Employees are less likely to be injured while commuting. Less time taken off due to family crisis. Less productivity loss due to early wind down towards the end of the work day as employees mentally start to prepare to leave and clear their desks. Flexible working is more appealing to well educated graduates, so they are less likely to switch jobs as freely. Maternity and medical related incidents will result in less staff leaving employment because they can work almost right up to and much sooner after the event.
Employees can move further away without losing their jobs.
Employer can appeal to a large labor pool of disabled, those with young families, or the elderly. Employer can tap into a larger labor pool that is futher away from city centers and also often less expensive. May not need to grant public transport season tickets as an employee benefit. May be able to reduce parking subsidies as an employee benefit. May be able to reduce or eliminate catering subsidies or the facilities themselves.