An exploration of older worker flexible working arrangements in smaller firms

• DOI: http://doi.org/10.1111/1748-8583.12074
• Published date: 01 January 2016
• Author: Peter Sandiford,Carol Atkinson
• Date: 01 January 2016

An exploration of older worker flexible working

arrangements in smaller firms

Carol Atkinson, MMU Business School

Peter Sandiford, Business School, University of Adelaide

Human Resource Management Journal, Vol 26, no 1, 2016, pages 12–28

This article explores flexible working arrangements (FWAs) for older workers in smaller UK firms. We

address three questions: how far older workers need and value FWAs, the type of FWAs they need, and

whether smaller firms can offer these FWAs. We draw on 46 semi-structured interviews from six smaller

case study firms to present a qualitative exploration of both owner-manager and (under-researched)

worker perspectives. We evidence the offer and importance of temporal and work-role FWAs, together

with the use of i-deals and ad hoc FWAs in meeting the needs of this diverse group. We make three

contributions: first, theoretically, in arguing for an extended definition of FWAs and understanding

formality of offer; second, to practice, in highlighting FWA mechanisms appropriate to older workers;

third, to policy, in questioning the effectiveness of both the business case approach to older worker FWAs

in smaller firms and policy’s positioning of older workers as a homogeneous group.

Contact: Carol Atkinson, MMU Business School, All Saints, Oxford Road, Manchester M15

6BH, UK. Email: c.d.atkinson@mmu.ac.uk

Keywords: flexible working arrangements; older workers; smaller firms; (in)formality; i-deals

INTRODUCTION

In common with many developed countries, the UK population is ageing rapidly. Declining

labour market participation by the over 50s (Loretto and White, 2006), together with fewer

younger workers entering the labour market, raises the spectre of labour shortages. These

shortages, coupled with expensive pension provision (Zientara, 2009), make imperative the

labour market retention of older workers (Riach, 2009). In the UK, age discrimination legislation

reinforces government policy promoting a business case for older worker employment whereby

employers can attract and retain valuable skills (DWP, 2007, 2011). A discourse of productive

ageing (Simpson et al., 2012) thus seeks to change attitudes to older workers and exhorts

supportive working practices (Loretto and White, 2006). Accommodating older workers may,

however, require radical changes to HR practice (Coupland et al., 2008). Here we consider

flexible working arrangements (FWAs) designed for worker benefit that aim to support workers

in reconciling work with other aspects of their lives (Dickens, 2006). There is growing

recognition that such FWAs may support extension of working lives (CIPD, 2012; Loretto etal.,

2009), yet little is known about how far older workers need and value FWAs (Shacklock et al.,

2009). Many FWAs focus on the needs of groups such as working parents (Gardiner et al., 2007),

and alternative arrangements may be required for older workers (Hirsch, 2007; Buyens et al.,

2009). However, research demonstrates a lack of employer awareness of, or response to,

demographic trends (Fuertes et al., 2013) and typically short-term, ad hoc employer approaches

to older worker employment (Loretto and White, 2006; CIPD, 2012).

This is an open access article under the terms of the Creative Commons Attribution-NonCommercial License,

which permits use, distribution and reproduction in any medium, provided the original work is properly cited

and is not used for commercial purposes.

The copyright line for this article was changed on 18 May 2015 after original online publication.

doi: 10.1111/1748-8583.12074

© 2015 The Authors. Human Resource Management Journal Published by John Wiley & Sons Ltd.

Please cite this article in press as: Atkinson, C. and Sandiford, P. (2016) ‘An exploration of older worker flexible working arrangements in smaller

firms’.

HUMAN RESOURCE MANAGEMENT JOURNAL, VOL 26 NO 1, 201612

Human Resource Management Journal 26: 1, 12–28.

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This article explores the role of FWAs in supporting older workers in smaller UK firms to

remain in employment, contributing to ‘more sustainable working lives’ (Hirsch, 2007: 105,

emphasis in original). We address three questions: how far older workers need and value

FWAs, the type of FWAs they need, and whether smaller firms can offer these FWAs. We draw

on six case study firms to present a qualitative exploration of both owner-manager and

(under-researched) worker perspectives on older worker FWAs. We make three contributions:

first, theoretically, arguing for an extended definition of FWA and developing understanding of

formality of its offer; second, to practice, highlighting FWAs appropriate to this group; third,

to policy, questioning the effectiveness of both the business case approach to older worker

FWAs in smaller firms and its consideration of older workers as a homogeneous group.

RESEARCH CONTEXT: SMALLER FIRMS AND OLDER WORKERS

Smaller firms employ nearly 60 per cent of private sector workers (FSB, 2012). Context-specific

research is important as smaller firms are not ‘small big firms’ (Welsh and White, 1981), and

application of large firm HR practice may not be effective (Doherty and Norton, 2014). Reactive

approaches often prevail (Cassell et al., 2002), especially in the absence of HR specialists and

formal HR policies (Dex and Scheibl, 2001). HR practice is determined by a complex interplay

of external structural factors and internal dynamics, including resource constraints and

managerial influence (Harney and Dundon, 2006). Employment relations often thus constitute

‘negotiated orders’ reliant upon cooperation and bargaining (Ram, 1994), and mutuality and

adjustment dominate (Edwards and Ram, 2006). This may create the supportive climate

important to effective HR practice (Rondeau and Wagar, 2001) and help accommodate older

worker needs, particularly in relation to FWAs. Yet little is known about how FWAs operate for

this group in smaller firms (Fuertes et al., 2013).

We define older workers as aged 50 plus (Loretto and White, 2006; Shacklock et al., 2009).

Since the 1970s, UK labour market participation has declined markedly from this age (Smeaton

and Vegeris, 2009). Two main factors account for this: first, organisational practice has

encouraged older workers’ early labour market exit (Arrowsmith and McGoldrick, 1997);

second, institutionalised ageism has perpetuated discrimination and reduced employment

opportunities (Loretto and White, 2006). Recently, however, the UK government has addressed

this decline, promoting a productive ageing discourse (Simpson et al., 2012) and working life

extension (DWP, 2011). This is underpinned by age discrimination legislation (Urwin, 2006) and

a ‘business case’ for employing older workers (DWP, 2011). The business case argues employers

can address skill shortages by recruiting from a wider talent pool and reducing turnover to

retain vital experience. This is important for smaller firms as older workers are often

marginalised and overrepresented in the low-wage economy where smaller firms dominate

(Edwards and Ram, 2006). They constitute an important labour source, and FWAs are likely to

assist their recruitment and retention (DWP, 2007).

FLEXIBLE WORKING

In this section, we define FWAsand consider the formality of their offer, drawing out smaller firm

implications. We also discuss types of FWAs in relation to older workers. Early FWAs privileged

employer need, underpinning labour cost-reduction strategies for addressing fluctuations in

economic or business cycles (Stavrou and Kilaniotis, 2010). FWAs included, for example,

functional flexibility, in which workers developed a range of skills to facilitate job rotation, and

numerical flexibility, non-standard working patterns often associated with job and income

insecurity. In tight labour markets, however, different forms of FWAs emerged, initially termed

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© 2015 The Authors. Human Resource Management Journal Published by John Wiley & Sons Ltd.

HUMAN RESOURCE MANAGEMENT JOURNAL, VOL 26 NO 1, 2016

Carol Atkinson and Peter Sandiford