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Flexible working might be a hit with employees, but enthusiasm at the top seems harder to come by, says research.
According to Mercer’s Health on Demand 2025 report, just one-third of HR leaders globally see flexible working as a priority - even as employees continue to rate it among their most valued workplace benefits.
The report outlines a distinct mismatch between what workers want and what employers are offering. Nearly half (49%) of employees say flexible schedules, such as four-day weeks or compressed working patterns, would be helpful to them or their families, a figure that rises to 53% among millennials. Yet only 32% say these options are currently provided by their employers. When it comes to flexibility around where and when people work, the gap is similar, 42% want it, but just 31% have access to it.
This shortfall comes as many organizations continue to push return-to-office mandates in a bid to re-establish “normal” business operations post-pandemic.
Still, the data suggests that ignoring employee preferences for flexibility may not be a sustainable strategy.
“Flexible working policies are not only highly-valued by employees but they may also help employees thrive,” the report notes, highlighting that 69% of hybrid workers say they’re thriving in their roles, more than those working exclusively on-site (63%) or remotely (58%).
Generational trends point to long-term flexibility value
The appetite for flexible working spans generations but is particularly pronounced among younger and older cohorts alike. For Gen Z, remote or hybrid working ranks among their most valued benefits, alongside alternative schedules and support for mental health.
For Boomers, combining flexible schedules with phased or customized retirement options is vital for keeping the more experienced employees in the workforce.
In fact, while just 23% of employees overall say their employer offers flexible retirement options, 38% say they would value them.
“Boomers’ preference for flexible retirement highlights that many from this group wish to continue working but may require different parameters or options to contribute as effectively as possible,” the report says.
For sectors facing acute labor shortages, the implications are clear. Offering creative working arrangements could help alleviate staffing pressures and retain institutional knowledge.
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Business benefits from greater autonomy
More than just a lifestyle perk, flexibility also supports broader business goals. The report cites advantages including improved work-life balance, increased autonomy and even lower living costs.
“Flexibility can also help families manage costs more effectively by allowing employees to live in more affordable areas, commute at less expensive times and reduce their reliance on childcare,” it says.
It’s not just about where employees work, but also how much choice they feel they have. Those who can personalize their benefits packages - including flexible work options - are significantly more likely to feel that their employer cares about their well-being (78% vs. 29%), and more confident in their company’s ability to support them during emergencies (80% vs. 35%).
While flexible working may have initially emerged as a pandemic-era necessity, the data suggests it is now a differentiator. Employees with access to flexibility are more likely to report they are thriving.
But with only one-third of HR leaders currently treating it as a priority, organizations risk falling behind in the race for talent, wellbeing and retention.
The question now is not whether flexible working will persist, but how long leaders can delay treating it as a cornerstone of their workplace recruitment and retention strategy.
