Workers value WFH as much as a pay rise

The importance that people now place on working from home has been illustrated by some surprising new research.

Telstra CEO Andy Penn out in Prahran walking his dogs Mr Bennett and Wolsely. Picture: Aaron Francis

Many employees would value the ability to keep working remotely as much, or even more, than being awarded a five per cent pay rise, new research into hybrid working has found.

According to the Deloitte Access Economics research, 35 per cent of employees expect to continue hybrid working as the pandemic recedes, down from 43 per cent at the height of the pandemic, but well above the pre-pandemic level of 19 per cent.

While 30 per cent of employees said they wanted to return to their previous working arrangements, 20 per cent preferred their new way of working, 22 per cent wanted a balance between the old and the new, and 28 per cent were still deciding.

But 71 per cent of employees said they faced barriers to hybrid working, with technology, including network connectivity and home office setups, the biggest obstacle.

Almost one quarter of employees working from home said they were distracted by family and personal commitments, while 22 per cent said their start, break and finish times were blurred.

Seventeen per cent said they eat too often or too much when working from home; 15 per cent said they can’t concentrate; and 14 per cent said they feel lonely and isolated at home and don’t work as well without interacting with colleagues.

Businesses with hybrid working were also 22 per cent more likely to see higher productivity and 28 per cent more likely to be innovative than those without hybrid working policies.

The research was undertaken for Telstra by Deloitte Access Economics and researchers from the Australian National University, providing quantitative analysis using business modelling with ABS data covering 7,000 organisations and a survey of 1,250 business leaders and employees.

Fifty four per cent of employees surveyed said they valued the ability to work in hybrid ways the same or more than a five per cent pay rise. Carers, millennials and employees of large businesses, in particular, valued hybrid working arrangements.

Telstra chief executive Andy Penn told The Australian the flexibility that people had, to some extent, experienced during the pandemic had “really highlighted a window into a better way of working for the future”.

“We shouldn’t confuse hybrid ways of working with working from home during Covid because working from home during Covid is highly restrictive but the benefits of being able to work in part, at least, from home I think have absolutely been highlighted and also the feasibility of doing it quite productively have also been highlighted,” he said.

As the country came out of restrictions, he said there was the opportunity to “embrace the best of all worlds - the office, working from home, is really what I think many of our employees are seeing as a very exciting way forward to improve the quality of their lives and a great way to work in the future”.

The research found shifting to hybrid working has the potential to boost the economy by $18 billion and create more than 42,000 extra full-time jobs over the next decade.

Mr Penn said the research “busts the myth that we need to ‘get back to the office’ to be productive and proves hybrid working can boost the economy, boost businesses, large and small, as well as boost engagement and wellbeing for employees”.

“Working remotely has been possible for a long time but Covid-19 has sparked a tectonic shift among Australia’s leading employers and executives who now realise the power and potential of hybrid work,” Mr Penn said.

“With huge staff upheaval and record turnover internationally, top talent is now demanding true flexibility from their employers and hybrid work is one way we can change the workplace experience for the better.

“We know hybrid working is going to be critically important to attract and retain top talent and demonstrate that workplaces and managers understand the seismic shift Covid-19 has caused to the traditional workplace relationship.”

The report found hybrid working could provide a critical economic boost by increasing labour force participation and productivity in an environment where population growth slows.

“Removing barriers to work creates more opportunities for mums and dads with young kids, people with disabilities or caring responsibilities, Indigenous Australians and those living in regional and remote parts of Australia as we open up the talent pool to more people,” Mr Penn said.