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July 19, 2013

Flexible working could add billions to economy

A new report claims to have come up with definitive proof that flexible working is good for the bottom line.

The Flex Factor report, based on a national survey of 2,828 employees and employers, concludes that flexible working could add up to £8.1 billion to the UK economy by delivering cost savings and "huge productivity gains".

Published by think tank the RSA (Royal Society for the encouragement of Arts, Manufactures and Commerce) and Vodafone, the survey finds that employees estimate they could gain five extra productive hours per week on average through better ways of working (such as cutting down on commuting) – equating to around £4,200 per employee per year.

Better ways of working, says the report, are a key driver of productivity, performance and organisational innovation as well as employee satisfaction and wellbeing. 64% of those with experience of flexible working say it has enhanced their job satisfaction, suggesting that personal and performance benefits are linked.

At present, 77% of UK employees work in organisations that offer some kind of flexible working, but 13% who want to work flexibly aren't being offered it or don't know they can ask for it, the research shows.

Jeroen Hoencamp, enterprise director at Vodafone UK, said: "Flexible working isn't just working from home and these findings reveal that, with an optimised approach, businesses can overcome any downsides and greatly increase efficiency and productivity, as well as boost their bottom line."

Julian Thompson, director of enterprise at the RSA, said: "Our findings show that there is no one size fits all approach, and that there are costs to be considered. But enabling people to work flexibly can make a significant difference to our economic and social prosperity, both now and in the future."

The report also finds that small firms often lead the way with flexible working – especially those that employ less than ten people. This, it says, reflects the extent to which small businesses rely on "location and time-flexible working to minimise overheads and maximise productivity". And although there are costs associated with introducing more flexibility, the report identifies a "tipping point" for SMEs where the benefits soon outweigh the costs.

Interested in introducing flexible working at your small business? Read our valuable guides: