Understanding Flexible Working: A Stress-Free Guide for UK SMEs

By Rosie Campbell, Thrive. 24th December 2024

As a small business owner, you’ve likely heard a lot about flexible working. It’s often presented as a legal minefield or an overwhelming challenge for employers. But here’s the good news: flexible working doesn’t have to be complicated. With the right approach, it can become a valuable tool for attracting and retaining top talent, boosting productivity, and creating a happier workforce.

At Thrive., we know how daunting the topic can feel. That’s why this guide simplifies the essentials of flexible working — what it is, what it isn’t, and how to implement it without headaches.

What Is Flexible Working?

Flexible working refers to any arrangement that allows employees to adjust when, where, or how they work to better meet their needs. It’s not just remote working or reduced hours — flexible working encompasses a wide range of possibilities to suit both your business and your team.

Under UK law, employees now have a day-one right to request flexible working [1]. This means that flexibility isn’t just a nice-to-have — it’s an integral part of how modern businesses operate.

What Flexible Working Isn’t

Let’s clear up some misconceptions:

• Flexible working doesn’t mean reduced commitment. In fact, employees with flexible arrangements often show higher loyalty and productivity [2].

• It isn’t only for parents. Flexible working benefits everyone, from young professionals to those nearing retirement.

• It’s not a free-for-all. Employers still have the right to assess and refuse requests based on valid business reasons.

Types of Flexible Working Arrangements

Flexible working can take many forms, including:

Part-Time Work: Employees work fewer hours than full-time schedules.

Flexitime: Staff choose start and end times within agreed limits.

Compressed Hours: Employees work full-time hours over fewer days, such as a four-day workweek.

Job Sharing: Two people share the responsibilities of one full-time role.

Remote Working: Employees work from home or another location.

Staggered Hours: Employees have different start, finish, or break times.

Annualised Hours: Staff work a set number of hours over the year, with flexibility on when those hours are completed.

Legal Framework for Flexible Working in the UK

As of April 2024, the UK Government introduced significant updates to flexible working legislation [1]:

• Day-One Right to Request: Employees can now request flexible working from the first day of their employment.

• Number of Requests: Employees can make up to two requests within a 12-month period [3].

• Response Timeframes: Employers must respond within two months, reduced from the previous three-month limit [4].

When considering a request, employers must follow a reasonable process, which includes:

• Reviewing the potential impact on the business.

• Discussing the request with the employee.

• Offering an appeal process if the request is refused.

How to Handle Flexible Working Requests

Managing requests doesn’t have to be stressful. Follow these steps to ensure you stay compliant while maintaining control:

1. Encourage Written Requests

Employees should submit a written request detailing:

• The change they’re seeking.

• When they’d like it to start.

• How it may impact the business and how those challenges could be addressed [4].

2. Assess the Request

Consider whether the request is practical for your business. For example, could you adjust team schedules, or would the arrangement disrupt critical operations?

3. Communicate Openly

Discuss the request with the employee. Sometimes, a compromise can be found, such as offering a trial period.

4. Make a Timely Decision

Ensure you respond within two months. If you reject the request, provide clear, lawful reasons, such as:

• Additional costs.

• Impact on customer demand.

• Difficulty in reallocating work.

5. Keep Records

Document every step of the process, including the decision-making rationale and any correspondence with the employee.

Benefits of Flexible Working

Flexible working isn’t just about meeting legal requirements — it can also benefit your business in significant ways:

• Increased Productivity: Flexible workers are often more focused and productive [2].

• Improved Retention: Businesses offering flexibility see a 50% reduction in staff turnover [5].

• Better Employee Satisfaction: Happy employees lead to higher morale and loyalty.

• Enhanced Recruitment: Offering flexibility makes your business more attractive to top talent.

For example, one of our clients, a small consultancy, implemented a flexitime policy that allowed employees to adjust their hours. Within six months, their employee satisfaction scores improved by 30%, and absenteeism dropped by 25%.

Best Practices for Flexible Working

If you’re introducing flexible working for the first time, here are some tips to make it a success:

1. Be Clear About Your Policy

Develop a clear, written policy that outlines how employees can request flexible working and what criteria you’ll use to assess requests.

2. Start with a Trial Period

If you’re unsure how an arrangement will work, propose a trial period to see how it impacts your operations.

3. Train Managers

Ensure line managers understand how to handle flexible working requests and support employees. Mismanaged requests can lead to dissatisfaction or even legal disputes.

4. Regularly Review Arrangements

Flexible working isn’t static. Check in periodically to ensure arrangements are still working for both parties.

How Thrive. Can Help

At Thrive., we know that managing flexible working requests can feel like another item on an already packed to-do list. That’s why we’re here to take the stress out of the process.

Here’s how we can help:

Policy Development: We’ll create a tailored flexible working policy for your business, ensuring compliance with UK legislation.

Manager Training: Equip your line managers with the skills and confidence to handle requests fairly and professionally.

Request Handling Support: From drafting correspondence to mediating discussions, we’ll guide you through every step of the process.

Wellbeing Integration: We’ll show you how flexible working can boost employee satisfaction and wellbeing while aligning with your business goals.

Flexible working doesn’t have to be a headache. Let Thrive. help you implement it seamlessly, ensuring your business stays compliant and competitive.

Conclusion

Flexible working is no longer just an option — it’s a key part of modern business strategy. By understanding the legal framework, exploring the range of options, and adopting best practices, you can create a workplace that works for everyone.

If you’re unsure where to start, Thrive. is here to help. Together, we’ll take the stress out of flexible working, so you can focus on what you do best: growing your business.

Let us know if you’d like help transforming flexible working from a challenge into an opportunity for your business. Contact Thrive. today!

References

[1] GOV.UK. Flexible Working: Overview. Available at: https://www.gov.uk/flexible-working

[2] CIPD. Flexible Working and Productivity Report 2023. Available at: https://www.cipd.co.uk

[3] Acas. Code of Practice on Requests for Flexible Working. Available at: https://www.acas.org.uk

[4] DavidsonMorris. Flexible Working Changes 2024. Available at: https://www.davidsonmorris.com

[5] Engage for Success. Employee Engagement and Retention Insights 2023. Available at: https://engageforsuccess.org