THIS WEEK: Why flexible organisations will thrive in 2025

ENTREPRENEURSHIP

The concept of flexible work has been shaping strategies for decades, but the pandemic accelerated its adoption and highlighted both its benefits and challenges. Let’s take a journey through the evolution of flexible working models, reflect on what we've learned, and explore what the future holds for you.

The evolution of flexible work

Flexible work began gaining traction in 1984 when John Atkinson introduced the Flexible-Firm model. This model suggested dividing employees into two groups: core employees, who are essential to the organisation, and peripheral employees, who can be engaged as needed. This structure aimed to help businesses adapt quickly to changing markets and unpredictable environments.

Over the years, many organisations, including possibly your own, have adopted this model, and its benefits became especially evident during the pandemic. If you were part of a company with a flexible structure, you likely noticed how much more resilient it was, better equipped to handle sudden changes, and adapt to the unforeseen.

The other side of the flexible model

During the pandemic, remote and hybrid working models became a necessity for many of us. However, it’s important to acknowledge that flexible working practices aren't easily adapted to every type of job or industry. You might have found that while flexible work was a lifesaver in some areas, it also posed significant challenges in others. Research highlights that flexible work is an ambiguous concept—on one hand, it's a prerequisite for short-term economic success and competitive advantage. On the other hand, it has been criticised for its potential negative effects on workers and society.

The concept of flexibility within organisations like yours can be understood in two dimensions: employment-type flexibility and work-type flexibility. This raises a crucial question: who benefits more from flexible working practices—you or your employer?

What we've learned so far – short-term lessons

According to the CIPD’s report on Flexible Working: Lessons from the Pandemic, flexible working formats for highly-skilled workers create an inclusion risk when lower-paid, front-line workers are denied the same opportunities. If you work in an environment where flexible working is encouraged, you may have noticed how these initiatives can amplify the polarisation among workers, exacerbating the negative social impacts already present in an hourglass economy.

While the positives of flexible working—like eliminating lengthy commutes and improving work-life balance—are undeniable, they come with drawbacks that might resonate with you. Social isolation, a lack of physical team interaction, and increasing workloads can lead to mental well-being problems, further compounded by a sedentary lifestyle.

At this stage, it seems that employers have been the primary beneficiaries of flexible working initiatives. They’ve enjoyed reduced overhead costs, higher team productivity, and better staff retention. But how does this impact you in your daily work life?

Mid-term outlook

Recent research has shown that the majority of teleworkers, perhaps including you, are not keen on returning to the office even after pandemic restrictions have eased. This shift in preferences is opening the door to new models of cooperation, such as gig work, wider use of zero-hours contracts, self-employment, and temporary work.

However, it’s important to be aware of the trade-offs. While you might enjoy the freedom to choose projects or temporary employers, this could also mean facing increased labour insecurity and lower remuneration. Moreover, the responsibility for your professional development will likely rest more on your shoulders, as you strive to add value to your skills in an increasingly competitive market.

Flexible organisations – the future of work

The good news is that flexible work isn’t going anywhere—it’s here to stay. Looking ahead, organisations, including yours, will continue to transform their management methodologies, applying agile approaches that focus on outcomes rather than working hours. However, as your company or business embraces these changes, it’s essential to consider the potential risks that come with flexibility in employment types, such as loss of continuity and legacy knowledge.

Conclusion

As we look towards the future, it’s likely that Atkinson’s Flexible-Firm model will continue to evolve. You might see a work environment where core teams enjoy complete flexibility in their work, while peripheral teams experience greater flexibility in employment. This model could very well shape the way you work, offering both opportunities and challenges in equal measure.