Reimagining Working Models: What It All Means
Working patterns are undergoing a major shift. The topic of hybrid working has been debated in recent years as workers increasingly demand more flexible working patterns, while companies face concerns over potential lost productivity and culture building. Flexible working and the 4-day week have arisen as key points of discussion, as both have the potential to reimagine the ways that businesses function and how people interact. As such, the adapting of work and management methods to direct this shift is all the more important.
Flexible Working
Often incorrectly equated to hybrid working, flexible working influences not only working locations but also working hours and patterns.
Pros
For businesses, there is a clear savings opportunity as running costs fall with fewer workers in the office. Even without downsizing to reduce rent, energy and catering costs can fall with smaller headcounts in the workplace. Travel costs for business purposes have the potential to be refocused away from ‘internal’ meetings towards more client facing activities, or reduced overall[2].
Flexible working can bring improvements in employee engagement, morale and productivity. According to a 2021 survey of digital workers [3], 43% of respondents stated that flexible hours helped them to achieve more productivity and 30% said that a reduction in commuting times allowed them to be more productive. In addition, Gallup research over many years [4] shows that “Highly engaged workplaces can claim 41% lower absenteeism, 40% fewer quality defects, and 21% higher profitability. Compounding this benefit is the fact that flexible working allows people to work when they naturally feel more productive, which may fall outside traditional ‘office’ hours. There is also a valuable opportunity for businesses to access talent that would otherwise struggle to come into the office or conform to normal hours due to responsibilities or disabilities, as well as hiring internationally.
For workers, less frequent commuting can not only provide extra personal time but reduces travel emissions and costs. Overall, flexible working has the potential to empower employees to better balance work with their personal circumstances [5].
Cons
Flexible working can create resource pressure for businesses. Internal communication can be inefficient through emails or instant messages, as conversations with co-workers may require more planning than in the office. Many businesses have faced challenges in upskilling their workforces to use an ever-growing number of collaboration tools such as Zoom, Teams, and Slack. Further issues can arise for businesses as less time amongst co-workers can weaken employee loyalty, stunt promotion, reduce networking opportunities, and harm the efficacy of training.
While many laud the improvement in work-life balance, others worry about the blurring between work and home life, working longer hours, social isolation, and struggling to disconnect, all of which raise concerns about the impact on employee wellbeing. Socially, flexible working has also highlighted inequalities in access to technology and dedicated workspaces at home [6].
The Four-Day Workweek
The four-day workweek has more recently been brought to the attention of mainstream businesses, with trials in Iceland, Ireland, the US, Canada, Australia, Scotland, Spain and New Zealand [7]. There is a trial that is to start in June 2022 in the UK involving over 3000 employees from 60 companies to adopt a 100:80:100 model: 100% pay, 80% time, 100% of the original output.
Pros
While working from home can lead to increased work hours, the four-day week can truly offer employees more personal time. Some of the benefits of the 4-day work week include; higher talent retention, productivity, engagement and employee happiness and well-being with a reduced risk of burnout. It could also allow people to conduct non-work priorities, such as going to the doctors, on their extra day off rather than having limited access to these services during a typical five-day working week. Microsoft ran a trial in Japan in 2019 and found a 40% productivity increase. A University of Reading survey of businesses that have adopted the four-day workweek identified savings of almost £92bn (around 2% of total turnover) per year [8].
Cons
There have been issues of implementation, with the four-day work-week misinterpreted as ‘longer days for four days’ when the aim was four days of standard length. Not all roles within the same company have also seen benefits from the trials, with certain roles struggling more to adapt. There has also been the issue of loneliness highlighted as a concern as less time at work may mean more time at home alone. The company Kaido found that stress levels had increased during the trials [9]. Additionally, there is the issue of benchmarking. 100% of performance sounds ideal, however, it is only enforceable if performance metrics are well defined and measurable.
Getting Realistic
An inflection point has arisen for businesses to grapple with the transformation of working practices, creating some overarching issues.
Increased flexibility is only associated with increased output in certain sectors: Many critical jobs are already on shift schemes such as nurses and the police force and cannot be more flexible due to the nature of the work. Quite simply, many jobs cannot be done remotely, for example those in the physical retail sector that provide a large contribution to overall employment. Unfortunately, it is often the jobs that cannot employ more flexible practices that are those already under increased pressure due to the pandemic.
Shifts in working patterns can put increased pressure on managers: This consideration is very much at the forefront of the public, government and employee consciousness, putting pressure on managers to implement changes. In a survey of 1,000 workers conducted in March 2021, 47% of employees said that they would look for another job if their employer didn’t provide some type of hybrid work after the end of the COVID-19 pandemic [5]. Employers need to tread the fine line of ensuring that these measures are implemented correctly in the hope of reaping the benefits, whilst balancing both shareholder and employee interests.
Conclusion
Several points should be a focus for managers and policymakers:
Better employee wellbeing frameworks
Ensuring equal access to technology and tools
Strong internal and governmental policy to ensure the system is flexible for employee needs, but also tailored to industry specificities
Highlighting the importance of appropriate training to sustain employee growth
Awareness of the limitations of these measures to inform mitigation strategies
The workplace is changing, and employees may push for it. In order to ensure that changes are managed successfully, internal trials are an effective way to assess the true benefits to employees and the company, as well as iron out the kinks before policies are put in place. If implemented correctly, a more open-minded approach to working practices could be an opportunity for employees and companies alike to revitalise the UK economy through increased productivity and employee wellbeing.
Words by Christine Brookes
References
[2] If remote workers are here to stay, then business travel isn’t going away
[3] Flexible Working Hours Enable Remote Workers to Increase Productivity (gartner.com)
[4] Is Working Remotely Effective? Gallup Research Says Yes
[5] Hybrid work: what is hybrid work and why do employees want it?
[6] Why is hybrid working emotionally exhausting (BBC)
[7] Four-day week ‘an overwhelming success’ in Iceland (BBC)
[9] Will a four-day week actually work?