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The Impact of Flexible Work Policies on Employee Well-Being and Retention in Modern Organizations

The Impact of Flexible Work Policies on Employee Well-Being and Retention in Modern Organizations
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Author(s): Ishani Gupta (Christ University, Bengaluru, India)and Ramji Nagariya (Christ University, Bengaluru, India)
Copyright: 2025
Pages: 34
Source title: Prioritizing Employee Mental Health and Well-Being for Organizational Success
Source Author(s)/Editor(s): Kittisak Wongmahesak (North Bangkok University, Thailand), Roy Rillera Marzo (Curtin University, Malaysia)and Uday Kumar Ghosh (Lincoln University, USA)
DOI: 10.4018/979-8-3373-2210-0.ch008

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Abstract

Flexible work policies have become foundational to contemporary organizational strategy, particularly in light of the transformative shifts triggered by the COVID-19 pandemic. This chapter investigates the multifaceted impact of such policies on employee well-being and organizational retention. Drawing from an integrative lens, it incorporates four major theoretical frameworks—Job Demands-Resources (JD-R), Self-Determination Theory (SDT), Conservation of Resources (COR), and Social Exchange Theory (SET)—to provide a comprehensive understanding of how flexible work arrangements influence employee engagement, satisfaction, and organizational loyalty. In addition to synthesizing existing scholarship, this chapter contributes a novel cross-theoretical model that bridges motivational psychology and organizational behavior. It also proposes a suite of policy evaluation tools that blend qualitative and quantitative metrics, enabling organizations to monitor and enhance the effectiveness of flexibility initiatives.

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