The Impact of Flexible Working Arrangements on Employer Attractiveness: A Comparative Study Between Startups and Large Companies

Abstract

Several studies on Employer Attractiveness (EA) have identified factors that influence job seekers' decisions in the labor market, such as economic benefits, a fun work environment, and career advancement opportunities. However, the impact of Flexible Working Arrangements (FWAs) on EA has not been thoroughly explored, especially, regarding the impact on firm size level, between startups and large companies, which differ significantly in terms of attractiveness. Using a 2x2 vignette experiment with a sample of young students or recent graduates job seekers, this thesis investigates the impact of FWAs on EA, focusing on large companies versus startups. The results indicate that FWAs significantly enhance attractiveness metrics, highlighting the growing importance of workplace flexibility in employment decisions. Contrary to expectations, no significant difference was found between large companies and startups on EA, regardless of whether they offer FWAs, indicating that EA levels and the impact of FWAs are similar for both. The partial correlation analysis reveals that FWAs are significantly positively associated with Interest Value and negatively with the Social Value, while the impact on Economic, Development and Application Values is marginal. The study suggests that integrating FWAs into EA practices can enhance talent attraction regardless of the firm size. This research provides valuable guidance for practitioners in HR and contributes to a large body of literature within the fields of recruitment, employer attractiveness, and HRM. Limitations are discussed and future research is suggested.