CEOs are wanting to see employees back in the office, according to a new report, but some say they would be prepared to take a pay cut to keep working from home.
Two-thirds of CEOs expect staff to be back in the office full time in the next two to three years, according to the October 2023 KPMG report. The report surveyed more than 1300 CEOs around the world, including in Australia.
In Australia, 41% of full time jobs and 35% of part time jobs can be done from home. Further, researchers at the University of South Australia (UniSA) found that 45% of Australian workers would be willing to take a pay cut to work from home.
The study involved a survey of more than 1100 employees in 2020-21. It found the average worker who could work effectively from home would be willing to give up between 4% – 8% of their annual salary.
However, UniSA Associate Professor Akshay Vij said it was those with higher pay checks who were more prepared to take a cut.
“These people also usually earn upwards of $100,000. To some extent, they have greater capacity to give up money. And that’s potentially also why they have a high value attached to this flexibility,” he said.
“Having that degree of autonomy over where and when you need to be at work has some implicit value. But obviously, it’s also moderated by other factors — life circumstances in particular if you have caretaking responsibilities, if you have young children or older family members that you need to take care of — it helps to have that flexibility which allows you to juggle those opportunities.”
However, Vij aknowledged the marjority of Australians (55%) were not prepared to take a pay cut, and the unions say we shouldn’t even float the idea. They argue working from home does not reduce the amount of work produced by employees.
“People who are working from home are saving money for their employer,” Community Public Sector Union spokesperson Julian Kennelly told Nine last year.
“Maybe they are the ones who should be getting the support. Because they are wearing the additional costs such as home office and IT.”
Speaking legally, it’s no longer a decision employers can simply make on their own. Laws passed in federal parliament in October last year as part of the Secure Jobs, Better Pay bill say employers must seriously consider any requests for remote work and can only refuse on “reasonable business grounds”.
If they refuse a request, reasons must be given and any decision can be challenged by workers in the Fair Work Commission.
Ultimately, researchers agree, flexible working is here to stay, despite the wishes of CEOs. It is up to employers and employees to find a middle ground that works for them.
