Workers embrace hybrid workplace and push back against the long commute

A push by employers to get hybrid workers back into the office five days a week could spark mass resignations, new research reveals.

Seventy-seven per cent of Australian hybrid workers see a strong correlation between their wellbeing and ability to work flexibly.

Australian workers are pushing back against demands by employers to return to the office, sparking fears of a wave of resignations in 2024 over work-life-balance issues.

A study by the International Workplace Group found Australian hybrid workers — those spending a portion of their work week at home — believe work flexibility eased cost of living pressures, decreased stress levels and increased happiness.

More than half (56 per cent) of hybrid workers surveyed said they were likely to resign from their job in 2024 if they have to take a long commute into the office five days a week while other employers are seeking new ways to keep their staff.

IWG Country Head Australia Damien Sheehan said the Australian workplace was undergoing a structural shift well before the pandemic because of communication innovations such as Google Meet and Microsoft Teams, which made it more possible to work from home.

“We would have ended up there anyway and what the pandemic did was fast forward these new ways of working which are now here to stay,” he said.

“That period during the pandemic that we all spent working at home drove significant changes on how people viewed the relationship between their professional business life and their personal life.

“To tell workers now that they have to go back to five days a week in the office seems almost unrealistic. But somewhere in-between probably feels right.

“That somewhere in-between will depend on the employers and where they are in regard to retaining staff because unemployment is still really low and at this stage it’s an employee-led market.”

More than half (56 per cent) of hybrid workers surveyed said they were likely to resign from their job in 2024 if they have to take a long commute into the office five days a week.

RMIT senior lecturer of Business Administration Dr Melissa Wheeler warned employers risked losing staff if they insisted workers return to the office.

“Many people won’t be willing to give up their flexible working arrangements to be forced back into commuting and working in a set place at fixed times,” she said.

“Potentially, they will leave that job and look for new opportunities that offer greater flexibility and suit their lifestyle, contributing to a new a career phenomenon that has been informally dubbed ‘flexidus’.”

Dr Wheeler said trends like quiet quitting were symptoms of a gap in respect between both employee and employer

“Poor relationships between employers and employees have likely developed through a disconnect between preferences, needs, and expectations — both feel exploited and taken advantage of,” she said.

“It could be a sign that there is a disconnect between employees and employers about what a job constitutes, what is expected from each party, what one is willing to give, and what benefits one can expect to receive.

“For many, work has become less important, and they prefer to focus more time on their personal life than appeasing their employer.”

Catherine Kennedy, managing director of people2people Recruitment said their polls have seen a significant shift in Australian workers’ attitudes toward annual leave, finances, and career transitions amid growing economic uncertainties.

“Our recent polls have demonstrated how the Australian workforce is responding to the rising cost of living, interest rate hikes and global economic uncertainties,” she said.

“The key areas where workers are making changes include parking annual leave to

save money on travel, cutting back on luxuries and expenses, and most concerning is that those wanting to change careers or current roles feel unable to do so in the current marketplace.”

IWG is the world’s largest provider of hybrid working solutions with brands including Spaces and Regus, and Mr Sheehan said hybrid working was a “win-win” and employers who don’t embrace hybrid working may lose staff.

“With cost-of-living pressures, a tight labour market and economic uncertainty continuing into 2024, retaining valued employees is more critical than ever,” he said.

According to the 2000 respondents to IWG’s Australian Hybrid Workers Survey, three quarters say adopting hybrid working practices is helping them save money, 76 per cent claim it is decreasing their stress levels and 78 per cent are reporting increased happiness.

Seventy-seven per cent of Australian hybrid workers see a strong correlation between their wellbeing and their ability to work flexibly.

Similarly, a majority of Australians surveyed agree having a long commute into the office five days a week would negatively impact on their mental health (72 per cent), financial wellbeing (66 per cent), productivity levels (71 per cent), relationship with their employer (59 per cent), and relationship with family and friends (69 per cent).

The survey noted with the increased expectations of a better work-life balance in the year ahead, big businesses are thinking outside the box.

This year many will create chief hybrid officers to oversee and optimise the hybrid work culture which has a balance between empowering employee flexibility and ensuring regular and adequate time for collaboration.

To retain and gain top employees, innovative benefits packages will become mainstream and benefits such as fertility support, pet care, childcare and time off for caring responsibilities may become commonplace, while there will also be more support for working parents.

There will also be a resurgence of the one-hour lunch break dedicated to in-person interactions while businesses will have a proactive approach of inclusive design which ensure workplaces are supportive and comfortable for all employees.

Hybrid work has also given more flexibility to older generations in particular, allowing them to stay in the workforce — or come back from a previous exit for “un-retirement”.

IWG’s Australian Hybrid Workers Survey respondents found adopting hybrid working practices is helping to increase their happiness (78 per cent).