Work Life Balance
International literature review on the business case for work-life balance
I Executive Summary
This literature review reviews the international and New Zealand literature on the business case for adopting work-life balance policies. The business case is established by weighing up the costs and benefits of introducing work-life balance policies and determining if the net impact is positive. In New Zealand, the EEO Trust’s Work &
Life Awards highlight a number of strong case studies for the business benefits of work-life balance policies.
Both the local and the international literature identify the benefits of work-life balance policies, which are:
• improved recruitment and retention rates, with associated cost savings;
• reduced absenteeism and sick leave usage;
• a reduction in worker stress and improvements in employee satisfaction and loyalty; • greater flexibility for business operating hours;
• improved productivity and
• an improved corporate image.
The costs of implementing work-life balance policies include:
• direct costs, such as parental leave payments or providing equipment to telecommuters and
• indirect costs associated with temporarily filling the posts of absentees and temporary reductions in productivity arising from disruptions.
• costs associated with implementing work-life balance policies
Firms may have difficulties in assessing the net impact of work-life balance policies as the costs are easier to identify and measure than the benefits. Some employers use cost-benefit analysis and others decide to implement work-life balance policies because they intuitively make sense.
Even in the absence of work-life balance policies there are costs and externalities associated with unresolved conflicts between work and personal lives. These costs are borne by the firm (through reduced productivity) as well as by employees and their families and communities. In some circumstances, extended working hours have negative impacts
I Executive Summary
This literature review reviews the international and New Zealand literature on the business case for adopting work-life balance policies. The business case is established by weighing up the costs and benefits of introducing work-life balance policies and determining if the net impact is positive. In New Zealand, the EEO Trust’s Work &
Life Awards highlight a number of strong case studies for the business benefits of work-life balance policies.
Both the local and the international literature identify the benefits of work-life balance policies, which are:
• improved recruitment and retention rates, with associated cost savings;
• reduced absenteeism and sick leave usage;
• a reduction in worker stress and improvements in employee satisfaction and loyalty; • greater flexibility for business operating hours;
• improved productivity and
• an improved corporate image.
The costs of implementing work-life balance policies include:
• direct costs, such as parental leave payments or providing equipment to telecommuters and
• indirect costs associated with temporarily filling the posts of absentees and temporary reductions in productivity arising from disruptions.
• costs associated with implementing work-life balance policies
Firms may have difficulties in assessing the net impact of work-life balance policies as the costs are easier to identify and measure than the benefits. Some employers use cost-benefit analysis and others decide to implement work-life balance policies because they intuitively make sense.
Even in the absence of work-life balance policies there are costs and externalities associated with unresolved conflicts between work and personal lives. These costs are borne by the firm (through reduced productivity) as well as by employees and their families and communities. In some circumstances, extended working hours have negative impacts