n recent years, the job market has experienced significant structural changes. Companies now have a broader range of tools to support employees — from remote and hybrid work models to flexible schedules, mental health support, stock options, and customisable compensation packages.
At the heart of all these changes lies one concept: flexibility — whether geographic, time-based, benefit-related, or compensation-related. But what’s the real Return on Investment (ROI) for offering such flexibility?
Understanding the ROI of flexibilty
As highlighted in the report “The ROI of Flexible Benefits” by Forma Research:
Any organisation offering employee benefits is well aware of the budget at stake. It’s crucial for HR leaders to assess whether these investments deliver meaningful value for both the employees and the company.
With rising economic pressure, benefit budgets are under more scrutiny than ever. However, the report finds that flexibility delivers measurable returns:
Giving employees the power to choose the benefits that matter most to them adds perceived value to the overall compensation package — often more cost-effectively than expanding traditional programs.
From "one-size-fits-all" to personalisation
For years, many companies offered standardised benefits across the board. But we now know that “one size fits all” doesn't work in the modern workplace.
By offering flexible benefits, companies can empower employees to select what’s most relevant to their life stage, values, and personal goals. This individualised approach makes benefits more meaningful — and significantly improves employee satisfaction.
Increased productivity
Customised benefits lead to more engaged employees — and engagement typically drives productivity. Employees who can choose where and when to work often experience a better work-life balance, stay focused during work hours, and feel more committed to their teams.
According to a global survey by the International Workplace Group (IWG) involving 1,800 professionals across 96 countries:
- 91% of managers say flexible work boosts productivity
- 89% believe it supports company growth
- 87% report improved competitiveness
- 83% see increased profitability
Flexibility attracts top talent...
Flexibility is also a major talent magnet. In a competitive job market — where companies are no longer limited by geography and now hire from a global talent pool — flexibility is often a deciding factor for candidates.
Today’s Employee Value Proposition (EVP) includes more than salary and promotions. According to Mercer, modern workers want “lifestyle contracts” that prioritize flexibility, personal time, and alignment with their values.
Companies that resist this shift risk falling behind.
...and retains it
Attracting top talent is only half the challenge — keeping them is just as important.
The IWG survey also found:
- 80% of managers say flexible work helps retain talent
- 58% reported improved job satisfaction
- 30% saw increased loyalty
High turnover disrupts teams and drives up costs. Flexibility in work schedules and compensation contributes to stronger employee commitment and lower attrition rates.
Flexibility saves costs
Flexible work models can also reduce operational costs. Over 80% of IWG respondents believe that flexible spaces lower real estate and maintenance expenses.
Similarly, flexible compensation plans — including tax-optimised benefits — allow companies to offer more while spending less.
A powerful tool for mental health
Flexibility is also a key lever in improving employee wellbeing. Poor mental health can lead to absenteeism, presenteeism, and lost productivity — with enormous economic consequences.
According to the report Cost of Stress and Psychological Health Problems at Work by the Portuguese Psychologists' Order, stress and mental health-related issues cost Portuguese businesses up to €5.3 billion per year — up from €3.2 billion in 2022.
Investing in mental health — and making flexibility part of that solution — can reduce these losses by at least 30%.
In today’s workplace, flexibility is no longer a perk — it’s a strategic investment. From improving productivity and retention to lowering costs and boosting wellbeing, the ROI of flexibility is clear.
Companies that embrace it aren’t just doing right by their employees — they’re future-proofing their business.
