Workplace flexibility – Part 2: Legislation

Last month, I talked about the virtual office and it’s potential impact on current hiring and staffing practices. In this second part of the series on workplace flexibility, I’d like to start a discussion on the impact recent legislation on this issue will have within the corporate environment.

With two-income families being the norm these days rather than the exception, the need for flexible working arrangements is greater than ever before. This doesn’t just apply to families that need to juggle the responsibilities of parenting; it also impacts those looking after aging parents and others who simply want time to pursue other passions.

With the introduction of the Fair Work Act and the employee’s “Right to Request” a flexible work arrangement from their employer, are we going to see a growth in these types of arrangements? Is legislation necessary, or are good companies already doing this?

I believe the answer is yes to all of the above. While many companies long ago recognised the need to offer flexible work arrangements as a way to retain good employees, some companies still lag behind. A survey conducted by Human Capital last year indicated 87% of employers have some type of flexible work strategy in place. However, it also indicated there was still a lot of concern regarding flexible work arrangements. So clearly there is still something of a disconnect between company policy and staff perception.

What this legislation does, therefore, is raise awareness amongst employees of their options for (and their right to) flexible work arrangements. Similar legislation in the UK has seen this happen.

However, legislation can only move things so far. Companies need to embrace flexible work arrangements as part of their culture if the legislation is to work effectively, both for employees and for the employers themselves. There are clear benefits to both sides. A recent report conducted by the U.S. government found that companies with flexible work arrangements have the potential to lower turnover and absenteeism, increase productivity, and maintain healthier workers.

Companies also need to put processes in place to manage requests and educate staff on the options available to them, as well as educate managers on how to deal with such requests. There are no such processes put forth by the legislation and no specific rules around the type of arrangements or conditions that must be met. Other than saying they must be “reasonable”, in that employers have the right to refuse “unreasonable” requests, there is much room for ambiguity.

So yes, legislation is good in that it raises awareness, but companies need to commit to and embrace flexible work arrangements if they want to continue to attract and retain the very best talent.