Family friendly work arrangements benefit both employers and employees.  Employers benefit from improved productivity and increased staff retention.  Employees enjoy increased job satisfaction, and better work and family balance.

For most employers, employees are their most valuable asset. Finding and keeping good employees is essential to business success. Employers generally want to employ the best staff they can and no employer likes to lose valuable staff. Replacing staff takes up resources in terms of time and money and there is a cost in loss of continuity and corporate knowledge.

Global studies have shown that work-life balance is a major determinant of job selection for graduates in the 21st century. Therefore, in an organisation without good family friendly policies and practices, the pool of talent may become smaller as potential job candidates opt out of the running, preferring to work for a company that will allow them to have a better balance between their work and family lives.

Current employees may also decide to leave a company that is lagging behind on family friendly policies. For example, women who go on maternity leave may not return to a company that does not offer them flexible working arrangements on their return to work.

Research has indicated that the more experienced the staff member, the more it will cost to replace that person if they leave. Costs are incurred through paying out a leaving staff member’s entitlements, advertising a position, conducting a selection process and training the new staff member. Additional costs will be incurred through factors such as lost experience and corporate knowledge, lack of consistent service and customer relationships and the general impact of staff turnover on the work environment.

Studies show that companies can significantly reduce their staff turnover and the costs associated with it by introducing and promoting family friendly policies. These policies do not have to be prescriptive and difficult. There is a wide range of family friendly work practices that can be introduced to an organisation, with little or no cost. 

Advantages of using family friendly and flexible work arrangements include:

• recognition as an 'employer of choice', leading to a competitive edge in recruiting and enhanced corporate image, 
  
• improved ability to retain skilled staff and increase return on training investments, 
  
• reduced absenteeism and staff turnover, 
  
• improved productivity, 
  
• reduced stress levels and improved morale and commitment, 
  
• potential for improved occupational health and safety records,
  
• greater staff loyalty and higher return on training investment, 
  
• a better match between peaks and troughs in workloads and staffing, and
  
• assisting compliance with anti-discrimination and workplace relations laws.
  

Staff attraction and retention

A small business with family friendly work arrangements can help attract and retain employees, including those who are not currently working. Research shows that mature age job seekers, people with caring commitments and workers with disabilities are more likely to seek jobs with flexible work arrangements. Increased staff retention can also reduce the costs associated with employee turnover.

Improved productivity

A small business may become more productive and efficient when employees are comfortable with their work and family responsibilities. Flexible work arrangements can help maintain and increase motivation, reduce stress levels, increase morale and improve occupational health and safety in the workplace.