Latest news with #ProductivityCommission
West Australian
5 days ago
- Business
- West Australian
Burnout, underinvestment to blame for productivity slump, not working from home: Aussie academic
Overwork, burnout and underinvestment are the cause of falling productivity, not working from home, a workplace expert and academic says. A major report released this week by the Productivity Commission has found working from home at least some of the time is more productive than being in the office full-time. Multinational companies are mostly pulling the rank and file workers back into offices, while government agencies and academics work to assess the effectiveness of the pandemic-era work from home shift. 'There's no evidence to suggest working from home is the root cause of these recent productivity challenges, which have been going since long before most people were working from home,' Swinburne University workplace expert John Hopkins said. 'Overwork, burnout, underinvestment, outdated processes, and cost of living pressures are likely factors behind poor productivity.' During the federal election campaign, the Coalition quickly-abandoned a proposal for public servants to be back in offices five days a week. The architect of that failed policy, Liberal Senator Jane Hume, said in the lead-up to the election: 'It will be an expectation of a Dutton Liberal government that all members of the (Australian Public Service) work from the office five days a week. But the proposal was so despised it was abandoned mid-campaign, and Senator Hume has since been dumped from Opposition Leader Sussan Ley's newly-minted shadow cabinet. Released on Thursday, the Productivity Commission report finds arrangements where staff work from both the office and at home tend to benefit both productivity and job satisfaction. 'Allowing workers to work from home some days can improve worker satisfaction and allows people to benefit by avoiding the commute to work, meaning they have additional time for other purposes,' the commission finds. Working from home reduces sick days, breaks and distractions 'all of which are typically found to be beneficial for productivity', it says in the report. About 36 per cent of working Australians regularly do a shift from home; a tripling since before the pandemic. Working from home is markedly better for women, the Productivity Commission finds, however younger workers miss out on face-to-face learning. The report points to falling business investment as the reason national productivity fell by 1.2 per cent in 2024.
Perth Now
5 days ago
- Business
- Perth Now
Major Aussie WFH lie exposed
Overwork, burnout and underinvestment are the cause of falling productivity, not working from home, a workplace expert and academic says. A major report released this week by the Productivity Commission has found working from home at least some of the time is more productive than being in the office full-time. Multinational companies are mostly pulling the rank and file workers back into offices, while government agencies and academics work to assess the effectiveness of the pandemic-era work from home shift. 'There's no evidence to suggest working from home is the root cause of these recent productivity challenges, which have been going since long before most people were working from home,' Swinburne University workplace expert John Hopkins said. More than one-in-three Australians with a job regularly work from home. Wikimedia commons Credit: Supplied 'Overwork, burnout, underinvestment, outdated processes, and cost of living pressures are likely factors behind poor productivity.' During the federal election campaign, the Coalition quickly-abandoned a proposal for public servants to be back in offices five days a week. The architect of that failed policy, Liberal Senator Jane Hume, said in the lead-up to the election: 'It will be an expectation of a Dutton Liberal government that all members of the (Australian Public Service) work from the office five days a week. But the proposal was so despised it was abandoned mid-campaign, and Senator Hume has since been dumped from Opposition Leader Sussan Ley's newly-minted shadow cabinet. After spearheading the push for an end to working from home, Senator Jane Hume has been demoted to the opposition back bench. NewsWire / Monique Harmer Credit: News Corp Australia Released on Thursday, the Productivity Commission report finds arrangements where staff work from both the office and at home tend to benefit both productivity and job satisfaction. 'Allowing workers to work from home some days can improve worker satisfaction and allows people to benefit by avoiding the commute to work, meaning they have additional time for other purposes,' the commission finds. Working from home reduces sick days, breaks and distractions 'all of which are typically found to be beneficial for productivity', it says in the report. About 36 per cent of working Australians regularly do a shift from home; a tripling since before the pandemic. Working from home is markedly better for women, the Productivity Commission finds, however younger workers miss out on face-to-face learning. The report points to falling business investment as the reason national productivity fell by 1.2 per cent in 2024.
News.com.au
5 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.
West Australian
6 days ago
- Business
- West Australian
Productivity Commission backs hybrid work from home model
A major new report by the Productivity Commission has found working from home, in moderation, is actually more productive than being in the office full-time, debunking claims that the national shift to remote work is dragging down Australia's economy. The landmark report, released this week, concludes hybrid arrangements, where employees split time between home and the office, tend to benefit both productivity and job satisfaction, especially by cutting down on lengthy commutes. 'Allowing workers to work from home some days can improve worker satisfaction and allows people to benefit by avoiding the commute to work, meaning they have additional time for other purposes,' the Commission said. It found the rise in working from home since the Covid-19 pandemic is not to blame for Australia's recent productivity slump. 'Remote work also reduces breaks and sick days, and results in less distractions, all of which are typically found to be beneficial for productivity,' the report said. By August 2024, 36 per cent of Australians with a job reported they usually worked from home, up from just 12 per cent before the pandemic. During peak lockdowns in 2020, more than 30 per cent worked from home on most days. Despite fears that staff would be less productive at home, the Commission found hybrid work (working some days remotely and some days in the office) tends to be beneficial to productivity, or at least, not detrimental to productivity. However, the report noted not all workers benefit equally. While working from home is especially popular with women, many who juggle childcare responsibilities, less experienced workers may lose out. 'For less experienced workers, in-person interactions may be an important avenue for skill development as there may be a greater knowledge transfer from senior workers and junior workers through informal in-person interactions,' it said. 'A key reason for this is that in-person interactions may be better for collaborative tasks and idea generation.' The Commission cited evidence from engineering firms showing in-person meetings sparked more creative ideas, although remote and hybrid teams were just as effective when it came to evaluating and selecting those ideas. The broader productivity crisis, which saw national labour productivity fall by 1.2 per cent in 2024, is instead being driven by a lack of new investment in technology. 'Capital matters for productivity because more capital (the machines, equipment and other durable goods that are used as inputs in production) means workers can produce more goods and services,' the Commission said. Treasury Secretary Steven Kennedy, speaking to the Australian Business Economists this week, said boosting productivity growth would be a key challenge for the Albanese Government. 'Australia's 20-year average productivity growth has declined from 1.8 per cent to 0.8 per cent over that period,' Mr Kennedy said. While some employers, including the Commonwealth Bank, ANZ and Woolworths, are pushing staff back into the office three days a week, the report suggests a flexible hybrid model could be the best long-term solution. Politically, the issue remains sensitive after former Liberal leader Peter Dutton lost his seat following his support for a plan to force Canberra-based public servants back to their desks, a move that sparked widespread backlash from remote workers. The Commission said that although the evidence on working from home is still evolving, most studies find hybrid work to be either neutral or positive for labour productivity. 'There is no evidence to suggest that the trend towards hybrid working has contributed to the productivity loss phase of the productivity bubble,' the report said.
Perth Now
6 days ago
- Business
- Perth Now
Huge call on future of WFH in Australia
A major new report by the Productivity Commission has found working from home, in moderation, is actually more productive than being in the office full-time, debunking claims that the national shift to remote work is dragging down Australia's economy. The landmark report, released this week, concludes hybrid arrangements, where employees split time between home and the office, tend to benefit both productivity and job satisfaction, especially by cutting down on lengthy commutes. 'Allowing workers to work from home some days can improve worker satisfaction and allows people to benefit by avoiding the commute to work, meaning they have additional time for other purposes,' the Commission said. It found the rise in working from home since the Covid-19 pandemic is not to blame for Australia's recent productivity slump. 'Remote work also reduces breaks and sick days, and results in less distractions, all of which are typically found to be beneficial for productivity,' the report said. A major new report by the Productivity Commission has found that working from home, in moderation, is actually more productive than being in the office full-time. Credit: istock By August 2024, 36 per cent of Australians with a job reported they usually worked from home, up from just 12 per cent before the pandemic. During peak lockdowns in 2020, more than 30 per cent worked from home on most days. Despite fears that staff would be less productive at home, the Commission found hybrid work (working some days remotely and some days in the office) tends to be beneficial to productivity, or at least, not detrimental to productivity. However, the report noted not all workers benefit equally. While working from home is especially popular with women, many who juggle childcare responsibilities, less experienced workers may lose out. 'For less experienced workers, in-person interactions may be an important avenue for skill development as there may be a greater knowledge transfer from senior workers and junior workers through informal in-person interactions,' it said. 'A key reason for this is that in-person interactions may be better for collaborative tasks and idea generation.' By August 2024, 36 per cent of Australians with a job reported they usually worked from home, up from just 12 per cent before the pandemic. During peak lockdowns in 2020, more than 30 per cent worked from home on most days. NewsWire / Andrew Henshaw Credit: News Corp Australia The Commission cited evidence from engineering firms showing in-person meetings sparked more creative ideas, although remote and hybrid teams were just as effective when it came to evaluating and selecting those ideas. The broader productivity crisis, which saw national labour productivity fall by 1.2 per cent in 2024, is instead being driven by a lack of new investment in technology. 'Capital matters for productivity because more capital (the machines, equipment and other durable goods that are used as inputs in production) means workers can produce more goods and services,' the Commission said. Treasury Secretary Steven Kennedy, speaking to the Australian Business Economists this week, said boosting productivity growth would be a key challenge for the Albanese Government. 'Australia's 20-year average productivity growth has declined from 1.8 per cent to 0.8 per cent over that period,' Mr Kennedy said. Despite fears that staff would be less productive at home, the Commission found that hybrid work tends to be beneficial to productivity, or at least, not detrimental to productivity. Credit: The Advertiser While some employers, including the Commonwealth Bank, ANZ and Woolworths, are pushing staff back into the office three days a week, the report suggests a flexible hybrid model could be the best long-term solution. Politically, the issue remains sensitive after former Liberal leader Peter Dutton lost his seat following his support for a plan to force Canberra-based public servants back to their desks, a move that sparked widespread backlash from remote workers. The Commission said that although the evidence on working from home is still evolving, most studies find hybrid work to be either neutral or positive for labour productivity. 'There is no evidence to suggest that the trend towards hybrid working has contributed to the productivity loss phase of the productivity bubble,' the report said.
