In today's competitive and dynamic commercial landscape, having a flexible, agile workforce has become almost essential. In order to compete, businesses need to think on their feet, creating and managing a mobile, fluid and sophisticated environment for their employees.
But this should mean more than just offering flexible working hours to employees. Multiskilling staff so that they can fulfil a number of different roles, or introducing easy-to-use digital tools to encourage communication in the workplace, are just some of the routes businesses are taking. Many firms – small and large – are now using office space more innovatively to save on operational costs.
This is flexibility in practice and it has real benefits for businesses. Matching the workforce closely to changes in demand, as a way of meeting customers' expectations and avoiding low productivity, can provide a real boost.
Flexible contracting is part of this too, saving jobs during tough economic times, and enabling businesses to rapidly respond to the growth opportunities we've been seeing more recently. Our latest employment trends survey published in December shows that 97% of firms believe that a flexible workforce is either vital or important to the competitiveness of the UK and prospects for business investment and job creation.
Some 87% of businesses said that flexible employment arrangements enable them to cope with fluctuating demand, and 65% said flexibility has an important role in creating employment opportunities.
But just as flexibility and agility can't be solely about family-friendly working, it isn't just about saving money for a business. The aim is actually increased employee engagement and the retention of high-quality talent as well as resource efficiency, whether that is staffing a new business unit, helping women return from maternity leave, mixing work and study, or phasing retirement.
The challenge is making sure that these models match both business and employee needs – finding the happy medium which works for everyone. It is a big challenge for businesses, and line managers in particular, who will need to challenge outdated assumptions about "putting in the hours" in the office.
The business case for flexibility in a changing world economy is clear. Rigid practices and a lack of agility can really hold firms back. Now more than ever, businesses need to ensure they have the flexibility not to be left behind.
Neil Carberry is CBI director for employment and skills
