Flexible Working for SMEs: What It Looks Like in Practice

Flexible working is one of the biggest talking points in the modern workplace, and it’s easy to see why. According to CIPD’s Flexible and Hybrid Working Practices report 2025, 65% of SMEs say that all or most of their employees are able to work flexibly, outpacing larger organisations at 53%. Small businesses are leading the way, and it’s not hard to see why it’s worth getting right.

So what does it actually look like? Flexitime gives employees control over when they start and finish, as long as core hours are covered. Compressed hours means the same total worked over fewer days, like a four-day week. Remote or hybrid working lets people split their time between home and the office. Then there’s job sharing, where two people split one full-time role, and part-time contracts for those who need reduced hours altogether.

When it works well, the benefits are felt on both sides. Employees tend to report lower stress, better work-life balance, and higher job satisfaction. For employers, that usually means better retention, improved productivity, and a stronger position when hiring. In a smaller team especially, showing your people you trust them goes a long way.

That said, it does come with challenges. Different schedules and locations need clear communication and expectations to work smoothly, and in a small team you might notice the impact more if someone feels disconnected from the day-to-day. A few practical steps can help: regular team check-ins (even brief ones), a written flexible working policy that sets out expectations clearly, and making sure managers are equipped to lead teams they can’t always see in person. Getting these foundations right makes a real difference.

It’s also worth being aware of the legal side. Since April 2024, employees in the UK have had the right to request flexible working from their very first day of employment — and they can make up to two requests in any 12-month period. Employers can still refuse a request, but only on specific statutory grounds, and they must handle requests in a reasonable manner. For SMEs without a dedicated HR function, this is an area where it’s easy to get caught out, so having a clear process in place matters.

It’s also worth noting that flexible working simply isn’t possible in every role. A manufacturing production line can’t pause because someone prefers a later start, and retail or hospitality floors still need covering during set hours. In those settings, full flexibility isn’t realistic, but even small adjustments like offering some input over shift patterns can still make employees feel considered.

The bottom line is that flexible working doesn’t have to mean the same thing for everyone, and it doesn’t have to be all or nothing. It’s about finding what works for your business and your people. And if you’re not sure where to start, that’s exactly what we’re here for.

That’s where we come in. At KM HR Solutions, we work with SMEs to make HR straightforward. Whether you’re reviewing your flexible working policy, handling a

request for the first time, or simply not sure where to start, we can help. Get in touch at hradmin@kmhrsolutions.co.uk or visit kmhrsolutions.co.uk to find out more about how we work.