January 16, 2025
Small businesses remain upbeat about flexible working
More than 80 percent of SME decision makers expect to see positive outcomes to their workforce from policy changes to flexible working rules, a new poll from NatWest Mentor suggests. In April 2024, under the previous Conservative government, new flexible working legislation was introduced across England, Scotland and Wales creating significant changes to how employees make flexible working requests and how employers must respond.
Employees can now request flexible working from day one of employment, with two statutory requests allowed annually. With these changes, employers must respond within two months (previously three months), providing written reasons for refusal.
Exploring the impact of the legislation on small and medium enterprises with 250 employees or less (SMEs), NatWest Mentor surveyed 500 business decision-makers across various industries. The results reveal both positive opportunities and ongoing challenges around the impact of the new legislation.
Among the predictions cited by SME decision-makers, two in five expect the changes will bring increased productivity (38 percent), a third believe it will lead to higher employee retention (34 percent), and almost one in four predict consequences being improved access to diverse talent (24 percent).
Amid other incentives that enhance employee experience, three in ten SMEs reported to already implementing mandatory lunch breaks for staff (29 percent), and one in five provide access to wellness apps. Similar figures also have additional initiatives in place and offer employee assistance programmes (19 percent), supplemented food (18 percent), and free private healthcare and gym memberships (17 percent).
Before the legislation came into force in April, nearly three-quarters (73 percent) of businesses had already implemented flexible working policies to varying degrees prior to the legislative changes. According to the research, most employees (63 percent) had made a request for flexible working.
Dawn Smith, Senior Employment Law & HR Consultant at NatWest Mentor, commented: “While the changes to flexible working legislation can bring challenges of implementation, there are potential benefits in supporting businesses with talent recruitment and retention. A well-managed flexible working policy can boost morale and productivity, lower operational costs, and create a recruitment advantage in the market. Although not all requests may be feasible, it is crucial that businesses are aware of the legal requirements and review the options to find solutions that work for them.”
