Myth: Productivity will decrease with flexible work arrangements.

Reality: Flexible work arrangements can function as a no-cost benefit that actually increases productivity. Most of the literature on flexible work arrangements indicates that morale and productivity improve when employees are permitted even a small degree of flexibility. Recruitment capability and retention rates improve as well, and absenteeism is often reduced.

For example, a 1995 survey of 200 'Fortune 1000' companies regarding telecommuting indicated that 58% of employers reported increased productivity (on the order of 20% more productive); 61% reported reduced absenteeism; 63%, improved retention; 64%, reduced costs for office space; 63%, reduced stress; and 79%, improved morale. (Source: Bureau of National Affairs, 11/6/95.) In a 1991 study of six major Bay Area corporations conducted by this campus's Institute for Transportation Studies, "Managers reported that flexible scheduling improved productivity, morale, and punctuality, and that absenteeism declined when workers exercised some choice in their work schedules."