7 Flexible Working Policies that Attract Top Talent

With employees increasingly prioritising work-life balance, companies that offer flexibility are quickly rising to the top as the most desirable places to work.

In fact, studies show that employees who have access to flexible working options report higher job satisfaction, better productivity, and reduced stress levels. Not only does flexibility improve employee well-being, but it also helps businesses future-proof their workforce in times of change or crisis.

Read on to discover everything you need to know about the legal framework for flexible working in Australia and learn how to develop the best policies that will not only comply with the law but also make your company a magnet for top talent ⬇️

The Australian Legal Framework for Flexible Working

Who is legally entitled to flexible working?

Under the Fair Work Act 2009, certain groups of employees have the legal right to request flexible working arrangements. These provisions aim to support work-life balance and ensure fair treatment for individuals with specific needs. Eligible employees include 👇

• Employees who have primary responsibility for the care of a school-aged child or younger
• Individuals formally recognised as carers under the Carer Recognition Act 2010
• Employees who have a disability that requires workplace adjustments
• Workers aged 55 and above
• Individuals who need adjustments to their work arrangements due to pregnancy
• Employees experiencing family or domestic violence

It’s important to note that casual employees can also request flexible working arrangements if they meet these eligibility criteria and have been working for the employer regularly for at least 12 months.

How can employees request flexible working?

Under the Fair Work Act, employees have the legal right to request flexible working arrangements if they meet specific criteria, such as being a parent, carer, older worker, or person with a disability. For an employee to make this request, there are clear steps that need to be followed to ensure compliance with the law, as well as to create a structured and fair process for both employees and employers. 👇

Submit the request in writing

The Fair Work Act requires that all flexible working requests must be submitted in writing. The request should clearly outline:

• The specific changes the employee is seeking (e.g., adjusted work hours, work-from-home arrangements, job sharing, etc)
• The reasons for the request (e.g., caring responsibilities, medical needs, or personal circumstances). These reasons should explain how the proposed changes will accommodate the employee’s situation

Include all the key information

Employees should be detailed and clear in their requests to avoid delays or misunderstandings. Key elements to include are:

• When the employee wants the flexible arrangement to begin
• Whether the flexible arrangement is permanent or temporary, and if temporary, how long the arrangement will be required
• Employees can also suggest ways to manage any potential impact their flexible work arrangement might have on team performance or business operations. This demonstrates their willingness to collaborate and minimise disruption

Providing evidence (if necessary)

In some cases, employees may need to provide supporting documentation to validate their request, particularly for medical reasons or caregiving responsibilities. For example, employees requesting flexible working arrangements due to a disability may be asked to submit a doctor’s certificate outlining the recommended adjustments.

Engaging in a dialogue

While employees need to submit their request in writing, they should also be ready to have open discussions with their employer afterward. If the original request can’t be accommodated due to business needs, employers are encouraged to explore other options together. This back-and-forth helps both sides work together to find a solution that benefits the employee and the company.

💡Quick tip: Make the process smoother by offering employees a flexible working request template. This ensures all the important details are covered and helps HR standardise the evaluation of requests

What are employers’ obligations when it comes to flexible working?

Employers are required to handle flexible work requests according to specific guidelines set out by the Fair Work Act 👇

• Employers must respond to written requests within 21 days, providing their decision in writing
• Employers can only refuse a request on reasonable business grounds, such as:
  • Cost implications
  • Impact on the work arrangements of other employees
  • Impact on productivity, customer service, or business operations
• Employers must ensure that decisions comply with the legal framework and are applied fairly across the organisation. A Standard Operating Procedure (SOP) for handling flexible working requests can ensure consistency and equity

Why You Should be Offering Flexible Working to Your Employees

Improved employee wellbeing

Research by the American Psychological Association found that employees with more control over their schedules report better overall health and well-being. ❤️‍🩹

Flexibility allows workers to manage their workloads more effectively, which can significantly reduce stress and help prevent burnout. 

Additionally, flexible schedules provide employees with more time to focus on their health, whether that means attending medical appointments, engaging in physical activity, or maintaining a healthy work-life balance.

Flexible work schedules allow employees to juggle their professional duties alongside family obligations, personal development, and other commitments. This balance leads to higher job satisfaction, increased engagement, and a more loyal workforce. 

When employees have the freedom to manage their personal responsibilities, they are more focused and energised during work hours, contributing to higher performance and lower absenteeism rates.

Higher employee engagement and productivity

When employees have autonomy over their work schedules, it directly impacts their productivity and engagement.

Flexible working arrangements give employees more control over their schedules, leading to higher morale and deeper engagement. According to a study by Stanford University, employees who work remotely show a 13% increase in productivity compared to their office-based counterparts. This can be attributed to fewer distractions, reduced commute stress, and the ability to work during their most productive hours. Employees who feel trusted to manage their time are more likely to be motivated and committed to their roles 🙌

Attracting a diverse workforce

Flexible working arrangements serve as a powerful tool for attracting a diverse range of talent ⬇️

• Parents: Offering flexibility, such as adjusted hours or the ability to work from home, makes it easier for parents to balance caregiving responsibilities with work. This is particularly important for dual-career households or single parents who might otherwise struggle with rigid schedules
• People with disabilities: Many individuals with disabilities require specific accommodations in the workplace, whether that’s extra time for medical appointments or the option to work remotely. Flexible working arrangements make your workplace more inclusive and accessible, ensuring that people with diverse needs feel supported and valued
• Remote workers: Geographic location should not be a barrier to hiring top talent. Flexible working arrangements allow companies to attract employees from different regions, enabling them to build more diverse and skilled teams. This is especially important for industries where specialised roles might be scarce in certain locations

Retaining top talent

Flexible working policies help retain top talent by accommodating employees’ evolving needs. A Forbes study found that 67% of employees said they are more likely to stay with an employer that offers flexible work options. 

Whether it’s accommodating a parent’s need to manage childcare, helping employees adjust their work around health issues, or simply offering a better work-life balance, flexibility ensures that employees feel supported throughout various life stages.

What’s more, employees who feel that their company values their personal well-being are more likely to stay loyal. Flexibility is a clear demonstration of trust and respect, fostering a work culture where employees feel cared for and empowered to succeed.

Future-proofing the workplace

Companies that were able to pivot quickly to remote working during the pandemic were far better positioned to continue operations without significant disruption. Businesses with flexible working models already in place not only survived but thrived. 

Having flexible work options ensures that your company is ready to handle unexpected challenges, whether they are related to health crises, environmental issues, or changes in workforce demographics.

The 7 Best Flexible Working Policies to Include

Remote work

Remote work has become one of the most sought-after flexible working options, especially after the COVID-19 pandemic. It allows employees to work from anywhere, enabling businesses to tap into a global talent pool and remove geographic limitations. 

Why it works

One of the most significant benefits of remote work is that it allows companies to hire from a much larger and more diverse talent pool. Employers are no longer restricted by geographical location and can access highly skilled professionals from across the country or even internationally. This is particularly advantageous for industries with specialised roles that may be harder to fill locally.

Remote work offers employees the freedom to design their work environment, cutting down on commutes and office distractions. A survey by FlexJobs found that 65% of employees are more productive working from home than in a traditional office setup. 

Remote work gives employees the flexibility to structure their day in a way that best suits their personal and professional needs. This leads to improved work-life balance, reduced stress, and higher job satisfaction. Employees can manage household tasks, exercise, or attend to personal matters without disrupting their work schedules, contributing to overall mental well-being.

Additionally, remote work helps companies reduce overhead costs associated with maintaining large office spaces.

How to implement remote work

Set clear expectations

Remote work requires clear communication of expectations regarding working hours, availability, deadlines, and performance metrics. It’s important to define these guidelines upfront to avoid any misunderstandings. Employers should create a remote work policy that outlines expectations for communication, attendance in meetings, and productivity.

Use shared calendars and project management tools like Asana, Trello, or Monday.com to ensure everyone is aligned on deadlines and availability.

Provide the right tech

Equipping remote employees with the right tools is essential to ensuring productivity. Providing access to collaboration tools, secure VPNs, efficient HR tech and cloud-based document management systems allows teams to work effectively, regardless of their location.

Encourage communication

Regular communication is crucial in a remote work environment. Virtual check-ins, team meetings, and one-on-one discussions help keep remote workers connected to their teams and aligned with company goals. Establishing a communication rhythm can help overcome the isolation some remote employees might feel.

Monitor performance

Remote work should be results-oriented. Rather than focusing on hours worked, shift the emphasis to performance and deliverables. Regular feedback sessions ensure employees stay on track and feel supported in their roles.

Flexible hours

Flexible hours allow employees to decide when they start and end their workday, within certain limits. This gives them the freedom to manage personal responsibilities — like dropping off kids at school or attending appointments — without having to take time off.

Why it works

Flexible hours enable employees to better manage personal and professional responsibilities. For example, working parents can adjust their schedules to align with school drop-offs, medical appointments, or other family needs. This flexibility reduces stress and helps employees achieve a better balance between their personal lives and careers. According to a study by the American Sociological Association, employees with flexible hours reported a 60% improvement in work-life balance.

How to implement remote work

Define core hours

While giving employees flexibility, it’s essential to maintain some consistency in team collaboration. Establish core hours where all employees are available for meetings, communication, and teamwork. For example, companies can set a core window of 10 AM to 2 PM where all team members are expected to be online or in the office, and the rest of the hours can be flexible.

Communicate expectations

Ensure employees understand that, while they can manage their schedules, they are still expected to meet deadlines, maintain productivity, and attend required meetings. Clear communication ensures that flexibility doesn’t hinder overall team performance.

Use shared scheduling tools like Google Calendar or Microsoft Teams to track employees’ working hours and availability, ensuring that everyone remains aligned.

Create a trial period

Consider running a pilot program to evaluate the impact of flexible hours on productivity and collaboration. During this period, gather feedback from employees and managers to fine-tune the policy before rolling it out company-wide.

Compressed workweeks

A compressed workweek allows employees to work the same number of hours over fewer days. For example, instead of working five 8-hour days, employees could work four 10-hour days. This gives them an extra day off each week to rest and recharge, helping to reduce burnout while maintaining productivity.

Why it works

Compressed workweeks offer employees more personal time without reducing their income. Employees feel more energised and focused when they know they have an extended break at the end of the week. Research from a New Zealand study by Perpetual Guardian found that a four-day workweek led to a 24% improvement in work-life balance and a 20% increase in productivity.

Some companies like Kickstarter and Basecamp have experimented with four-day workweeks, reporting that employees are happier, more creative, and just as productive as they were under a traditional five-day schedule.

With more flexibility in their schedules, employees are less likely to need time off for personal matters. Compressed workweeks can also lead to fewer sick days, as employees have more time to rest during their extended time off. This benefit can boost overall business continuity and reduce staffing challenges.

How to implement compressed workweeks

Trial period

Before fully adopting a compressed workweek, consider offering it on a trial basis. This allows the company to evaluate the impact on productivity, customer service, and employee satisfaction without long-term commitments. During the trial, gather employee feedback to assess how well the arrangement is working.

Ensure continuity

While compressed workweeks provide additional time off, they should not disrupt the company’s operations. To maintain continuity, stagger employee schedules so that some teams are always available. 

For example, if half the team takes Mondays off, the other half can take Fridays off, ensuring that the business remains open for all five workdays. Use team scheduling tools to ensure that key personnel are available on different days and customer service isn’t compromised.

Set clear expectations

It’s important to establish clear guidelines and expectations for employees on compressed workweeks. Make sure that performance metrics and output are well-defined, and communicate the importance of meeting deadlines, even with fewer workdays.

Monitor performance and satisfaction

Regularly track the impact of compressed workweeks on both employee performance and satisfaction. Use surveys, performance reviews, and productivity data to measure how well the new schedule is working. Be open to tweaking the arrangement if certain departments or employees find it difficult to manage.

A good way of doing this is holding quarterly feedback sessions where employees can share their experiences with the compressed workweek and suggest areas for improvement.

Job sharing

Job sharing is a flexible working arrangement where two employees share the responsibilities of one full-time position. This arrangement allows each individual to work part-time while ensuring that the job is fully covered. 

It’s an ideal solution for employees seeking more balance in their work-life commitments, such as parents, caregivers, or those looking to transition into retirement. For companies, job sharing can provide a broader range of skills and experience for a single role while enhancing employee satisfaction and retention.

Why it works

Job sharing allows companies to retain talented employees who may otherwise leave the workforce due to personal commitments, such as caregiving. It also brings diversity of thought, as two individuals bring their unique perspectives and strengths to a single role.

Job sharing opens the door to a wider pool of candidates, including those who may not be able to commit to full-time work. Parents returning to the workforce, professionals transitioning to retirement, or employees pursuing education can all benefit from job-sharing opportunities. Companies can attract and retain top talent by offering this flexibility.

How to implement job sharing

Clearly divide responsibilities

A successful job-sharing arrangement requires a clear understanding of roles and responsibilities. Employees should collaborate to ensure all tasks are covered, and there should be minimal overlap or gaps. A clear division of duties allows each person to focus on their specific strengths and ensures a smooth workflow.

Use shared collaboration tools, such as project management software, to keep both employees aligned on tasks and progress.

Prioritise effective communication

Communication is key in job sharing. Ensure both employees have regular check-ins, ideally with some overlap in their schedules, to discuss ongoing projects and any potential issues. 

Regular communication helps maintain consistency in the work delivered and ensures seamless transitions between shifts. Consider using shared email inboxes, joint task lists, and team meetings to ensure a unified approach to the job role.

Set up handover procedures

Implementing a structured handover process is crucial. At the end of each workday, employees should document what has been completed and what remains to be done. This allows the other employee to pick up where the first left off, avoiding missed deadlines or duplicated work. Create handover templates for employees to document their progress and ensure tasks are easily transferred between team members.

Be flexible in scheduling

When offering job sharing, it’s important to provide flexibility in scheduling. Employees should work together to create a schedule that suits both their personal and professional needs while ensuring business continuity.

Implement a “split-week” model where each employee works a set number of days. For instance, one employee could work Monday to Wednesday, and the other could work Thursday to Friday. This offers a predictable schedule for both employees and the business.

Monitor and evaluate

Periodically assess the effectiveness of the job-sharing arrangement. Monitor performance, communication, and satisfaction levels to ensure that the setup is working for both employees and the organisation. Adjust as needed to ensure that all parties are benefiting from the arrangement.

Use performance reviews and feedback sessions to understand how well the job-sharing arrangement is working and identify any areas for improvement.

Paid family and medical leave

Paid family and medical leave provides employees with the opportunity to take time off for major life events such as the birth of a child, a serious illness, or caring for a loved one, without the financial stress of unpaid leave. 

Offering paid leave helps ensure that employees can focus on their personal lives without worrying about losing income or job security. 🙌

Why it works

Paid family and medical leave fosters loyalty and reduces turnover, as employees are less likely to leave when they feel supported during life’s critical moments. According to the Society for Human Resource Management (SHRM), companies with generous paid leave policies experience a 19% lower turnover rate.

➡️ Patagonia offers 16 weeks of paid parental leave, which helps employees return to work refreshed and ready, knowing they had the time they needed to adjust to parenthood.

How to implement paid family and medical leave

Offer phased returns

When employees return from family or medical leave, consider offering a phased return to work, where they can gradually increase their hours over time. This helps ease the transition and prevents burnout as employees adjust to being back in the workplace.

Encourage both parents to take leave

To promote gender equality, encourage both men and women to take full advantage of paid leave. Having supportive policies in place is one step, but actively encouraging all employees to use their leave ensures a balanced and inclusive approach to caregiving responsibilities.

Go beyond legal minimums

While many companies offer the bare minimum required by law, consider going above and beyond to provide more generous leave options. Extending paid leave, especially in cases of long-term illness or ongoing caregiving responsibilities, demonstrates a company’s commitment to employee well-being and can significantly improve retention.

Sabbaticals and extended leave options

Sabbaticals and extended leave policies offer employees the opportunity to step away from their work for an extended period, usually for personal or professional development. 

This benefit can significantly enhance employee satisfaction, retention, and overall well-being by allowing individuals to pursue long-term goals, refresh their mental and physical health, or engage in meaningful personal pursuits without risking job security.

Why it works

Taking a break from work for several months can significantly reduce stress, prevent burnout, and give employees the chance to recharge. Research shows that extended time away from work allows employees to return with renewed energy, creativity, and a clearer sense of purpose.

Sabbaticals enable employees to pursue passions outside of work, whether that’s further education, travel, volunteering, or family time. It allows for self-improvement, which can, in turn, lead to better performance once they return to their roles.

How to implement sabbaticals

Define eligibility criteria

Decide how long employees must work at your organisation to be eligible for a sabbatical. Many companies require five to seven years of service before an employee can request extended leave. Make it clear whether the leave will be paid or unpaid, and outline what type of leave qualifies as a sabbatical.

Set clear expectations

Communicate the purpose of sabbaticals and how they can benefit both the employee and the organisation. Establish guidelines for how long the sabbatical can last, what documentation is needed, and the process for applying. Make sure employees know that a sabbatical should have a clear goal, such as personal development or family care.

Plan for coverage 

Cross-training employees is essential when someone takes an extended leave. Ensure the team is prepared to handle the workload while an employee is on sabbatical, and offer temporary role adjustments or additional support where needed.

Set up a reintegration strategy

Have a plan in place for employees returning from sabbaticals. This might include catch-up meetings with their manager, training to learn about any changes that occurred during their absence, or a phased re-entry into their role to ease the transition back to work.

Flexible vacation

Offering flexible vacation policies such as unlimited vacation or the ability to carry over unused days gives employees more control over their time off. This can reduce burnout and improve long-term performance, as employees are encouraged to take time off when they need it, without worrying about using up limited vacation days.

Why it works

Flexible vacation policies create a results-oriented culture, where employees are judged on their work output rather than the number of hours they spend at the office. It also builds trust, as employees manage their own time off responsibly.

Known for its innovative HR policies, Netflix offers unlimited vacation days. The company encourages a results-driven culture, where employees are measured by the work they produce rather than the number of hours or days spent in the office. This has led to increased employee engagement and satisfaction.

How to implement flexible vacation

Set clear guidelines

Although the term “unlimited vacation” sounds boundless, it’s important to have clear guidelines in place. Ensure that employees understand that while they have flexibility, they are still responsible for meeting their deadlines and commitments.

Create a culture of work-life balance

Some employees may feel reluctant to take vacation if they fear falling behind. Create a culture where managers actively encourage employees to take time off regularly to recharge.

Track vacation time

Track how employees are using their vacation time to ensure that flexibility doesn’t negatively affect business operations or lead to burnout. Regular check-ins can help ensure that workloads are balanced and employees are taking adequate time off to maintain their well-being.

Be flexible

When introducing flexible vacation, be sure to tailor the policy to fit the company’s culture and operational needs. If unlimited vacation is too much of a leap, start by offering more flexibility in how employees use their accrued vacation days — this can still provide significant benefits without a complete overhaul of the system.

Lead by example

Encourage managers to lead by example. When senior leaders actively use their vacation time, it sends a powerful message to the rest of the organisation that time off is not just permitted, but encouraged.

🚀 Need more insights on how to create flexible working policies? Check out the Subscribe-HR blog for a wealth of information on best practices, employee engagement, and HR management. We’re always here to help with any HR questions you may have, so don’t hesitate to reach out!