Flexible working: the new norm retailers can’t afford to ignore

Flexible working changed during the pandemic and for many it offered a newfound sense of balance. But five years on, flexibility is under pressure. Across the sector, “return-to-office” mandates are on the rise.

John Lewis is one example, now requiring its commercial teams to spend “at least three days a week” in the office. Primark has gone further, setting a “four-day minimum,” while Boots, THG and Morrisons have reinstated full “five-day office weeks.”

For employees facing a rising cost of living, this trend represents more than a change in routine — it feels like a step backwards with a real financial impact. A loss of flexibility risks becoming a tipping point for employees to look for work elsewhere.

Rethinking flexibility

This all comes at a challenging time. The retail industry is grappling with a £23.3bn skills shortage and the government’s Employment Rights Bill will reinforce employees’ rights to flexible working. The proposed legislation — expected to come into force by 2027 — will prevent employers from refusing a flexible working request unless they clearly state their reasons and explain why that refusal is reasonable.

In other words, the law is catching up with what employees already expect. Retailers who wait until 2027 to adapt risk falling behind. Flexibility will no longer be a favour to be granted; it will be a right to be respected. Employers who fail to embrace this shift could find themselves losing talent to competitors who offer more progressive arrangements.

According to the Randstad 2022 Workmonitor report, 36% of Gen Z workers have already left a job because it didn’t offer enough flexibility.

Meeting Gen Z somewhere in the middle

Gen Z are reshaping the world of work. They don’t see flexibility as a perk; it’s a baseline expectation. Nearly two-thirds (65%) of Gen Z employees prefer a hybrid work model, and an overwhelming 75% say workplace flexibility is their most desired benefit. For this generation, flexibility means more than the option to work from home. It’s about autonomy — being trusted to choose when, where, and how they work best.

It’s clear that retailers cannot ignore these growing pressures. A rigid, top-down approach risks alienating younger workers. Those who adapt and prioritise flexibility will be more successful in retaining talent.

Easy fixes for retailers

Steps for retailers to consider:

• Broaden flexibility options: For head office employees retailers could expand flexibility to include varied arrangements such as flexible hours, compressed weeks, or staggered schedules.
• Champion wellbeing: Encourage a culture that values openness, respectable work hours, and recovery (when needed).
• Stay compliant and proactive: Don’t wait for the legislation in 2027. Adopt flexible working frameworks now to be ahead of the curve, strengthen retention, and be fully prepared when new regulations take effect.

The importance of the employment contract

Flexibility may bring freedom, but it also requires clarity. This is where clear employment contracts play a crucial role. Transparent agreements set expectations early, reduce misunderstandings, and prevent disputes before they arise by focusing on:

• Clarity of terms, both parties understand their rights and obligations from day one.
• Anticipation of risk — potential points of conflict are identified and addressed in advance.
• Fair and transparent principles — ensuring both employer and employee feel protected.
• Defined dispute resolution processes — offering mechanisms to resolve disagreements quickly and amicably.

It’s about retailers building trust from the very outset of a relationship. Contracts that balance flexibility with fairness foster a culture of mutual respect, reducing legal risk and strengthening employee loyalty.

Bringing this together

Flexible working is no longer a temporary solution but increasingly will become the new standard. Retailers that embrace this shift will be better equipped to attract talent, enhance productivity, and future-proof their organisations. Those that don’t risk not only legislative challenges and disputes but also talent shortfalls.

Meeting the cultural expectations of Gen Z, and being clear about what flexibility means, involves making commitments easy to understand. Traditional employment contracts and overly legal policies usually fail at this. Flexibility isn’t just a passing trend, it’s the foundation of the future world of work and retailers should think creatively about how they implement this in an engaging way, whilst staying legally compliant.