Several months have passed since new flexible working laws came into play across the UK. And already there are more changes for businesses on the horizon.

Since April 6th, employees have been allowed to request flexible working arrangements from their first day of employment. But the new Labour government is pushing for even more substantial change, proposing that flexible working become an inherent right from day one.

Instead of employees asking their employer to accommodate their needs, the onus will be squarely on founders and leaders of small businesses to proactively establish and implement flexible workplace policies.

These are updates employees are likely to welcome, too. Of the 2,000 employees PayFit recently surveyed on this very topic, 83% felt current workplace flexible practices are in need of improvement. A further 34% called for clearer guidelines around what they can and can’t do when working different hours or remotely.

All this means there is a clear opportunity for startups to plug flexible working gaps and take a progressive, employee-centric stance in attracting and retaining top talent. Still, establishing a flexible working policy isn’t an operational walk-in-the-park.

The challenges and pitfalls

Striking the right balance between providing clear flexible working guidelines while accommodating the diverse needs of staff might sound simple enough. But in reality, it requires significant administrative overhaul, not to mention cultural adjustment.

For starters, small businesses face increased costs associated with updating HR policies, investing in technology to support remote work, and training managers to handle new working arrangements effectively. It can also become difficult to assess fulfilment and performance outside of a traditional office setting. And communication breaks down more easily when employees work asynchronously or from a remote location.

Cultural erosion is another key risk. Flexible working can lead to less face time, which in turn leads to less spontaneity and creativity within the workplace. Worse, productivity and operational efficiency can begin to suffer.

But these challenges are far from insurmountable. With a little effective management and guidance, leaders can unlock unprecedented levels of productivity, creativity and efficiency by fully embracing flexibility.

Tips and strategies for startups to succeed in a flexible world

From a strategic point of view, it’s worth spending time crafting a watertight policy that will not only support but also structure your company’s approach to flexible working. You’ll want to identify the ‘non-negotiables’ for your business – in other words, what is (and isn’t) permissible under your flexible working arrangements. At the same time, it’s important to engage with employees to understand their needs and expectations. Outline the types of flexible working arrangements your company is willing to support. Your policy should be written in a clear, jargon-free manner.

From an operational standpoint, technology is your best friend (and the key to managing flexible arrangements effectively).

You’ll need the right tools and platforms in place to help manage multiple working arrangements and make remote management seamless. Project and performance management tools like PayFit’s 1:1 feature can help managers stay on top of KPIs and better track how employees are progressing through tasks. Additionally, communication tools, such as Slack and Zoom, shouldn’t just be viewed as holdovers from the pandemic; they should be actively used to facilitate regular check-ins and performance reviews that can be attended, whether someone is at home or at the office.

It’s about making sure employees have the resources, tools, and support they need to feel empowered while working asynchronously or remotely. It’s also about setting up the right processes that managers can follow to facilitate this. Here, training becomes key so that managers feel competent in discussing flexible working guidelines with direct reports in a way that’s compassionate and understanding. The goal is to build a culture of honesty and transparency, which engenders psychological safety.

At the end of the day, autonomy wins over optics. Encouraging a culture that values impact over presence can take your productivity and employee satisfaction levels even higher. But this approach requires trust and a focus on clear, measurable outcomes.

Taking flexibility forwards

As we’ve explored, establishing flexible working guidelines requires a thoughtful and strategic approach.

Initially, startups and SMEs are likely to face higher costs and challenges in communication and cultural adaptation when complying with new flexible working regulations. But it’s the businesses who fully embrace the exercise that will come out on top. In other words, you get out of your flexible working policy what you put in.

By fostering an adaptable, supportive, and transparent workplace culture, businesses can not only better comply with evolving regulations, but also enhance their operational effectiveness and attractiveness as employers.