Headlines about major employers “ordering” their employees back to the office suggest Australia is in full-scale retreat from working from home. But the reality is different – a hybrid model of two or three days in the office and the rest working remotely has become common and looks set to become the new normal.
Many large employers have imposed return-to-office policies, but most fall short of a full-time mandate. Woolworths, the Commonwealth Bank and the NSW government all expect non-frontline staff to be in the office for two or three days. Only a few major companies, such as Amazon and Tabcorp, have insisted on a return to full-time office attendance for all staff.
A hybrid model of a few days a week working from home looks set to be the new normal. Credit: Getty Images
After peaking during the pandemic, the share of people working remotely has stabilised over the past couple of years at about 35 to 40 per cent, up from about 20 per cent before COVID. Train patronage is plateauing at about 80 per cent of pre-pandemic levels in Sydney and Melbourne, another indication that hybrid working patterns have stabilised.
Of course, not everyone can work remotely. Working from home is much more common among high-earning managers and professionals than people in other occupations. But the share of people on low incomes working from home is also higher than before the pandemic. And even in occupations where in-person work is the core part of the job, some work is now being done remotely, for example, some medical consultations.
Several factors explain why hybrid working is likely to persist.
Younger firms and new industries and occupations are more likely to embrace hybrid work. As these firms and industries grow, this will offset the legacy companies that are demanding a return to the office full-time.
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Employees value hybrid working arrangements, with studies showing that workers are willing to forgo 5 to 10 per cent of their salary to work remotely at least some of the time. Hybrid work increases happiness. Workers report better work-life balance, using some of the saved commuting time for leisure and caregiving. Reflecting the importance of working arrangements for many job hunters, job search platforms typically include a “remote work” or “hybrid” search filter.
Companies that offer hybrid-working options have lower quit rates, reflecting higher job satisfaction, and can save money on wages and office space.
