Insights > HR > What is flextime? A guide to flexible work schedules

What is flextime? A guide to flexible work schedules

Published By:

Jon Davis

Updated: June 10, 2025

Much like it sounds, flextime allows workers to choose their starting and ending hours. It can help your organization improve productivity and attract top talent, while also addressing potential challenges such as communication barriers and overtime management.

Key takeaways

  • Flexible work arrangements allow employees to select their starting and ending work times within an agreed-upon range of hours
  • Employees appreciate workplace flexibility and work-life balance, while businesses see growth in productivity and recruitment efforts. Flex time can also be a form of indirect compensation
  • When developing flexible work options, businesses must consider legal issues, shift-differential pay, clear policy development, time-tracking technology, and effective communication around flexible hours

Flexible working hours can also support your overall HCM, or human capital management strategy, to create a positive workplace culture. If you are just getting familiar with this type of policy, this guide will explain how it works, the different forms of flextime, and how some employers set these up.

What is flextime?

First things first, flex schedules provide an alternative to the standard 9 am to 5 pm, Monday through Friday work week. Flexible time means employees get to determine their start and end times, provided they meet their obligations.

 

Far from being just a passing fad, flexible work hours have become a core expectation for today’s workforce. In a recent survey by The Conference Board, a nonprofit think tank, 66% of workers identified flexible hours as one of the key perks they seek alongside a competitive salary.

Types of flexible work schedules

Your business can incorporate several types of flexible work schedules, such as:

  • Flextime: As an example of a flex-time schedule, employees could work from noon to 8 pm or 6 am to 2 pm
  • Compressed workweeks: For example, compressed workweeks allow your team members to work 40 hours in just four days — or three long days and then enjoy an extended weekend. This type of flexible work schedule is popular in the healthcare, tech, and manufacturing industries.
  • Remote work options: With remote work options, employees can choose to work in alternate locations, sometimes on a hybrid basis or a full-time schedule. Remote work options can also incorporate flex-time hours and compressed workweeks.

Other types of flexible work schedules include job sharing, where two people share a full-time position, seasonal schedules, or annual work hours. This is when an employee must meet a certain number of work hours per year, but the scheduling is flexible.

 

Now that we better understand some common flex-time options, let’s see how they can have positives for both employees and employers.

Benefits of flextime

Both businesses and team members can benefit from flexible schedules with:

  • Enhanced work-life balance: When your employees have the opportunity and flexibility to craft a work schedule that meshes with the rest of their life, they enjoy greater work-life balance. This leads to increased retention of top talent for your organization
  • Reduced commuting stress: Today’s workers spend more than 10% of their available time commuting to work. The more time they spend on commuting, the more their quality of life and work satisfaction plunge. Commuting also leads to inactivity, which can exacerbate poor physical health. When workers can flex their schedules around rush hour or work from home, reduced commuting stress leads to greater job satisfaction
  • Increased productivity and employee satisfaction: More than 40% of HR leaders reported that productivity increases based on flexible work policies that let employees work when they are most available and engaged. Flexible work arrangements also support worker satisfaction and well-being, increasing job satisfaction by 60%

 

While the benefits of these cheduling arrangements are compelling, it’s equally important to consider the potential drawbacks.

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Challenges of implementing flextime

Here are some challenges to get ahead of when introducing flextime into your organization:

  • Miscommunication and coordination: Communication is key if you launch flexible schedule options. If workers and managers don’t communicate and coordinate well, you could find yourself without key workers when and where you need them. Make sure flex-time schedules and protocols are established and communicated in advance. Team members should also know who to contact if they need to make an update.
  • Scheduling meetings effectively: If you have team members working every hour of the day, it can be more challenging to schedule group meetings. In that case, try to find an overlapping time or set a weekly meeting that everyone is expected to attend.
  • Technological barriers: When team members work remotely, they require secure remote access from various locations. Effective communication is also essential, so video conferencing and instant messaging are important tools. Finally, make sure your cybersecurity policies are updated and airtight to prevent any security lapses for flex or remote workers.

 

It can also be more challenging to effectively monitor employee performance and establish a strong company culture. These concerns should also be considerations when creating or updating these types of policies.

Strategies for successful implementation

To successfully implement flexible time in your organization, consider the following tips and strategies:

  • Develop clear policies. This shouldn’t be implemented on the fly. Make sure your HR team has developed and shared clear policies, procedures, and expectations for flexible or remote work. Add them to your employee handbook, review them regularly, and update them as needed.
  • Use technology for time tracking: When it comes to salary vs. hourly pay, you must also pay careful attention to time tracking. The good news is that there are more options than ever for simple time tracking: web-based trackers, mobile apps, and more can help your employees easily record their work hours.
  • Focus on effective communication practices: Flexible work policies and expectations should not surprise employees. To that end, communication should be a top priority for every organization offering flexible schedules. Regularly share options, expectations, and updates on your organization’s various working arrangements.

Legal considerations

Legal compliance is also essential to your organization’s successful flexible schedule arrangement. This can include:

  • Understanding labor laws: While the Fair Standards Labor Act does not explicitly address flex time, it requires nonexempt employees to be paid overtime when they exceed 40 hours in a work week. Employees must also be paid minimum wage or more for hours worked.
  • Ensuring compliance with regulations: State and local regulations can also affect flexible schedules. Your legal and HR teams can ensure you meet specific requirements, keep documentation of hours worked, and adhere to company policies.
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Flextime is a perk that employees will appreciate

Adding flexible work schedules to the mix can help employers attract talented job seekers and provide opportunities for current employees to increase productivity. Though there are several ways to set up a policy, it can be worth a closer look for companies wishing to stand out from competitors. Employers can typically streamline this process with small business payroll software that syncs with time tracking to stay compliant and make sure hours are recorded accurately. Good luck figuring out if flextime is the right option for your business, and our team is here to help with your payroll needs!

Take a tour to see how easy payroll can be.

Jon Davis is the Sr. Content Marketing Manager at OnPay. He has over 15 years of experience writing for small and growing businesses. Jon lives and works in Atlanta.

FAQs employers have about flextime

  • What are flex-time hours?

    Flex-time hours are alternative work arrangements that go beyond the typical 9 am to 5 pm schedule.

  • What is a flex-time period?

    A flex-time period is a set period during which a worker must work a specified number of hours, such as 80 hours in two weeks.

  • Is flextime overtime?

    While flextime is not overtime as a rule, it can involve overtime hours.

  • Do you get paid for flextime?

    Yes, workers must get paid for flextime.