Abstract
Many public accounting firms have implemented flexible work arrangements (FWAs) to reduce stress and improve work-life balance with the goal of reducing voluntary turnover. Despite the use of FWAs, public accounting is still experiencing higher than average turnover rates. Past research on the use of FWAs has found mixed results regarding the effectiveness of FWAs on reducing turnover intentions, which indicates that there may be other unexplored variables to consider. This study used social exchange theory to evaluate the impact of using FWAs on peer relationships within the workplace. Using a mediation model, this study assessed the impact of using FWAs on perceived peer resentment when an employee engages in FWAs and how these perceptions impact the intention to turnover. In addition, this study evaluated whether family-supportive organizational perceptions (FSOP) influence the relationship between the use of FWAs and the level of perceived peer resentment. A moderated mediation model was used to determine if the indirect effect of using FWAs on turnover intentions via perceived peer resentment is moderated by family-supportive organizational perceptions. Results of the study indicate that people perceived more peer resentment when they used more forms of FWAs. In addition, the results showed that increased perceived peer resentment was positively associated with turnover intentions in public accounting. The mediation effect of perceived peer resentment was significant in that the relationship between use of FWAs and turnover intentions occurs through perceived peer resentment. Support was not found for the moderation effect of FSOP on the relationship between FWA use and perceived peer resentment. This study highlights a potential unintended consequence, perceived peer resentment, of implementing FWAs in an organization. When coworkers in a workgroup experience the negative impact of peer resentment it can lead to increased turnover intentions.