Work-life balance has evolved rapidly in today’s workplace, and it appears to be confusing UK bosses. Exclusive data from Startups reveals that business leaders can’t decide whether staff should be able to switch off or be expected to put in extra working hours.
We surveyed a representative sample of 531 SMEs towards the end of 2024. The results show that more than nine out of ten businesses support the government’s proposed Right to Switch Off (RTSO) laws, which would give employees the right to disconnect from all work-related communication outside of their normal work schedule.
At the same time, however, 39% of respondents said they consider it either necessary or acceptable for employees to work beyond their contracted hours.
In the past half decade, UK business growth has slowed due to challenging economic headwinds. Now, it seems that leaders are caught in a Catch-22; concerned about the impact on staff wellbeing, but also desperate to improve productivity and ensure survival.
Switch off to save the workforce?
Before it came to power, the Labour party pledged to introduce the RTSO to provide a code of practice for bosses on contacting staff outside of work.
The rise of flexible working has blurred lines for many hybrid and home workers, many of whom find themselves unable to draw a line between their professional and private lives. Under the law change, workers would be empowered to ignore work-related communication outside their normal work hours.
In total, 94% of business leaders we surveyed told us that they would support the new policy, with 50% expressing strong or very strong support.
Of the firms that expressed the strongest support for the laws, 38% said it was detrimental to employee wellbeing, suggesting that the impact on staff wellbeing was their biggest concern.
Recent discussions on the rise of always-on culture, enabled by flexible working, have highlighted concerns about its impact on employees’ mental health. Since 2023, record levels of employees have been leaving the UK workforce due to burnout and overwork.
Hypocritical bosses?
Despite overwhelming support for the RTSO, the data also finds that UK employers have a different perspective on work hour expectations when it comes to their own workforce.
When asked how they felt about requiring their employees to work beyond their contracted hours, just 11% of respondents said they thought it was unfair and harmful to staff wellbeing.
In fact, the most popular response (28%) is that contacting employees who have finished their work is acceptable in certain situations. Meanwhile, a further 11% said that it is absolutely necessary and beneficial for businesses.
45% of startups less than a year old think it is necessary or acceptable to contact employees outside work hours, the largest percentage of any business age group.
This is likely a reflection of startup culture, which tends to require fast and agile decision-making so that leaders can respond quickly to market shifts. The findings raise questions about how the RTSO might inadvertently curb new business growth and scale-up.
UK lagging behind
The government is in a difficult bind. It must foster business growth and competition, while also protecting employee rights in a fast-changing world of work; a conundrum that our data suggests business owners have been similarly thrown by.
Its response has been to delay. Despite stress levels continuing to rise among UK workers, the expected RTSO clause was missing from October’s Employment Rights Bill. The reforms will instead be subject to a consultation that will explore the practical impact on employers.
Pausing the RTSO could see the UK lag further behind its neighbours. European countries such as Italy and Portugal have already taken steps to prevent out of hours work contact.
However, without proper guidance, the proposed RTSO risks becoming a source of confusion and conflict for UK businesses, rather than a catalyst for positive change.
Editor of Startups.co.uk, Zohra Huda, says: “The RTSO debate has small businesses stuck between a rock and a hard place. They want to do the right thing by their employees but at what cost to their productivity and profitability? With the government hesitant to act decisively, it could be a tricky year ahead of navigating muddy waters.”
