REWARD
In an ideal world, the payroll team would work out all the finer details before responding to a flexible working request, letting the individual know exactly how it will impact them
and changing the requirements for requesting arrangements. By the time you are reading this, the consultation will have closed, as it ended on 1 December 2021. First, let’s look at flexible working being a day one right. It may seem strange to allow an employee to request changes to their agreed working pattern on their first day, however, this change encourages these conversations to happen at the recruitment stage. Realistically, it is best to have this open conversation before work has started so all parties can set their expectations. This may reduce payroll’s workload as retrospective changes need not be made if the accommodations are implemented from day one. The intention to influence employer behaviour is clear and aims to ensure businesses view flexible requests as something that all are entitled to, not something that is earned. The consultation also seeks to identify if the business reasons given for denying a request are still valid, and on top of that, should employers be required to provide an alternative? Many employers may already be taking this approach, working with employees to reach a desirable outcome, rather than sticking to the statutory minimum requirements. While these changes could bring up the standards for all employers, it will also bring with it a substantial administrative burden. The payroll team may need to be involved in alternative recommendations, especially if they pertain to benefits or budgeting. This raises ethical questions regarding recommending something that could negatively impact the finances of an employee. Should you need to consider the full impacts of any changes and make sure the employee is fully aware? We would say yes, having this open communication is essential, but it will undoubtedly take up time and resource. Current rules about making temporary arrangements are also explored. This
seems to be an underutilised option and may help many workers, as well as employers who may only be able to approve flexible working arrangements for a short period of time. Finally, BEIS is looking to see if one request per twelve-month period is sufficient, or if this needs to be amended. This change could potentially have the greatest impact on resource, should the move be to allow more requests per year. If employees can request changes to their working patterns more frequently, payroll may need to calculate and adjust wages, benefits and systems more regularly. This would contribute to the ‘domino effect’ and drastically increase administration for flexible working. Changes such as this would need safety valves to control abuse, while allowing legitimate requests to be handled within reasonable timeframes. Allowing more requests, as well as reducing the time employers have to respond to such requests, is necessary to stop employers abusing the system on their end. Currently, where one request has been made and denied, an employer has no legal responsibility to respond to an additional request, outside of the appeal process. Allowing individuals more flexibility when it comes to requests will restrict employers’ ability to refuse reasonable requests without valid justification. As with any workplace practice, reality is nuanced and complex. What works for small businesses may not scale well to large corporations and vice-versa. Finding the balance of what works for each business is essential to make it thrive and to keep staff engaged and happy. The questions asked in the consultation prompt the much-needed conversation about businesses’ responsibility to promote and encourage flexible working. However, some of the potential changes will need fine tuning to strike the right balance between business administration and employee well-being. n
The common belief is that flexible working primarily impacts the work of HR professionals, but there is a ‘domino effect’ for payroll teams too, who need to make relevant adjustments to software and pay when employees alter their work patterns. How open does a payroll team need to be with the employees about the ramifications of flexible working? In an ideal world, the payroll team would work out all the finer details before responding to a flexible working request, letting the individual know exactly how it will impact them. For this to happen, payroll must be integral to the flexible working decision- making process, not just involved at the final step. Completing this additional work, only for an employee to retract their request, isn’t something anyone wants to do. But with more focus than ever on financial and mental well-being, businesses need to support workers wherever possible. There are other, less obvious, implications of flexible working that need to be considered. Where a worker is signed up to a cycle-to-work scheme, and subsequently requests to work from home, how do they continue to meet the qualifying journey criteria for the remainder of the scheme? This isn’t currently factored into legislation or guidance and could place further administrative burdens on businesses to ensure they remain compliant. What is the future of flexible working? Now that the collective workforce and employers are becoming more open to the idea of flexible working, the department of Business, Energy and Industrial Strategy (BEIS) has opened a consultation, which can be located here: http://ow.ly/S2OF30s1yAO. BEIS is considering changing legislation to make flexible working a day one right
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| Professional in Payroll, Pensions and Reward |
Issue 76 | December 2021 – January 2022
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