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As debates intensify over the new directive that NSW public sector workers should be required to return to the office, new research highlights the potential downsides of such mandates, writes Dr Gleb Tsipursky.
A recent study by Alessandra Fenizia of George Washington University and Tom Kirchmaier of the London School of Economics reveals significant productivity gains associated with work-from-home (WFH) arrangements in the public sector. Their findings contradict the underlying assumptions behind the NSW government’s push to bring employees back into physical offices.
The directive for NSW public sector workers to return to the office follows similar decisions in other parts of Australia, framed as a way to improve productivity and accountability. NSW Premier Chris Minns, for example, has argued that government offices should be filled to enhance teamwork and justify the use of taxpayer-funded facilities. However, this rationale ignores growing evidence that working from home (WFH) can increase efficiency without sacrificing quality.
Fenizia and Kirchmaier’s study analysed the productivity of public sector employees alternating between home and office work, using detailed administrative data. It found that employees working remotely achieved a 12 per cent increase in productivity compared to their in-office performance. This improvement stemmed primarily from fewer distractions at home, such as interruptions, informal conversations, and other office-based inefficiencies.
Critically, the study also debunks the myth that remote workers are less accountable or less diligent. Data showed no decline in the quality of work completed at home. Employees handled more cases per day without any measurable increase in errors. These findings are especially relevant for public sector roles in NSW, where many employees perform individual, non-collaborative tasks that do not inherently benefit from an office environment.
The research also suggests that hybrid work models – where employees alternate between home and office – offer the best of both worlds. Workers enjoy the productivity boost of remote work while still reaping the benefits of periodic in-office interactions for team cohesion and collaboration. Forcing employees into a rigid, full-time office schedule, as seen in NSW’s current approach, risks undermining these advantages and could lead to dissatisfaction and reduced efficiency.
Advocates of return-to-office policies in NSW often cite the broader economic impacts of remote work. Local businesses in Sydney’s CBD, for instance, have suffered from reduced foot traffic since the pandemic. While this is a legitimate concern, the government should prioritise the efficiency of public sector operations over the commercial interests of nearby coffee shops and retail outlets. Using public sector employees as a mechanism to revive the CBD economy disregards the evidence that WFH can enhance government productivity while reducing costs, such as those associated with maintaining large, underused office spaces.
Furthermore, the insistence on a return to office appears to be more about optics than outcomes. Some leaders argue that full offices symbolise a “return to normalcy”, yet this nostalgia ignores the benefits of adapting to post-pandemic realities. Telework, when properly managed, has proven to be a valuable tool for enabling more focused, productive, and satisfied employees. NSW policymakers should not sacrifice these gains in a bid to recreate pre-pandemic norms.
Blanket return-to-office mandates in NSW risk backfiring, particularly in a public sector already grappling with issues like employee retention and engagement. A more nuanced approach, such as a well-designed hybrid model, could strike a balance between enhancing productivity and maintaining workplace culture. This would align with the study’s findings, which emphasise the importance of flexibility and effective management in maximising the benefits of remote work.
In light of this evidence, the NSW government should reconsider its stance. Forcing employees back into the office without solid proof of its benefits may lead to unnecessary disruptions, higher costs, and reduced job satisfaction. Instead, an evidence-based policy that embraces hybrid work could enable the NSW public sector to continue thriving in an increasingly dynamic and flexible work environment.
Gleb Tsipursky, PhD, is the chief executive of hybrid work consultancy Disaster Avoidance Experts.
