Ironically, the UK’s new flexible working laws, a significant attempt to modernise the country’s working landscape, came into effect on 6 April – a Saturday. Even legislation needs a weekend lie-in, apparently.
Admittedly, it’s the beginning of the new financial year. Yet that no one thought to look at the calendar and bring in the make the Flexible Working Act take force on, say, a Monday, or even the first of the month, is sadly indicative of a well-intentioned but poorly executed plan that hasn’t considered the small, vital details. Or, indeed, contemplated the knock-on impact of such a bill, which is likely to pour gasoline on the already hot issue of flexible working.
The Flexible Working Bill, which received Royal Assent last July, aims to empower employees and boost productivity. Previously, new hires had to wait half a year before submitting a request for flexible work models, including remote working or a four-day week. Now, they can ask on their first day.
In theory, the move will make flexible working more accessible, but its questionably-timed, fanfare-lacking implementation has baffled both workers and employers.
A study by the aptly named workplace communication platform Slack found that most workers believe the ability to work flexibly will help their company grow more quickly (74%). However, a colossal 72% of businesses still need to share information about the new rules with their staff proactively.
This lack of communication is particularly worrying, as 55% of employees are planning to request flexible working under the updated legislation, according to the Slack research. Many companies must prepare for the potential influx of requests, with 57% of UK managers expressing concern about receiving more flexible working applications.
Additionally, the definition of “flexible working” is open to interpretation. Is time or location flexibility better? For some, it might mean working from home, while others may prefer a four-day week or flexible hours.
Ultimately, this ambiguity could lead to an entrenched, two-tier workforce, where those who can work flexibly reap the benefits, while those in frontline roles such as—teachers, medical staff, and train drivers – are left behind.
These essential workers, who form the backbone of our society, often cannot work from home or remotely due to the nature of their jobs. As a result, we may see a talent drain from these critical sectors as people seek out more flexible opportunities elsewhere. The long-term implications of this shift could be severe, with already strained public services facing further staffing challenges.
Notably, global data shared on 8 April by Stanford University professor Nicholas Bloom, when delivering the 2023–2024 Raben Lecture at Yale Law School, showed how, from March to June 2023, 58.7% of people worked fully on site, 29.3% operated using hybrid – a mix of in-office and remote work – while only 12% were fully working from home. Bloom noted that most of the first group were front-line employees, mostly non-graduates, and lower paid compared with the other two groups.
Startup challenges and opportunities
Meanwhile, the Flexible Working Act presents both opportunities and challenges for tech startups. On one hand, the ability to offer flexible working arrangements could be a key differentiator in attracting top talent. In fact, 70% of workers are more likely to apply for a job based on the company’s flexible working policy, increasing to 76% for those aged 18-34, Slack’s data shows. Startups that embrace flexibility may find themselves with a competitive edge in the labour market.
Early-stage companies, though, may struggle to accommodate a wide range of flexible working requests while trying to establish their culture and maintain the all-hands-on-deck mentality often required in the startup world. Balancing employee expectations with the demands of a fast-paced, high-growth environment will be a delicate task for founders and management teams.
While the new flexible working laws are a step in the right direction, their implementation leaves much to be desired. The government should work closely with businesses to ensure employers and employees are well-informed about the new rules and their implications. Furthermore, policymakers must address the potential unintended consequences of the new rules, such as the widening gap between those who can and cannot work flexibly.
As we navigate this new era of work, we must strive for a considered approach that champions flexibility while recognising the vital contributions of frontline workers. The Flexible Working Act needs to be, well, flexible and address these challenges head-on to create a truly fair and productive working environment for all.
The post Why the UK’s flexible working laws will entrench a two-tier workforce appeared first on UKTN.
