Does flexible work arrangements decrease or increase turnover intention? A comparison between the social exchange theory and border theory

Abstract

PurposeMore companies embrace flexible work arrangements (FWA) as one of their employee retention strategies, yet its effectiveness is not consistent. Generally, past researchers use the social exchange theory to explain how FWA lowers turnover intention, while the rest adopts the border theory to justify why FWA can be ineffective. Here, the authors compare the competing theories for the first time to differentiate the theoretical reasoning of three forms of FWA (flex time, flex leave and homeworking). Two mediators (organisational commitment and work−family conflicts) are chosen to represent the mechanism of each theory.Design/methodology/approachThe authors employ the latest wave of the International Social Survey Program (ISSP) Work Orientation Module from 2015. Based on nationally representative data from 35 nations and 17,604 participants, the authors employed simple mediation and parallel double-mediation models via bootstrapping procedures to investigate the theoretical reasoning behind each FWA.FindingsThe results indicate that organisational commitment and work−family conflicts as significant mediators in all models, supporting both theories. The authors first tested each mediator in separated models. In models concerning the social exchange theory, all FWA lead to increased organisational commitment before lowering turnover intention, implying the beneficial outcomes of FWA. However, findings also support the border theory's perspective where flex time and homeworking increase turnover intention through heightened work−family conflicts. The parallel double-mediation further suggests that all three FWA forms have their unique theoretical framework, impacting turnover intention differently.Originality/valueBoth the social exchange theory and border theory are well-developed theories but grounded on different theoretical reasoning. This is the first paper that compares both theoretical perspectives in the context of FWA. It offers a new perspective in explaining the inconclusive effectiveness of FWA and provides future researchers a more integrated interpretation and prediction of FWA's impact on turnover intention.

Inclusive leadership and turnover intention: the role of follower–leader goal congruence and organizational commitment

“…Organizational commitment is considered as the main driver of employee turnover intention (Tsen et al, 2021). According to Chang et al (2013), organizational commitment is the most significant factor that influences turnover intention.…”

An Empirical Analysis of the Mediating Role of Fear of COVID-19 Between Telecommuting and Employees Retention

“…In summary, the integration of COR theory and SET predicts that an organisation’s investment in telecommuting is a crucial resource that not only protects employees from workplace stressors, such as fear of COVID-19 and turnover (Choi, 2019 ; Jamal et al, 2021 ) but also fosters a sense of obligation among employees to reciprocate with positive workplace behavior and attitudes (Tsen et al, 2022 ). Thus, following COR theory and SET, we predict that telecommuting is related to fear of COVID-19 and ER.…”

“…For instance, Choi ( 2019 ) found that employees exhibit positive attitudes and less voluntary turnover if given flexible work arrangements. Tsen et al ( 2022 ) found that employees who perceived themselves as job independent and had access to flexible work and Flexi leave had lower turnover intention. Van Dyne et al ( 2007 ) argue that organisations use telecommuting as a way to attract and retain qualified professionals.…”

“…Furthermore, SET posits that when employees receive benefits from their organisation, they are likely to reciprocate it with positive attitudes (Blau, 1964), such as job satisfaction and lower turnover intention (Choi, 2019;Kakar et al, 2018). Given that telecommuting offers employees benefits (time, energy, and costs; Golden, 2006;Liu et al, 2021)), they will return the organisation's favour by staying with the organisation for a longer time (Tsen et al, 2022). In contrast, if telecommuting is not available for employees, they are more likely to turnover and look for alternative jobs that best suit them.…”

Interactive influence of work–life balance benefits, employee recommendation, and job attributes on employer attractiveness and job pursuit intentions: two experiments

“…Alternative work arrangements (Johnson et al, 2008 ; Mas & Pallais, 2017 ), once considered a privilege, have become a necessity as employers and employees attempt to cope with the COVID-19 pandemic. Such arrangements include flexible work hours, flexible work location (Tsen et al, 2021a ), and even flexible career paths. Alternative work arrangements such as flexible work hours have been found to impact employees' health and retention rates as well (Shifirin & Michel., 2021 ; Tsen et al, 2021b ).…”