from home all of the time. Hybrid work seeks to offer the best of both worlds, but Dr Dhaenens said employees ultimately pay the price for an additional day in the office.
When companies take the time to understand and manage work arrangements in a way that matches employee preferences, they promote wellbeing, satisfaction, and retention in the workforce – the keys to winning key talent within the wider job market.
Who benefits most from working from home?
The research identified some variations across different employee groups with highlighted differences for gender, tenure, and caregiving responsibilities.
Overall, men and women differed in their remote work preferences, with women generally preferencing an additional day of working from home overall. More female respondents preferred to split their time between home and work (64%) versus male respondents (53%), whereas more male respondents preferred to be in the office most of the time or full-time (35% versus 20%).
A/Prof. Zheng said that, surprisingly, men experienced stronger associations between working from home and work-life balance satisfaction than women, contrary to common expectations. This suggests that men may be the less agreeable ones regarding gaps between their actual and preferred work arrangements.
Workers with family and caregiving responsibilities also benefited more from remote work when arrangements matched their preferences. Time working from home improved work-family balance satisfaction more for caregivers (than those without caregiving responsibilities), lowering their turnover.
"At the same time, mismatches between actual and preferred work arrangements reduced this positive effect," said A/Prof. Zheng. "The research shows that misaligned work arrangements had a real negative impact on caregivers."
Employees with longer tenures at their organisation also showed greater sensitivity to remote work arrangements. Working from home had more positive effects on both their work-life balance satisfaction and decisions to stay compared to newer employees.
The preference mismatch problem
The researchers conducted three waves of surveys between November 2021 and July 2023 at an international property developer with locations across Australia and Europe. The study measured both actual and preferred working arrangements, work-family balance satisfaction, and tracked which employees actually left the organisation over the two-year period.
Across the study, some employees wanted more time working from home than they received, while others wanted to spend more time in the workplace. Just as some employees preferred stronger boundaries between work and caregiving, favouring more office time, others benefitted from the integration between work and family demands afforded by working from home.
Despite some patterns being uncovered, the research team noted that employee preferences still varied even among workers in similar situations.
"Importantly, these variations reinforce that no single 'best practice' arrangement works for everyone," said Prof. Sanders. "Rather than putting individuals in boxes or assuming everyone has the same preferences, the authors show that it is best to ask them."
Dr Dhaenens added that the research stresses the importance of not only offering employees the option to work remotely (from home), but truly matching work arrangements to individual employee preferences.
"The evidence shows that you can find an optimal arrangement that will boost their work-life balance satisfaction and reduce the likelihood that they leave," he said
How employers should approach working arrangements
A/Prof. Zheng concluded that "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."
The findings suggest workers should communicate their preferences clearly to employers and recognise that flexible work arrangements only deliver benefits when they align with individual needs. "A simple repeating survey or a conversation about their preferences can help and will make a big difference both for employees and the organisation," said Prof. Sanders.
In contexts where there are high job demands, complex roles, and multiple job locations, Dr Dhaenens said this is particularly significant.
