Maggie's inside track: why flexible working means a new approach to reward
The TUC has joined the Flex For All Alliance, which wants to introduce legislation that will make all jobs flexible from day one, for everyone – and definitely not just childcare related.
If flexible working does become the norm, different ways of working will also demand different approaches to reward and benefits, and we are already beginning to see some of these shifts, particularly when it comes to wellbeing, changing retirement patterns and diversity and inclusion.
There are many positive wellbeing effects from flexible working, such as an improved balance between work and other aspects of life. However, employees working from home as the norm, for example, raises new challenges that will affect wellbeing strategies. These include greater than ever vigilance around sedentary lifestyles, monitoring of remote work environments to reduce the risk of musculo-skeletal injury, and strategies for combatting loneliness, for example.
Financial wellbeing is also a consideration. While the money saved from commuting could be used to help build a financial safety net, or to boost pension contributions, if someone wants to work flexibly because they can’t afford their commute, that might demand help with budgeting and debt management. Similarly, if the reasons behind a flexible working request are rooted in workplace stresses caused by job design or management issues, those factors need to be addressed, rather than ‘solved’ with flexible working.
The traditional idea of a ‘cliff edge’ retirement, where employees retire fully on a given day, is fast disappearing. That too is driving changes in working patterns. People are staying in work for longer either because they want to, or because they are uncertain about their retirement finances. Eleven per cent of over-65s are now in work, and that looks set to increase significantly over the coming years. It’s inevitable that we will all have a longer working life – but there is a real need to make sure employees have a clear picture of their financial needs for retirement, how they will achieve those and how they expect their work patterns to change over time.
Flexible working should mean that employers have access to a much more diverse spectrum of potential employees. Diversity and inclusion is already becoming closely aligned with reward and benefits, and flexible working will further drive that trend. Re-designing insurance protection for a more diverse workforce, innovative uses of technology to communicate, and support for personalisation are just three of the ways that reward and benefits strategies will evolve to support a more diverse employee base that works in myriad different ways.
The author is Maggie Williams, content director at REBA.
