In 2020, the pandemic forced us to rethink where and how we work. After four years, it seems we have reached a consensus on what the long-awaited ‘new normal’ looks like, but only on the surface.

Work arrangements can be a source of tension within organisations. Workers want to be able to work at least part of the time remotely, with Morgan McKinley research showing only 3% of employees in Australia want to return to the office full-time.

At the other end of the spectrum, many employers are pushing for a return to the office. Based on CBRE’s 2024 Pacific Market Outlook report, office attendance in Australia is expected to keep growing. In Q3 2023, national CBD visitation reached 71% of pre-COVID levels, with peak day visitation expected to approach pre-pandemic levels during 2024.

Meanwhile, in New Zealand, research by recruiter Robert Half found 41% of workers are mandated to work in the office five days a week. Only 15% say they have total flexibility, with 20% unsatisfied with the number of days they are required to go in.

The tension is palpable, with 45% of workers willing to accept a pay cut in exchange for work flexibility and high-profile CEOs openly criticising employees for rejecting a return to the office.

Low unemployment has led to a stand-off

The current market conditions have favoured Australian workers, says Graham Winter, bestselling author of Think One Team and Toolkit for Turbulence.

“In a downturn, the dynamic is going to shift and give more leverage to the employer. But the tug-of-war is not necessary,” he says.

Some companies believe their employees are more productive in the office, but often there is no data to back it up. KPIs are not set and performance remains an abstract concept.

“More and more organisations are using data to tell which working model increases their productivity. This new approach eliminates assumptions and reduces conflict,” says Winter.

Letting the data answer

Following the pandemic, MYOB considered a combination of external and internal data to determine the best work plan for both employers and employees.

“We partnered with Swinburne Edge to provide us with key external research on the impacts of working remotely and in person, as well as flexible options,” says Sally Elson, chief people officer at MYOB.

“We conducted an internal, company-wide survey to gather sentiments on working arrangements. The goal was to understand how to make the most of working in different environments and how people were feeling about returning to the office,” she continues.

The company also collected data on office usage to determine the specific days employees were coming in and to analyse the team working patterns.

Painting a better picture

The research revealed some interesting insights into how employees wanted to work. Elson says, “Internal data showed that people were looking forward to reconnecting and collaborating with their teams in the office. However, there was still a desire for flexibility in how they achieved this.”

The external data findings from Swinburne Edge revealed to MYOB how remote work altered its dynamics and productivity. These insights helped the company refine its attendance framework, which requires a minimum of two days in the office. Elson explains, “Teams determine which days they work in the office and if or when additional days might be required.”

Autonomy was the key to the success of the new work environment. “We created a FlexDeal activity for teams to determine how they best work to balance the needs of MYOB, the team and the individual to make sure we are delivering the best results,” Elson says, explaining that FlexDeal is designed to foster collaboration, concentration, communication and connection.

MYOB launched a ‘People Leader’ guide to help leaders navigate the transition back to the office and set up their team’s FlexDeal. It also created a resource hub to ensure both leaders and employees have the information and support they need to adapt to the new working arrangement.

Elson further noted, “We’ve seen increasing engagement among employees and continue to monitor this to ensure our ways of working support the business, our customers and our team.”

Flexibility drives performance

Resolving the conflict over work models is about adopting strategies that drive productivity and align with company goals. Research can provide the critical insights organisations need to make informed decisions. Associate Professor Sue Williamson from University of New South Wales (UNSW) points out that hybrid working is now deeply integrated into workplaces and shouldn’t be seen as a temporary fix. Forcing employees back to the office full-time can breed resentment.

Studies from UNSW show working from home can boost productivity, with nearly 70% of managers observing increased efficiency through hybrid working. In this context, flexibility shifts from being merely a perk to a key driver of workplace performance.

Quantifying and measuring performance can help companies clarify their goals, and employees are more inclined to embrace new arrangements when based on specific and accurate data. As technology and societal changes continue to disrupt how we work, leveraging data to guide decisions and regularly monitoring employee engagement and performance are essential for companies to secure the top talent and remain competitive in the marketplace.