The latest extensions to flexible working regulations come into effect in April 2007, but there are still some "real challenges" facing small and medium-sized enterprise directors, according to a CIPD and British Chambers of Commerce study out in the same month. Primary among these is introducing flexible working policies without compromising business objectives.

The so-called "business case" is imperative for a small business, with board buy-in essential to an effective and sustainable set of policies. For Karen Stilges, head of corporate services at Belfast-based housing association Clanmil, building her case took some 20 months. But it's paid off, with Clanmil picking up the Working Families SME award for family-friendly working policies in February.

Clanmil was among five finalists in the Working Families award, winning out as a result of the thorough research and methodical follow-up that went into creating the housing association's Worklife Balance Strategy. Stilges's approach was methodical, starting out with a staff survey, then collecting and culling potential policies from other organisations across the UK. The initial hard work meant that the pilot year "went without a glitch."

Clanmil's WB strategy includes policies such as flexible hours, but it's "the feelgood" one, the day off for birthdays, of which she's most proud. And from a business point of view, she reckons the option to buy and sell holiday has been "a real positive" in a sector where pay scales are limiting.
The impetus behind the strategy had been Clanmil's need to tackle recruitment and retention problems.

At pilot's end, a follow-up "impact" survey of Clanmil's staff found morale significantly up; labour turnover rates down by 64 per cent at head office and 15 per cent across the whole association—hitting the weak area the programme was targeting. Using CIPD indicators, Stilges estimates Clanmil saved £32,000 between April 2005 and March 2006 in recruitment costs. This year, Stilges is trialling a new add-on to the programme, offering employees free medical check-ups and follow-up advice.

Extending Clanmil's strategy is a smart move, if Working Families' CEO Sarah Jackson is correct: she believes flexible working policies are quickly becoming essential rather than a differentiator.

But "there are still employers who equate a body at a desk to output," admits Stilges. At ENCAMS, a finalist in the Working Families awards, one director notes: "Lots of the directors with whom I speak are working in companies where the culture would benefit from greater trust—if employees have output measures, directors can see that the work is being done and trust is established."