More: Last summer, Kristen and Eric Rezabek were feeling pinched. Eric was considering taking on a four-hour commute for higher paying jobs, while Kristen, who works two jobs, planned to add a full day to her already full-time work schedule to help cover their family's expenses.

Then, their employer presented a unique offer: an extra paid day off every week, to use however they chose.

"This was definitely a solution to value our time better, which gives us more options," Eric said.

The couple, who live with their two children on San Juan Island in Washington state, both work for San Juan County, made up of a small network of islands north of Seattle. Their union had been negotiating raises for its employees, but the county was strapped for cash and couldn't afford to boost salaries beyond a small cost of living increase.

Instead, they agreed upon a 32-hour workweek, in which employees retain their full-time positions with benefits but can enjoy reduced hours and schedule flexibility.

"There are lots of methods to provide employee benefits," County Manager Jessica Hudson said. "As long as you're open to different solutions, you might find a different way of doing things that allows you to keep wonderful talented employees, even if it's not a direct pay raise."

The county has now completed its first full year of the new schedule and released a report on its findings Tuesday evening. San Juan County touted a host of positive outcomes " from recruiting to retention to employee happiness " and a cost savings of more than $975,000 compared to what the county would have paid if it met the union's pay increase demands.