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Our latest UK Reward Management Survey explored the various approaches to hybrid working, highlighting how employers strike the complex balance between business imperatives and employee preferences. Here, we examine how companies are implementing flexible working arrangements that maintain productivity while enhancing job satisfaction.

What does hybrid and flexible working mean?

The need for greater clarity in working arrangements has intensified following the pandemic which fundamentally changed workplace habits. The transformative effect of companies having to mandate working from home during Covid-19 proved that for many professional services firms, work did not have to be delivered on-site.

For Gen Z at the outset of their career, up to the age of 27, People Management has highlighted a growing discrepancy between what these employees feel is expected of them and their own working preferences. 62 per cent of graduates in entry-level roles believe their employer expects full-time in-person attendance, according to research by Prospects. However, 60 per cent of graduates would prefer a hybrid model.

This discrepancy raises important questions about how organisations can provide the right environment for growth and development, while meeting the desire for flexibility that people have grown accustomed to. The Flexible Working Bill also gives employees unprecedented rights to request flexible working from the outset, reinforcing expectations around employers accommodating hybrid models of working.

Setting expectations for staff coming into the office

Our UK Reward Management survey reveals that 66 per cent of employers have a formal policy in place around hybrid and flexible working. 27 per cent have an informal policy in place, relying on teams to make their own decisions about anchor days and expectations around office attendance. Most commonly, formal policies require office-based workers to be present two to three times a week. This structured flexibility aims to balance the benefits of in-person collaboration with the convenience of remote work.

Companies are reimagining the role of the office. Some will have capacity for all staff, raising questions about whether this is a sound investment if it is not being used. Others are encouraging teams to have ‘anchor’ days, whereby set days are agreed upon on a team by team basis. This enables teams to be intentional about their collaboration and facilitates greater in-person interaction to build strong teams.

The design of the office environment is a decision for organisations dependant on their current working arrangements. Some have created dedicated multi-faith spaces for all colleagues, others had refurbished and renovated to ensure that accessibility was considered in the design of offices, all in the hope of encouraging more people to make use of the office.

With some designating a proportion of time that must be spent with colleagues, customers and other stakeholders, the rest of an individual’s time is theirs to spend working in the office or remotely, giving them the autonomy to design their working day.

However, even for front-line workers who have to be in the workplace to fulfil their roles, only 68 per cent are required on-site for five days a week. While there is less flexibility as they need to be in their working environment to carry out their roles (particularly in engineering/construction, residential care and healthcare sectors), organisations are becoming more creative in how they can fulfil the desire for hybrid arrangements.

Respondents reinforced the importance of CEO and board member visibility to lead the charge on promoting greater office attendance. Leadership endorsement is crucial in setting expectations; employers are prioritising enticing managers back to the office, to signal the importance of coming into the office, in the hope of beginning to change expectations through leadership roles.

Tracking on-site attendance

Despite the shift towards flexible working, 60 per cent of companies do not track on-site attendance. However, a notable portion of companies that do monitor presence, or plan to, indicates an ongoing evaluation of hybrid work policies. Most respondents do not foresee major changes to their current approach this year, suggesting a cautious but evolving strategy.

Hybrid contracts

The pandemic's remote working policies allowed organisations to expand their talent pool geographically. This approach continues, with some companies negotiating contracts based on remote work. The challenge now is to create a fair system that accommodates both historical and new hybrid arrangements.

Flexible working arrangements

An overwhelming majority (97 per cent) offer regular or ad-hoc work-from-home options, with 91 per cent providing part-time work. Informal flexibility, such as ad-hoc changes in hours or locations, is also prevalent, offered by 65 per cent of respondents.

“Work from anywhere” is an option for some, fully trusting employees to manage their tasks independently. FlexiHours policies included those who did not have ‘core’ hours and are empowered to balance their work with personal priorities and preferences on a week-to-week basis. This fully flexible model will suit some organisations more than others. Some employers are offering guidance in the form of a ratio – with some designating that 60 per cent of time can be spent working from home.

Compressed working weeks

Four-day week trials have been piloted. The four-day working week report by thinktank Autonomy and researchers from the University of Cambridge, the University of Salford and Boston College in the US found that out of the 61 organisations who took part in a six- month UK pilot, 51 per cent made the change permanent.

Participating staff committed to deliver 100 per cent of their output in 80 per cent of their time, bringing positive changes. Reported positive effects included improved staff wellbeing, reduced staff turnover and improved recruitment. Nearly half reported that productivity improved.

Importantly, it is crucial to realise that one policy will not suit all organisations. Trial and error may be a crucial part of defining the right policy that works most effectively, not just for an organisation, but for individual teams. Bringing more energy to work when certain roles can be delivered outside of the nine to five model, five days a week, is one way to reduce turnover and reduce levels of staff sickness by giving people more flexibility.

Commitment to diversity, equity and inclusion

Working from home and flexible working arrangements are often discussed synonymously with the issue of equity, diversity and inclusion. Initiatives need to be sustained and long-term to truly effect meaningful change, but a focus on the individual is key. Additional caring duties, juggling family commitments and ensuring that work is open to everyone are key aspects of the debate, with working from home and remotely opening up whole new talent pools demographically and geographically.

Bringing the employer brand to life

Understanding the culture an organisation wants to build, how they want people to interact in teams and across the business, and the unique selling points they offer employees as an employer is important to define an effective hybrid working policy.

A well-defined hybrid working policy aligns with an organisation's culture and values. Case studies and internal communications can strengthen the employer brand, highlighting success stories and promoting virtual team-building. Performance management conversations also play a role in ensuring the right balance of office attendance and remote work.

Values-led working arrangements

Organisations are increasingly aware of risks posed by ignoring environmental, social and governance issues. If a commitment to wellbeing and sustainability are among the key values of an organisation, then designing a hybrid working policy that enables people to avoid a five-day commute, reducing their carbon footprint in the process, and that gives their employees the opportunity to build in wellbeing practices to their working week, can deliver benefits to employees while upholding core organisational values.

Get in touch

Defining a policy that works, not necessarily across a whole organisation, but works based on different teams and their requirements is something that may require trial and error to reach an equitable and motivating solution. It is important to understand that there is often no ‘one size fits all’ approach. Often employee opinion surveys can help track employee attitudes to hybrid and flexible working policies, helping you to fine tune your offering for the benefit of the business. Get in touch to discuss how to define a policy that supports your people and meets client needs.


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