Increased demand for flexible working in law firms
For many, flexibility in their working arrangements, both in terms of hours worked and location worked from and the associated feelings of autonomy, are now so highly prized that candidates are turning down or leaving jobs that do not offer the desired amount. A yearning for more flexibility has undoubtedly been one of the driving forces behind the Great Resignation, a term coined by Anthony Klotz, a university professor of management in May 2021 to describe the record number of people leaving their jobs since the start of the COVID-19 pandemic.
Revealingly, a 2021 study of over 5,000 knowledge workers worldwide found that 59% of respondents reported that flexibility was more important to them than salary or other benefits. In a candidate-driven market, employers have had to adapt in order to attract and retain high quality talent.
The need to respond to an evolving environment
To reflect the changing landscape, here at Access Legal, we recently released an overhauled version of our precedent flexible working policy, within our Policies and Precedents for Law Firms Library, which incorporates not only flexible working but also remote and hybrid working arrangements. The aim behind this was to encourage law firms to modernise their approach and set out the variety of working arrangements on offer to their employees in one comprehensive document.
Since that time, the world of flexible working has further evolved with new ventures taking place and legislative change on the horizon and may well be impacted by upcoming socio-economic pressures. Without doubt, the demand for flexible working is here to stay – the CIPD Update on Flexible and Hybrid Working Practices dated April 2022, revealed that 77% of those surveyed believe the pandemic will lead to long-term change towards more flexible working.
It is therefore key that firms keep their flexible working arrangements under review and stay up to speed on developments in this area and the potential implications for their businesses and employees. Below we look at some of some current and future considerations for firms to be aware of:
Upcoming flexible working legislative change
In late 2021, the government ran a ‘Making flexible working the default’ consultation in which they sought views from individuals and businesses on proposals to reform The Flexible Working Regulations 2014. The consultation sets out various proposals for reshaping the existing regulatory framework so that it better supports the objective of making flexible working the default. A key proposal is making the statutory Right to Request Flexible Working a day one right (from the first day of employment), rather than a right which is only accrued after at least 26 weeks of continuous employment as under the current law.
The point is made that this change would bring more employees into the scope of the legislation, as well as it would help to encourage cultural changes so that employers consider flexible working options early in the recruitment process and give employees more confidence to make the request.
The Law Society’s view, in its response to the consultation, was that ‘the government can do more…. They should extend this right to the time someone is offered a position…’
Forward-thinking firms may wish to consider whether they wish to go beyond what the current law requires on when a flexible working request can be made now if they want to stay ahead of the game, attract good quality talent and retain existing employees.
Good Employment Charters
Perhaps unsurprisingly, the considered benefits of flexible working has seen it recognised as one of the key characteristics of good employment by recently established Good Employment Charters, such as the schemes set up in the West of England and Greater Manchester. Of particular interest was the news that a law firm recently became the first law firm to be appointed a Member of the Charter in Greater Manchester.
With the schemes aiming to improve employment standards across their regions, the kudos of being seen to have a social conscience, and to be a caring employer, who abides by set standards, which comes with being a member, may see more law firms follow suit.
4 Day Week UK Pilot Programme
Various interested parties, including the 4 Day Week Global not-for-profit community and the 4 Day Week Campaign are coordinating a 4 day week pilot programme in the UK, which is running from June to November 2022, aimed at organisations who are interested in, considering trialling or introducing a 4 day working week. The pilot programme involves 71 UK companies, representing more than 30 sectors who have committed to paying employees 100% of their salary in exchange for 80% of their time, with the expectation that they will maintain at least 100% output.
The pilot programme aims to understand the impact these changes could have on productivity, wellbeing, gender equality and the environment. The thinking is that the approach will improve employees’ work-life balance, as well as benefiting employers through increased productivity, reduced costs and the ability to attract and retain high quality employees who are happier, less stressed and take fewer sick days.
It will be interesting to see if the pilot yields the expected benefits and whether it may be a practical business model for law firms to adopt. It goes without saying that ‘one-size does not fit all’ and before making the decision to move to such a model, firms will need to weigh up any benefits against the needs of their clients, to ensure that any change in working days is not to their detriment.
Impact of the cost of living rises and the energy crisis on law firms
Whilst many have enjoyed the benefits of hybrid working for the past couple of years, a potential spanner in the works is the cost of living rises and the energy crisis which may make working from the office more appealing if it will help to reduce home energy costs. That is, of course, if they are not outweighed by rising commuting costs.
Only time will tell as to the impact these pressures will have, however firms who have or are thinking of reducing office floor space due to the rise in demand for hybrid working may wish to reconsider their plans in light of the evolving economic situation.
It goes without saying that firms who wish to stay ahead of their game must be adaptable in how they respond to this rapidly changing and candidate-driven environment – resting on your laurels is not an option!