Workplace Flexibility: A Must-Have for Retaining Top Talent

Hello, and welcome to Episode 243 of The People Powered Business Podcast!

In today's episode, we’re exploring a topic that is no longer just a ‘nice-to-have’ for organisations but an absolute necessity—workplace flexibility. We’ve touched on some of the legalities and frameworks before, but today, we’re going to dive deeper into why flexibility is a critical component of retaining top talent.

What We’ll Cover

Last week, we revisited the foundations of workplace relations laws, including the National Employment Standards (NES), and one of the cornerstones of these laws is the right to request workplace flexibility. Interestingly, in our Facebook Group, a recent discussion around a redundancy situation brought up some really important questions around flexible working.

So, today we’ll address key aspects of workplace flexibility, including:

Understanding the legal side of flexibility – what the NES says about requests for flexible work.

Why flexibility is so important to employees – it’s more than just a perk, it’s an expectation.

The business case for flexibility – why offering it is essential for attracting and retaining talent, improving morale, and boosting productivity.

What Does Flexibility Mean Under the NES?

Under the National Employment Standards, certain employees, like parents or caregivers, have the legal right to request flexible working arrangements. This can involve changes to working hours, work patterns, or even the location of work (e.g., working from home).

Eligible employees need to have been with the employer for at least 12 months, and these requests must be related to specific circumstances such as being a parent of school-aged children or younger, being a carer, living with a disability, being 55 or older, being pregnant, or supporting someone experiencing family or domestic violence. There are clear guidelines around how these requests should be made and how employers are required to respond.

Why Flexibility is Vital to Employees

Flexible working arrangements are no longer seen as a luxury; for many employees, they’re a dealbreaker. According to a recent HRM article, 78% of employees won’t consider working for a company that doesn’t have a formalised flexibility policy. In fact, almost half of the candidates surveyed said they’ve declined job offers due to a lack of flexibility.

This shift in employee expectations highlights how crucial it is for businesses to adapt. Flexibility isn’t just about working from home; it can encompass working hours, patterns, and arrangements that cater to individual needs.

The Business Case for Flexibility

If you’re looking to attract and retain top talent, offering flexibility is a must. It’s not just about ticking a box – it has real, tangible benefits for businesses:

• Improved employee engagement: 61% of employees report feeling more engaged at work when they have flexible arrangements in place.
• Increased productivity: When employees can work in ways that suit their personal lives, productivity often gets a boost.
• Better morale: Flexible work has been shown to reduce stress, burnout, and absenteeism, which creates a more positive work environment.
• Cost savings: From lower office costs to fewer lost workdays, businesses that offer flexibility often see financial benefits.

There’s also the principle of reciprocity, as highlighted by Robert Cialdini in his work on persuasion. When businesses offer flexibility, employees tend to respond with increased loyalty and effort, creating a win-win for both parties.

Beyond Location: Thinking Creatively About Flexibility

When we think about flexibility, it’s easy to focus only on working from home. But flexibility can take many forms. It could mean adjusting hours or work patterns, like offering a 4-day work week or compressed work schedules. The key is to think creatively and tailor flexibility options to suit both the needs of the business and its employees.

Final Thoughts

As you can see, workplace flexibility is far more than a trend—it’s a critical component for any business that wants to thrive in today’s competitive market. By understanding the legal framework, recognising its importance to employees, and building a strong business case for it, you can create a work environment that attracts and retains the best talent while boosting engagement and productivity.

As always, I’d love you to join us inside our free Facebook Group, HR Support for Australian Businesses, so I can learn more about what’s working for you and any challenges you might be having. Join here: https://www.facebook.com/groups/hrsupportaustralia.