Flexible and Hybrid Working in the UK: One Year on from the Employment Relations (Flexible Working) Act 2023
The Chartered Institute of Personnel and Development (CIPD) is the professional body for human resources. CIPD has released a new report, alongside a series of case studies, assessing the state of flexible and hybrid working in the UK more than a year after the Employment Relations (Flexible Working) Act 2023 came into effect. The research captures both employer and employee perspectives, offering insight into how evolving working patterns are shaping organisational performance, employee engagement and wellbeing amid global uncertainty, economic headwinds, and multiple changes in employment law.
The State of Flexible and Hybrid Work
- Prevalence of flexible working: 91% of employers now offer some form of flexible working, with home working (50%) and flexitime (38%) the most common arrangements. However, access remains inconsistent.
- Hybrid working on the rise: 74% of organisations operate a hybrid model, which is linked to benefits in recruitment, employee wellbeing, and environmental impact. Nevertheless, cultural resistance and leadership challenges persist.
- Policy–perception gap: Since the introduction of the day-one right to request flexibility, 18% of employers have seen more requests. Yet almost a third of employees still feel uncomfortable asking for flexible arrangements.
- Unmet demand: If given the option, 45% of employees would choose a four-day week without pay reduction, 25% would prefer compressed hours, and 20% would opt for flexitime.
- Mandatory workplace presence: 65% of organisations require employees to be in the workplace for a set number of days each week or month. Of employers that allow hybrid work, 14% plan to introduce or increase mandatory in-office days over the next year.
- Impact on productivity and wellbeing: 41% of employers say flexible work has improved productivity, while 80% of employees report a boost in quality of life.
- Retention risks: Since January 2024, 3% of employees (around 1.1 million workers) have left a job due to a lack of flexible working options.
CIPD Recommendations for Employers
- Update policies and processes ahead of the Employment Rights Bill, ensuring recruitment practices and line manager training support flexible working from day one, unless not reasonably feasible.
- Promote underused options such as compressed hours and job-sharing and assess their viability for roles traditionally seen as inflexible.
- Foster trust between managers and staff through robust people management systems and clear communication.
- Engage employees in the design of hybrid working models, establish transparent policies on access and eligibility, and support connectivity through workplace culture initiatives and practical measures such as season ticket loans and cycle-to-work schemes.
Looking Ahead
The CIPD’s analysis makes clear that while flexible and hybrid working are now embedded in the UK employment landscape, there is still room for improvement (particularly in ensuring consistent access, closing the gap between policy and perception) and exploring alternative working patterns to meet employee demand. As legislative developments continue, the challenge for employers will be to integrate flexibility in a way that balances organisational needs with the evolving expectations of the workforce.
