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Brave new workplace: the future of hybrid working

Published

4 months ago

9 January 2024

Liam

Brave new workplace: the future of hybrid working

UNSW Sydney

Are the CEOs of the world right in predicting that workers will be back in the office full-time by 2026? Not according to UNSW Sydney researcher Iva Durakovic.

In October KPMG released a report stating that 64 per cent of global CEOs predict a complete return to in-office working by 2026. The CEOs cited linking raises and promotions with office attendance in their desire to return to “business as usual”.

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“Business leaders who think this way are really misunderstanding what being at work means for today’s workers,” says Iva Durakovic, researcher in workplace design, whose recent papers ‘Supporting Social-Capital in an Omni-Channel Workforce’ and ‘Togetherness and (work)Place’ have looked at effective hybrid working spaces and tools, and at the significance of a work place in establishing belonging and a professional identity.

“Long before the COVID-19 lockdowns proved that there was a lot of work that could be done effectively without being in an office, workers were seeking autonomy over how, where and when they worked,” says Durakovic.

“WFH during lockdowns only amplified this, so the persistent demand of employees for more flexibility really should not be a surprise.

“Technology has enabled this flexibility, and for many professions there are tools and resources to connect effectively to work without physically being present.”

The ‘Togetherness and (work)place’ research paper reported “technology, human connection, and flexibility of choosing where to work as the top enablers of productivity in 2020”. This trend continued post the pandemic with an “ever-increasing importance placed on flexibility, choice, and connection”.

“If the team comes together and they’re engaged and actively reaping the benefits of face-to-face interaction, then it makes sense that people are in the office. But simply doing what can be done elsewhere, doesn’t make sense,” says Durakovic. Photo: Getty Images.

Why the call to come back to work?

“The question then becomes, ‘Why are you forcing your people to be together?’,” says Durakovic. “If the team comes together and they’re engaged and actively reaping the benefits of face-to-face interaction, then it makes sense that people are in the office. But simply doing what can be done elsewhere, doesn’t make sense,” says Durakovic. In mandating people back, organisations are not only risking an erosion of trust that the pandemic years and extended remote working have built but so much more in their culture. Trust underpins everything, our sense of autonomy, value to our teams, sense of cohesion, community and not to mention motivation and wellbeing.

“It comes down to flipping the question: it’s not about where and when we’re going to be working. It’s about how we’re doing the tasks that we need to do and then thinking about where that happens and when that happens.”

Durakovic’s research has captured similar sentiments to those commonly reported about the reaction of people when companies mandate a return to the office. There is a reluctance to return, to give up benefits like fewer hours and dollars spent commuting, easier access to childcare (rarely found in CBDs), more time with family when people are able to organise their work hours and location flexibly, increased time opportunities for exercise, not to mention the ability to perform more focused work and wellbeing benefits of being able to more effectively manage the juggles of life and work.

“It’s interesting,” says Durakovic, “that the CEOs surveyed have an impression that people will be more effective if they are in the office. They might turn up, but it’s certainly not going to do wonders for your culture or your turnover rates. Forcing presentism on people is not going to have a positive outcome for anyone. Not for them, and not for the business.”

“The future of work will continue to include hybrid work, because that’s what workers want, and it’s also what works for companies,” says Durakovic.

Drivers of change

What workers want from their workplace is changing and companies need to embrace that rather than try to recreate what has worked in the past. “There has been a move away from workers being attracted to companies that offer super-experiences, think amazing work campuses with free food and other perks, and incentives, towards looking for values alignment and engagement. People are looking for purposefulness and meaning in their work, and to work for companies that take their social responsibilities seriously,” says Durakovic.

In fact, says Durakovic, “some companies are revamping their office spaces to make them more appealing to their workforce, but they’re still finding people are not coming back as often as they’d hoped, which points to other factors organisations may not be addressing. One is an understanding of their employees’ different demographics and drivers of preference for remote work, the other is culture and an honest review of the physical environments too.”

But, that’s not to say that place is not important. “We, as humans, have a natural disposition towards attachment and belonging which ultimately fuels our intrinsic motivations. In the workplace, these experiences manifest through mechanisms of person-environment fit; that is, our sense of comfort in the environment (physical and cultural) and feelings of being needed, important to other people, valued and aligned,” explains Durakovic.

“It could be that some companies are trying to make sense of their real-estate investments by seeking to mandate a return to their offices. But this will not solve the corporate real estate crisis, nor meaningfully re-activate CBDs,” says Durakovic. “There is a huge opportunity, if not responsibility, to start to dramatically re-think building assets and diversify. Research is showing that the cities least hit by economic downturn and emptying of urban cores were those that had a more balanced mix of retail, office, residential and other amenities. Not to mention the potential positive environmental impact that ideas of the 15-minute city and benefits of technology could offer.”

What works for workers

For the ‘Supporting Social-Capital in an Omni-Channel Workforce’ study, funded through the Alastair Swain Foundation, Durakovic conducted a series of observations, interviews and measurements capturing real time data on the physical, operational and behavioural aspects of Mirvac’s Adaptive Workplace Pilot. The research sought to understand the types of spaces and tools most effective in supporting seamless hybrid work, and their impact on emotive dimensions of social capital (e.g. sense of belonging, community, attachment to the workplace). Located in their Sydney CBD office, Mirvac and their design partners created an experimental work floor through which cohorts of teams from different business units rotated over a period of six months.

From a physical perspective, the findings – also reported by Mirvac in The Adaptive Workplace: Insight Report – highlighted that responsive and dynamic environments were the most effective for hybrid teams. The design allowed for various levels of ‘hackability’ (i.e., user adjustability of spatial configuration) throughout different zones across the floor. There was a preference for areas whole teams could occupy with minimal equipment (i.e., desk monitors) on a central ‘team table’ which acted both as an anchor in the space, but also enabled good visibility across the area for impromptu interactions. These centralised group tables were supplemented with individual mobile desks enabling configurations that could be adapted to suit the size of the team, their preferences and the type of project task. Good zoning – creating different spaces for different types of work – proved critical in allowing competing activities to take place without noise levels problems.

Interestingly the clarity of work purpose in the physical environment and dedicated space for the team created deeper purposeful connection and belonging.

“The future of work will continue to include hybrid work, because that’s what workers want, and it’s also what works for companies,” says Durakovic. “Hybrid working is a skill that our research suggests we improve over time. Global research is also finding hybrid WFH increases average productivity by 5%, and the trend is increasing as companies and employees get better at it. It allows for diverse teams, which boost innovation, because it means people who were previously excluded from in-office only work paradigms can re-engage. This includes people with caring responsibilities, disability, neurodiversity or those who live in remote locations.”

It will also mean that our cities evolve, adapt, and engage with communities to create more meaningful places adding social value and hopefully becoming more sustainable and livable as they do.

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Potential $1 Trillion Cost to Taxpayers from Superannuation Withdrawal for Home Deposits

Published

4 days ago

15 May 2024

Liam

Potential $1 Trillion Cost to Taxpayers from Superannuation Withdrawal for Home Deposits

Newly released modelling commissioned by the Super Members Council reveals significant long-term fiscal implications for Australian taxpayers stemming from proposals allowing young Australians to utilise their superannuation to fund house deposits. According to the analysis, unrestricted access to superannuation funds for this purpose could saddle taxpayers with costs amounting to a staggering $1 trillion over time.

Key Findings of the Report

Financial Impact: The proposal to allow a capped withdrawal of $50,000 from superannuation accounts for home deposits could result in a $300 billion drain on federal resources across future decades. In contrast, an uncapped withdrawal policy could inflate this cost to approximately $1 trillion by century’s end.
Increased Pension Dependency: The report underscores a critical concern that enabling first-time homebuyers to dip into their superannuation will lead to significantly reduced balances upon retirement. This reduction is expected to increase reliance on taxpayer-funded age pensions, thereby escalating government expenditures considerably.
Economic Consequences: At its peak, the capped withdrawal policy could impose an additional annual cost of $8 billion on taxpayers, with the uncapped option potentially reaching an annual cost of $25 billion.

Impact on Housing Market and Home Ownership

The modelling also highlights adverse effects on the housing market, predicting an increase in capital city house prices by an average of $75,000, which could further exacerbate the housing affordability crisis. This inflationary effect contradicts the policy’s intention to enhance home ownership rates, instead potentially delaying entry into the housing market for future generations.

Expert Opinions and Recommendations

Misha Schubert, CEO of the Super Members Council, criticised the policy proposals as economically imprudent. Schubert emphasised that such policies not only fail to address home ownership rates but also worsen housing affordability and erode retirement savings, leaving a hefty tax burden for all Australians.

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“Economic evidence consistently shows that breaking open super for house deposits will not resolve the housing crisis but will rather inflate property prices and amplify pension costs,” said Schubert.

Call for Policy Rethink

The Super Members Council is advocating for a reconsideration of any policy that might weaken the integrity and success of the superannuation system, which has been pivotal in ensuring a secure retirement for millions of Australians. The Council warns against the long-term economic pitfalls of such policies, suggesting they would undermine the foundational goals of the superannuation system.

Analytical Backdrop

The findings are based on comprehensive microsimulation models developed by Deloitte, accounting for demographic shifts, superannuation contributions and balances, and projected tax and pension expenditures. This robust analytical approach reinforces the credibility of the projected fiscal and market impacts.

In conclusion, the Super Members Council urges policymakers to preserve the superannuation system’s strength, cautioning against decisions that could compromise both individual financial security and broader economic stability.

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Business News

Australia Tax Season: ATO Highlights Key Areas of Concern to Avoid Costly Mistakes

Published

5 days ago

15 May 2024

Liam

Australia Tax Season: ATO Highlights Key Areas of Concern to Avoid Costly Mistakes

As the Australian tax season approaches, the Australian Taxation Office (ATO) is tightening scrutiny on common areas where taxpayers often make costly errors.

The ATO’s focus is on incorrect claims for work-related expenses, exaggerated deductions on rental properties, and the omission of income sources in tax filings. Here’s a detailed look at each area and guidance on how to navigate them.

Work-Related Expenses:

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In response to changing work environments, the ATO has adjusted the methods for claiming working-from-home deductions. Effective from July 1, 2022, the simplified $0.80 per hour rate was replaced with a $0.67 per hour rate, alongside stricter record-keeping requirements. Last year, millions claimed work-related deductions, with a significant portion related to home office expenses. Taxpayers are reminded to maintain detailed records, like spreadsheets or calendars, to log hours worked from home and retain bills to substantiate additional incurred costs.

ATO Assistant Commissioner Rob Thomson emphasised the importance of accurate record-keeping, stating, “Keeping good records enables you to choose the most beneficial deduction method for your circumstances and ensures you’re rightfully claiming what you’re entitled to.”

Rental Property Deductions:

Thomson also pointed out that a high proportion of rental property owners mistakenly file their tax returns, particularly in distinguishing between immediate write-offs for repairs and capital works deductions, which must be depreciated over time. He advised landlords to pay close attention to maintenance claims and be wary of inflating expenses to counterbalance rental income increases for greater tax benefits.

Inclusion of All Income Sources:

Another significant issue is the premature lodging of tax returns, which leads to omitted income sources such as bank interest, dividends, and other government payments that might not yet be pre-filled by the ATO. Thomson recommends waiting until all information is available by the end of July to ensure accuracy and completeness of the tax return.

The ATO strongly discourages rushing the submission of tax returns right at the start of the fiscal year on July 1st. Early filers significantly increase their risk of errors, leading to potential audits and corrections by the tax office. Instead, taxpayers are advised to wait a few weeks until their income details have been pre-filled automatically, ensuring a smoother and more accurate process.

For those uncertain about their deductions or how to properly file their returns, consulting with a registered tax agent is recommended this Australian Tax Season. This approach not only provides peace of mind but also ensures compliance with tax laws and maximises legitimate tax benefits.

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Business News

new SCHOLARSHIPS for women TO build careers in construction

Published

1 week ago

9 May 2024

Liam

new SCHOLARSHIPS for women TO build careers in construction

The Institute of Applied Technology – Construction (IATC) has announced three new microskills to its suite of courses as well as fee-free training places for women.

The Institute is a partnership between TAFE NSW, leading construction company CPB Contractors, and Western Sydney University.

Co-designed with industry experts, microskills are online, bite-sized, self-directed courses. These three new microskills focus on topics critical for building capability in the construction sector now and into the future and include: Introduction to Women in Construction, Introduction to Sustainability in Construction, and The Role of Building Information Modelling (BIM) in Construction.

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The IATC is also furthering its commitment to encourage more women to kickstart a career in construction or upskill in their current role with the availability of 60 fee-free training places in its microcredential courses. The scholarships come at a time when the construction industry in Australia is facing a shortage of over 100,000 workers.

Applications are now open for the Women in Construction Scholarships, delivered by the Institute of Applied Technology Construction.

CPB Contractors General Manager Infrastructure NSW and ACT, Rob Monaci said, “As the pipeline of infrastructure continues to grow, particularly with the focus on housing and new energy, the need for more skilled workers is an industry-wide issue. We need to be doing more to attract people at all stages of their careers to transition into fulfilling careers in construction, particularly women.”

The microcredentials take eight weeks to complete and provide industry-specific skills recognised as evidence of competence. The microcredentials can be completed online or face-to-face.

Women in Construction Scholarship courses are aimed at high-growth areas and include:

Project Management Foundations in Construction
Introduction to Project Scope Management in Construction
Project Risk Management in Construction
Stakeholder Engagement and Management in Construction
Quality Management in Construction
2D CAD Drawings and 3D Models in Construction
Introduction to Building Information Modelling (BIM) in Construction
Microsoft Office Foundations in Construction; and
Power BI Fundamentals in Construction

Director Operations Institutes of Applied Technology Helen Fremlin encouraged women interested in a career in construction to take advantage of the free microcredentials and said they promote a practical learning journey.

“Whether you choose online or face-to-face, these microcredentials include regular educator-led sessions. These draw on industry specific examples, tasks, and case studies to give students the opportunity to apply their knowledge and skills directly with the support of educators.

“Part of the eligibility process requires women to complete two microskill courses. Microskills are free, two-hour, self-directed sessions, a great way to help get you started.”

CPB Contractors’ Rob Monaci added, “The introduction of these three new Microskills focused on women, sustainability and BIM are really exciting as not only are they critical to the future of our industry, but they are also compelling in attracting new entrants to the workforce who are passionate about the role diversity, sustainability and digital technology plays in building the game changing infrastructure projects set to roll out across our cities and regions,” said Mr Monaci.

Western Sydney University Interim Vice-Chancellor and President, Professor Clare Pollock, said the suite of microskills and microcredential courses and scholarships will empower women in construction and will help to meet Australia’s workforce needs.

“The University has a proud history of opening up educational opportunities for students including talented women in our region. These innovative microskills and microcredentials will help students upskill and take advantage of skilled job opportunities in the fast-growing construction sector,” said Professor Pollock.

“Western Sydney University is pleased to partner with TAFE NSW and CPB Contractors to co-develop and co-deliver courses that integrate research-led learning with advanced technical and industry-based skills while boosting diversity in the sector.”

Successful applicants will be offered a pre-class connection session to meet other women and visit a construction site in Sydney.

TAFE NSW and Training Services NSW are also inviting young women in schools and parents across the state to register for a Girls in Trades virtual event on the 22nd of May. Participants will learn about different careers and study pathways for young women to consider in construction and non-traditional trades.  

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