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Commentary: Can flexible work arrangements work for SMEs?

LaksaNews

Myth
Member
SINGAPORE: Amid news that employees can formally request flexible work arrangements from Dec 1, there is one inevitable reaction: Those working in small- and medium-sized enterprises (SMEs) can forget about it.

No matter how much of this is truth or misperception, it is an important point to address when we consider that SMEs employ about 70 per cent of the workforce.

When tripartite guidelines take effect, companies will have to put in place a process to fairly consider requests and respond within two months. But online commenters seem to believe that SMEs may find ways to reject such requests based on business grounds without trying to accommodate any flexibility - be it work location, timing or load.

But can flexible work arrangements actually work for SMEs?

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NOT JUST COMPANY SIZE OR INDUSTRY​


Flexible work arrangements, as a practice, should work for SMEs. It has always been more about the nature of the job than the size of the company.

There will be some jobs where implementing flexible work arrangements will be difficult, even in large companies.

For example, jobs that require a physical presence would not lend itself to “flexi-place” arrangements. Jobs in engineering and manufacturing require people to assemble, operate or repair equipment. Jobs in security require people to patrol and protect the premises. Jobs in healthcare and retail need to deal directly with patients or customers.

“Flexi-time” and “flexi-load” arrangements could possibly work. But even SMEs willing to deal with staggered hours, shifts, job sharing or part-time work may be constrained by the manpower crunch.

A recent World Economic Forum report highlighted talent acquisition as a key challenge for SMEs. They compete with larger and reputable organisations in Singapore’s tight labour market, especially in jobs that require specific certification and qualifications.

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ONE WAY FOR SMALL COMPANIES TO BE MORE COMPETITIVE​


But SMEs should not categorically dismiss the feasibility of flexible work arrangements because of these reasons. SMEs that make the effort to be flexible as part of their talent retention strategy can appear more competitive.

The owner of a homegrown clothing label with 13 full-time employees told us she provides five different shifts for her retail staff (both full-timers and part-timers) to choose from. These shifts are tailored to different outlets and periods to optimise the needs of each store and staff. Keeping a pool of part-timers can help buffer staff who may require ad-hoc work arrangements urgently. While planning these schedules can be very tedious, this has helped the owner retain her staff and make it work for the business.

A business solutions and consultancy services business owner with five employees provides flexibility in working location and hours, especially if their staff have caregiving responsibilities. She told us that both staff comfort and company objectives are important.

The broader picture here is that such flexible work arrangements require and display mutual trust.

Research suggests that flexible work increases employees’ productivity and organisational commitment through social exchange. SME bosses who prefer the status quo and see flexible work arrangements as a burden - rather than a potential lever to attract, engage and retain talent - may find themselves missing out.

Related:​


CHANGING MINDSETS TAKES TIME​


The new guidelines won’t change the minds of all business owners overnight. But formalising the process and setting expectations at a national level sends a clear signal to employers who can afford flexible work arrangements but do not.

Ultimately, it is a positive step towards a discussion between employers and employees on how to support each other.

Such discussions may not take place spontaneously otherwise, because of the power asymmetry. Employees bear the risk of sacrificing their jobs or career progressions for voicing out, especially in SMEs where it is obvious who these employees are.

To convince hesitant employers that flexible work arrangements can work without jeopardising business outcomes and competitive advantage, employees must show they can achieve work objectives equally well.

FLEXIBLE WORK NOT A PANACEA FOR BAD COMPANIES​


But it is a reality that running a business is not easy. Well-intentioned SMEs will still likely struggle finding flexible work arrangements that are a win-win for everyone.

While online resources and success stories provided by government agencies can help, ground-up efforts may also be useful in offering more tangible suggestions. Successful SMEs can collectively form some mentoring or advisory network to help other SMEs in this journey. Business councils could perhaps co-create workable solutions.

Flexible work is a means, not an end. And it is just one means: Flexible work alone is not a panacea if the company’s other people management systems and culture are dysfunctional.

Organisations are social systems where both employers and employees depend on each other. Considering both perspectives is an important first step towards building a sustainable and positive work environment. Good people help the business succeed and good businesses take care of their people.

Sherwin Chia is the Head of Programme and Charissa Tan is an organisational psychologist and senior lecturer for the Human Resource Management Programme. Both are at the S R Nathan School of Human Development, Singapore University of Social Sciences.

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