Flexible working reforms: The Pro's & Cons
Starting in 2014, UK employees have been granted the ability to request modifications to their employment contracts regarding their working hours, schedules, and work location.
In December 2022, the government disclosed its intentions to enact the recommendations put forth in the consultation titled "Making flexible working the default." This comprehensive plan encompasses the introduction of the Employment Relations (Flexible Working) Bill, the issuance of updated guidelines, and a commitment to additional consultations.
The measures, known as "The Employment Relations (Flexible Working) Bill" are supported by the Government and received an unopposed second reading in the House of Lords (17/05/2023), will undergo further scrutiny at a later date and is on course to become law in the coming weeks.
The proposed changes are:
- Making the right to request flexible working a ‘day one’ right, rather than only being permitted after 26 weeks of work.
- Prohibiting employers from rejecting an application without having discussed the flexible working requests and exploring other options with employees.
- Enabling employees to make two flexible working requests in any 12-month period, rather than just one.
- Shortening the period for employers to respond to flexible working requests from three to two months.
- Removing the requirement for the applicant to explain the potential impact on their employer and suggest ways these effects could be mitigated.
- Raising awareness that the current law does not prohibit an employee from applying for the right to work flexibly for a temporary period only. In due course, the government also plans a further call for evidence on how ‘informal flexibility’ (where ad hoc flexible working is permitted without formally changing the employment contract) works in practice.
The government's consultation received a positive response from 91% of participants, including numerous prominent employers, in support of the proposal for granting employees the right to request flexible working from their first day. However, there are dissenting voices among business figures such as James Dyson and Luke Johnson, chairman of Gail's Bakery, who have criticised the notion that flexible working should be the default. They argue that such an approach could lead to reduced productivity and discourage investment.
With so much information and opinions, it's difficult to know where to stand on the issue, so Harte Consulting has broken down the arguments on both sides, read on and see where you land on the issue...
Positive outcomes for employees:
- Improved work-life balance: Flexible working hours would enable estate agency employees to have more control over their schedules, allowing them to better balance their personal and professional lives.
- Reduced commuting time and costs: Flexible working options, such as remote work or flexible start and finish times, could help employees save time and money on commuting, resulting in less stress and increased job satisfaction.
- Enhanced well-being: Flexible working arrangements can contribute to better mental health and well-being by reducing stress, improving job satisfaction, and providing greater autonomy in managing work responsibilities.
- Increased productivity: Research suggests that employees who have the flexibility to work according to their preferred hours and environment tend to be more productive, leading to higher job performance and efficiency.
Positive outcomes for companies in the property & construction sector:
- Attracting and retaining talent: Offering flexible working options can be a significant draw for potential employees, particularly those who value work-life balance and flexibility. It can help estate agencies attract and retain top talent in a competitive job market.
- Expanded talent pool: By embracing flexible working, estate agencies can tap into a broader talent pool, including individuals with caregiving responsibilities, people looking for part-time or remote work, and those seeking a better work-life balance.
- Increased employee satisfaction and engagement: When employees have more control over their work schedules, they are more likely to feel satisfied, engaged, and motivated, which can lead to higher levels of productivity, better customer service, and improved overall performance.
- Cost savings: Offering flexible working arrangements can result in cost savings for estate agencies. With employees working remotely or on flexible hours, there may be opportunities to reduce office space, utilities, and other associated expenses.
Negative outcomes for employees:
- Blurred work-life boundaries: Flexible working arrangements might lead to difficulties in separating work and personal life, potentially resulting in longer working hours and increased stress.
- Reduced collaboration and communication: Remote work or flexible schedules could hinder face-to-face interaction and spontaneous collaboration among team members, potentially impacting teamwork and innovation.
- Limited career progression opportunities: Employees who work remotely or have non-traditional schedules may face challenges in networking, building relationships, and accessing development opportunities, potentially affecting their career growth.
- Feelings of isolation: Remote work or flexible schedules can lead to feelings of isolation or disconnectedness from colleagues, potentially impacting employee morale and engagement.
Negative outcomes for companies in the property & construction sector:
- Coordination challenges: Managing a workforce with diverse working hours or remote locations could pose coordination challenges, affecting team collaboration, project management, and client service delivery.
- Decreased team cohesion: Flexible working arrangements might lead to decreased team cohesion, as employees may have limited opportunities for in-person interaction and team-building activities.
- Reduced organizational culture: A shift towards remote work or flexible schedules could impact the company's culture and values, potentially leading to a loss of a sense of shared purpose and identity.
- Increased operational complexities: Implementing and managing flexible working arrangements may require additional resources, technology infrastructure, and policies to ensure effective communication, monitoring, and performance management.
In summary:
In conclusion, it is undeniable that the introduction of new flexible working laws will create a seismic shift in the workforce as we know it. The way we work, hire, and manage talent is bound to undergo a significant transformation. As employers adapt to these changes, it is crucial for businesses to align their recruitment strategies with the evolving landscape of flexible work arrangements.
At Harte Consulting, we understand the complexities that arise from such a transformation. We are equipped with the knowledge and expertise to guide you through this transition and help you navigate the changing recruitment landscape. We believe that in order to stay ahead in the competitive job market, it is imperative for companies to reevaluate their recruitment needs and strategies.
Whether you are an employer seeking to attract top talent in the flexible work era or a professional looking to explore new opportunities, we are here to assist you. Our comprehensive approach to recruitment, combined with our deep understanding of the changing workforce dynamics, ensures that we can provide tailored solutions to meet your specific needs.
Don't let the new flexible working laws catch you off guard. Reach out to Harte Consulting today to discuss how these changes will impact your organization and how we can help you adapt and thrive in the new world of work. Contact us today!
Together, let's embrace the opportunities that flexible working brings and shape a workforce that is more agile, productive, and fulfilling for both employers and employees.
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