Australian bosses are taking new measures to force workers back into the office, with staff returning voluntarily amid the threat of losing their jobs.
Working from home conditions have become increasingly popular during the Covid lockdowns and many offices across the country have since introduced ‘hybrid’ arrangements.
However, new data shows bosses are growing tired of empty offices and may have leverage due to fears that unemployment rates will rise.
“We have seen a number of organizations introduce new measures to attract people to the office,” said Jo Masters, Barrenjoey’s chief economist. The Australian Financial Review.
“Which, combined with rising job insecurity as the economy slows, will likely see office visits rise slightly from current levels.”
The 2024 Australian CEO Survey shows more than a third of Australians are regularly working from home, despite bosses pushing for a return to the office
Data collected in The 2024 Australian CEO Survey found that more than a third of Australians, 37 percent, are regularly working from home, while offices are unlikely to return to pre-pandemic levels.
That hasn’t stopped companies like ANZ and Origin Energy from threatening to cut workers’ annual bonuses if they spend more than half their working days at home.
SQM Research founder Louis Christopher believes that “most employers will push for increased office visits by 2024.”
“With a projected rise in unemployment, companies will have the upper hand in negotiations with their employees,” he said.
Australia’s unemployment rate is below 4 percent – an unusually low figure that is expected to rise.
One key factor could prevent bosses from pushing back against hybrid working.
As rental costs continue to rise across the country, AMP chief economist Dr. Shane Olive that companies will use remote workers as a tool to save money.
“Many businesses are likely to give up space as their leases expire as they accept that balanced working from home is here to stay and use this as a way to save on rental costs,” he said.
A large number of companies found that employees performed ‘best’ when they were given the opportunity to work three days in the office and two days from home
The CEO survey interviewed seventy executives from various sectors and found that most employees are expected to come to work three days a week.
While some companies have made the three-day personal appearance a rule, other companies have set it as a guideline for employees to follow.
‘We believe this creates a balance. It provides employees with connection, collaboration and opportunities to learn,” said Damien Nicks, CEO of AGL.
Telstra CEO Vicki Brady said: ‘We know our people are at their best when they have a choice.’
The significant number of large companies offering hybrid work, where the majority of days are spent in the office, include law firm Ashurst and mining company BHP.