Flexible Employment Arrangements and Workplace Performance

Transcription

1 MPRA Munch Personal RePEc Archve Flexble Employmen Arrangemens and Worplace Performance Elefheros Govans November 2015 Onlne a hps://mpra.ub.un-muenchen.de/68670/ MPRA Paper No posed 6. January :33 UTC

2 Flexble Employmen Arrangemens and Worplace Performance Elefheros Govans Absrac There s an ncreasng concern on he qualy of obs and producvy ha s wnessed n he flexble employmen arrangemens. However he effecs of he employmen flexble ypes on worplace performance has no been explored n Bran. In hs sudy he relaonshp beween wo employmen arrangemens and he worplace performance s examned. More specfcally eleworng and compress hours are wo man employmen ypes examned usng he Worplace Employee Relaons Survey (WERS) n years 2004 and The worplace performance s measured by he fnancal performance and labour producvy. A posve relaonshp beween hese wo ypes of flexble employmen arrangemens and worplace performance s presened. Ths can have varous profound polcy mplcaons for employees employers and he socey overall. However he posve assocaon holds for employees who have hgh nfluence on her ob whle becomes negave n he case of eleworers who have low nfluence. Keywords: Fnancal Performance Labour Producvy Propensy Score Teleworng Worplace Employmen Relaons Survey JEL codes: D4 D24 J2 J28 J63 M54 1

3 1. Inroducon Wor especally he las years wh he fas boos of he nformaon and communcaon echnology (ICT) has been dsconneced from a parcular place and me. Whle he radonal place of wor used o be he employer s premses nowadays s carred ou n oher locaons such as he employee s home or whle ravelng. Advances n echnology reshape he relaonshp beween wor and home where n some cases he radonal flow of employees from home o offce s reversed (Balyn 1988). Two man ypes of wors are usually employed as eleworers or hose who compress worng hours. The frs caegory refers on clercal employees who perform repeve ass such as elemareers and cusomer servce represenave. The second caegory refers on echncal and professonal worers whose her ass allow greaer auonomy and flexbly. Also her hgher wages and hgher ranng level mae hese worers o nves psychologcally more n wor and hey requre prvacy o plan and analyse (Pern 1991; Perlow 1997). Snce he 1980s an ncreasng par of he worforce has been eleworng a home or n locaon away from employer s premses a leas one day a wee. Prevous sudes have oulned he reasons for he growh of eleworng whch are owned manly o s perceved benefs. In parcular hese benefs refer on boh eleworng and employer ncludng ob sasfacon ncreasng producvy organzaonal loyaly mproved employee morale and loyaly and savngs n space offce among ohers (Bélanger 1999; Poer 2003). Overall eleworng s aracng ncreasng neres from researchers and polcy-maers. The explanaon of eleworng and compressng hours aracon ncludes boh consumpon and producon heory. I can be consdered as a consumpon choce when employees face wh he dsance o wor and he number of alernave choces for commung o wor whch can be underaen by a varey of ransporaon modes. These modes have varyng levels of uly for he commuer. In addon hese ype of employmen arrangemens allow employees o face and 2

4 cope wh famly demands such as household domesc producon and chldcare especally for he women. On he oher hand he producer faces wh choces le cos reducon hrough reduced use of space and equpmen ncrease on producvy whle some degree of conrol over he labour force s los by he employer. The am of hs paper s o explore he relaonshp beween eleworng wh labour producvy and frm performance usng he panel Worplace Employmen Relaons Sudy (WERS) n 2004 and Ths assocaon s compared wh an alernave flexble worng arrangemens whch s he opon compress hours. In oher words hs worng ype allows he employee o wor he same or sandard weely hours n less number of days.e. 35 hours n 4 days nsead of 5-6 days. Even hough he lnage beween he specfc worng ypes ob sasfacon and employee loyaly s no examned n hs sudy s suggesed for fuure research. In addon he lnage among flexble employmen producvy and performance ob sasfacon and employee loyaly can be furher explored. In order o reduce he selecon and heerogeney bas a propensy score machng s ang place (Rosenbaum and Rubn 1983). Furhermore n order o lm he endogeney ssue whch may come from he employees or frm relocaon he man populaon of neres n he analyss s lmed o he non-mover sample. Ths acually refers o he frms who are locaed n he same area durng he perod examned as well as he employees who have no changed ravel o wor area (TTWA). Anoher ssue could be hose who change employer; neverheless he survey desgn s such ha only ndvduals who are employed n he same frm are ncluded and followed. For robusness checs he resuls ae place for he oal and he movers samples where he las ncludes he frms ha have been relocaed and he employees who have moved locaon accordng o TTWA. However he conclusons reman smlar when he oal sample s consdered snce also he non-movers and ob-sayers from he mached sample derved by 3

5 he propensy score procedure consue roughly he 82 per cen of he oal sample whle he respecve percenage for he unmached sample s approxmaely 85 per cen. The sudy fnds a posve relaonshp beween eleworng he labour producvy and frm performance. On he oher hand compressng hours has no sgnfcan effecs on fnancal performance based on he fxed effecs esmaes; however s mpac on he labour producvy of he worplace s posve and sgnfcan. Moreover based on he wo and hree sage leas squares he assocaon beween compress hours and fnancal performance of he worplace becomes posve and sgnfcan. Ths ndcaes ha frms can apply hese employmen schemes resulng o plausble benefs o boh employees and employers such as cung coss for offce space and copng wh he famly demands. The paper s organsed as follows: Secon 2 s presens a bref leraure revew. Secon 3 presens he mehodology whle n secon 4 he survey and varables used n he analyss are dscussed. Secon 5 repors he resuls and secon 6 presens he concludng remars polcy mplcaons and areas for fuure research. 2. Leraure Revew In hs secon prevous research sudes on he assocaon beween eleworng and labour producvy and frm performance are brefly dscussed. Prevous sudes found ha eleworers repor an ncreased producvy (Baley and Kurland 2002; Vega e al. 2014). However a large share of he people repored also an ncreased number of worng hours (Baley and Kurland 2002). Aborg e al. (2002) n a sudy consderng whn-person effecs of elewor n wo companes found ha elewor ncreases wor effecveness bu hs may smulaneously be resul of hgher worload. In oher words eleworers and flex-worng employees may exhb hgher levels of ob sasfacon because of he flexbly and wor auonomy ha hese ype of employmen offers resulng o harder wor for hese employees 4

6 as a resul of recprocal behavour o he flexbly offered by he frm. In addon hs wor flexbly may enable hem o wor harder and more nensve durng he hours spen a home compared o worng a he employer s premses. In he feld of organsaonal economc and psychology he effec of eleworng on worng hours and ob sasfacon have been furher developed. Vega e al. (2014) n a whn-person sudy based on fve consecuve worng days found ha employees whle hey elewor are more lely o repor hgher levels of ob sasfacon and ob performance han when hey wor a offce. Green e al. (2010) examned he flexble worng arrangemens n usng he Household Income and Labour Dynamcs (HILDA) survey n Ausrala and hey found ha he flexble worng ypes are assocaed wh lower percepon of ob secury and lower paymens. Neverheless he flexble ypes explored were he causal and par-me employmen whle hs sudy explores eleworng and compress hours. Furhermore he case sudy dffers n he way ha he employees have he opon o choose eleworng or compress hours. However here are sll facors ha deermne her choce and capably for he employmen arrangemens explored as well as he worplace envronmen may play a crucal role. Neverheless here less aenon has been pad n he economcs leraure o he role of eleworng and compressng hours and s mplcaons for worplace performance. Ths sudy adds o he prevous research by examnng he relaonshp beween eleworng labour producvy and ob performance usng a panel daa analyss whle he analyss n he maory of he prevous sudes reles on cross-seconal daa. 5

7 6 3. Mehodology 3.1 Panel Regressons and Three Sage Leas Squares The followng equaon for ndvdual n frm locaon and a me s esmaed: T l l z FE a a WP. 1 0 ε θ δ µ α κ = (1) WP denoes he worplace performance. Two alernave measures of worplace performance are employed n he sudy fnancal performance and labour producvy as are descrbed n he daa secon. The vecor FE s a dummy ndcang wheher or no he responden has he opon of he flexble worng ype or no n frm n regon and n me. z s a vecor of household frm and demographc facors ncludng age educaon maral saus rade unon membershp number of worng hours. Se μ denoes he ndvdual-fxed effecs δκ s he frm fxed effec l s he locaon fxed effecs expressed by TTWA θ s a me-specfc vecor whle lt s a se of area-specfc lnear me rends whch conrols for unobservable me-varyng characerscs n he TTWA area. Fnally ε express he error erms whch s assumed o be d. Snce labour producvy and frm performance may be relaed o each oher he followng srucural equaon usng hree sage leas squares (3SLS) s esmaed: T l l z LP a FE a a FP ε θ δ µ α κ = (2) v T l l z FP FE LP = θ δ µ β β β β κ (3) The varables are defned as n (1) whle FP and LP denoe respecvely he fnancal performance and he labour producvy n he worplace and s assumed ha may cause each oher. The measures used as dependen varables are ordered n a scale 1-5. In s curren form

8 he models 1-3 canno be esmaed by ordered Prob or Log usng fxed effecs. Whle wh cross-seconal daa hese paramerc models are easly o be mplemened n panel daa no smple ransformaon -such as frs-dfferencng or whn-ransformaon- s avalable ha would purge he ordered response models from he ndvdual-specfc fxed effecs. Therefore here are wo opons eher esmang he model consderng he dependen varable as connuous or converng he dependen ordnal varable n connuous varable assgnng z- scores. The second procedure was nroduced by van Praag and Ferrer--Carbonell (2004) whch s nown as he adaped Prob Ordnary leas squares (POLS). Also he Blow-Up and Cluser (BUC) esmaor by Baeschmann e al. (2015) can be appled. However he esmaes are based on he adaped Prob esmaes whle he res of he esmaes are smlar and are no presened. Fnally an nsrumenal varable (IV) approach s followed where he flexble worng arrangemens are nsrumened wh he varables on wheher he employee has dependen chldren 0-2 years old or no dependen chldren n he household as well as wheher he responden s responsble for carng a dsabled person. These varables are no correlaed wh he worplace performance as he regresson analyss shows. Snce here mgh be a srong heerogeneous and selecon bas a propensy score machng aes place (Rosenbaum and Rubn 1983) and he esmaes are based on he mached reaed and unreaed samples. 3 Daa The Worplace Employmen Relaons Sudy (WERS) seres have sared n 1980 and have aen place sx mes unl In hs sudy he 2004 and 2011 panel survey s consdered n he analyss whch oo place n a random sub-sample of worplaces and he surveys have been conduced o managers and employees. More specfcally he survey populaon for boh he 2004 and 2011 WERS s all Brsh worplaces wh a leas 5 employees and he survey 7

9 comprses four man secons: he Employee Quesonnare he Worer Represenave Quesonnare he Fnancal Performance Quesonnare and he Managemen Quesonnare. The frs one ncludes nformaon on employee characerscs whle he las hree provde nformaon abou he frm-esablshmen. Ths s useful for he analyss snce he regressons conrol no only for employee characerscs bu also for worplace characerscs such as compeon oal employees and he mare area where he frm s operaed. In addon he analyss of he surveys of 2004 and 2011 allow us o conrol for unobserved characerscs of he pre-fnancal crss perod as well as he economc shocs afer The relaonshp of he employmen arrangemens beween wo measures of worplace performance s examned. These are he fnancal performance and labour producvy. The measures are derved from he Managemen Quesonnare and hey answer n he followng queson How would you assess your worplace s fnancal performance and labour producvy? Then he managemen represenave was ased o ndcae n whch of he followng caegores he measures fall no: a lo beer han average; beer han average; abou average; below average or a lo below average. Thus he measures are ordered varables rangng beween 1 (very good) o 5 (very low). A negave coeffcen sgn herefore would ndcae an mprovemen on he frm-worplace performance. Neverheless o mae he nerpreaon easer he measures have been recoded such as 1 ndcaes very low (a lo below average) and 5 very hgh (a lo beer han average). In able 1 he summary sascs for he man varables of neres such as he worplace performance eleworng and compressng hours proporon are presened. I s observed ha he average values of worplace performance are raher hgh n a scale 1-5 and he values are approxmaely 3.5. Approxmaely he 11 per cen of he sample s nvolved on eleworng whle almos 18 per cen of he sample s choosng compressng hours as a worng ype. 8

10 In able 2 he correlaon beween eleworng and worplace performance as well as beween some seleced conrol varables s presened. A sgnfcan correlaon among he varables of neres and oher conrol varables used no he regressons may be presen; however snce he number of conrols s large her correlaon s no repored bu her assocaon wll be presened and dscussed n he emprcal resuls secon. In all cases a posve and sgnfcan assocaon beween he flexble employmen ypes-eleworng and compress hours- worplace performance measures wage educaon performance pay schemes and qualy of managers-employees relaons s presened The excepon s he relaonshp beween educaon level of he employee and he qualy of managers-employees relaonshps whch s nsgnfcan. 4 Emprcal Resuls In hs secon he emprcal resuls are repored. In able 3 he fxed effecs regresson afer he propensy score machng are presened. The resuls show ha he assocaon beween eleworng and boh worplace performance s posve and sgnfcan. On he oher hand he mpac of compress hours on fnancal performance s nsgnfcan whle becomes sgnfcan and posve regardng he labour producvy of he worplace. The res of he coeffcens show ha he wage s nsgnfcan for he fnancal performance and posve for he labour producvy when he sample of eleworers s consdered. On he conrary seems ha wage s no sgnfcanly relaed wh he worplace performance when he sample of hose who choose compress hours as an opon and her counerpars who share smlar characerscs s consdered. Furhermore he remaned caegores of he wage are no presened as hey were found o be nsgnfcan. The soco-economc characerscs such as 9

11 age educaon maral saus and wheher here are dependen chldren or no dependen chldren n he household have no sgnfcan effec on he measures of he worplace performance examne wh he excepon of he sample regardng hose who choose compress hours and he fnancal performance of he worplace. More specfcally n hs case here s a non-monoonc relaonshp where age and fnancal performance are posvely relaed up o one pon-age group of years old- whle becomes sgnfcan and negave for he age groups and older. The saus of company he mare area ha he worplace s operaed and he number of he esablshmens are sgnfcan facors of worplace performance. More specfcally he fndngs sugges ha he bgger he area ha he worplace s operaed he greaer he performance s lely o be. Smlarly beng he only esablshmen or he sole esablshmen n UK bu beng a par of a foregn company he worplace performance s lower. The qualy of relaons beween managers and employees he prof relaed and performance relaed schemes have a posve relaonshp wh he performance of he worplace. Furhermore he proporon of he non-manageral saff under apprasal s sgnfcan and presens a monoonc relaonshp wh he worplace s performance. More precsely he proporon of he saff ha should be under apprasal and valuaon should be 100 per cen. Regardng he number of employees he coeffcens are posve and sgnfcan only n he case when he compress hours s explored. (Inser Table 3) In able 4 he condonal Log esmaes for he deermnans of eleworng are repored. The resuls overall show ha age educaon level maral saus ehncy and he degree of slls on ob machng are no mporan facors wh he excepon ha hgher educaed people and mxed whe-asan are more lely o parcpae n eleworng. Ths can be relaed o he 10

12 fac ha hgher educaed people are more lely o be managers or supervsors and o assgn worload o oher people whle hey can spend more me a home. Also eleworng can be relaed wh nformaon echnology usage where more educaed people usually have hese slls. Ths s also confrmed by he coeffcen of he varable on wheher he responden supervses or manages oher people. Boh performance measures are posvely relaed wh wage he years of he employees experence n he curren worplace and he qualy of relaons beween managers and employees. In addon he mare area where he worplace s operaed s a sgnfcan facor and he esmaes ndcae ha he nernaonal naonal and regonal companes are more lely o mplemen he employmen ypes explored here han he local companes. The resuls overall are conssen wh oher sudes where performance relaed schemes he mare area qualy of managers-employee relaonshps and wage among ohers are sgnfcan facors for worplace performance (Haon 1988; Jones and Kao 1995; Brown and Heywood 2002) However hs sudy also explores he deermnans of eleworng and compress hours. In addon Green e al. (2010) found ha employmen ypes such as causal and par-me employees are conneced wh low paymens and low levels of ob secury. However hs sudy explores wheher he opon of eleworng and compress hours are relaed o he worplace performance. In addon n some cases especally women hey hese employmen ypes ncludng par-me. Ths s explaned by he fac ha when people choose hese employmen modes mae hem happer as hey are able o cope wh he household and famly demands and spend more me on lesure acves. However hs s no examned n hs sudy. (Inser Table 4) 11

13 In able 5 he propensy score machng es s repored. The null hypohess ndcaes ha he mached reaed and unreaed groups share smlar characerscs and ha he machng process s effcen. The resuls refer o eleworng whle very smlar conclusons are derved when he compress hours s consdered. The only excepon s he varable of wheher here are formal poles for equal opporunes n he worplace or no whch s sgnfcan a 10 per cen level. (Inser Table 5) In able 6 he resuls for he oal and movers sample are repored. Regardng he former sample he esmaes are close wh hose found n able 3 and hs can be explaned by he fac ha he non-movers sample consss approxmaely of he per cen of he oal sample. On he oher hand he esmaes for he movers are nsgnfcan wh he excepon of he eleworers and he fnancal performance of he worplace where a posve and sgnfcan coeffcen s found bu he effec s sgnfcanly lower han he respecve ones found usng he oal and he non-movers sample. (Inser Table 6) In able 7 he 3SLS esmaes based on he propensy score machng are repored. In hs case he concludng remars are he same wh he excepon ha he magnude of he coeffcen s sgnfcanly larger. Ths shows ha he adaped Prob fxed effecs may underesmae he causal effec of he worng modes explored n hs sudy even f he nonmovers sample s consdered. Furhermore he effec of compress hours on fnancal performance of he worplace becomes sgnfcan as can be seen n column (3) whle was found nsgnfcan n able 3. Thus he conclusons are ha boh employmen ypes have 12

14 a posve relaon wh he worplace performance of he worplace. Ths may be derved by he fac ha worng more days a home for eleworers and compressng hours whch mples less worng days n a wee a he employer s premses lead o savng coss such as offce equpmen and space and oher shor run coss. Smlarly he employmen ypes have a posve relaonshp wh he labour producvy whch may resul o fnancal performance and vce versa as he resuls n able 7 show a srong evdence of reverse causaly beween he wo worplace performance measures. The nsrumenal varables employed are wheher he employee has dependen chldren 0-2 years old or no dependen chldren and wheher he responden s responsble for he carng of a dsabled person. These facors can be hghly correlaed wh he employmen ypes such as eleworng and compress hours because allows hem o spend more me a home worng and also ang care of he chldren and dsabled household members f any. Fnally as robusness chec he 2SLS esmaes are repored n able 8. In hs case he causal effecs are very close o hose found n he able 7 and he 3SLS. Moreover based on he wea nsrumen es he null hypohess s reeced and s concluded ha he nsrumenal varable proposed n hs sudy are no wea. In addon accordng o he Sargan endogeney es he null hypohess of no-endogeney s acceped. Thus he concluson s ha hese employmen arrangemens may be an effcen polcy especally when he employees have he opon o choose her mplemenaon wh varous plausble benefs o worplace ncludng coss savng and mprovemen on producvy. On he oher hand he benefs for he employees besdes he plausble performance paymens and oher relaed benefs can be ob sasfacon mprovemen ably o cope wh her famly demands resulng o mprovemen of her wor-famly balance and her overall well-beng. (Inser Tables 7-8) 13

15 Fnally n able 9 he adaped Prob fxed effecs esmaes based on he employee s nfluence on ob are repored. More specfcally he respondens are ased how much nfluence hey have on her ob and he oucome answerng n a scale from 1 (very low) o 4 (very hgh). In panel A of he able 9 he analyss ncluded he respondens who saed ha hey have hgh or very hgh nfluence whle n panel B he resuls for hose who answered low and very low are presened. I becomes clear ha nfluence on he wor and oupu oucome s an mporan facor such as creave versus dull obs among ohers. Thus n panel A he effecs of he employmen ypes on boh worplace performance measures are posve and her magnude sgnfcanly larger han he respecve ones found n able 3. Regardng compressng hours he esmaes are nsgnfcan n panel B whle n he case of eleworng he effecs are nversed and become negave. Therefore especally for eleworers s mporan for hem and he worplace performance o have some average a leas nfluence on her ob. (Inser Table 9) 5 Conclusons Ths sudy explored he relaonshp beween wo flexble employmen arrangemens and he performance of he worplace. The fndngs of hs sudy sugges ha here s a posve effec on performance from boh eleworng and compressng hours. The resuls are confrmed by he 2SLS and 3SLS. However he fndngs sugges ha he posve relaonshp holds only for he employees who have hgh level of nfluence on her ob. On he oher hand becomes nsgnfcan for hose who have low nfluence and mplemen he compressng hours employmen ype whle s negave for eleworng. Overall he fndngs ndcae ha he specfc employmen modes may have varous benefs and polcy mplcaons for boh employees and employers as well as for he socey 14

16 overall. On he one hand for he employers a hgher performance and producvy level leads o prof ncrease and furher growh whch can be refleced wh ncreases on wages and mprovemen on relaons qualy among he personnel n he worplace. Moreover companes can lease less number of offces and equpmen resulng o cos savngs. On he oher hand he benefs for he employees can be varous ncludng relef from sress whch s relaed o raffc congeson and commung a wor. Moreover hese employmen arrangemens may offer more wor auonomy and conrol of he worng schedule especally n he case of he eleworng. Furhermore hey may allow he employees o cope wh he famly and household demands as well as o devoe more me on lesure acves. The laer may have addonal effecs on producvy hrough he mprovemen of ob sasfacon and qualy of lfe. The well-beng has no been explored n hs sudy; however s suggesed for fuure research. Lasly he benefs for he socey nclude he socal welfare for he employees and employers as well as oher plausble benefs such as he raffc and ar polluon reducon and overall well-beng mprovemen. Acnowledgmens Ths wor was suppored by he Mare Słodowsa-Cure Indvdual Fellowshp (IF) gran [ TELE]. The auhor graefully acnowledges he fundng provded by European Commsson o carry ou hs research. Ths sudy used panel daa from he 2004 and 2011 Worplace Employmen Relaons Surveys (WERS). The WERS was conduced by NaCen Socal Research on behalf of he Deparmen for Busness Innovaon and Slls he Economc and Socal Research Councl he UK Commsson for Employmen and Slls he Advsory Conclaon and Arbraon Servce and he Naonal Insue of Economc and Socal Research. The daa was dsrbued by he UK Daa Archve a he Unversy of Essex. 15

17 References Aborg C. Fernsrom E. and Ercson M. (2002). Telewor wor nensfcaon and well beng. A longudnal sudy. Uppsala Unversy Deparmen of IT Techncal repor Baeschmann G. Saub K.E. and Wnelmann R. (2014). Conssen Esmaon of he Fxed Effecs Ordered Log Model. Journal of he Royal Sascal Socey: Seres A (Sascs n Socey 178(3): Baley D.E. and Kurland N.B. (2002). A revew of elewor research: fndngs new drecon ns and lessons for he sudy of modern wor. Journal of Organzaonal Behavor 23(4): Balyn L. (1988). Freeng Wor from he Consrans of Locaon and Tme. New Technology Wor and Employmen 3: Bélanger F. (1999). Worers propensy o elecommue: An emprcal sudy. Informaon Managemen 35(3): Brown M. and Heywood J.S. (2002). Payng for Performance: An Inernaonal Comparson. Armon N.Y.: M.E. Sharpe. Green C. Parvnder Kler and Leeves G. (2010). Flexble Conrac Worers n Inferor Jobs: Reapprasng he Evdence. Brsh Journal of Indusral Relaons 48(3): Haon T. (1988). Prof-sharng n Brsh Indusry Inernaonal Journal of Indusral Organzaon 6(1): Jones D.C. and Kao T. (1995). The producvy effecs of employee soc ownershp plans and bonuses: Evdence from Japanese panel daa. Amercan Economc Revew 85(3): Pern C. (1991). The Moral Fabrc of he Offce: Panopcon Dscourse and Schedule Flexbles. Research n he Socology of Organzaons 8: Perlow L. A. (1997). Fndng Tme: How Corporaons Indvduals and Famles Can Benef from New Wor Pracces. London: Cornell Unversy. Poer E.E. (2003). Telecommung: The fuure of wor corporae culure and Amercan socey. Journal of Labor Research 23(1): Rosenbaum P. R. and Rubn D. B. (1983). The cenral role of he propensy score n observaonal sudes for causal effecs. Bomera 70(1): Van Praag B.M.B. and Ferrer--Carbonell A. (2004): Happness quanfed: A sasfacon calculus approach. Oxford: Oxford Unversy Press. Vega R.P. Anderson A.J. Kaplan S.A. (2014). A whn-person examnaon of he effecs of elewor. Journal of Busness and Psychology 30(2):

18 Table 1. Summary Sascs Varable Mean Sandard devaon Mnmum Maxmum Panel A: Ordered varables Fnancal Performance Labour Producvy Panel B: Caegorcal varables Yes No Yes No Teleworers Compress Hours Before Machng Before Machng Teleworers Afer Machng Compress Hours Afer Machng Fnancal Performance Labour producvy *** Telewor *** Wage *** Educaon *** Performance pay *** schemes Qualy of relaons beween managers and employees *** Labour producvy *** *** *** *** Table 2. Correlaon marx Telewor Wage Educaon Performance pay schemes *** *** *** *** Compress Hours *** ** (0.0345) *** P-values n parenheses *** p<0.01 ** p<0.05 * p< *** *** *** *** (0.5073) (0.8581) * (0.0774) *** (0.0006) *** Qualy of relaons beween managers and employees *** 17

19 Table 3. Adaped Prob Fxed Effecs and Propensy Score Machng (2) (3) DV: Labour DV: Fnancal Producvy Performance VARIABLES (1) DV: Fnancal Performance 18 (4) DV: Labour Producvy Teleworng *** (0.0269) Teleworng ** (0.0318) Compress hours (0.0446) Compress hours ** (0.0210) Wage (reference caegory per wee) Wage per wee (0.0782) (0.0662) (0.0917) (0.0844) Wage per wee ** (0.0751) (0.0627) (0.0881) (0.0842) Wage per wee (0.0740) (0.0629) (0.0868) (0.0818) Wage per wee * (0.0710) (0.0611) (0.0832) (0.0814) Wage per wee (0.0839) (0.0676) (0.1023) (0.0936) Wage or more per wee (0.0865) (0.0710) (0.1070) (0.0953) Number of weely hours wor (0.0019) (0.0016) (0.0023) (0.0022) Age (reference caegory=16-17 years old) Age (18-19) * (0.0864) (0.0743) (0.1015) (0.0990) Age (20-21) * (0.0940) (0.0775) (0.1135) (0.1030) Age (22-29) (0.0811) (0.0667) (0.0955) (0.0891) Age (30-39) ** (0.0814) (0.0668) (0.0660) (0.0894) Age (40-49) (0.0825) (0.0679) (0.0984) (0.0915) Age (50-59) * (0.0836) (0.0687) (0.0996) (0.0924) Age (60-64) (0.0945) (0.0785) (0.1190) (0.1134) Age (65 and above) ** (0.1315) (0.1003) (0.1528) (0.1449) Maral Saus (reference=sngle) Maral saus-marred or couple (0.0771) (0.0588) (0.0991) (0.0904) Maral saus-dvorced (0.0416) (0.0334) (0.0549) (0.0469) Maral saus-wdowed (0.0262) (0.0213) (0.0342) (0.0301) Educaon level (reference prmary school) Educaon level- GCSE A-AS levels ** (0.0254) (0.0199) (0.0324) (0.0274) Educaon level-frs degree (0.0271) (0.0212) (0.0355) (0.0299) Educaon level-hgher degree (0.0446) (0.0350) (0.0571) (0.0487)

20 Table 3 (con). Adaped Prob Fxed Effecs and Propensy Score Machng VARIABLES (1) DV: (2) DV: Labour (3) DV: Fnancal Producvy Fnancal Performance Performance (4) DV: Labour Producvy Dependen chldren aged 0-2 (Yes) (0.0364) (0.0292) (0.0487) (0.0416) Dependen chldren any age (No) (0.0241) (0.0196) (0.0330) (0.0288) Slls machng wh he ob (much hgher) Slls machng wh he -b hgher (0.1250) (0.0941) (0.1570) (0.1244) Slls machng wh he ob-he same (0.1174) (0.0884) (0.1458) (0.1148) Slls machng wh he -b lower (0.1177) (0.0886) (0.1457) (0.1144) Slls machng wh he -much lower (0.1181) (0.0889) (0.1464) (0.1155) Qualy of relaons beween managers and employees (reference-very poor) Qualy of relaons-poor ** (0.0516) (0.0428) (0.0796) (0.0730) Qualy of relaons-neher good nor bad ** (0.0487) (0.0404) (0.0760) (0.0697) Qualy of relaons-good ** (0.0483) (0.0402) (0.0748) (0.0691) Qualy of relaons-very Good ** (0.0518) (0.0431) (0.0792) (0.0724) Years of experence n hs worplace (0.0080) (0.0064) (0.0107) (0.0092) Ehncy (reference Brsh) Ehncy-Irsh * (0.0974) (0.0687) (0.1227) (0.0972) Ehncy-oher whe * (0.0535) (0.0404) (0.0678) (0.0556) Ehncy-Whe and Blac Carbbean * (0.1548) (0.1156) (0.1959) (0.1355) Ehncy-Whe and Blac Afrcan (0.5303) (0.1354) (0.5553) (0.1721) Ehncy-Whe and Asan (0.2049) (0.1154) (0.3324) (0.1225) Ehncy-Oher mx * ** (0.1317) (0.1041) (0.1408) (0.1754) Ehncy-Indan (0.0742) (0.0476) (0.0946) (0.0686) Ehncy-Pasan ** (0.1299) (0.1090) (0.1502) (0.1336) Ehncy-Bangladesh (0.1657) (0.1515) (0.2488) (0.2243) Trade unon or saff assocaon members (reference Yes) Trade unon or saff assocaon members-no bu n he pas *** *** (0.0303) (0.0241) (0.0406) (0.0350) Trade unon or saff assocaon members-no * *** ** (0.0263) (0.0214) (0.0351) (0.0304) Prof relaed paymens (Yes) ** ** (0.0248) (0.0199) (0.0328) (0.0276) 19

21 Table 3 (con). Adaped Prob Fxed Effecs and Propensy Score Machng VARIABLES (1) DV: (2) DV: Labour (3) DV: Fnancal Producvy Fnancal Performance Performance (4) DV: Labour Producvy Proporon of non-manageral under performance apprasal (reference 100%) Proporon -(80-99%) *** *** (0.0685) (0.0595) (0.0817) (0.0839) Proporon -(60-79%) ** *** ** *** (0.0588) (0.0432) (0.0868) (0.0751) Proporon -(40-59%) *** *** *** (0.0847) (0.0528) (0.1060) (0.0920) Proporon -(20-39%) *** *** ** *** (0.0464) (0.0354) (0.0760) (0.1253) Proporon -(1-19%) *** *** *** *** (0.0599) (0.0516) (0.0981) (0.0857) Performance relaed paymens (Yes) *** *** *** (0.0247) (0.0204) (0.0330) (0.0301) Toal Employees *** *** ( ) ( ) ( ) ( ) Number of esablshmens (reference many) Number of esabl. (sngle) *** (0.0348) (0.0295) (0.0497) (0.0435) Number of esabl. (sole n UK-foregn) *** ** *** (0.0645) (0.0565) (0.1073) (0.0957) Company Saus (reference Publc) Company- Prvae Lmed Company *** *** *** (0.0289) (0.0234) (0.0381) (0.0328) Company- Lmed by guaranee *** ** *** Company- Parnershp (0.0695) (0.0558) (0.1038) (0.0832) ** *** *** (0.0615) (0.0461) (0.0877) (0.0730) Company-Trus/chary ** (0.0544) (0.0458) (0.0676) (0.0628) Company-Royal charer Company- Co-operave (0.1070) (0.0673) (0.1936) (0.0863) *** *** *** *** (0.0824) (0.0595) (0.0888) (0.0585) Formal polcy equal opporunes (Yes) *** *** * (0.0399) (0.0358) (0.0456) (0.0479) Supervse oher employees (No) ** *** (0.0222) (0.0184) (0.0300) (0.0271) Mare Area (reference-local) Mare Area-Regonal *** *** *** (0.0394) (0.0343) (0.0520) (0.0482) Mare Area-Naonal *** *** (0.0343) (0.0281) (0.0432) (0.0393) Mare Area-Inernaonal *** *** *** (0.0375) (0.0316) (0.0463) (0.0427) Observaons R-squared Robus sandard errors n parenheses *** p<0.01 ** p<0.05 * p<0.1 20

22 Table 4. Deermnans of Telewor and Compress hours employmen arrangemens VARIABLES (1) (2) DV: Teleworng DV: Compress Hours Wage (reference caegory per wee) Wage per wee ** (0.2348) (0.3785) Wage per wee *** *** (0.2287) (0.3678) Wage per wee *** *** (0.2283) (0.3696) Wage per wee *** *** (0.2395) (0.3855) Wage per wee *** *** (0.2516) (0.3969) Wage or more per wee *** *** (0.2570) (0.4110) Number of weely hours wored (0.0046) (0.0070) Age (reference caegory=16-17 years old) Age (18-19) (0.3132) (0.4357) Age (20-21) (0.3036) (0.4513) Age (22-29) (0.2794) (0.3975) Age (30-39) (0.2795) (0.3988) Age (40-49) (0.2809) (0.4027) Age (50-59) (0.2824) (0.4055) Age (60-64) (0.3033) (0.4535) Age (65 and above) * (0.3959) (0.5789) Maral Saus (reference=sngle) Maral saus-marred or couple * (0.1991) (0.3232) Maral saus-dvorced (0.0995) (0.1484) Maral saus-wdowed (0.0644) (0.0958) Educaon level (reference prmary school) Educaon level- GCSE A-AS levels *** (0.0516) (0.0789) Educaon level-frs degree *** (0.0594) (0.0894) Educaon level-hgher degree *** (0.0621) (0.0949) Dependen chldren any age (No) * (0.0059) (0.0852) Dependen chldren 0-2 years old *** (0.0274) Slls machng wh he ob (much hgher) Slls machng wh he -b hgher (0.3080) (0.4432) Slls machng wh he ob-he same * (0.2907) (0.4156) Slls machng wh he -b lower (0.2911) (0.4161) 21

23 Table 4 (con.) Deermnans of Telewor and Compress hours employmen arrangemens VARIABLES (1) DV: Teleworng (2) DV: Compress Hours Slls machng wh he -much lower (0.2923) (0.4196) Qualy of relaons-poor (0.1339) (0.1879) Qualy of relaons-neher good nor bad * (0.1258) (0.1771) Qualy of relaons-good * ** (0.0228) (0.1759) Qualy of relaons-very Good ** *** (0.0419) (0.1894) Years of experence n hs worplace ** ** (0.0297) (0.0102) Ehncy (reference Brsh) Ehncy-Irsh (0.2159) (0.3578) Ehncy-oher whe (0.1345) (0.2193) Ehncy-Whe and Blac Carbbean (0.3766) (0.5749) Ehncy-Whe and Blac Afrcan (0.4881) (0.8593) Ehncy-Whe and Asan ** (0.5055) (0.6782) Ehncy-Oher mx (0.3960) (0.5981) Ehncy-Indan (0.1637) (0.3035) Ehncy-Pasan (0.3954) (0.5685) Ehncy-Bangladesh (0.5164) (0.9835) Trade unon or saff assocaon members-no bu n he pas Trade unon or saff assocaon members-no (0.0740) (0.1075) Prof relaed paymens (Yes) ** (0.0633) (0.0945) Performance relaed paymens (Yes) * (0.0618) (0.1030) Proporon of non-manageral under performance apprasal (reference 100%) Proporon -(80-99%) *** *** (0.1294) (0.1786) Proporon -(60-79%) *** *** (0.1162) (0.2033) Proporon -(40-59%) *** *** (0.1675) (0.2148) Proporon -(20-39%) (0.1440) (0.2742) Proporon -(1-19%) *** *** (0.1451) (0.3447) Performance relaed paymens (No) *** *** (0.0563) (0.0854) Toal employees *** *** (0.0001) 22

24 Table 4 (con.) Deermnans of Telewor and Compress hours employmen arrangemens VARIABLES (1) (2) DV: Teleworng DV: Compress Hours Company Saus (reference Publc) Company- Prvae Lmed Company *** *** (0.0713) (0.1129) Company- Lmed by guaranee *** *** Company- Parnershp (0.1773) (0.2289) *** * (0.1643) (0.2347) Company-Trus/chary *** *** (0.1394) (0.1874) Company-Royal charer *** Company- Co-operave (0.4121) (0.6938) *** (0.1810) (0.2846) Formal polcy equal opporunes (Yes) ** * (0.1098) (0.1713) Supervse ohers (No) *** (0.0569) (0.0849) Number of esablshmens (reference many) Number of esabl. (sngle) *** (0.1075) (0.3767) Number of esabl. (sole n UK-foregn) *** ** Mare Area (reference-local) (0.3795) (0.1122) Mare Area-Regonal *** (0.1258) (0.2004) Mare Area-Naonal *** *** (0.1051) (0.1437) Mare Area-Inernaonal *** *** (0.1142) (0.1709) Observaons Wald ch-square [0.000] [0.000] Robus sandard errors n parenheses p-braces n braces *** p<0.01 ** p<0.05 * p<0.1 23

25 Table 5. Propensy Score Machng Tes for Telewor Varables PS es Varables PS es Varables PS es Age 0.30 (0.762) Member of rade unon (0.187) Worplace Type-Saus 0.21 (0.833) Maral Saus 0.40 Prof-relaed Formal poles for equal opporunes 1.96* (0.686) paymens (0.313) (0.050) Educaon level 1.49 (0.136) Proporon of nonmanageral saff evaluaed (0.165) Supervse ohers 0.24 (0.810) Dependen chldren 0.80 Performance relaed Mare area years old No dependen chldren Slls machng wh he ob Qualy of relaons beween managers and employees (0.422) (0.392) (0.673) 0.13 (0.899) Wage 0.09 (0.928) Ehncy 0.06 (0.953) P-values n parenheses * p<0.1 paymen (0.152) Toal employmen 0.33 (0.745) Number of 0.84 esablshmens (0.399) Years worng n he 1.27 curren worplace (0.204) Number of weely hours wored (0.142) Sandard occupaon classfcaon 0.27 (0.788) Table 6 Adaped Prob Fxed Effecs and Propensy Score Machng for Toal Sample and Movers VARIABLES (1) DV: Fnancal Performance (2) DV: Labour Producvy (3) DV: Fnancal Performance (4) DV: Labour Producvy Panel A: Toal Sample Teleworng *** (0.0272) Teleworng ** (0.0351) Compress hours (0.0303) Compress hours ** (0.0201) Observaons R-squared Panel B: Movers Sample Teleworng ** (0.0165) Teleworng (0.0198) Compress hours (0.0959) Compress hours (0.0774) Observaons R-squared Robus sandard errors n parenheses *** p<0.01 ** p<

26 Table 7. 3SLS Esmaes for Employmen Arrangemen and Worplace Performance VARIABLES (1) (2) (3) (4) Panel A: DV Frm Performance Panel B: DV Labour Producvy Teleworng *** Teleworng *** (0.0354) (0.0351) Flexble Hours *** Flexble Hours *** (0.0162) (0.0081) Labour Producvy (reference caegory a lo below average) Frm Performance (reference caegory a lo below average) Below average *** *** Below average *** (0.1087) (0.4441) (0.0791) (0.1408) Abou Average *** *** Abou Average *** *** (0.1050) (0.4275) (0.0768) (0.1513) Beer han average *** *** Beer han average *** *** (0.1051) (0.4446) (0.0769) (0.1485) A lo beer han average *** *** A lo beer han average *** *** (0.1076) (0.4136) (0.0782) (0.1484) Observaons Observaons R-squared R-squared Robus sandard errors n parenheses *** p<0.01 Table 8. 2SLS for he Employmen Arrangemens and Worplace Performance VARIABLES (1) DV: Fnancal Performance (2) DV: Labour Producvy (3) DV: Fnancal Performance (4) DV: Labour Producvy Teleworng *** (0.0645) Teleworng *** (0.0202) Compress hours ** (0.0529) Compress hours *** (0.0258) Observaons R-squared Wea nsrumen es [0.000] [0.000] [0.000] Sargan endogeney es [0.4277] [0.8115] [0.4359] Robus sandard errors n parenheses p-values n braces *** p<0.01 ** p< [0.000] [0.4609] 25

27 Table 9. Adaped Prob Fxed Effecs based on Job Influence (2) DV: Labour Producvy VARIABLES (1) DV: Fnancal Performance (3) DV: Fnancal Performance (4) DV: Labour Producvy Panel A: Hgh Influence Teleworng *** (0.0288) Teleworng *** (0.0242) Compress hours ** (0.0475) Compress hours ** (0.0305) Observaons R-squared Panel B: Low Influence Teleworng * (0.0032) Teleworng ** (0.0042) Compress hours (0.1921) Compress hours (0.1682) Observaons R-squared Robus sandard errors n parenheses *** p<0.01 ** p<0.05 * p<0.1 26