Flexible Work Arrangements and Employee Retention: A Longitudinal Analysis of the Federal Workforces
| Author | Sungjoo Choi |
| Date | 01 September 2020 |
| Published date | 01 September 2020 |
| DOI | 10.1177/0091026019886340 |
| Subject Matter | Articles |
research-article2019
Article
Public Personnel Management
2020, Vol. 49(3) 470 –495
Flexible Work Arrangements
© The Author(s) 2019
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Longitudinal Analysis of the
Federal Workforces
Sungjoo Choi1
Abstract
Over the past couple of decades the interest in flexible work arrangements has
increased. This study conducted a longitudinal analysis of the effects of telework on
the reduction of employee voluntary turnover. The agency-level data extracted from
Office of Personnel Management’s congressional reports and central personnel data
files were analyzed. The results show that agencies with more teleworkers reported
less voluntary turnover. Agencies that are more supportive of employees’ teleworking
also reported lower voluntary turnover. Organizational characteristics including
average pay and length of service, and the proportions of different occupational
categories, full-time employment, and women also turned out to have significant
effects on voluntary turnover of employees.
Keywords
flexible work arrangements, employee retention, federal workforces
Introduction
More organizations have begun to offer flexible work arrangements to meet the chang-
ing needs of the workforce and to respond to the increasingly competitive and volatile
economic conditions (Galinsky, Bond, & Sakai, 2008; Stavrou & Kilaniotis, 2010).
The U.S. federal government has also strongly committed to creating flexible work
environments for federal employees after signing of the 2010 Telework Enhancement
1Kyung Hee University, Seoul, Republic of Korea
Corresponding Author:
Sungjoo Choi, Kyung Hee University, 26, Kyungheedae-ro, Dongdaemun-gu, Seoul 02447, Republic of
Korea.
Email: sungjoochoi@khu.ac.kr
Choi
471
Act and now requires agencies to report the status of telework implementation on a
regular basis (U.S. Office of Personnel Management [OPM], 2015). The U.S. OPM’s
recent report to Congress has revealed substantial improvement in transforming the
federal workplaces to accommodate the increasing number of employees who are eli-
gible and participate in the program (OPM, 2015). Furthermore, agencies reported
their accomplishment of the effectiveness goals related to telework, for instance,
retaining talented employees, continuing operations during emergencies, and saving
labor and overhead costs (OPM, 2015).
The focus of this study centers on testing to determine if telework can contribute to
reducing employee turnover by providing greater flexibility and autonomy in time
management and place of work. The underlying logic is that as social exchange theory
notes, there will exist a reciprocal relationship between organizational support and
employee contribution to the organization. When the organization provides telework
options for employees, they will develop positive attitudes toward the organization,
which in turn will lower employee turnover. Given that employee turnover can incur
great expense to organizations, including costs related to separation, recruitment,
training, and lost productivity (Moynihan & Landuyt, 2008; Stavrou, 2005),1 telework
could serve as an effective management strategy for reducing personnel costs for the
organization.
The present study will add to the literature in some meaningful ways. First of all,
it was used to develop a rigorous measure of employee turnover rather than relying
on perceptual measures to enhance accuracy of estimation for the relationship
between telework and employee turnover. The actual number of employees who
voluntarily left agencies was measured to assess the impacts of telework, whereas
previous studies adopted perceptual measures of employee turnover. An individual’s
psychological decision-making process preceding turnover, however, is affected by
various factors that include time interval between intentions and turnover, and eco-
nomic conditions (Steel & Ovalle, 1984). This suggests that having an intention to
leave does not necessarily result in actual turnover. This study is expected to improve
the validity of the analysis by reducing the potential gap between the psychological
reaction of employees and their actual behavior. Next, it provides valid evidence of
causality in the relationship between telework and employee turnover by reporting
the results from a longitudinal analysis of data from federal agencies (2011-2014).
Much of the prior research with a few exceptions (e.g., Caillier, 2018) has analyzed
cross-sectionally collected data, which may be limited in drawing causal implica-
tions from data analysis (Menard, 2002; Oberfield, 2014). Finally, in this study, rare
data from public organizations that recently started to adopt the telework programs
were analyzed. With a few exceptions, many of previous studies analyzed samples
from nonpublic organizations. Given the recent law that promotes the implementa-
tion of telework across federal agencies to accomplish the goals of telework (i.e.,
employee retention, employee welfare, and budget saving; OPM, 2015), it will be
important to test whether telework implementation has brought about the outcomes
for public organizations argued for and expected by scholars (e.g., Green & Roberts,
2010; Taskin & Edwards, 2007).
472
Public Personnel Management 49(3)
In this article, first, the relevant literature is reviewed, followed by theoretical argu-
ments used in the development of the hypotheses. Next, the results from the data anal-
ysis used to test the hypotheses are reported. Finally, the findings and their implications
are discussed.
Literature Review
Prior Research on Telework
Since the term teleworking was first coined by Nilles (1976), it has been defined in
many different ways (Martin & MacDonnell, 2012). After reviewing 80 telework stud-
ies, Bailey and Kurland (2002, p. 384) defined telework as, “working outside the con-
ventional workplace and communicating with it by way of telecommunications or
computer-based technology.” Gajendran and Harrison (2007), in their meta-analysis
of 46 telework studies, defined it as
an alternative work arrangement in which employees perform tasks elsewhere that are
normally done in a primary or central workplace, for at least some portion of their work
schedule, using electronic media to interact with others inside and outside the organization.
(p. 1525)
The official definition of telework stated in the 2010 Telework Enactment Act is “a
work flexibility arrangement under which an employee performs the duties and
responsibilities of such employee’s position, and other authorized activities, from an
approved worksite other than the location from which the employee would otherwise
work” (OPM, 2010). Given that the common threads among the definitions of tele-
work are organization, location, and technology, this study defines it as working out-
side the conventional workplace or in a location remote from central offices or facilities
where the worker can communicate with other members of the organization using new
technology, instead of being in personal contact with them (Di Martino & Wirth, 1990;
Martin & MacDonnell, 2012).
The early studies on telework have highlighted its utility (e.g., Bond, Thompson,
Galinsky, & Prottas, 2002; Shockley & Allen, 2007; Stavrou, 2005; Stavrou &
Kilaniotis, 2010). Telework offers employees enhanced control over their time and
place of performing their work duties, in turn allowing them to enjoy greater auton-
omy and flexibility in their work and meeting needs in their family life (Ezra &
Deckman, 1996; Saltzstein, Ting, & Saltzstein, 2001; Stavrou, 2005; Stavrou &
Kilaniotis, 2010). Furthermore, teleworkers can gain financial and productivity advan-
tages by reducing commuting time and costs and by alleviating job-related stresses,
which will generate higher performance and satisfaction with their job (Baruch, 2001;
Weinert, Maier, & Laumer, 2015). The positive outcomes at the individual level will
be extended to organizations, for example, higher organizational productivity and
employee retention, ultimately enhancing the overall organizational effectiveness
(Martin & MacDonnell, 2012).2 In addition, organizations can reduce a significant
Choi
473
level of overhead costs including space expenses (e.g., rent), office supplies, and
energy supplies (e.g., lighting, heating, air-conditioning), which will be likely to
improve their long-term sustainability3 (Baruch, 2001; Saltzstein et al., 2001).
Telework, however, is not free from shortcomings (e.g., Baruch, 2001; Gajendran
& Harrison, 2007; Greer & Payne, 2014). Scholars warned that telework does not
always have positive consequences. Thus, negative consequences should also be rec-
ognized and treated properly. Teleworkers are likely to experience some psychological
problems such as insecure feelings about their job and perceived deprivation of job
opportunities due to their remote employment status. The concern over social isolation
of teleworkers was raised as one of the most critical drawbacks of telework by numer-
ous researchers (e.g., Baruch, 2001; Huws, 1993; Peiperl & Baruch, 1997). Decreased
visibility of teleworkers may deprive them of career development opportunities
(Baruch, 2001). In addition, teleworkers perceived that their work may be subject to ...
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