This shift highlights the growing importance of flexible working in today’s labour market. The pandemic accelerated the demand for more adaptable work arrangements, and businesses that offer these options are likely to become more attractive to potential hires. Workers increasingly value the ability to balance personal and professional responsibilities, and many are willing to change jobs or even leave their profession altogether if their need for flexibility is unmet. Employers that fail to accommodate this shift risk losing out on top talent, particularly in a competitive market.
For businesses, the new legislation brings challenges, especially for smaller companies with limited resources. While the grounds for refusing flexible working requests remain unchanged, employers must now engage in more thorough consultations before rejecting a request. However, those that proactively embrace flexible working may find themselves better positioned to attract and retain diverse talent. Flexible working options are particularly appealing to underrepresented groups, such as parents and carers, who are more likely to apply for jobs that offer flexibility.
With talent shortages affecting multiple sectors, offering flexible working arrangements could become a key differentiator for companies. As the labour market tightens, the ability to accommodate employees’ needs for flexible work will likely be a determining factor in both recruitment and retention, reigniting competition for the best talent.
Matt Monette, UK Country Manager, Deel, commented:
“The government has been clear that ‘getting the economy moving again’ is its goal for these new proposals. And the past few years have shown that lack of flexibility is a key reason why many marginalised groups, like carers and working parents, traditionally leave the workforce temporarily or permanently.
“According to a survey we conducted in partnership with Momentive, more than four in five (83%) mothers with children under the age of 18 say that remote work has helped them “a great deal”. Changing the law so flexible working is the default will give more choice to workers, and in turn drive growth for British businesses. There is a clear correlation between engaged, motivated workers and business outcomes.
“As this bill pushes business owners towards flexibility, we expect to see more forward thinking employers redesigning workplace perks and norms to ensure that they don’t follow a one-size-fits-all model. Instead, we’ll see tailored workplace packages that cater for all types of employees, ensuring that everyone can do their job to the best of their ability. And it’ll be those that resist this new way of working, and don’t offer compelling work structures, that will likely miss out on the top talent.”
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References:
- CIPD, “Employment Rights Bill is a landmark moment for British workers’ rights.”
- HR Grapevine, “The Flexible Working Bill – what HR needs to know.”
- Personnel Today, “Flexible working changes 2024: How the new law works.”
- GOV.UK, “Millions to benefit from new flexible working measures.”