The death of the ‘New Normal’?

The death of the ‘New Normal’?: Two-fifths of employers to reduce flexible working in 2024

• As employers seek to grapple back control, 42% said they plan to offer less flexibility to their employees in 2024.
• A ‘new front’ in the war for talent emerges, as employers backtrack on flexibility despite employee demand.

 
Employers are at a crossroads as nearly two-fifths of companies are gearing up to reduce flexibility for their employees in 2024, a recent study from independent consultancy Barnett Waddingham finds. With over 1.4million registered businesses with employees in the UK, this could see as many as 588,000 businesses planning to offer reduced flexibility to working arrangements.

Appearing to be at odds with a demand for greater flexibility – which has already seen approximately 4million people change careers – one in seven (17%) will offer less flexibility to the places they work (i.e. home vs. the office). Moreover, 15% say they plan to offer less flexibility to working hours.

As CIPD’s recent flexible and hybrid working report also finds that three-fifths (60%) of employees currently have flexible working arrangements in their role, Barnett Waddingham’s findings suggest the emergence of a ‘New Front’ in the war for talent; a balancing act between employees who increasingly value flexible working, and employers who, in some cases, seem to be backtracking on these arrangements.

Contradictorily however, despite many businesses planning to offer less flexibility, a substantial number still recognise the importance of flexible working in meeting employee expectations. Approximately 31% of respondents stated that they had introduced more flexibility to their staff in the past year, with a third (33%) doing so because they were concerned people would leave if they didn’t.
 
Julia Turney, Partner, Platform and Benefits at independent consultancy Barnett Waddingham says: “The findings from this research shed light on the complex situation employers are facing with flexible working. From speaking with business leaders, it’s clear that employers are keen to realise certain benefits of office working; whether that’s improving productivity, creativity and culture or simply to justify spending on training.”

“For most employees however, flexibility is no longer seen as a ‘perk’, but a fundamental consideration for their career. And whilst it’s natural for businesses to seek ways to optimise productivity, it’s equally vital to acknowledge that the workforce’s expectation have shifted significantly, and any changes could impact morale or even see resignations.

“Looking ahead, employers must engage in thoughtful and informed decision-making on this topic, backed up by hard analysis. Only by opening conversations with their workforce, and regularly collecting data will they be able understand where on the sliding-scale of working flexibility they need to sit.”
 
Methodology

Censuswide surveyed 302 HR Directors AND/OR C-suite professionals aged 18+ on behalf of Barnett Waddingham, between 18^th and 25^th August 2023.