More than one third of Australians continue to work from home (WFH), signifying a shift towards flexible working conditions that have become increasingly normalised in the wake of the Covid pandemic. A blend of data from the Australian Bureau of Statistics and the Committee for Economic Development of Australia highlights that WFH arrangements have remained steady over the past two years, despite the preferences expressed by a substantial portion of business leaders.
According to the latest data derived from the Director Sentiment Index Survey conducted by the Australian Institute of Company Directors, a striking 82 per cent of Australian bosses are advocating for a return to full-time in-office work. As of August 2023, approximately 36 per cent of Australian workers reported regularly working from home, a slight decrease from 37 per cent recorded earlier in the year. Comparatively, in 2016, the percentage of workers being able to work from home was a mere five per cent.
The trend of remote work is particularly notable among managers and professionals, where 60 per cent are utilising WFH arrangements, remaining unchanged since 2023. In contrast, only 21 per cent of employees in other sectors reported the same work setup. The primary motivating factors for workers opting for flexible work include the desire for flexibility (25 per cent), the nature of their home-based roles (24 per cent), and the opportunity to manage tasks outside normal office hours (20 per cent).
Job satisfaction appears high among those engaged in hybrid work, with non-managers, female employees, and individuals with long commutes reportedly experiencing lower turnover rates. The CEDA has drawn attention to new survey data which indicates that workforce participation in roles allowing for WFH has surged, particularly among women with young children and individuals with disabilities or health conditions. The increase from 2019 to 2023 saw a nine per cent rise for women and a 4.4 per cent enhancement for individuals with health-related issues.
Despite these positive shifts, the data reflects a persistent trend among many bosses advocating for a complete return to traditional office environments. A KPMG survey encompassing over 1,300 CEOs across multiple countries revealed that 83 per cent foresee a full office return in the next three years, significantly up from 64 per cent in 2023. Australian results mirrored this view with 82 per cent of CEOs supporting the same outcome.
CEDA encourages business leaders to reevaluate the implications of flexible work arrangements, highlighting potential access to wider talent pools as a critical advantage. Further research, including a study led by Stanford University Economics Professor Nicholas Bloom, underscores the favourable outcomes of WFH policies, noting improved employee retention and job satisfaction, with a one-third reduction in turnover rates for those working remotely for two days each week.
The report reveals that two-thirds of Australian company directors recognise that flexible working conditions contribute positively to staff retention, attraction, and overall employee well-being. However, opinions on the implications of remote work for productivity and innovation remain cautious, with only 39 per cent of directors believing that WFH is beneficial to productivity and a mere 28 per cent viewing it positively for innovation.
The CEDA has urged leaders to avoid turning hybrid work policies into contentious issues within the workplace, as the data illustrates the potential advantages of such arrangements for both employees and employers alike.
Source: Noah Wire Services