Latest news with #AustralianWorkforce
News.com.au
7 days ago
- Business
- News.com.au
New report settles Australia's working from home debate once and for all
This year we have seen a notable uptick in companies rolling back flexible working arrangements, with staff forced back into the office five days a week. One of the most common reasons bosses often give for scrapping remote and hybrid work is to 'improve productivity'. Well, we now have confirmation this is (most likely) not the truth. A new report from The Productivity Commission has explored the reason behind the Australian workforce's dip in productivity and, surprise surprise, working from home is not to blame. The report explores the phenomenon known as the 'Covid productivity bubble', which is where labour productivity rose to a record high between January 2020 and March 2022, before returning to pre-pandemic levels in June 2023. The Productivity Commission found the 'bubble' only served to mask the issues of Australia's ongoing productivity problem. 'The Covid-19 pandemic was a rollercoaster for productivity, but we are now back to the stagnant status quo,' Deputy Chair Dr Alex Robson said. The 'productivity loss' phase between June 2022 and June 2023 has been attributed to a surge in the labour market as Covid restrictions eased. Since then, the hours Australians work each week have been soaring, but this has not been matched by investment in systems and equipment needed to get the most out of the workforce, hence the drop in productivity, according to the report. One of the lasting changes brought on by the Covid-19 pandemic and subsequent lockdowns has been the shift to hybrid models. While there has been a push to get people back into the office full time, the rates of working from home are still significantly higher than pre-pandemic levels. According to the report, prior to the pandemic, 11 per cent of working age Australian adults reported working from home at least once a week over the previous four weeks, and 12 per cent worked from home on all or most days a week. During the severe lockdown, the proportion of those working from home at least once a week decreased to nine per cent and the number of people working remotely all or most days increased to 31 per cent. In April 2022, after lockdowns and restrictions eased, rates went to 18 per cent at least once a week and 27 per cent all or most days, indicating an increased popularity in hybrid arrangements. By August 2024, an Australian Bureau of Statistics survey showed 36 per cent of people reported that they usually work from home, indicating a sustained shift in work practices. Despite concerns and even some claims from industry leaders that the working from home shift would lead to productivity loss, the Productivity Commission found it didn't have any negative implications and, in fact, hybrid work can be beneficial. 'Workers do not need to be in the office full-time to experience the benefits of in-person interactions. As a result, hybrid work tends to be beneficial to productivity, or at least, is not detrimental to productivity,' the report states. Sabrina Scherm, customer success manager at HR technology company HiBob, claimed many companies are actually making the productivity problem worse with return to office mandates. 'These mandates fundamentally ignore the lessons learned during the pandemic's so-called 'productivity bubble', where workers demonstrated they could be highly effective when given the flexibility and autonomy to manage their time and working environment,' she said. 'To force employees back into rigid structures isn't just misguided; it actively risks stifling future productivity gains. 'Instead of focusing on an attendance-first mindset, the conversation must be around a results-first mindset. And we need to stop associating 'harder' work with 'longer' work.' Allowing workers to work from home some days a week can improve employee satisfaction and allows people the benefit of avoiding a commute, meaning they have additional time for other purposes, the report stated. The research also cited studies that indicate remote work can reduce breaks and sick days and result in less distractions, all of which are typically found to be beneficial to productivity. Ms Scherm believes the path to sustainable productivity lies in working 'smarter'. 'That means embracing modern tech to automate mundane, time-consuming tasks that add hours but little value,' she said. 'We can achieve genuine, long-term productivity gains by freeing up our workforce to focus on innovation and high-impact activities.' However, the report also included claims that fully remote work could have a greater negative impact on less experienced workers. For those starting out in the workforce, in-person interaction may be important for skill development 'as there may be a greater knowledge transfer from senior workers and junior workers through informal in-person interactions'. The Commission noted that the evidence on working from home is still evolving but, ultimately found hybrid work has either had a neutral or positive for labour productivity. 'There is no evidence to suggests that the trend towards hybrid working has contributed to the productivity loss phase of the productivity bubble,' the report stated.
News.com.au
26-05-2025
- Business
- News.com.au
Australians insane savings from key working trend
Australian workers will continue to work from home, although not as much as some would like, as the insane amount they are saving comes to light. Fresh figures released by Deloitte Access Economics shows the average Australian worker could save $5308 a year by taking out transportation and fuel costs. It is also having the added benefit of having a happier workforce, which is reducing turnover for employers, the report said. It also said the tug of war between employees wanting to be able to work from home and employers wanting them to be in the office more often appears to have ended for now, with 80 per cent believing WFH would remain fro at least the next two years. Deloitte Access economics partner and lead author David Rumbens told NewsWire employers are meeting employees in the middle, focusing on hybrid working models. 'There has been this tension as employees have preferences working from home because it saves on travel costs and time,' Mr Rumbens said. 'There is certainly a body of thinking that collaboration in person aids productivity and innovation, hence, where there is flexible work there is encouragement of some time collaborating and working together. 'We are now seeing a lot of organisations in the white collar and professional space settling on a hybrid mix allowing for those benefits of teaming and proximity.' These balances come as the overall strength of the workforce shows the employment rate remains at a near record low of 4.1 per cent, with 390,000 more Australians finding work over the last 12-months. In April alone the employment rate surged by 89,000 people, but it's not all good news for workers. 'The overall strength of the labour market has masked the relative strength of non-market sector employment compared to the market sector,' Mr Rumbens said. 'In the year to the December quarter of 2024, the non-market sector (health care, education, public administration) accounted for approximately 80 per cent of total employment gains.' Productivity lags remains the key threat to living standards Deloitte said with inflation moderating, wages ticking up and interest rates ticking down, there could be further boosts to jobs if it wasn't for the 'abysmal' productivity performance. 'Australian labour productivity has fallen considerably over the past three years,' he said. 'Since its peak in March 2022, Australia's labour productivity has fallen by 5.7 per cent and labour productivity in the non-market sector now sits at a near 20-year low, underscoring why boosting productivity growth should be a top priority for the government.' Mr Rumbens said if this continues to fall over a number of years, Australian workers will eventually see a fall in living standards. 'We want productivity gains so we can get sustainable real wage growth. 'The risk if we don't have productivity all the nice wage growth goes back into price growth and we're effectively no better off. 'So it becomes really important to drive living standards and the ability to sustainably actually generate real wage growth over time.' Mr Rumbens said Australians just experienced a real cost of living crisis over the last two years, going through a per capita recession which could return if productivity doesn't improve. 'It could be that it means inflation rises again. 'While the Reserve Bank is cutting rates and experts expect it to continue but none of that is guaranteed. 'So if productivity goes backwards, then prices will go up and hence you go back into a cost-of-living spiral, which workers have just been through. 'They got reasonable wage growth but price growth was much more, so they ended up being poorer over the last, effectively, three years. Despite the risks Mr Rumbens said workers could over time help solve the problem. 'We've seen from the Treasurer, the agenda for the second term of government will be productivity focused without forgetting about cost of living. 'Part of that is encouraging technology use, encouraging innovation by private businesses.
The Australian
19-05-2025
- Business
- The Australian
What Gen Zs and millennials want from you at work
The demographics of the workplace are undergoing a major shift. Gen Zs are entering the workforce in growing numbers while millennials are increasingly embedding themselves in management positions. By some estimates these two generations are projected to make up around 75 per cent of the global workforce by the end of the decade. In Australia, as elsewhere, understanding the mindset of these generations is a vital strategic priority for businesses. CFOs and other business leaders who know how to respond to their concerns will be better placed to attract and retain top talent, drive innovation, and cultivate a resilient, future-ready workforce. But as it stands right now, there is an emerging expectations gap between millennial and Gen Z employees and their (often older) management around the issues of work-life balance and opportunities for advancement and skill development. According to Deloitte's latest annual Gen Z and Millennial Survey, younger Australian workers believe their supervisors are failing to provide them with the guidance, support and mentoring opportunities they expect at work. For example, 58 per cent of Australian Gen Zs expect their managers to teach and mentor employees, yet only 36 per cent said this was happening at their workplace. Similarly, half of Australian millennials expected managers to set boundaries to support a healthy work-life balance, but less than one-quarter said this was their current experience. Overall, 92 per cent of millennials and 89 per cent of Gen Zs consider on-the-job learning and practical experience are the most helpful tools for career growth. A similar number of both groups consider a sense of purpose to be very or somewhat important to their job satisfaction and wellbeing. Pip Dexter, Chief People and Purpose Officer at Deloitte Australia The through-line for leaders is that Australian millennials and Gen Zs expect jobs to offer more than just a steady salary. Jobs must feel meaningful and provide opportunities for skills development and advancement, without encroaching on wellbeing. This doesn't come from a place of entitlement, but from a place of circumstance. Younger Australians – and particularly Gen Zs – arguably live a more financially precarious existence than previous generations: 64 per cent of Australian Gen Zs and 59 per cent of millennials say they live pay day to pay day and around 40 per cent of both groups worry they won't be financially comfortable in retirement. The motivation to get ahead is clear – but unlike previous generations, millennials and Gen Zs don't see traditional tertiary education as a ticket to career advancement. Some feel locked out of pursuing it altogether - Gen Zs cite financial constraints as the leading reason for not pursuing further education, while millennials point to family and personal responsibilities. The high cost of tuition is a major deterrent for both generations. This explains why on the job learning is so important to younger workers. So, how can C-suite leaders best provide crucial training and mentorship to their employees? Respondents to the survey identified three top ways employers can help support their development beyond formal on-the-job training. The first is providing one-on-one mentorship opportunities with subject matter experts. Gen Z and millennial workers know that in today's knowledge economy, subject matter expertise is an important asset. One-on-one mentoring also provides opportunities for individualised feedback across a range of non-core skillsets that are nevertheless important to professional development. Gen Z and millennials realise this – almost 90 per cent of them rate soft skills like communication, empathy and networking abilities as necessary to career development. The second is for an employer to offer financial compensation for external learning opportunities. This doesn't necessarily mean paying employees to complete a course – offering paid study leave is a great way to remove financial and resource barriers that may be preventing your people from seeking out learning and development opportunities. The third way Gen Zs and millennials believe their employers can help them grow is by creating opportunities for job rotation. Just as one-on-one mentoring provides the opportunity for deep learning in a specific area, job rotation or shadowing provides the opportunity to learn across the breadth of a business unit or entire organisation. This kind of experience is particularly valuable to both the employee and the employer. By exposing the employee to a more fulsome view of what your organisation does, they will accrue additional skills outside their remit and gain a clearer view of the horizontal opportunities available to them with their current employer, boosting employee retention. Encouraging talent to move horizontally is also important to attracting and retaining younger talent: around a quarter of Australian Gen Z respondents who recently changed their industry or career path did so for career growth opportunities or because they discovered a new interest or passion. Gen Zs and millennials are just as ambitious and hard-working as previous generations. But with career progression pathways less linear and accessible than they were in the past, employers who proactively actively invest in their workforce's skill development while providing meaningful work and opportunities will boost employee satisfaction and retention, ultimately to the benefit of the business. Pip Dexter is Chief People and Purpose Officer at Deloitte Australia. - Disclaimer This publication contains general information only and Deloitte is not, by means of this publication, rendering accounting, business, financial, investment, legal, tax, or other professional advice or services. This publication is not a substitute for such professional advice or services, nor should it be used as a basis for any decision or action that may affect your business. Before making any decision or taking any action that may affect your business, you should consult a qualified professional adviser. Deloitte shall not be responsible for any loss sustained by any person who relies on this publication. About Deloitte Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee ('DTTL'), its network of member firms, and their related entities. DTTL and each of its member firms are legally separate and independent entities. Please see to learn more. Copyright © 2025 Deloitte Development LLC. All rights reserved. -
ABC News
18-05-2025
- Business
- ABC News
Robots, AI & Automation: Is Your Job Next?
We've long been told that the robots are coming for our jobs. This week – they got a step closer. Amazon has just unveiled robots with a sense of touch, boosting their packing capabilities. It's got warehouse workers concerned. Australian consultancy firm McKinsey predicts nearly 10% of the Australian workforce could be displaced by automation in the next five years. So, how can we prepare ourselves—and workplaces—for this future? Guests:
