SME's find the new flexible working rights a challenge

Many SMEs believe that extending flexible working rights to an extra 4.5 million workers will impose a further burden' on British business,

according to research from Alliance and Leicester Commercial Bank.

The recent survey of small business owners showed that they have a number of concerns about extended flexible working rights, including the cost to their business and the impact on customer satisfaction, as well as worries about the changes fuelling resentment among their childless workers.

Measures are already in place to extend the rights of parents with children under 16, which could become law as early as April 2009.

In addition, there have been recent calls from unions asking employers to review the rights for parents who undertake unpaid leave in family emergencies.

Furthermore, this comes at a time when the birth rate is rising to its highest for 35 years.

Well over a third (38%) of small business owners say they will find it difficult to offer the extended flexible working right when it comes into force.

Nearly two thirds (65%) say they do not have enough staff to provide flexible cover, more than half (54%) expect they will not be able to meet customer expectations and just under half (45%) think it will be disruptive.

Further, with the potential cost of extra staff to take into consideration, almost a third (29%) of small business owners are concerned about the financial impact it will have on their business.

With fewer resources to cover an increase in the absence of key staff, a further four in five (86%) say the changes will be easier for larger organisations to implement and just aren't realistic for small firms.

In addition, increasing the new flexible working entitlement has the potential to create workplace divisions and clashes among staff, with over two thirds (69%) of business owners saying that the legislation just isn't fair on childless employees.

The research also illustrates the potential issues the new legislation could give rise to when employing and promoting staff.

Over half (52%) of small businesses admit the need for flexible working would be a consideration when recruiting new staff.

More than half (54%) of small business owners view the new flexible working legislation as unnecessary and nearly half (47%) think it is unimportant to achieving an improved work-life balance.

Steve Jennings, Director of Business Banking at Alliance and Leicester Commercial Bank, said: "Extending the flexible working right to another four and a half million parents is a big step and is likely to have a measurable impact on the UK's small business population.

Already under increased pressure to cut costs and increase productivity amid uncertain times, many small businesses are worried about how they will manage this added burden on their business.

"Planning ahead is key for any business so it is important to prepare for the changes now.

While the flexible working practices may prove challenging to adopt, there are, at least, easier ways for businesses to cover any extra costs brought about by the changes.

By something as simple as researching the deals available and switching to a more competitive banking offer, businesses can save thousands of pounds each year as well as gaining the flexibility of having a variety of ways to perform account transactions, whether this be via your local branch, through the UK's network of Post Offices, through mobile phone banking, online or over the telephone.".

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