How small businesses can thrive with flexible work arrangements

Workplace transformation shows no chance of slowing down. With the increase in remote workers[1] and updated flexible working legislation[2], granting all employees the right to request flexibility from day one, small businesses must continually adjust to cater to a flexible workforce.

This means shifting from traditional fixed office hours and rigid schedules to more adaptable arrangements focused on employee well-being and productivity.

Discover different flexible work patterns for your team and solutions to help your small business adapt. Explore the advantages of variable work patterns for you and your employees, ensuring a more adaptable, productive, and balanced approach to work.

What is flexible working?

Flexible working refers to a work setup that offers employees greater freedom and choice in how, when, and where they work. It allows individuals to adjust their work hours, location, or schedule to suit better their personal needs and responsibilities, such as childcare, commuting, or other commitments. 

Flexible working may include (but not limited to):

• • Part-time hours: Working less than full-time (typically by working fewer days).
  • Compressed hours: Working full-time hours is condensed into fewer days, such as a four-day week or even a 9-day fortnight, where employees have a day off every other week and work longer hours on the other days.
  • Flexi-time: The employee selects their work start and end times (within agreed limits) but must be present during specified 'core hours,' like 10 am to 2 pm daily.
  • Hybrid working: This involves working both remotely, such as at home, and in the employee’s usual workplace.
  • Job sharing:  Two people do one job and split the pay, benefits, and entitlements.
  • Phased retirement. Employees nearing retirement choose when they want to retire. This means they can reduce their work and hours to part-time.

     

The benefits of flexible working

Small businesses can reap the benefits of adopting flexible working arrangements. These advantages go beyond just the employees and can also have a positive impact on your business.

1. Attract and retain global talent

Did you know that almost a quarter of jobs[3] are expected to change by 2027?  This prediction emphasises how crucial it is for small businesses to adjust to changing work trends and invest in strategies, such as flexible working arrangements, to stay competitive. 

That’s why we’ve identified offering flexible solutions to support remote working as a significant HR trend for 2024. 

Having said that, small businesses can find attracting and keeping talented employees challenging because of budget limits, fewer benefits, and competition from bigger companies. Highly skilled individuals might not want to work for a company that doesn't offer flexible arrangements, limiting the talent pool even further.

Without flexible schedules, existing employees might feel stuck with strict working hours, making them dissatisfied and more likely to leave for jobs with more flexible options.

By offering flexible working, you can attract top talent seeking work-life harmony and retain existing employees who value autonomy and flexibility in their roles. 

Customisable HR and productivity software solutions, like Appogee HR Success, can help your small business attract and retain top talent and offer flexible working arrangements, keeping you ahead of the competition.

Integrations with the Greenhouse Applicant Tracking System (ATS), for example, make hiring individuals with diverse working patterns faster. With this, you can seamlessly move your new starter into Appogee HR from Greenhouse and get notifications when your new candidate has been hired. The transfer means you don't need to waste time on manual data entry and focus on onboarding your employees.

Plus, centralised employee profiles and access to records create a great first impression. Give new starters, regardless of work location or working hours, access to important information about company policies, such as flexi-time, retirement, and leave and absence management policies. So, if employees work from home, they can easily read these policies and ensure they follow the correct procedures.

2. Improved productivity

More companies (66%)[4] think it's important to offer flexible work options when posting job openings, up from 56% last year.

So why the increased uptake?

Firstly, employees might not do their best if they have to work when they're not at their peak or if they find it hard to balance work and life. This can lower overall productivity. Flexible working can lead to increased focus and efficiency as employees can choose the times and environments where they work best, resulting in higher-quality output. 

Secondly, just 23% of employees are engaged at work. Flexible working can increase employee engagement and allow employees to choose how and where they work. This can boost their engagement and sense of ownership over their tasks. Employees who feel trusted and empowered are more likely to be motivated to perform at their best.

3. Enhanced well-being

A 2024 Mental Health UK[5] report highlights a concerning trend: one in five workers in the UK required time off work in the past year due to poor mental health stemming from pressure or stress. This statistic highlights the importance of prioritising employee well-being for small businesses, where resources may be further limited. 

Flexible working arrangements offer a practical solution to this challenge. By allowing employees to tailor their schedules to fit their individual needs, small businesses can support their workforce in achieving a healthier work-life harmony. With flexible schedules, like part-time and compressed hours, employees can better balance work and personal commitments, such as childcare, reducing stress and burnout while promoting overall mental and physical health.

4. Cost savings

Small businesses typically lack the money to invest in the technology and infrastructure needed for flexible working arrangements. This creates challenges for both employees and managers, as staff members rely on these tools to facilitate flexible work.

Without the right HR tech, businesses may incur extra costs, like paying for overtime and office accommodation, that could have been prevented with more flexible scheduling and easier access to employee work patterns. Flexible arrangements, such as remote work, can reduce overhead costs by lowering expenses related to office space, utilities, and commuting allowances.

Plus, cloud-based leave and absence management software can track sickness at work and report associated absences. The application operates entirely online, making it accessible from anywhere and using any device.

Source

But don’t take our word for it. 

Flora Oram, Head of People & Culture at Computeam, says, “Both the leave and absence management tracking element and the HR profile are great. It’s so easy for employees to manage their leave requests. We came from a system that wasn’t suitable for term-time only or part-time workers, so this was one of the things that attracted us to Appogee HR.”

5. Increased innovation and creativity

When employees have the freedom to work flexibly, it opens up opportunities for different viewpoints and approaches. This mix of perspectives sparks creativity and innovation in how tasks are tackled, and problems are solved.

Picture this.

A small marketing agency encourages its employees to work from locations of their choice, including home or co-working spaces. This freedom sparked creativity in their teams, making it easier to come up with great campaign ideas and work together better. This led to the agency creating innovative marketing plans that resonated with target audiences–increasing client satisfaction and business growth.

Our project management software allows you to effortlessly monitor tasks, clients, and employees who work beyond the typical 9-5 schedule. This ensures that you don't have to wait until a team member's shift begins to access crucial information about your project's progress and new initiatives.

6. Build a positive work culture

Rigid work arrangements can contribute to a culture of micromanagement or distrust, where employees feel undervalued and disempowered. This can have long-term repercussions on morale, teamwork, and the reputation of your small business.

By contrast, flexible working can:

• Improve workforce diversity. Flexible arrangements accommodate individuals with diverse needs and lifestyles, such as those managing health conditions, leading to a more inclusive and diverse workforce. Not only that, when small businesses hire talent from around the world, it brings diverse perspectives to projects and strengthens bonds among team members from different countries.
• Boost team morale. Offering flexible working practices promotes empowerment and trust. When employees are trusted to work from home or manage their own hours, they feel valued and respected. Tools such as employee shout-outs boost morale and make recognition visible to everyone regardless of their working patterns.
• Develop future leadership skills. Empowering employees to manage their own work hours helps them build essential leadership abilities, such as decision-making and problem-solving. This not only benefits individual employees but also strengthens the capabilities of the team.

Build a positive work culture with time tracking and team calendar tools. Track who’s in the office and who’s working from home without constantly checking in on your staff. Find out the best days for in-person team meetings, keep track of staff assigned to each client, or set up zones with optional alerts for managing the capacity of a flexible team.

7. Scale operations

Expanding while having limited resources and infrastructure can be tough for small businesses, especially when demand changes, or unexpected chances come up.

However, flexible working arrangements make it easier to adjust to changes in demand or seize unexpected opportunities. By allowing employees to work from anywhere or change their hours, businesses can grow more smoothly and adapt to new situations without being held back by traditional working practices.

Let’s take a non-profit organisation that supports underprivileged communities. This foundation unexpectedly had a chance to partner with a larger company for a nationwide healthy eating campaign. 

However, they needed more staffing and expertise than their current team could provide. Instead of declining, they embraced flexible working arrangements. Employees could work remotely and adjust their schedules to fit the campaign's demands. They also recruited volunteers who could contribute skills part-time or on specific projects from anywhere. This flexibility helped the foundation seize the opportunity, scale operations, and improve health rates without requiring substantial extra resources or infrastructure.

HR tech for small businesses can help you scale up. Whether expanding your workforce or streamlining your HR processes to accommodate growth, features like  HR reporting tools and analytics can give timely feedback on flexible working requests and offer accurate information about any outstanding employee performance reviews. This allows you to schedule reviews when your team member is on duty.

Streamline flexible working processes for your small business

There’s no doubt flexible working is here to stay. The numerous benefits it offers small companies are undeniable. From improving work-life balance and increasing productivity to attracting top talent and reducing costs, flexible working has become an essential element of modern workplaces. 

That said, we know flexible working arrangements can cause significant challenges. Appogee HR Success offers a user-friendly solution for streamlining your flexible working arrangements. With intuitive features and robust functionality, small businesses can efficiently manage and monitor various aspects of flexible working. 

We have a range of pricing and package options to suit your small business. Our friendly experts can guide you through our award-winning HR solutions to find the best fit through a tailored demonstration at a convenient time. 

Alternatively, why not try Appogee HR, free for 14 days?

Sources

[1] Staista

[2] GOV.UK

[3] World Economic Forum

[4]  CIPD

[5] Mental Health UK