CIPD research shows how flexible working contributes to attraction, retention, wellbeing and inclusion, though challenges remain around access and awareness of upcoming legislative changes
More than a year on from the implementation of the UK Employment Relations (Flexible Working) Act 2023, the CIPD has launched a new report exploring flexible and hybrid working practices from both an employer and employee perspective. Building on previous CIPD survey findings, the research provides updated insights on flexible and hybrid working practices and the wider impact on performance, employee engagement, wellbeing, organisational culture and equality, diversity and inclusion
Employers and people professionals are grappling with a particularly challenging climate – including rising National Insurance contributions and increases in the National Living Wage. Meanwhile, they must also prepare for future wide-ranging changes in employment regulation that will likely further strengthen flexible working provisions. On top of this are the growing global uncertainties that organisations have to contend with.
Our Labour Market Outlook – Spring 2025 data found that as some of these regulatory measures are being brought in, business confidence continues to fall. Despite overall reductions in vacancies and recruitment intentions, organisations are still faced with hard-to-fill vacancies in key areas and will increasingly need to focus efforts on retention.
Findings from our Flexible and hybrid working practices 2025 report suggest that flexible working is pivotal to the attraction and retention of talent. Flexible working remains important to employees and has a positive impact on their quality of life. In fact, around 1.1 million employees say they have left a job in the last year due to a lack of flexible working and this is particularly the case for younger employees. At a time of substantial economic inactivity and a UK Government focus on this issue through the Get Britain Working and Keep Britain Working reviews, it is worth emphasising that flexible working can support people facing a range of circumstances into and to remain in work.
According to our employer survey, hybrid working practices remain commonplace, with around three-quarters having some kind of provision. Some of the wider advantages of hybrid working reported by employers include the attraction and retention of a broader, more diverse talent pool, increased employee wellbeing, a positive impact on the environment and business resilience. But there are also key challenges to be navigated, particularly the ability of managers to lead teams effectively, the connection of employees to organisational purpose, and the impact on organisational culture.
Around a fifth (22%) said their organisations are more likely to grant flexible working requests, following the April 2024 implementation of the legislation change, with a small proportion (8%) saying they are less likely to. However, for most (71%), this has remained the same.
Organisations were more likely to say the change in legislation has led to a positive rather than negative impact for their employees (37% positive, 4% negative) and for their organisation (20% positive, 12% negative).
In terms of the positive impact of the legislation, organisations cited improved employee motivation, greater employer–employee dialogue around flexible working, and the fact it has encouraged the organisation to develop a wider range of flexible working practices. Organisations also felt it has improved new staff retention as well as employee loyalty and commitment to the organisation.
For the smaller number of organisations who felt the legislation had resulted in a negative impact, they cited some of the main challenges as:
More than three-fifths (64%) were aware that the UK Government is planning on strengthening the Employment Relations (Flexible Working) Act 2023 through the Employment Rights Bill (ERB). This would mean that any refusal of a flexible working request must be reasonable, but that the eight business reasons listed in legislation will remain the same. It is also proposed that an employer must explain in writing the reason for any refusal and why their refusal is considered reasonable.
While the response shows positive awareness, it still leaves over a third (36%) who were unaware of this proposal. With around 28 provisions and further amendments to the ERB, the government will need to do more to clearly communicate these changes, phase the implementation and properly support organisations, particularly SMEs. Awareness is lower in SMEs (2-249), with 41% saying they were unaware of this proposed change (compared with 33% in larger (250+) organisations).
If the legislation is strengthened in the ERB, more than a third (36%) expect an increase in the number of flexible working requests their organisation accepts. Just one per cent expect a decrease in accepted requests.
This may indicate that the strengthening of legislation is likely to increase access and uptake of flexible working arrangements across organisations, although attention must still be paid to ensuring parity of opportunity around flexible working because our findings suggest that currently, access is not equal.
Most organisations provide some flexible working arrangements but a quarter of employers believe senior employees are more likely to work flexibly than more junior staff. Employees also pointed to an unmet demand for certain types of flexible working, including compressed hours and flexi-time. A continued focus is also needed on flexibility for those in frontline and non-remote roles – around three in five employers said they provide some kind of flexibility to this group, with flexibility in scheduling shifts and in start and finish times the options most frequently provided.
Some of our key recommendations for the effective implementation of flexible working for both organisations and policy-makers are outlined below.
Claire specialises in the areas of equality, diversity and inclusion, flexible working, resourcing and talent management. She has also conducted research into meaning and trust at work, age diversity, workplace carers and enterprise and has worked on a number of international projects. She is the author of several reports and articles and regularly presents at seminars and conferences.
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