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The Entela Perspective on: the ROI of Flexible Working

flexible working to reduce the gender pay gap

Flexible working is often treated as a favour. Something generous and difficult. Something that creates cost, complexity and exception.

It’s often treated as a woman’s benefit, allowing her to retain a role in the workplace while juggling all the responsibilities of home life.

Both of those things are true. But the framing misses the point.

The real driver behind flexibility is reducing the long-term, hidden cost of inflexibility.

And when considering the root causes of the gender pay gap, it’s clearly one of the most important real changes needed.

 

The visible vs invisible costs of flexible working

The concerns employers raise are real.

What about lost productivity? Operational disruption?
What if everyone asks?
What if managers cannot apply it fairly, and workload falls unfairly on other people?

These are valid questions. But they treat flexibility as the risk.

The current model is not the safe option.

Some working estimates for you.

A flexible working arrangement for an employee earning £25,000 might cost around £1,000–£3,000 to implement well, once manager time, HR process, equipment, team coordination and short-term productivity adjustment are included.

More complex arrangements, such as compressed hours or roles requiring rota redesign, might cost closer to £2,000–£5,000.

Enhanced paternity leave may cost around £4,500-£7,000 to implement, accounting for workload redistribution, management time and lost output, and depending on the level of the role.

Those are real costs.

But they need to be compared with the hidden costs of the norm.

The hidden costs of resignation, sickness absence, disengagement, stalled careers and quiet withdrawals from ambition.

That cost might be higher than you thought.

Between January 2024 and January 2025, 1.1m workers in the UK left their jobs due to a lack of flexibility.

And, research reported by MadeForMums states that of the 27% of women who do not return to work after maternity leave, or resign within a year, half of them stated that they left because their employers refused to consider reasonable adjustments. One third said it was due to a lack of flexible working options. 

This is not a fringe issue. 

Replacing one employee earning £25,000 costs £30,614, with most of the cost coming from lost output while a new employee gets up to speed.

 

The exact figures will vary by role and organisation, but the comparison is still useful. A simple working estimate looks like this:

 

Cost or benefit

Estimated value for one £25,000 employee

Simple flexible working arrangement

£1,000–£3,000

More complex arrangement

£2,000–£5,000

Enhanced paternity leave

£4,500-£7,000

Cost of replacing employee

£30,614

Cost of flexibility as proportion of turnover

approx. 3.5–17%

Cost of enhanced paternity leave as a proportion of turnover

approx. 15-25%

 

This is why flexibility should not be treated as a perk.

It is a retention intervention.

 

Even a relatively complex flexible working arrangement may be only 10–17% of the cost of one resignation. Enhancing paternity leave to 6 weeks at full pay (more than the recommendation of 6 weeks at 90% pay from the Women and Equalities Committee) may only cost 15-25% of the cost of that new parent resigning.

Compare that to the finding that hybrid working alone can reduce quit rates by around a third, with no negative effect on performance grades or promotion rates over the following two years. Tellingly, this effect was particularly strong for women, non-managers and people with long commutes.

This matters.

If flexible working reduces the risk of resignation by only a few percentage points, the avoided turnover cost can quickly offset the implementation cost.

It changes the question.

 

We shouldn’t be asking whether we can afford to offer flexibility.

We should be asking: “Can we afford to keep losing people because work is designed too rigidly?”

We shouldn’t be asking how much enhanced paternity leave costs.

We should be asking: “Is the cost of supporting fathers to share care lower than the cost of a system that quietly pushes mothers out?”

 

Managing it fairly

This is the most important consideration.

Because flexibility can become unfair if it is left to informal negotiation.

If one manager says yes and another says no, the policy becomes arbitrary. If senior leaders talk about flexibility but reward constant availability, the culture will follow the reward. If fathers are technically entitled to leave but quietly discouraged from taking it, the policy will not change behaviour.

If women work flexibly but are then treated as less committed, less valued or less capable, then flexibility becomes a career penalty.

And if large numbers of people are asking for flexibility, that is not a sign that people no longer want to work.

It may be a sign that the current design of work is creating unnecessary friction.

The standard working week was not handed down as a natural law. It was designed around a different economy, different technology and a different model of family life.

A century later, many organisations are still trying to solve modern retention, burnout and equality problems with working patterns built for another era.

The UK four-day week pilot is a useful reminder that redesigning work does not automatically mean reducing output. In fact, the trial found positive effects on wellbeing and retention, while company revenue broadly held steady among organisations able to provide data.

 

Flexibility does not have to be one-size-fits-all, but it also does not have to create scheduling nightmares.

 

It can mean four-day working weeks, compressed hours, staggered start and finish times, predictable hybrid rhythms, job shares, or core collaboration hours. It can mean something else that works for employees and employers alike.

The point is not to remove structure, but to design better structure.

And in order to design better structure, we need to design better policies, with strong criteria for implementation. Manager training, senior-level modelling, consistent decision-making, workload planning, psychological safety and regular reviews would all help prevent flexible working from becoming another policy-reality gap: strong on paper, weak in practice.

And that is where organisations lose the value.

That does not mean a four-day week is right for every organisation.

It means we should be more curious about work design.

 


 

The Entela perspective

Flexibility is not a favour.
It is part of the operating model of a modern workplace.

Done badly, it creates inconsistency and resentment.

Done well, it protects talent, reduces avoidable turnover, supports wellbeing, improves gender equality and helps organisations retain the people they have already invested in.

The return on flexibility does not come from generosity.

It comes from designing work so people can stay, progress and contribute, instead of forcing them to burn out or leave.

 

If your organisation is trying to close its gender pay gap by looking at pay alone, it is measuring the outcome without redesigning the system that creates it.

 

If you want to create the conditions to allow your staff to stay, talk to us about policy review, implementation support and coaching.

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