What do we mean by flexible working?
This example illustrates the kind of informal flexibility that is increasingly found in UK workplaces. Small firms may also offer part-time work, job-sharing and the opportunity to work from home on a regular basis. Small employers are less interested in sophisticated policies than in arrangements that will work and enable individual employees to adopt the patterns of work that suit them best.
The last government adopted a more conventional approach to encouraging flexible working by introducing legislation giving certain employees the right to request it. The right originally applied to parents of children under five, or disabled children under 18, but has subsequently been extended to parents of older children and others with caring responsibilities. Now the new government has announced its intention to apply the right to all employees and is consulting business about how best to implement this.
In recent years there has been a big increase in the proportion of people with access to flexible working arrangements. Such arrangements are recognised as contributing significantly to helping individuals achieve a better work-life balance. A recent PricewaterhouseCoopers (PwC) survey found that flexible working is the benefit most valued by UK employees, ahead of material perks such as bonuses. So the extension of the statutory right can be seen as a sweeping-up operation, as the majority of employers already offer flexible working to most or all employees, not just those who have the right to ask for it.
In recent years there has been a big increase in the proportion of people with access to flexible working arrangements
Firms with fewer than 250 employees employ over eight million people in the UK and represent a significant element of our wealth-creating sector. The way in which they run their businesses is important, not only to the economy but also to the well-being of a third of the UK workforce.
Some employers find it hard to see how they can offer flexible working to staff without putting at risk delivery of production or service targets, or causing resentment among other employees. However, research by the Chartered Institute of Personnel and Development (CIPD) and British Chambers of Commerce (BCC) has shown that small firms can be very good at giving their staff greater flexibility in working arrangements. Without the bureaucracy and management layers that can afflict larger organisations, small firms can provide outstanding examples of working practices that deliver benefits to employees, customers and their own profitability.
A clear business case
Although the statutory right to request flexible working has helped to popularise the idea, the small firms we spoke to made it clear they had adopted flexible working arrangements because it made good business sense. The main benefits they identified were:
- Recruitment and retention: by offering flexible working, companies can attract and keep people who would not otherwise be working for them
- Engagement: employees are grateful for the chance to achieve a better balance between home and work, and as a result show greater loyalty and commitment
- Reduced stress: working flexibly makes it easier for many employees - particularly those with small children - to cope with stressful jobs
- Reduced absence and employee turnover: flexible workers are off work less frequently and less likely to leave, leading to lower recruitment, induction and training costs
- Reputation: offering flexibility helps build a positive image of the employer among customers and in the wider community
