SMEs ignore flexible working

Small and medium-sized firms lag behind their larger rivals by ignoring flexible working practices that can increase productivity and boost staff satisfaction.

Independent research commissioned by Citrix Online showed that just 40 per cent of SMEs allow employees to work from home, compared to 76 per cent of large companies.

Large enterprises are also far more likely to allow employees to adjust start and finish times, and four times more likely to operate job-sharing schemes.

The study identified the three most popular flexible working options among UK businesses as allowing staff to take a day's holiday at short notice (offered by 78 per cent), adjusting start and finish times (64 per cent) and working at home (41 per cent).

While 90 per cent of UK employers offer some flexible working options, many employees are missing out because companies simply pay lip service to the concept and fail to provide adequate support.

Only 43 per cent of SMEs polled for the research have technologies in place to support home working, compared to 76 per cent of bigger companies.

The research also warned that the SME sector is in danger of falling further behind in the future.

Just over half of large companies are likely to introduce new technologies over the next three years to facilitate remote working or home-working, compared to just one in five employers in the SME sector.

David Lennan, chairman of WorkWise UK, and former director general of the British Chambers of Commerce, said: "Having smaller workforces, SMEs tend to think that any changes they make in working practices will not have a significant impact on the economy as a whole.

"But 99 per cent of the 1.1 million enterprises in the UK are SMEs, so there is certainly potential for the sector to make a major contribution.

"Perhaps SMEs should consider instead the considerable benefits smarter working has on their own staff and employees in terms of well being, work-life balance and health, all paid for by the significant resulting increases in productivity.

"The wider benefits to the economy will certainly follow as more SMEs make the move towards more progressive working practices."

Simon Presswell, EMEA managing director at Citrix Online, added: "Perhaps the most surprising finding of this research is that SMEs, which often have greater operational flexibility than their corporate competitors, are failing to seize the opportunity offered by flexible working."

The study was based on over 200 interviews conducted by an independent research house in April and May 2007 with heads of HR in a cross-section of British businesses.

In smaller companies, where there was no specialist HR/personnel department, interviews were taken with the managing director. The study covered private sector companies only.