What is flexible working? Every flexible work arrangement, explained

The phrase ‘flexible working’ is now a staple in business glossaries – it’s now very much a must-have employee benefit. But while we’ve all heard the term, what does it actually mean? The answer differs depending on who you ask.

Generally, flexible working encompasses several different working patterns that can be adapted to suit individual needs. As part of a push towards greater work-life balance, it is rapidly growing in popularity in the UK.

But while flexible working is one of the most in-demand perks for job seekers,the broadness of the term means that modern employers aren’t sure how they should, and can, position their stance in company messaging.

The guide below will clear the fog. We’ll go through most common types of, and laws on, flexible working in the UK, as well as the risks and opportunities it presents.

What is flexible working?

Loosely, flexible working refers to any predetermined arrangement that allows the employee to have more control over how long, where, when and at what time they work.

In today’s work environment, the ability to prioritise personal, alongside professional, commitments has become increasingly sought after. Employers have begun embracing more niche flexible working arrangements, empowering staff to choose the package that best suits their lifestyle and / or preferred way of working.

1. Remote work or telecommuting

Basics first. Remote work – where an employee works from anywhere rather than a central office – is probably the best-known arrangement.

It had a meteoric rise during the pandemic, as during lockdown, throngs of workers moved online and embraced what had once been considered a progressive and niche working model.

Office for National Statistics data suggests that around 29% of the UK working population were entirely remote in May 2023. However, the great thing about this arrangement is that your team does not have to be based in the same country to function smoothly.

Ally Fekaiki is founder of Juno, an employee benefits market. Fekaiki says that adopting a remote-first approach has allowed his 23-person team to harness expertise from Portugal, Spain, Mexico, Italy, the Netherlands, and the UK.

“Giving our staff the freedom to work from anywhere is all about keeping them happy, well and engaged,” he reveals. “It also helps with recruiting and retaining great talent.”

Fekaiki can speak from personal experience. “Moving to Barcelona from London last year vastly improved my quality of life and, as a result, my work,” he says. “This is exactly what I want for my team.”

Fekaiki attests to the risk of isolation caused by remote working, admitting this can make working together as a team more difficult for coworkers.

He cites open communication, enabled via team collaboration tools, as the solution. “We maintain regular catch-ups and workplace rituals. To foster a sense of connection the rest of the year, we also make sure to celebrate big and small wins, as these can slide under the radar in a remote environment; and we’re really active on Slack,” he adds.

2. Hybrid working

According to Owl Labs’ State of Hybrid Work report, 34% of employees would not accept a job offer if the new employer expected them to work in the office full-time.

Like remote workers, a hybrid working policy enables employees to do their job from a different location to the office setting. However, as a compromise, the employer is able to ask the employee to work from the office for specific days.

Most businesses have chosen to ask employees to come to work on designated ‘team’ days. That way, the difficulties of remote working (eg. isolation caused by a lack of socialising) can be avoided.

Andrew Jackson is co-founder of coaching tool, Rethinkly. Jackson says keeping people aligned is the biggest challenge faced by hybrid teams.

“Most of the time, miscommunication is the starting point”, he says. “This can be doubly hard when working in a hybrid situation where some people are face-to-face, but others are on screen and might not even have their cameras on.”

More on this: key things to consider when designing a hybrid work policy.

3. Four-day week

Earlier this year, the UK’s largest trial of the four-day week was revealed. The pilot proved so successful that most firms said they’d never go back (although several now have.)

Instantly, workers across the internet began clamouring for a piece of the pie. Startups’ own four-day week survey found that 78% of UK workers would like to see the policy implemented in their current workplace.

But while there are lots of UK companies adopting a four-day week, not all of them are doing it right. Executed properly, the four-day week should do what it says on the tin: a shortened workweek where staff members get the same pay for fewer hours worked.

Let’s say you work 40 hours a week currently. In a four-day week this would change to 32 hours spread over four days, with no reduction in salary.

For many, it seems too good to be true – which might be where the confusion is coming from. But there are still some practical limitations, as we’ve highlighted below:

4. Flexitime

Flexitime, as a form of flexible working, has been around for decades. Under the policy, staff must still work a particular number of hours within a workweek. That said, they can change the time they start or finish work.

This still offers workers a degree of control over their shift pattern. If you normally work 9-5, but have a doctor’s appointment at 9am, you might choose to start an hour later in order to accommodate. Any changes to schedule must first be approved by management, however.

At the more extreme end of the flexitime scale is the compressed workweek. Like the four-day week, this model allows an individual to work a traditional 35-40 hour workweek in less than five days.

Still, it is not as popular amongst staff members as it requires teams to work longer shifts, which could prove detrimental to employee health and wellbeing.

5. Part-time work and job sharing

Ever heard the phrase ‘two heads is better than one’? Job sharing is where two (or more) part-time employees literally divide the responsibilities of the role between them to cover one full-time position.

Job sharing is a great option for those industries that are struggling to access talent (which, in today’s hiring crisis, is pretty much all of them).

Given the rising number of UK employees who are choosing to go part-time, such as working parents or early retirees, the perk has become more common, and will likely continue to be into 2024.

Businesses who employ job sharers can benefit from qualified, experienced talent. Meanwhile, those who don’t want to work a permanent 9-5, or can’t afford to, can still retain the level of responsibility/seniority of a full-time position. Win-win.

6. Flexible office space

While not often discussed when it comes to flexible working, serviced offices are a much more adaptable method for running a business than renting a full-time space. That’s because coworking spaces avoid associated rental costs and business rates.

Thousands of UK SMEs have been hit hard by hiked energy prices, and many are currently operating with reduced cash flow. Serviced offices mean you don’t pay utility bills and will be on a shorter contract should you run into financial difficulty.

Plus, a flexible office space means you can still provide essential services for employees such as meeting rooms and quiet space for brainstorming sessions. But you won’t have to force them into the office every day to make full use of your rent payments.

Some of the top coworking providers – even those based in expensive locations like London – offer hybrid payment tiers so you can for half-use during work months.

7. Phased retirement and flexible retirement options

Flexible retirement, or phased retirement, refers to a flexible working arrangement where the employee (aged at least 55) is able to draw all or some of their retirement benefits even though their employment continues.

It is a good option for someone who wants to gradually decrease their work hours. Post-COVID, as swathes of older colleagues left the workforce early, it became a popular solution for those who didn’t want to say goodbye to a solid source of income just yet.

To qualify for phased retirement, employees may need to reduce their pensionable earnings by changing job roles. Some employers may therefore not be able to accommodate a phased arrangement.

Flexible working laws in the UK

The trend towards flexible working is not just being driven by employee desires. The change in direction is also a reaction to the government’s legal campaign to make flexible working more accessible.

In April 2023, the Flexible Working Bill came into effect. The legislation is designed to give more employees the opportunity to benefit from the improved working conditions that flexible work arrangements bring.

Under the new rules, employees can now request changes to their working hours, times, or location from day one of employment. Previously, they might have had to wait up to 26 weeks to appeal.

Employer’s obligations and considerations

Among the key changes introduced by the bill, employers must now:

• Consult with their employees before a flexible working request can be turned down
• Allow employees to make two flexible working requests in any 12-month period
• Respond to requests within two months (previously three)
• Provide proper reasoning for an employee before rejecting a request

Managers also cannot demand employees to lay out how a flexible working request might impact the employer. Instead, it is up to the business owner to consider the impact.

Benefits of flexible working

If you’re still unconvinced by the information above, you might still need persuading of the advantages that flexible working brings to today’s workforces. Here’s a quick rundown of the top three:

1. Improved work-life balance

Having more time for hobbies, interest, and care responsibilities relieves stress for employees. Flexible working therefore has a positive and measurable impact on health and wellbeing. It also empowers employees to have more choice over things like when they take their bank holidays.

2. Increased productivity and job satisfaction

Trusting employees to customise their own work schedules will help them to feel more motivated and improve employee engagement. This is also a simple way to limit your staff turnover rate by ensuring staff don’t feel tempted by a flexible rival job offer.

3. More attractive proposition for job seekers

Who wouldn’t be tempted by an organisational culture where the employer cares about a person’s livelihood and stress level? Flexible working adds salt to a company’s benefits and perks provision, empowering hiring managers to attract a skilled and diverse workforce.

Conclusion

To reject flexible working in 2024 would be like protesting the invention of the wheel; it’s here, it’s a pioneer, and it’s already helping successful adopters to accelerate their growth plans.

But while the perk brings plenty of benefits (improved work-life balance, increased output, and streamlined recruitment, to name a few) don’t panic if you’ve not been able to enjoy them just yet.

As with any operational change, implementing a flexible working policy takes time. We don’t recommend that companies start immediately partnering their employees up to job share.

The above article has highlighted the pros and cons of each policy to demonstrate where a model might succeed – and where it might not be necessary.

Now is the time to test out each arrangement for its strengths and weaknesses. We recommend SMEs explore and experiment with flexible working to find the combination that offers the most productive and fulfilling environment for their employees.