SMEs Urged to Find Right Balance over Employee Rights

SMEs Urged to Find Right Balance over Employee Rights

Small and medium-sized British businesses can benefit from government plans to cut red tape but should not ignore the benefits of flexible working. Mark Prisk, the government's Business Minster, has said that firms with fewer than ten employees will not be constrained by government regulations for three years in a bid to allow small businesses to flourish during the economic recovery.Employees at companies with fewer than 250 staff will no longer have the right to request leave for training and parents with children up to the age of 17 will have the right to request flexible working hours removed. Mr Prisk said that small companies do not have the time to fill in HR files as they do not have the same level of resources compared to bigger businesses who can afford to have whole departments dedicated to HR. John Walker, chairman of the Federation of Small Businesses (FSB), welcomed the news that regulation is set to be reduced as form filling is a time consuming burden for companies with few employees."Regulation is one of the most burdensome and complex issues for small businesses, so it is a real victory for the FSB and small firms across the country that the government has finally listened," he said. While less regulation can help companies concentrate on their core services instead of wasting time worrying about the ramifications of not adhering to legislation, employers are advised to remember the benefits of flexible working. Offering flexible working hours can help companies attract a better calibre of employee as they will be enticed by a good work life balance and the opportunity for remote working. Employees who enjoy flexible working hours are likely to be better motivated and this will result in them taking fewer sick days which will benefit a business by increasing productivity and improving workplace morale. Business which provide flexible working hours often experience better staff retention rates and this especially applies to female employees who return to work after maternity leave. Ben Willmott, from the Chartered Institute of Personnel and Development, said that flexible working should be celebrated and not demonised as it can help business performance. "Recognising that your employees have lives outside of work, and seeking to accommodate those lives where business requirements allow isn't a cost, it is a sensible employee retention and motivation strategy that can boost organisational performance and economic growth," he said.Businesses that are unsure about whether flexible working hours will benefit them should employ the services of performance improvement consulting experts.

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