From start to finish: Flexi-time as a social exchange and its impact on organizational outcomes

We employ arguments from social exchange theory to develop a framework explicating the relationship between flexi-time and employee absenteeism, employee turnover, and organizational profitability. Then, employing data from 1,064 private sector organizations located in France, Germany, Hungary, Ireland, Italy, Sweden, and the United Kingdom, we test our hypothesized model via path analysis. We found flexi-time to have a significant negative relationship with employee turnover and a significant positive relationship with organizational profitability, controlling for organizational, industry, and country factors, as well as other flexible work arrangements. The relationship between flexi-time and absenteeism did not reach significance in our estimations. We highlight the implications of our work and outline directions for future research.