‘Tug of war’: 2025 work from home prediction Aussies don’t want to hear

The past year has been a tumultuous one for hybrid and remote workers and, unfortunately, it seems like 2025 won’t be much better.

The past year has been a tumultuous one for hybrid and remote workers, with the working from home debate reaching boiling point and many companies forcing staff back into the office as a result.

Not long into in 2024, workers were warned that the “power had shifted” in favour of employers, with the post-pandemic period that saw employees retain a lot of bargaining power coming to an end.

A report from people2people Recruitment found the worsening cost-of-living crisis and a growing fear of job cuts was the main reason for the dynamic shift, with workers now looking to retain their jobs rather than risk trying to find new work.

This meant those that had previously negotiated remote and hybrid roles were now at risk of emboldened employers forcing them back into the office.

We have seen this play out in both Australian and on the global stage, with major companies scrapping working from home arrangements.

The work from home battle has been ramping up over the past 12 months. Picture: NCA NewsWire / Damian Shaw

A major blow came for thousands of remote Aussie workers in August, when NSW Premier Chris Minns announced WFH privileges introduced in 2019 would be walked back.

The move sparked immediate backlash from government workers, who branded the order “out of touch”.

Since then, a plethora of companies have issued similar edicts, often to similar outcry.

Amazon, Tabcorp, Flight Center and Coles are just some of the many big businesses that have recently ordered staff back into the office.

Unfortunately, it seems like 2025 won’t be much better where the working from home debate is concerned.

Matt Loop, VP and Head of Asia at global HR platform, Rippling, predicts the power struggle over remote work will continue to gather momentum.

“In 2025, we can expect the tug of war between employers and employees over working arrangements to intensify,” he told news.com.au.

“With our research showing 57 per cent of Australian employers are less likely to hire candidates unwilling to work in an office five days a week, the push for office-based work is clear.

“Yet, many employees accustomed to remote flexibility will likely push back.”

If we continue to see a rise in companies ordering staff back into the office five days a week, Mr Loop warned there will likely be mixed outcomes.

“While it could improve team collaboration and cohesion, rigid policies may alienate parts of the workforce, particularly those who prioritise remote working,” he said.

Furthermore, businesses risk losing the benefits of flexible working models, with even the International Monetary Fund recognising that work from home can boost productivity and fuel economic growth.”

Employers thinking about going down the full-time in-office path have been urged to “carefully evaluate” whether such an action aligns with the company’s overall goals.

Mr Loop even suggested involving teams in the decision-making process to “maintain morale and engagement”.

“A blanket approach is unlikely to succeed in a modern workforce that increasingly values adaptability,” he said.

In the opinion of Ben Thompson, CEO and Chief Economist, Employment Hero, bosses who are hellbent on getting staff back into the office are actually doing themselves and their business a disservice.

Speaking to news.com.au, Mr Thompson noted that there is “no rule” that states collaboration and professional development can’t happen remotely.

“The smartest companies have adapted, leveraging technology instead of depending solely on in-person interactions,” he said.

For many employees, being able to work from home is key to a healthy work-life balance. Picture: iStock.

Employment Hero’s latest Remote Work Report found that 78 per cent of Australian employees surveyed believe remote work reduces their living costs.

Likewise, two-thirds of marginalised groups feel it protects them from discrimination, and half of hybrid and remote workers say they’d quit if required to return full-time to the office.

The company’s 2024 Wellness at Work report, which surveyed more than 1000 workers, found only 60 per cent of on-site workers said they were happy with their mental health, compared to almost 70 per cent of remote employees.

Of the on-site employees, only 35 per cent said that had a good work-life balance, compared to 63 per cent of remote workers.

“Further, the Business Council of Australia reports that long commutes contribute to the lowest wellbeing in 20 years, leaving people tired and time-poor. Why persist?” Mr Thompson questioned.

“Critics of remote work overlook that we haven’t gotten physical workplaces right, so why not embrace a model that improves both work-life balance and efficiency?”

He said that limiting the talent pool by location is “counter productive”, noting that the pandemic “fundamentally” changed how people work.

“Whether it’s a ‘tree change’ or a ‘remote work holiday’, embracing remote work lets employees thrive in better-suited environments. But it only works if managed well. If you can’t trust employees remotely, you’ve hired the wrong people,” Mr Thompson said.

“Remote flexibility is a business accelerant, enabling access to the best talent worldwide. So why not adopt this approach?”

Originally published as ‘Tug of war’: 2025 work from home prediction Aussies don’t want to hear