HR Strategy

World of HR: Finland is the happiest country in the world (again), partly thanks to its work-life balance

Since 1996, full-time workers have been able to shift their work schedules by up to three hours.
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Francis Scialabba

· less than 3 min read

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Numerous studies have shown that workers, no matter where they’re based, want more flexibility and work-life balance.

Finland, the world’s reigning happiest country, has required employers to offer many employees flexible work schedules for nearly three decades, serving as a model for other countries.

Where in the world? The Working Hours Act went into effect in 1996 and stipulates that employers must allow eligible workers to shift their schedules by up to three hours, according to the World Economic Forum. Hypothetically, if a 9-to-5 employee wanted to enjoy some daylight hours in January (when the sun doesn’t rise until around 9am in Helsinki), they could begin their day at 12pm without penalty. Or a parent could start their workday earlier to accommodate their child’s school schedule.

By 2011, 92% of Finnish employers offered flexible work arrangements.

The law was then amended in 2019, allowing full-time workers to choose their start time and location at least half the week. These policies are, in part, why Forbes Advisor named Helsinki the second best city for work-life balance in 2023.

“People are more productive when the working time arrangements are such that they can cope with life at work and home, and reconcile the different demands,” Tarja Kröger, an advisor at Finland’s Ministry of Employment and the Economy, told the BBC.

Satellite view. Work flexibility is about more than just hours worked and can look different based on someone’s job function, location, or employer. Several other countries have implemented their own flexibility rules. For example, Australia’s Fair Work Act of 2009 allows employees to request to work remotely or on a modified schedule. The UK passed similar legislation with its Flexible Working Bill in 2023.

Still no word on legislation that would allow workers to hibernate through the bitter arctic winters.

Quick-to-read HR news & insights

From recruiting and retention to company culture and the latest in HR tech, HR Brew delivers up-to-date industry news and tips to help HR pros stay nimble in today’s fast-changing business environment.