Small manufacturing firms embrace flexible working

More than nine out of ten of small businesses in Britain now offer flexible working arrangements - traditionally seen as the preserve of larger firms - for employees, according to new research.

More than nine out of ten (91 per cent) small businesses in Britain now offer flexible working arrangements - traditionally seen as the preserve of larger firms - for employees, according to new research sponsored by Lloyds TSB Business.

The report, from the Small Enterprise Research Team at the Open University shows that 85 per cent of small firms believe there are valuable benefits to be gained by offering these work options to staff.

Of the 'flexible working options' available to small business employees, part time working is the most common, offered by seven out of ten small companies.

Staggered hours are available in 42 per cent of the firms, while over a quarter (28 per cent) offer flexible working locations.

A further quarter (26 per cent) said staff benefit from flexitime, with one in ten (10 per cent) accepting term time only working.

Job sharing schemes are available in seven per cent of the businesses.

The benefits SMEs believed they reap by providing flexible working arrangements are many and varied.

Over half (56 per cent) recognised that flexible working helps retain valuable employees, while 47 per cent said it helps make staff feel valued and 45 per cent cited the external reputational rewards for the business.

Other benefits mentioned included attracting a wider range of candidates (33 per cent); creating a loyal and motivated workforce (31 per cent); reducing absenteeism (28 per cent); and increasing productivity (23 per cent).

Stephen Pegge, head of communications, Lloyds TSB Business, said: "Britain's small businesses trade on their flexibility and are increasingly recruiting and retaining staff on the same basis.

Banks and other supporters of small firms need to recognise this and provide access and facilities, to enable firms to match the needs of the business with availability of staff.

Pegge added: "With developments in Internet banking and our own flexible working practices, we are committed to responding to these exciting changes in small business culture." Interestingly, the types of flexible working benefits offered by small businesses vary between business sectors.

Nearly a third of business services (30 per cent) and manufacturing firms (29 per cent) offer flexitime to staff, compared to just 14 per cent of retail or distributions companies.

The business services sector is also more able to offer flexible working from home than the retail and distribution sector.

The research revealed that larger SMEs, with more than 20 employees, are more likely to believe that flexible working benefits help boost a firm's reputation as a good employer.

Of these larger firms, 56 per cent recognise the external reputational rewards of 'flexible working' to a business, compared to 37 per cent of firms with fewer than five staff.

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