Beyond efficiency: some By-products of functional flexibility

This article examines the outcomes of implementing functional flexibility for employers and employees. The use of functional flexibility is normally associated with improving efficiency. However the findings reported here, drawn from four case studies, show evidence of positive outcomes for both employers and employees which go beyond efficiency. For employees there was evidence of increased job satisfaction and in some cases increased remuneration and job security. For employers, there was evidence of improved operational functioning and customer service, reduced labour turnover and an enhanced reputation in the local labour market. It is argued that a ‘virtuous circle’ is set up.