Could a flexible more diverse workforce be the answer to your staff shortages?

We all know retaining and attracting team members can be a real challenge for business owners. But have you considered how a proactive policy of broadening the flexibility of your employment contracts and actively seeking a more diverse workforce makes all the difference for your business? By making changes to your employment contracts, increased flexible working could tackle staff shortages that threaten economic growth.

More of the working-age population would take up work or stay in jobs if they were offered greater flexibility on where and how they worked. Central bankers have said a labour supply problem risks cutting the UK’s potential for growth.

Flexible working has become increasingly popular since Covid-19 lockdowns forced people to work from home. Amid staff shortages and record vacancies last year, many companies expanded their flexible working offer to attract recruits.

However, most workers still have no option to work in a hybrid manner, figures published by the Office for National Statistics (ONS) show. About half a million workers left their jobs during the pandemic, with no plans to return, pushing up the rate of economic inactivity, which measures the share of working-age people who are neither working nor available for work.

Some of the rises were caused by the ageing of the population, which meant a greater share of workers reaching retirement age, but the trend was driven mainly by workers aged 50 to 64 who retired early or had to leave their jobs because of long-term sickness.

Increasing flexibility improves participation in the workforce not only among older workers but also people with health conditions, disabilities,students and parents, There was a rise in older people returning to work at the end of last year but it was too early to say there had been a reversal of the trend, according to the analysis of ONS data published last week.

To address the issue of labour shortages and to unlock the potential of economic growth, experts are calling for greater flexible working to be offered. Allowing workers greater flexibility on the hours, days and place of work could help to attract those who have left the labour market for health or family reasons but are still able to work. Moreover, offering flexible working could entice more people to join the workforce, helping to reduce the labour supply problem.

Not only would increased flexible working help to tackle staff shortages, but it could also lead to a more productive, motivated and diverse workforce. Remote working can offer an improved work-life balance, boosting job satisfaction and reducing stress-related absences. Furthermore, flexible working can lead to a more diverse workforce, as it is an attractive option for underrepresented groups, such as those who have caring responsibilities. By offering flexible working, companies could make their workplaces more inclusive for those with disabilities or health conditions, as well as for those who are parents or carers. Many studies show that workers with disabilities are often viewed as dependable, loyal, responsible, and have overall positive job performance ratings . Due to some discriminatory hiring practices, deaf and hard of hearing employees are known to work extra hard to secure their position and pursue opportunities for career advancement.

Overall, offering a more flexible and diverse workforce could help to tackle staff shortages that threaten economic growth, while also leading to a more productive, diverse and motivated workforce.

Originally published at https://www.linkedin.com.