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Flexible Working Hours
SummaryTaxonomy and descriptionFirst principles assesmentEvidence on performancePolicy contributionComplementary instrumentsReferences

First principles assessment
Why introduce flexible working hours?
Demand impacts
Short and long run demand responses
Level of response
Supply impacts
Financing requirements
Expected impact on key policy objectives
Expected impact on problems
Expected winners and losers
Barriers to implementation

Why introduce flexible working hours?
From a transport perspective, flexible working hours are introduced to spread travel demand beyond conventional peak hours and thus, reduce congestion and/or to facilitate alternatives to solo commuting, which in turn reduces congestion. Flexible hours facilitate ride sharing by allowing co-ordination of schedules, cycling by allowing off peak travel in less congested conditions and public transport use by giving the flexibility to fit in with timetables and cope with unreliability (where the flexitime is not a rigid model). From a business perspective, the ultimate aim is to increase efficiency through reduced congestion.

There are also a number of other productivity related motivations. For the employee, flexible working hours

  • Provide family friendly working practices by allowing employees to meet dependent care responsibilities,
  • Enable employees to combine work with other responsibilities and interests,
  • Reduce the need to take un-paid leave or use holiday entitlement to meet responsibilities,
  • Allow greater job satisfaction through the above and because work can be completed when motivation and energy levels are high.

For the employer, flexible working hours

  • Increase the ability to adapt staffing levels according to seasonal demand and customer requirements, thus improving customer service,
  • Increase staff motivation and commitment because staff needs are met,
  • Increase competitive edge in attracting and retaining staff,
  • Reduce absenteeism
  • Reduce overtime costs
  • Accommodate the various need and circumstances of employees.

Whilst these employee and employer benefits may not be directly related to transport, where congestion is not perceived to be a problem, they may be a means of persuading a business to introduce at least one measure with the potential to reduce traffic.

A brief survey of company flexible hours policies (University of Glamorgan, 2002; OCPE, 2002; WRc, 2002; DataViz, 2002; Carnegie Mellon University, 2002; Lucent Technologies, 2002; Monash University, 2002) available via the internet suggests that the majority of organisations do not recognise transport benefits in relation to flexible working hours. Few mentioned participating in ride sharing, avoiding traffic congestion and co-ordinating work schedules with a limited bus service as potential benefits. Transport impacts are more likely to be mentioned at a government policy level, for example Treasury Board of Canada Secretariat (2002).

Demand impacts
The demand impacts resulting from flexible working hours depend on the up-take of the option by employees and whether it is used as an opportunity to use alternatives to solo driving. A study by Picado (2000) states that "in one case study, two-thirds of employees surveyed have flexible work schedules, yet less than twenty percent of them actually shift their commute times to avoid congestion" (Litman, 2002). This could be because fitting in with child care arrangements or other duties does not allow journeys outside of peak hours and the need to meet these responsibilities necessitates habitual travel.

Responses and situations

Response

Reduction in road traffic

Expected insituations

Change departure time

0

Where individuals merely change when they travel.

 

2

When the opportunity is used to facilitate ride sharing (where both individuals previously drove alone), or use of public transport that previously did not fit with work hours. Flexible working hours means that individuals are able to vary their hours to fit in with others and public transport.

Change route

1

Drivers may take the opportunity to use a more direct route which they would otherwise avoid due to congestion

Change destination

0

NA

Reduce number of trips

2

Where flexible working hours are used to compress the working week, assuming other trips do not replace the work journeys

Change mode

2

Where the opportunity is taken to use alternatives to solo driving. Flexible working hours means that individuals can vary their hours to fit in with public transport timetables, ride share or cycle off peak when perceptions of danger may be less.

Sell the car

0

 

Move house

0

 

1 = Weakest possible response, 5 = strongest possible positive response
-1 = Weakest possible negative response, -5 = strongest possible negative response
0 = No response

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Short and long run demand responses
Up-take of flexible working hours may increase over time as individuals alter their domestic arrangements (to something more convenient) when the opportunity arises. With regard to modal shift to public transport, walking or cycling, there may be a small shift in the short term. This is unlikely to increase over time unless congestion becomes significantly worse (but does not affect the alternatives) or incentives to use alternatives are offered.

Demand responses

Response

-

1st year

2-4 years

5 years

10+ years

Change departure time

-

1

1

1

1

Change route

-

1

1

1

1

Change destination

Change job location

0

0

0

0

-

Shop elsewhere

0

0

0

0

Reduce number of tripss

Compress working week

1

2

2

2

-

Trip chain

0

0

0

0

-

Work from home

1

2

2

2

-

Shop from home

0

0

0

0

Change mode

Ride share

1

2

3

3

-

Public transport

1

2

3

3

-

Walk/cycle

1

2

3

4

Sell the car

-

0

0

1

2

Move house

-

0

0

1

2


1 = Weakest possible response, 5 = strongest possible positive response
-1 = Weakest possible negative response, -5 = strongest possible negative response
0 = No response


*Where flexible working hours are part of an over all flexible approach to working which allows working at home.
**May require incentives unless there is improvement in provision.

Level of response
The price elasticity of demand varies with context, primarily the type of trip, traveller, price elasticity of related goods and services, and whether the elasticity accounts for short term and long term demand response. In the case of response to flexible working hours it is likely that unless there are incentives to use alternatives, the elasticity in relation to mode will be low, i.e. most change will be in time of travel, rather than mode choice. Although, where ride sharing is an option, the elasticity may be greater.

Supply impacts
The introduction of flexible working hours will not affect the supply of road space or the supply of alternatives to solo driving.

Financing requirements
There are no financial requirements.

Expected impact on key policy objectives
Flexible working hours has potential to contribute to a number of key objectives through reduction in congestion, but the scale of contribution is dependent on the number of organisations in an area offering flexible hours, the scale of up take and the degree of variability.

Contribution to objectives

Objective

Scale of contribution

Comment

Efficiency

1

The contribution will be greater in an area dominated by organisations offering flexitime, e.g. a city centre dominated by offices. However, contribution may be limited if staff do not significantly vary their travel time due to other commitments or personal preference. Where there is a shift to the shoulders of the peak this will increase congestion then.

Liveable streets

2

The contribution will be greater in an area dominated by organisations offering flexitime, e.g. a city centre dominated by offices. However, contribution may be limited if staff do not use the opportunity to travel be means other than solo driving.

Protection of the environment

1

By reducing air pollution and pressure on green space. The contribution will be greater in an area dominated by organisations offering flexitime, e.g. a city centre dominated by offices. However, contribution may be limited if staff do not use the opportunity to travel by means other than solo driving.

Equity and social inclusion

-1

There are many occupations unsuited to flexible working hours, making it an inequitable measure.


Safety

1

Through reduced car use.

Economic growth

1

The impact on a firms’ efficiency and productivity are likely to be much greater than benefits from reduced congestion.

Finance

0

The only costs should be minor administrative tasks for human resources.


1 = Weakest possible positive contribution, 5 = strongest possible positive contribution
-1 = Weakest possible negative contribution -5 = strongest possible negative contribution
0 = No contribution

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Expected impact on problems
As with impacts on objectives flexible working hours has potential to contribute to the alleviation of a number of key problems through reduction in congestion, but the scale of contribution is dependent on the number of organisations in an area offering flexible hours, the scale of up take and the degree of variability.

Contribution to alleviation of key problems

Problem

Scale of contribution

Comment

Congestion-related delay

1

The contribution will be greater in an area dominated by organisations offering flexitime, e.g. a city centre dominated by offices. However, contribution may be limited if staff do not significantly vary their travel time due to other commitments or personal preference. Where there is a change in travel time peak spreading could merely extend the period of congestion.

Congestion-related unreliability

1

The contribution will be greater in an area dominated by organisations offering flexitime, e.g. a city centre dominated by offices. However, contribution may be limited if staff do not significantly vary their travel time due to other commitments or personal preference. Where there is a change in travel time peak spreading could merely extend the period of congestion.

Community severance

1

Through reduced congestion.

Visual intrusion

1

-

Lack of amenity

1

-

Global warming

1

If congestion is reduced sufficiently to remove stop start conditions.

Local air pollution

1

If congestion is reduced sufficiently to remove stop start conditions.

Noise

0

-

Reduction of green space

0

-

Damage to environmentally sensitive sites

0

-

Poor accessibility for those without a car and those with mobility impairments

1

Accessibility benefits will only result where public transport is able to benefit from reduced congestion.

Disproportionate disadvantaging of particular social or geographic groups

-1

Flexible working hours are not appropriate to many occupations.

Number, severity and risk of accidents

1

Through reduced congestion

Suppression of the potential for economic activity in the area

1

The impact on a firms efficiency and productivity will be greater than benefits from reduced congestion, although these may be greater in an area dominated by organisations offering flexitime, e.g. a city centre dominated by offices.

1 = Weakest possible positive contribution, 5 = strongest possible positive contribution
-1 = Weakest possible negative contribution -5 = strongest possible negative contribution
0 = No contribution

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Expected winners and losers
One would not expect everybody to benefit equally from any transport measure and this is especially true of one targeted at particular groups of employees. Nevertheless, benefits of reduced congestion will accrue to all road users.

Winners and losers

Group

Winners / losers

Comment

Large scale freight and commercial traffic

-1

Where there is a change in travel time, peak spreading will extend the period a road is subject to congestions, reducing utilization of freight vehicles making high value journeys.

Small businesses

1

Will benefit if there is a noticeable reduction in congestion

High income car-users

1

High income associated with high value of time, therefore may continue to drive – those working flexible hours will benefit from ability to avoid peak hours

People with a low income

0

-

People with poor access to public transport

0

-

All existing public transport users

1

Where routes used benefit from reduced congestion.

People living adjacent to the area targeted

1

May benefit from reduced congestion

People making high value, important journeys

1

These journeys will have higher values of time and may continue to be made by car, but those working flexible hours will benefit from ability to avoid peak periods

The average car user

2

Where they are able to travel more efficiently, saving time and money.


1 = weakest possible benefit, 5 = strongest benefit
-1 = weakest possible disbenefet, -5 = strongest possible disbenefit
0 = neither wins nor loses


Barriers to implementation

Scale of barriers

Barrier

Scale

Comment

Legal

0

-

Finance

0

-

Political

0

-

Feasibility: occupations suited to flexible working hours, e.g. office work

0

Some effort from transport authorities may be needed to persuade firms to implement flexible working hours, but the efficiency and productivity benefits a firm experiences should make the task easy.

Feasibility: occupations requiring continuous machine operation or public service provision

-1

Flexible hours are not impossible, but a higher degree of co-ordination and rigidity is needed to ensure cover


-1 = minimal barrier, -5 = most significant barrier

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Text edited at the Institute for Transport Studies, University of Leeds, Leeds LS2 9JT