Remote working for SMBs: benefits, challenges and legal essentials

Remote working refers to an arrangement where employees perform their tasks outside of the company’s physical office, typically from home or another location of their choice. In recent years, this model has evolved into several formats:

• Full remote working: employees work entirely from home or another location.
• Hybrid remote working: a mix of office presence and home remote working.
• Flexible working arrangements: employees can request adjustments to their normal place of work, working hours, or schedule.

For small and medium-sized businesses (SMBs), these setups are no longer just a perk but a necessity. Many SMBs face intense competition for skilled talent, and offering remote working arrangements makes them more attractive to candidates who prioritize flexibility and work-life balance.

At the same time, SMBs often operate with limited resources compared to larger companies. Allowing employees to work remotely can help reduce overhead costs, open access to a wider talent pool, and improve retention. However, it also requires clear policies—such as a remote working agreement—to ensure fairness, compliance, and productivity.

Working remotely requires more than just a laptop and an internet connection. Employers increasingly expect candidates to demonstrate specific skills and, in some cases, relevant qualifications to succeed in a remote or hybrid working arrangement.

• Self-management and discipline: the ability to stay productive without direct supervision.
• Strong communication skills: written and verbal clarity are essential when collaborating with employees working remotely across locations.
• Time management: prioritising tasks and avoiding distractions is key to balancing workloads.
• Digital literacy: comfort with collaboration platforms such as Microsoft Teams, Slack, Zoom, or project management tools like Trello and Asana.
• Problem-solving: remote employees often need to troubleshoot independently before escalating issues.
• Adaptability: flexibility in adjusting to new tools, work schedules, and cross-time-zone collaboration.

While many remote jobs rely more on soft skills than formal qualifications, certain sectors value specific credentials:

• Finance roles (e.g. finance business partner): professional qualifications such as ACCA, CIMA, or ACA.
• Non-profit and fundraising roles (e.g. trusts and foundations fundraiser): experience in grant writing, donor engagement, or certifications in fundraising management.
• Technology: coding certifications, cybersecurity training, or cloud computing accreditations (e.g. AWS, Azure).
• Project management: certifications such as PRINCE2, PMP, or Agile/Scrum.

Employers want to see evidence that candidates can thrive outside the traditional office. Strong CVs for remote jobs often include:

• Prior experience in remote or hybrid remote working.
• Demonstrated use of collaboration tools.
• Examples of independent projects completed successfully.
• Keywords like remote working agreement or remote work arrangements (when relevant to the role).

Remote hiring processes typically involve video calls and practical tasks. Candidates should prepare by:

• Testing their video and audio setup in advance.
• Being ready to discuss how they manage work-life balance while working remotely.
• Highlighting examples of successful teamwork in remote working arrangements.

For small and medium-sized businesses (SMBs), embracing remote and hybrid working arrangements is more than a response to employee demand—it’s a way to build a lasting competitive advantage. By allowing employees to work remotely, SMBs can strengthen recruitment, retention, and efficiency while improving work-life balance for their teams.

1. Attracting top talent
   Many candidates now prioritise flexible working arrangements when considering new roles. Offering remote working agreements allows SMBs to compete with larger firms for skilled professionals.
2. Improved employee retention
   Employees who enjoy better flexibility and work-life balance are more likely to stay with their employer, reducing costly turnover.
3. Access to a wider talent pool
   Remote work enables hiring beyond the immediate geographic area, allowing SMBs to find specialists—such as a finance business partner or a trusts and foundations fundraiser—without being limited to their normal place of work.
4. Cost savings
   Fewer employees in the office means lower overheads for rent, utilities, and office equipment. These savings can be reinvested into growth or innovation.
5. Increased productivity
   Studies consistently show that employees working remotely can be as productive—if not more—than office-based colleagues, thanks to fewer interruptions and more control over their environment.
6. Stronger employer brand
   Offering flexible working requests demonstrates that a company values employee well-being, positioning the SMB as a modern and attractive employer.
7. Resilience and continuity
   Remote-ready businesses can adapt more quickly to disruptions (such as transport strikes or health crises), ensuring continuity of operations.

While full home remote working offers independence, many SMBs find that a hybrid remote working model provides the best of both worlds. Employees gain flexibility while still benefiting from in-person collaboration and team culture.

Remote work offers flexibility, but for small and medium-sized businesses (SMBs) in the UK, it also raises important legal and compliance questions. To protect both employers and employees, it’s essential to establish clear remote working agreements and understand the relevant labour laws.

Since April 2024, UK employees have the legal right to request flexible working from day one of employment (UK Government, Flexible Working Regulations 2023).

• Employees can request changes to their normal place of work, hours, or schedule.
• Employers must consult with the employee before refusing and provide a valid business reason.
• Requests should be handled fairly and consistently to avoid claims of discrimination.

To avoid ambiguity, employers should document clear remote working arrangements. A well-drafted agreement typically covers:

• Place of work: clarifying whether home is the main workplace or a secondary location.
• Working hours: ensuring alignment with existing contracts and working time regulations.
• Health and safety: employers remain responsible for ensuring that the home environment is safe for work.
• Data security: defining responsibilities for handling confidential information when employees work remotely.

Remote work can have financial implications, especially when employees work across borders.

• Within the UK: employees usually maintain the same tax and National Insurance (social security) obligations as office-based workers.
• International remote work: if an employee works outside the UK for extended periods, tax residency rules and double taxation treaties may apply. This can also affect employer obligations for social security contributions.

Without clear remote work arrangements, SMBs risk disputes over working hours, expenses, and performance expectations. Having written agreements and policies not only protects the business legally but also builds trust with employees.

For SMBs, moving to remote or hybrid working arrangements can feel challenging. But with a structured approach, it becomes a smooth transition that benefits both employers and employees.

1. Assess business needs

• Identify which roles can be done as home remote working and which require in-office presence.
• Evaluate technology, compliance, and customer service requirements.

2. Define clear policies

• Draft a remote working agreement covering working hours, expected availability, and data security.
• Clarify expense policies (e.g. equipment, internet, electricity).
• Ensure alignment with UK labour laws on flexible working arrangements.

3. Consult with employees

• Encourage staff to submit flexible working requests where appropriate.
• Address individual needs while ensuring fairness across teams.

4. Provide the right tools and training

• Deploy collaboration tools (Microsoft Teams, Slack, Zoom).
• Invest in project management platforms for accountability (Trello, Asana, Jira).
• Offer cybersecurity awareness training for employees working remotely.

5. Focus on communication and culture

• Establish regular check-ins and team meetings.
• Encourage transparency and knowledge-sharing.
• Promote a culture of trust rather than micromanagement.

6. Monitor performance and adjust

• Set clear KPIs for roles in remote work arrangements.
• Gather feedback regularly from employees.
• Refine hybrid schedules or policies to improve productivity and satisfaction.

7. Leverage digital tools for compliance

• Use electronic signatures to formalise remote working agreements and policy changes.
• Tools like Yousign make it easy to securely approve and archive contracts, ensuring compliance with HR and legal requirements.

Remote and hybrid work are no longer temporary solutions—they are now a permanent feature of the modern workplace. For small and medium-sized businesses (SMBs), offering remote working arrangements is not just about flexibility, but about building a sustainable competitive edge.

By attracting top talent, reducing costs, and improving employee work-life balance, SMBs can level the playing field with larger organisations. At the same time, success requires preparation: clear remote working agreements, compliance with UK regulations on flexible working requests, and strong digital infrastructures.

Ultimately, SMBs that embrace remote and hybrid working with well-structured policies are better equipped to adapt, innovate, and grow in a rapidly changing business environment.