Hewitt on flexible working regulations

In an article written for Business Europe, Patricia Hewitt comments on a recent government investigation into the impact of new laws giving workers more rights over their work/life balance.

"Every day employers and employees perform the juggling act of balancing the work and family life.

At times it can indeed seem precarious. Readers of businesseurope.com will know from their own experience, as I know from mine, how difficult it can be to get that balance right, to do the best for your family and the best job at work.

Staff who see a constant battle between work and home will be too exhausted and stressed to do their jobs to the best of their abilities. Sooner or later, it can get to the point where something has to give - too often, that can be the job.

The tragedy is that in the vast majority of cases, a bit more adaptability could make all the difference between keeping a skilled and experienced member of staff or having to go through all the expense and hassle of recruiting someone new.

High staff turnovers can be particularly difficult to manage for small businesses. On average, every time a member of staff leaves it costs around £4,300 to replace them.

As you may know, last April the government gave parents with young children and disabled children the right to request flexible working. We also extended maternity leave, introduced paid paternity leave and gave comparable rights to adoptive parents.

Just over a year on, my ministers and I wanted to find out how the new laws were working for employers and parents.

What parents and employers have told us has been wide and varied, but some key themes recurred.

They said that the financial support government provides is important for many families: that childcare provision can determine whether mothers and fathers work as well as their working patterns; and that the legislation to support flexible working signals its importance to employers but works best where the business culture promotes adaptability.

Of course, some employers need support to make changes that enhance their business and respond to demands for new working patterns. There appeared to be a real need to help middle managers who often bear the stress of the changes.

There was enthusiasm from employee representatives to extend the right to request flexible working to carers of sick or elderly relatives.

Finally, parents need advice and support so they can understand the range of options and help them look at the long-term implications of their decisions, perhaps a helpline supported by work-life balance advisers to provide accessible advice to parents and carers on the support available to them.

We frequently heard that parents make decisions that meet their short-term needs. This can apply equally to busy businessmen and women running small firms. It is not always easy to find the time to take a long-term, strategic view.

As well as talking to those directly affected by the new rights - parents and employers - we also held a 'Citizens' Jury'. Sixteen people from all walks of life spent three days considering the issues, hearing evidence from experts and finally making recommendations to the Government about what they thought we need to do next.

Their recommendations make great sense and cover many of the same issues - the need for childcare, for accessible advice to parents and carers and for carers of adults to be the priority when considering extending the right to request flexible working.

New parents aren't the only people with pressing family commitments. Take the 5.7 million people who are currently looking after old or sick relatives. Around half of these carers are already holding down jobs. And around 150,000 people work a full week whilst also spending more than 50 hours a week caring for their relatives.

We have held a couple of regional discussions specifically for carers. These people are running as fast as they can to ensure that they are not letting their bosses or families down. But they need help.

As the Prime Minister himself recently said, a priority for the 2006 review of the 2003 employment laws should be to look at extending the right to ask for flexible working to carers of elderly or sick relatives.

What we have been told - by employers, parents and carers - will now help us decide the direction of future policy. I made a commitment that we will not make any changes to the 2003 employment laws for three years - and we will stick to that. But I want to be prepared for 2006 and understand now what options we have.

I am conscious that whatever we do, we have to balance the demands of the economy with those of employees. There is no point providing wonderful new rights for people in work if we see more people out of work as a result.

However, I think it's fair to say that businesses are increasingly coming round to the idea that anything that makes their employees happier and less stressed is broadly good for them, too.

As well as boosting morale and motivation, companies who adopt a flexible working approach tend to have fewer staff taking sick leave and a more skilled, committed workforce.

Speaking directly to some of the people affected by this legislation has further emphasised for me the real juggling act which employers and parents are performing every day.

It has also helped me to think about potential steps the government can take to ensure that everyone benefits from our policies: employers, employees and their families."