Flexibility loss and worker well-being: what happens to job satisfaction when workers lose their telework usage?

Abstract

Abstract The association between flexible work arrangements (FWA) and worker well-being has been extensively investigated. However, the Covid-19 pandemic has generated a new phenomenon where workers return to inflexible workstyles after experiencing FWA. This article examines the consequence of this ‘flexibility loss’ with attention to telework and job satisfaction (JS). Using panel data collected by the Japanese government in 2020–2021, regressions and generalized structural equation modeling reveal (a) workers who frequently telework exhibit higher JS in both years; (b) on average, losing telework does not affect JS; and (c) workers who experienced telework-related challenges in 2020 and continue to work remotely next year report lower JS, whereas those who lost telework opportunities possess higher JS. These results suggest that a new type of labor stratification emerges based on the compound of workers’ FWA experience (upsides or downsides) and their FWA usage (continuation or withdrawal), which affects well-being either functionally or adversely.