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Flexibility and security: an asymmetrical relationship?

tion, extensive use of precarious workers or outsourcing, result into a lower investment of the com-
pany in human capital and, hence, in lower productivity. Workers that are under-paid have reduced
motivation and attachment to their workplace. Increased labour mobility also weakens loyalty to the
company/organization. By contrast, job stability, access to training, job enrichment, career opportu-
nities and work-life balance improve the commitment of the workforce and its performance, to the
benefit of the employer.

Diagram 3: Implications of various forms of flexibility for companies and workers

form of flexibility	implications for companies	implications for workers
temporary (fixed-term) employment contracts	• higher quality matches, higher efficiency • lower incentive to invest in human capital, decreasing productivity • opportunity to assess the potential of new recruits without risking dismissal costs	• job instability leading to job insecurity • shorter duration of unemployment • “port of entry” or trap to precarious employment? • vulnerability to new social risks • few (if any) training opportunities, as well as employment and SS rights • low job satisfaction • lower work attachment • less combination security
involuntary part-time work voluntary part-time work	• higher numerical flexibility • more committed employees	as above • possibility to combine work and family responsibilities
low EPL-index	• easy firing & hiring procedures to adjust the number of workers to demand fluctuations • disincentive to invest in innovation and functional flexibility, as a response to competitive pressures	• job insecurity • income instability • uncertainty for the future
working time flexibility determined by employers (company oriented)	• better response to fluctuations of demand • better use of equipment and human capital	• difficulties in achieving a work-life balance • possibility to adjust start and finishing times
individualized working time arrangements (employee oriented)	• mutual benefits for companies and workers	• greater working time autonomy • possibility to accumulate hours for shorter or longer periods of leave
functional flexibility	• improved performance of the workforce	• access to training, continuous updating of skills • increased employability • job satisfaction
wage flexibility	• rationalization of wage costs	• increased income for some, decreased earnings for others

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