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Employees have come to grow and love remote and hybrid working through the pandemic. As employers continue to ramp up their return-to-office mandates, some believe this could be counterproductive.
While talent shortages began to ease up in the latter half of 2023, employers must still understand that alienating employees through back-to-office mandates could stand to stunt progress.
While these mandates serve a purpose, reverting to traditional working structures may be a step in the wrong direction, and employers who fail to see that the working world has changed run the risk of falling behind.
“Sometimes, there are legitimate reasons a company may want employees to return to the office, even if only for a day or two each week. But with Australia’s persistently low unemployment rate and shallow talent pool, it would be foolhardy for businesses to restrict the flexibility that many employees have come to enjoy,” commented Shannon Karaka, ANZ country leader at Deel.
“Work flexibility has become a major bargaining chip for companies looking to hire and hold on to great talent, regardless of where it is based. As revealed by the Australian Bureau of Statistics’ (ABS) latest working arrangements data, 60 per cent of managers and professionals already regularly work from home, highlighting a clear shift in work preferences. Taking away such flexibility simply invites good talent to go elsewhere.”
There are benefits to both onsite and remote working. Hybrid working is the happy medium that allows for all strengths to be utilised. Leaders must continue to leverage this into 2024 if they’re to keep talent attraction and retention strong.
“Deel’s research further underscores this point. Despite unfounded productivity concerns, 56 per cent of local businesses have, or are developing, mobility plans allowing employees to work from anywhere. This trend aligns with the ABS’ finding that the number of remote workers has tripled since 2015, solidifying the undeniable shift towards flexible work arrangements,” Mr Karaka explained.
“Why? Employee retention. Flexibility is what workers want, and there are fewer and fewer arguments to be made for not giving it to them in one form or another.”
He continued: “If companies do need to bring people back into the office, it’s important to find ways to ensure employees feel like they still have some level of flexibility and autonomy so they don’t look for such flexibility elsewhere. This might look like the freedom to work for a certain amount of time overseas or the ability to keep asynchronous hours on those days they aren’t in the office.”
Despite the benefits of flexible working arrangements, businesses continue to phase it out. The ABS data revealed that as of August 2023:
- Thirty-three per cent had an agreement to work flexible hours, down from 36 per cent in 2021.
- Thirty-seven per cent regularly worked from home, down from 40 per cent in 2021.
- Thirty-one per cent usually worked extra hours or overtime, down from 34 per cent in 2021.
- Nineteen per cent were usually required to be on call or standby, down from 23 per cent in 2021.
Businesses that want to bolster their attraction and retention must realise that flexibility is a massive priority for workers. Further, data has revealed that job mobility is at a record high.
As we enter 2024, leaders can put their best foot forward by offering flexibility and ultimately strengthening their talent pools.
Jack Campbell
Jack is the editor at HR Leader.
