Working from home
Organisations continue to grapple with flexible working as a key benefit. The Financial Conduct Authority won a Tribunal hearing against an employee who had sought to enforce their right to work entirely from home. The flexible working request was denied, even though the manager had been working completely from home since the pandemic. The FCA’s policy to enforce staff working two days a week in the office was upheld by the tribunal.
The case withstood the requirements of the Employment Rights Act 1996 which supports employees’ requests to work flexibly. The act says that employers can refuse applications on the grounds of detrimental impact on work quality or on performance, or both. The new Flexible Working (Amendment) Regulations 2023 will come into force on 6 April 2024, which gives employees the right to request flexible working arrangements from day one of employment (currently you have to be employed for at least 26 weeks to be eligible to make a request).
The FCA had argued that the employee was a senior member of staff and granting the request would affect: onboarding new staff; internal training, supervision and meeting departmental needs; attendance at in-person events and meetings; attending cascade meetings internally to facilitate knowledge sharing, and celebrating individual and team successes. The value of visible presence was emphasised.
Culture built on connection
The case highlights the potential conflicts involved when defining the modern workplace. The CIPD’s head of public policy Ben Willmott commented that finding the right balance can require compromise and give and take. He suggested that consistent policies that ensure people are treated reasonably and fairly help to clarify expectations:
“It is in employers’ interests to, where possible, provide flexible working that meets the needs of individuals and can help attract and retain employees. However, employees also need to understand that any flexibility they benefit from needs to work for the business.”
At the World Economic Forum in Davos, head of L’Oréal Nicholas Hieronimus was unequivocal in his views that remote working means that employees have “absolutely no attachment, passion or creativity. I think it’s vital to be in the office. It’s about serendipity. It’s about meeting people.”
Getting the balance right between connecting employees and empowering them to work where they want to has been an ongoing tightrope walk for companies following covid. A combined hybrid approach agreed within teams, where they come in for two to three days, seems to be the most popular option. This ensures businesses avoid employees becoming isolated and that there are processes to facilitate regular connection and recognition, to foster a strong culture within the workplace.
Trusting employees to balance work-life responsibilities
This does raise the question of whether facilitating greater productivity through collaboration must be done face to face. The counter-argument to office working is the environmental impact of the daily commute, combined with the costs. This highlights how virtual collaboration tools must be seamless to support flexible working arrangements. 50% of respondents to our UK Reward Management Survey reported that they had reduced the days in the office to reduce the commuting cost for employees.
Accessing under-represented talent pools is another key consideration. Flexi-working promotes a greater commitment to diversity and inclusion, as it enables organisations to recruit from a wider demographic, such as care givers and females, who may face more barriers to employment opportunities. Therefore, optimising collaboration through technology and infrastructure within organisations is the key to widening the talent pool and empowering employees to balance their work and home lives post-pandemic.
Since the pandemic, the working week has naturally evolved. From Belgium who has legislated a four-day work week to Pennsylvania in the US, some employers feel it drives greater productivity. A recent pilot programme was so successful that 92 per cent of participants will continue a four-day week. Employers reported a 1.4 per cent revenue increase and staff turnover dropped by 57 per cent over the trial period. Importantly, the trial varied from some taking Fridays off, to staggered models – demonstrating that there is not a one size fits all approach to organisational change.
However, flexible/hybrid working has become a key fixture in many workplaces and one which is highly valued by employees. Incorporating it at some level in your benefits offering will help strengthen the overall reward package offered to employees.
Get in touch
From new and innovative ways to differentiate yourself as an employer in terms of how you empower employees to work flexibly or promote wellbeing, to the more traditional cash-led benefits that are non-negotiables for others, employers are continuously monitoring the range of benefits that offer people the most value. Benefits benchmarking will continue to be a priority for employers throughout 2024.
To support you as you look beyond financial rewards to retain talent, join our webinar on 31 January, which will explore the role of the human touch and key considerations for employers to engage and retain their key talent. On 6 February we will then be joined by benefits specialist Deb Sussex who works with employers to refresh and make sure the range of benefits they offer are fit for purpose. Register and join us to discuss how to overcome current employee benefits challenges and fine tune your benefits offering to drive greater engagement.
