Studying the Relationship Between Flexible Work Arrangements and HR Cost in Service Sector: An Applied Study on Banking Sector in Egypt

Document Type : Research article

Authors

1 Giza Higher Institute of Management Sciences, Egypt

2 Higher Institute of Marketing, Commerce, and Information Systems, Egypt

Abstract

This research aims to study the impact of flexible work arrangements in its various dimensions (flexible working hours, flexible work location, and flexible work procedures) on reducing human resource costs, specifically administrative and general expenses, as well as fees and commissions, in banking institutions.The research population consists of the banking sector in Egypt, which includes 36 operating banks according to the Central Bank of Egypt's statistics. The sample consists of (10) operating banks during the period from 2019 to 2024, selected based on the Central Bank’s report issued in June 2024.
The research found that flexible work arrangements, in terms of (flexible working hours, flexible work location, and flexible work procedures), create a work environment that allows employees to perform part-time tasks that do not exceed half of the usual working hours in the organization, with payment calculated on an hourly basis, thus reducing human resource costs.
As for the empirical study, the study found a positive relationship between the dimension of flexible work procedures and administrative expenses, as well as fees and commissions. It also showed a positive relationship between flexible working hours and these expenses, in addition to a positive relationship between flexibility in work procedures and administrative expenses, fees, and commissions.
The study recommends training employees to handle modern technology and keep up with continuous developments. Additionally, it emphasizes the optimal use of available information systems within organizations, as this can help reduce human resource costs effectively.

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