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Flexible work arrangements explained

Flexible Work Arrangements: Benefits, Challenges & Best Practices 2026

61% of full-time U.S. employees would consider changing jobs if forced back to the office five days a week (CoworkingCafe survey, February 2026, via Employee Benefit News). For HR leaders, facilities teams, and executives weighing return-to-office decisions, that number reframes the conversation: flexibility is no longer a perk, it’s a retention strategy.

Flexible work arrangements (FWAs) are alternative work structures that give employees meaningful control over when, where, and how they work. They include hybrid schedules, fully remote work, flextime, compressed workweeks, job sharing, staggered hours, and results-only work environments and in 2026 they’re the dominant model for knowledge workers across most of Europe and North America.

This guide covers everything HR, people-operations, and workplace leaders need to know about FWAs: a clear definition, the nine most common types, the measurable benefits, the real challenges, the best practices that actually work, and the technology you need to run flexibility without losing accountability. We’ve written it as a pillar reference bookmark it, link to it from your policy docs, and use the implementation framework when you roll out your next iteration.

What are flexible work arrangements?

Flexible work arrangements (FWAs) are formal work policies that let employees adjust when, where, or how they work within boundaries agreed with their employer. They differ from the traditional 9-to-5, fixed-location model in three dimensions: time (when work happens), place (where work happens), and amount (how much work happens, including reduced or compressed schedules).

In practice, a flexible work arrangement is any deliberate variation from a default schedule. That can mean working from home two days a week (hybrid), starting at 7 a.m. and finishing at 3 p.m. (flextime), working four ten-hour days instead of five eight-hour days (compressed workweek), or splitting a full-time role between two people (job sharing). Most modern policies combine several types for example, a hybrid schedule with flextime overlaid.

FWAs are typically governed by a written policy, require manager approval, and are reviewed periodically. They are not the same as ad-hoc flexibility (occasional work-from-home days) though both can coexist in the same organisation.

Flexible work arrangements in 2026 — by the numbers

Stat Figure Source
U.S. employees who would consider quitting if forced back to office full-time 61% CoworkingCafe (Feb 2026 survey of 1,140 employees)
Knowledge workers in the U.S. and Europe in hybrid arrangements ~58% Gallup State of the Global Workplace; Future Forum Pulse
Employers offering at least one form of flexible work ~80% Industry surveys (SHRM, Mercer)
Productivity uplift commonly reported in studies of flexible work 15–25% Stanford / Bloom 2024; ROWE field studies
Voluntary turnover reduction associated with flexibility 25–35% Gartner HR research
Real-estate cost reduction from hybrid-driven space optimisation 30–50% CBRE Global Workplace and Occupancy Insights; Verdantix
Increase in applicants for jobs marketed as “flexible” vs traditional 3–7× LinkedIn Workforce Report; FlexJobs data

The 9 Types of Flexible Work Arrangements

There are nine well-established categories of FWA. We cover them in summary here; for a deeper breakdown of each type with pros, cons, and real-world examples
See our dedicated guide: Discover the 10 Types of Flexible Work Arrangements →.

  1. Hybrid work: a mix of in-office and remote days, usually 2–3 days in-office per week. Most common FWA in knowledge-work organisations.
  2. Remote work: work performed entirely outside the office. May be from home, a co-working space, or anywhere with internet access.
  3. Flextime: employees choose their start and finish times within a “core hours” window (often 10 a.m.–3 p.m.).
  4. Compressed workweek: full-time hours worked in fewer than five days (e.g. four 10-hour days). Sometimes shortened to a 4-day week with reduced total hours.
  5. Job sharing: two people share the responsibilities and hours of a single full-time role.
  6. Part-time work: fewer scheduled hours than full-time, often with proportional benefits.
  7. Staggered hours: employees start and finish at different times to reduce commute pressure and on-site density.
  8. Annualised hours: total annual hours are fixed but distribution across weeks and months is flexible (common in seasonal industries).
  9. Results-only work environment (ROWE): no fixed hours or location; employees are measured purely on outcomes.

Most organisations don’t pick one; they design a policy that blends two or three (typically hybrid + flextime, or compressed week + remote). For a comparison of how each type performs across productivity, retention, and cost, read the types guide.

Benefits of flexible work arrangements

Flexible work arrangements deliver measurable benefits to employees, employers, and the broader business. The strongest evidence-based benefits are the following nine.

For Employees

  1. Better work-life balance. The most frequently cited employee benefit of FWAs is being able to handle medical appointments, school pickups, eldercare, and personal commitments without burning leave or working around a rigid schedule. Surveys consistently rank this above pay for retention among parents and caregivers.
  2. Reduced commute time and cost. Hybrid and remote arrangements typically save employees 30–90 minutes per day in commute time, plus the financial cost of fuel, transit, parking, and (in major cities) housing premiums for proximity. The cumulative impact on quality of life is substantial.
  3. Better mental health and reduced burnout. Research consistently links flexibility to lower stress, lower burnout scores, and higher job satisfaction. Employee Benefit News (Feb 2026) reported flexibility is now treated as a “core mental-health benefit” rather than a perk.
  4. Increased autonomy and engagement. Employees who control when and where they work report higher engagement scores and stronger intent-to-stay. This is especially pronounced for high-performers, the people you most want to retain.

For Employers

  1. Higher productivity. Multiple field studies including the Stanford / Bloom hybrid-work experiments and the Moen-Kelly ROWE study at a Fortune 500 IT division show productivity gains of 15–25% under well-designed flexible arrangements. The mechanism is uninterrupted deep-work time plus reduced fatigue from commuting.
  2. Lower voluntary turnover. Gartner and SHRM research consistently shows turnover reductions of 25–35% when meaningful flexibility is on offer. Turnover is one of the most expensive things in HR typically 50–200% of annual salary per departure so the ROI here usually dwarfs the cost of supporting tools.
  3. Bigger talent pool. When a role is open to flexible candidates, applications increase 3–7× and the geographic and demographic diversity of the pool widens substantially. This is particularly important for hard-to-fill technical and senior roles.
  4. Lower real-estate and operating costs. Hybrid arrangements typically allow organisations to reduce desk-to-employee ratios from 1.0 to 0.5–0.7. CBRE and Verdantix data put real-estate savings in the 30–50% range for organisations that act on utilisation data and consolidate or sub-let.
    9. Stronger ESG and sustainability profile. Reduced commuting cuts Scope 3 emissions; reduced floor space cuts energy use. Both feed into ESG reporting and B Corp obligations.

How flexible work arrangements affect employee productivity

The relationship between FWAs and productivity is well-evidenced but nuanced. The Stanford studies Bloom et al.’s field experiments with Trip.com and follow-up hybrid studies found productivity gains of around 13–22% for remote and hybrid workers, with the largest gains in roles requiring concentrated, individual work. Roles that depend heavily on real-time collaboration showed smaller gains and sometimes neutral effects.

In practice, productivity impact depends on three factors:

  • Role fit. Knowledge work and individual-contributor roles see the biggest gains. Coordination-heavy roles need careful design.
  • Policy design. Anchored hybrid (defined in-office days) outperforms unstructured hybrid because teams overlap deliberately.
  • Management capability. Managers trained in outcome-based performance management get more from flexibility than those still managing by presence.

The takeaway: flexible work arrangements increase productivity for most knowledge-work organisations but only when the policy and management practices are designed for it.

Challenges of flexible work arrangements

The most common challenges of flexible work arrangements are coordination difficulties, communication gaps, uneven adoption across roles and demographics, manager capability gaps, performance-measurement difficulty, security and compliance risk, blurred work-life boundaries, and proximity bias against remote workers. Most can be solved with deliberate policy design, manager training, and workplace technology but they don’t solve themselves.

1. Coordination and collaboration friction

When team members work different days, hours, or locations, real-time collaboration becomes harder. Spontaneous “ask a colleague” interactions disappear; meetings drift toward more attendees because everyone wants to be in the loop; calendars fragment. The most-cited symptom is meeting overload teams over-correct for the loss of casual coordination by booking more synchronous time.

How to solve it: Anchor days (everyone in on the same days), default-async communication norms, and clear meeting rules (“no meeting if a document would do”).

2. Communication gaps

Information that used to spread informally in the office now requires explicit channels. Without deliberate communication practices, decisions get made in side-channels and remote workers feel left out.

How to solve it: Documented decisions, default-public communication channels, and meeting notes shared with everyone, not just attendees.

3. Uneven access across roles

Flexible work arrangements are most available to knowledge workers and least available to deskless, frontline, and shift workers. This creates real fairness and morale issues within organisations that have both groups. The same problem appears across demographics flexibility is sometimes harder to access for younger employees, contractors, and visible minorities.

How to solve it: Be transparent about which roles can flex and which can’t, and find equivalent benefits (predictable schedules, autonomy over breaks, shift-swap freedom) for roles that can’t go hybrid or remote.

4. Manager capability gaps

The biggest single predictor of whether flexibility succeeds in an organisation is whether managers can manage by outcome rather than presence. Many can’t, at least not initially.

How to solve it: Invest in manager training on outcome-based performance management, async communication, and one-to-one coaching. This is the single most under-invested intervention in companies rolling out flexibility.

5. Performance-measurement difficulty

When you can’t see people work, you have to measure work itself. Many organisations don’t have well-defined performance metrics, and flexibility exposes that gap.

How to solve it: Define clear outcomes per role, review quarterly, and resist the temptation to introduce surveillance tools (which damage trust and have mixed evidence on effectiveness).

6. Security and compliance risk

Remote and hybrid work increases the surface area for security incidents: unsecured networks, lost devices, BYOD complications, and data-residency issues in international remote arrangements.

How to solve it: SSO, MDM, conditional-access policies, and a clear remote-work security policy. Regulated industries (healthcare, finance, government) typically need additional controls.

7. Blurred work-life boundaries

The most-cited employee challenge with flexibility is not loneliness, it’s the difficulty of switching off. Without a physical commute and a fixed office, work bleeds into personal time.

How to solve it: Right-to-disconnect policies, default-off notifications outside working hours, and manager modelling. France, Portugal, Belgium, and Australia all have legal right-to-disconnect provisions worth referencing.

8. Proximity bias

Managers can unconsciously favour employees they see in person, assigning them better projects, more visibility, and faster promotions. This is one of the best-documented risks of hybrid work.

How to solve it: Train managers on proximity bias, standardise promotion criteria, and audit promotion data by remote vs in-office status.

9. Office under-utilisation and overspending

A surprising challenge from the employer side: if you don’t actively manage office space against actual attendance, you end up paying for a lot of empty desks. Most organisations don’t right-size space until 18–24 months after rolling out hybrid and pay millions in unnecessary rent in the meantime.

How to solve it: Measure desk and room utilisation from day one with workplace management software. Use the data to consolidate floors, sub-let, or re-plan layouts.

DeskFlex’s analytics module is specifically designed to solve challenge #9 most of our customers identify 30–50% under-utilised space within their first quarter using the platform.

Best practices for implementing flexible work arrangements

These are the practices that consistently separate flexibility programmes that work from ones that quietly fail.

1. Anchor your hybrid schedule

The single most important design decision in a hybrid policy is whether you have anchor days specific days when teams or the whole organisation comes in. Unstructured hybrid (everyone picks their own days) leads to half-empty offices on most days and over-crowded ones on rare days when people coincidentally overlap. Anchored hybrid preserves the collaborative value of in-office days while keeping the flexibility of remote ones.

2. Default to async, escalate to sync

Treat asynchronous communication (documents, messages, recorded videos) as the default; reserve synchronous time (meetings, calls) for things that genuinely need real-time discussion. This protects deep-work time, makes documentation a side-effect of normal work, and disproportionately benefits employees in different time zones, caregivers, and neurodivergent staff.

3. Measure outcomes, not attendance

Define a small set of meaningful outcomes per role, review them quarterly, and stop tracking who’s in the office on which day for performance purposes. (Track attendance for facilities purposes; they’re different questions answered by different data.)

4. Train managers explicitly on flexible-work management

This is the highest-ROI single investment in any flexibility programme. A two-day workshop on outcome-based management, async communication, one-to-one coaching, and proximity-bias awareness consistently shows up as the differentiator between programmes that retain talent and ones that don’t.

5. Be transparent about what’s available to whom

Publish which roles can flex and which can’t. Explain why. Find equivalent benefits for roles that can’t go hybrid (predictable schedules, autonomy over breaks, shift-swap rights). Hiding the disparity creates more resentment than naming it does.

6. Right-size your real estate using attendance data

Most companies overpay for office space for 18–24 months after going hybrid because they haven’t measured attendance. Implement a desk booking platform and a room scheduling system on day one, and use the data quarterly to consolidate floors, sub-let, or re-plan.

7. Bake equity into the design

Audit who actually uses flexibility, and who gets promoted. If patterns suggest proximity bias or unequal access, fix the system and don’t blame individuals. Equity audits should be quarterly, not annual.

8. Iterate the policy publicly

Flexibility policies are best treated as living documents. Review quarterly, publish what you changed and why, and invite employee feedback formally. The biggest morale risk is silent changes and quiet RTO mandates that signal a loss of trust.

9. Pair flexibility with the right technology stack

Flexibility without supporting technology fails. The minimum stack is: a desk-booking platform, a room-scheduling platform, a video-meeting tool, a collaboration platform (Slack/Teams), an HRIS with leave-management, and analytics that connect attendance to space utilisation. We expand on this in the implementation framework below.

Ready to run flexibility without losing visibility? DeskFlex’s hybrid work software gives managers real-time desk and room booking, attendance data, and analytics in one platform. Book a 30-minute demo


Flexible work arrangements for specific groups

Different groups of employees gain different things from FWAs. The policy that works for a software engineer rarely fits a single parent or a caregiver one-to-one. Here’s how to think about the most common audience-specific questions.

Flexible work arrangements for parents

For working parents and especially single parents flexibility is often the difference between staying in the workforce and leaving it. Research consistently shows that parents value schedule predictability over schedule autonomy: knowing that Tuesday and Thursday will be remote days matters more than the right to choose. The most-requested specific accommodations are hybrid schedules built around school hours, flextime that brackets school drop-off and pickup, compressed weeks that create a non-working day, and explicit support for emergency caregiving (sick child, school closures).

For employers, retention of working parents is one of the strongest ROI cases for flexibility. The cost of replacing a mid-career professional typically runs 50–150% of annual salary; supporting them through a parenting season usually costs a fraction of that.

A full guide to flexible work arrangements for parents is in the development link and will be added when published.

Flexible work arrangements for women in the workforce

Women who in most countries still shoulder a disproportionate share of unpaid caregiving labour are statistically the largest beneficiaries and the largest losers of flexibility policies. The benefit: flexibility enables continued workforce participation through caregiving seasons. The risk: when flexibility is informal rather than formal, women take it more often than men, get penalised in promotions through proximity bias, and end up paying for the benefit through reduced career progression.

The best-practice response is to make flexibility formal, measured, and policy-backed not informal and manager-discretion. Track who takes flexibility and who gets promoted. If the data shows a penalty, the system needs fixing.

A full guide to flexible work arrangements for women in the workforce is in the development link and will be added when published.

Flexible work arrangements for caregivers (other than parents)

Roughly one in five employees in OECD countries provides regular care for an adult, a parent, partner, or other family member. Caregiver leave is increasingly statutory (the U.K., several U.S. states, Canada, and the EU have all expanded provisions in the last three years), and caregiver-friendly flexibility is becoming a competitive recruiting advantage in industries with aging workforces.

The most-requested accommodations: flextime for medical appointments, remote work for situations that don’t require an office presence, compressed weeks to create care days, and unpaid extended-leave provisions for acute caregiving episodes.

Flexible work arrangements in regulated and shift-based industries

For healthcare, education, government, manufacturing, and other shift-based or regulated industries, “remote-friendly” hybrid isn’t always achievable but flexibility still is. Common patterns include self-scheduled shifts within minimum-staffing constraints, shift-swap rights, predictable advance scheduling (often required by law in Fair Workweek jurisdictions), and compressed-week options where staffing models allow.

DeskFlex is used in healthcare, education, and government for exactly this kind of structured flexibility managing room, desk, and resource bookings within compliance constraints. See industry use-cases →

How to implement flexible work arrangements: a 6-step framework

This is the framework we recommend to organisations rolling out or re-rolling out FWAs.

Step 1: Assess

Map your roles, your culture, your existing policies, your real-estate footprint, and your current attendance patterns. Survey employees about what flexibility they actually want (it’s often different from what leaders assume). Benchmark against industry peers using SHRM, Gartner, or industry-specific data.

Output: a clear picture of where you are today.

Step 2: Design

Choose your policy primitives: which types of FWA you’ll offer, to which roles, with what guardrails. Decide on anchor days. Define core hours. Set technology requirements. Write the policy in plain language (under 1,500 words is a good target if it’s longer, it’s probably trying to do too much).

Output: a written, plain-language policy.

Step 3: Equip

Put the technology stack in place before you launch, not after. The minimum: desk booking, room scheduling, video meetings, collaboration platform, HRIS leave management, and analytics. Train managers on outcome-based management.

Output: working technology + trained managers.

Step 4: Pilot

Roll out to one team or department first typically 30–90 days. Collect quantitative data (attendance, utilisation, productivity proxies) and qualitative feedback (manager interviews, employee surveys). Identify what’s working and what isn’t.

Output: validated policy + a list of fixes.

Step 5: Roll out

Communicate clearly, transparently, and frequently. Publish the policy in full. Hold open Q&A sessions. Make sure managers can answer questions about their own teams. Resist the temptation to soft-launch clear communication beats incremental rollout in almost every case.

Output: company-wide adoption.

Step 6: Measure and iterate

Review quarterly. Watch utilisation, retention, productivity proxies, promotion equity, and engagement scores. Publish what you change and why. Treat the policy as a living document, not a stone tablet.

Output: continuous improvement, sustained trust.

How DeskFlex supports flexible work arrangements

DeskFlex is workplace management software built specifically for hybrid offices, healthcare, education, and government organisations that need to run flexibility without losing visibility. The platform combines:

  • Desk booking — employees reserve desks from the web or mobile app; managers see real-time occupancy.
  • Room scheduling — meeting rooms book through Outlook, Google Calendar, or directly; abandoned-meeting protection auto-releases unused rooms.
  • Hybrid work software — anchor-day scheduling, team-presence visibility, and policy enforcement built in.
  • Space management and analytics — desk-to-employee ratios, no-show rates, floor-by-floor utilisation; the data you need to right-size real estate.
  • Visitor management — QR check-in, host notifications, badge printing.
  • Integrations — MS Exchange, Outlook, Office 365, Okta SSO, Microsoft Active Directory, Zapier.
  • Deployment — SaaS or on-premise (one of the few platforms offering on-prem, which matters in healthcare, government, and other regulated industries).

Conclusion

Flexible work arrangements have moved from “perk” to “default” in most knowledge-work organisations and increasingly, in shift-based and regulated industries as well. The data is clear: well-designed flexibility programmes drive higher productivity, stronger retention, broader talent pools, and lower real-estate costs. The risks are real but manageable with anchor days, async-first norms, outcome-based management, and good workplace technology.

If you’re rolling out flexibility or trying to fix a programme that isn’t working start with the 6-step framework above. The two highest-leverage investments are manager training and workplace management software; everything else follows from those.

DeskFlex helps hybrid offices, healthcare organisations, schools, and government agencies run flexibility without losing visibility. Book a 30-minute demo


Frequently Asked Questions (FAQs)

A flexible work arrangement (FWA) is a formal work policy that lets employees vary when, where, or how much they work, within boundaries agreed with their employer. Common FWAs include hybrid schedules, remote work, flextime, compressed workweeks, job sharing, and part-time arrangements. FWAs are typically governed by a written policy, require manager approval, and are reviewed periodically. They differ from ad-hoc flexibility (occasional work-from-home days) in that they are formal, documented, and built into role and team design.

When asked to describe your flexible working arrangement for example on a return-to-office form, a new-hire form, or a benefits enrolment answer with: the type of arrangement (hybrid / remote / flextime / compressed week / job share), the schedule (which days, which hours, how many days per week), the duration (ongoing / trial / fixed-term), and any conditions (manager approval, performance review, role requirements). A typical answer might be: “Hybrid: 3 days in-office (Tue–Thu anchored), 2 days remote (Mon and Fri), with core collaboration hours 10 a.m.–3 p.m.”

The nine main types are: (1) hybrid work, (2) remote work, (3) flextime, (4) compressed workweek, (5) job sharing, (6) part-time work, (7) staggered hours, (8) annualised hours, and (9) results-only work environment (ROWE). Most organisations combine two or three — hybrid plus flextime is the most common combination. For a deeper breakdown of each type with pros, cons, and examples, see our dedicated guide on the 10 types of flexible work arrangements.

For employees, the main benefits of flexible work arrangements are better work-life balance, reduced commute time and cost, lower stress and burnout, increased autonomy, and improved mental health. Working parents and caregivers benefit especially strongly; flexibility is often the difference between staying in the workforce and leaving it. Research from Stanford, Gartner, and SHRM consistently shows higher job satisfaction and longer tenure among employees with meaningful access to flexibility.

For employers, flexible work arrangements drive 15–25% productivity gains (Stanford, ROWE studies), 25–35% reductions in voluntary turnover (Gartner), 3–7× more applicants for flexible roles vs traditional ones (LinkedIn Workforce Report), and 30–50% real-estate cost savings when hybrid is paired with desk booking and active space management (CBRE, Verdantix). Flexibility also improves diversity in hiring and supports ESG goals through reduced commuting emissions.

The most common challenges of flexible work arrangements are coordination difficulties, communication gaps, uneven access across roles and demographics, manager capability gaps, performance-measurement difficulty, security and compliance risk, blurred work-life boundaries, proximity bias against remote workers, and office under-utilisation. Most can be solved with anchor days, async-first communication, manager training, outcome-based performance management, and workplace management software but they don’t solve themselves.

Flexible work arrangements typically increase productivity by 15–25% for knowledge workers, according to field studies from Stanford (Bloom et al.) and the Moen-Kelly ROWE research at a Fortune 500 IT division. The mechanism is uninterrupted deep-work time plus reduced commute fatigue. Productivity gains are largest for individual-contributor roles and smallest for coordination-heavy roles. The size of the gain depends heavily on policy design (anchored hybrid outperforms unstructured hybrid) and manager capability (outcome-based managers outperform presence-based ones).

The best practices that consistently separate successful flexibility programmes from failed ones are: anchor your hybrid schedule with defined in-office days, default to asynchronous communication, measure outcomes rather than attendance, train managers explicitly on flexible-work management, be transparent about which roles can flex and which can’t, right-size real estate using attendance data from a desk-booking platform, audit equity quarterly to catch proximity bias, treat the policy as a living document, and pair flexibility with the right technology stack (desk booking, room scheduling, collaboration tools, analytics).

Yes — flexible work arrangements are one of the strongest tools for retaining working parents. Parents typically value schedule predictability over schedule autonomy: knowing in advance which days will be remote matters more than choosing on the day. The most-valuable specific accommodations are hybrid schedules built around school hours, flextime that brackets drop-off and pickup, compressed weeks that create a non-working day, and emergency support for sick children or school closures. The retention ROI is significant: replacing a mid-career professional usually costs 50–150% of annual salary, far more than the cost of supporting them through a parenting season.

Yes — flexibility looks different in shift-based and regulated industries (healthcare, education, government, manufacturing), but it’s still possible and increasingly common. Patterns include self-scheduled shifts within minimum-staffing constraints, shift-swap rights, predictable advance scheduling (often legally required in Fair Workweek jurisdictions), and compressed-week options. DeskFlex is used across healthcare, education, and government to manage exactly this kind of structured flexibility within compliance constraints.

Measure FWAs on five dimensions: (1) productivity — output per person, project completion rates, customer outcomes; (2) retention — voluntary turnover rates, especially in critical roles; (3) engagement — survey scores, sentiment, eNPS; (4) utilisation — desk and room occupancy vs capacity, no-show rates; and (5) equity — promotion, pay, and project-assignment patterns broken down by remote vs in-office status. Review quarterly. The biggest signal that something is working is rising engagement combined with stable or rising productivity; the biggest signal that something is broken is a widening gap between in-office and remote employees on promotion or pay outcomes.

The minimum technology stack for running a flexibility programme is: a desk booking platform, a room scheduling platform, video meetings, a collaboration platform (Slack or Teams), an HRIS with leave management, and analytics that connect attendance to space utilisation. For organisations under 50 employees, you can often combine these into 2–3 tools. For larger organisations, a dedicated workplace management platform like DeskFlex replaces 3–5 point tools with a single system.

No — remote work is one type of flexible work arrangement, not the same thing. FWAs include several other arrangements that have nothing to do with location: flextime (when you work), compressed workweeks (how many days you work), job sharing (how a role is split), and part-time (how many hours). A team can be 100% in-office and still have meaningful flexibility through flextime or compressed weeks.