Do flexible work schedules reduce turnover in U.S. federal agencies?

Agency theory suggests that when agencies adopt flexible work schedules, employees will be more likely to remain with the organization, because these programs demonstrate that the organization cares about their well-being in that flexible work schedules give them more flexibility regarding when, where, and how they perform their work. To test this proposition, cross-sectional panel data at the agency level were obtained from two federal government sources: Federal Employee Viewpoint Survey and FedScope. Furthermore, transfers and quits were the two forms of turnover examined. After lagging the independent variables behind turnover over several years so as to provide a robust test of causality, the results show only limited support for agency theory. Specifically, teleworking was found to lower quits. However, teleworking was not found to reduce transfers or turnover, in general. Furthermore, alternative work schedules were not found to have an impact on quits, transfers, or turnover generally.