Create a free account, or log in

One in three Australian businesses say employees have resigned due to back-to-office mandates

The findings come as Australian businesses steadily wind back the remote work privileges which became standard during COVID-19 lockdowns.
David Adams
David Adams
great-job-swap productivity wellness office businesses
Source: supplied.

Nearly a third of surveyed Australian businesses have had an employee resign due to in-office requirements, global recruiting firm Robert Half claims, demonstrating the tension between worker preferences and the managerial push for centralised work.

In a new survey of 300 CFOs, CIOs, and hiring managers from companies with at least 50 employees, 31% of respondents said at least one staff member has left the business in response to office work mandates.

Some 40% of those business leaders expect staff to leave due to those requirements.

The findings come as Australian businesses steadily wind back the remote work privileges which became standard during COVID-19 lockdowns.

Major Australian companies including Commonwealth Bank and NAB are among the most high-profile businesses to usher workers back into the office, with CBA now asking workers to spend at least half of their working hours on-site.

That particular move faces opposition from the Finance Sector Union, which has filed a complaint with the Fair Work Commission, claiming CBA staff were not adequately consulted and that many report higher productivity when working from home.

โ€œAustralian employer sentiments relating to working from home has shifted in the last six months,โ€ said Nicole Gorton, director at Robert Half.

โ€œBusinesses have put their foot down and allocated in-office days for their staff.โ€

Survey data shows 87% of businesses have issued some form of in-office mandate as of July this year.

Only 19% have ordered staff to complete all five days of the working week in the office.

Four days a week is the most common mandate, with 28% of respondents granting one remote working day a week.

Just 2% of survey respondents said they have mandated one day a week of in-office work.

Of the surveyed businesses which have leveled new office mandates, 40% say it is important to have meetings face-to-face.

Some 37% said productivity is improved when staff work in the office, echoing a common refrain among business leaders who have issued office mandates.

Tellingly, 31% said they need to make use of office space, speaking to concerns among the commercial real estate industry that prolonged hybrid working arrangements will lower economic activity in Australian CBDs.

A quarter said the progression of younger employees is limited when working from home.

On the other side of the equation, Australian tech giant Atlassian recently circled its lenient โ€˜Team Anywhereโ€™ policy as a contributing factor to its encouraging FY23 results.

โ€œWhether all-remote or hybrid, distributed teams are the future of work,โ€ the company said last week in a note to investors.

Gorton said while managing a hybrid workforce โ€œhas its challengesโ€, companies โ€œshould not pull back on remote work policies altogetherโ€.

It is vital to get the mix right, she added, โ€œotherwise, employers risk losing good staff.โ€