Workers can save thousands by working hybridly. Photo: Shutterstock
Employees in Australia’s most expensive city could save thousands of dollars each year simply by switching to hybrid working, according to new research.
Conducted by shared workspace company International Workplace Group (IWG), the Australian Hybrid Workers Survey found commuters travelling to Sydney’s CBD spend $75.60 per day on expenses such as parking and public transport, yet remote working just two or three days per week saved employees an average of $5,892 per year.
“With rapid advancements in technology, work is no longer confined to a single location,” said IWG CEO Mark Dixon.
As more Australians leave capital cities for a regional or suburban sea change, coworking spaces have followed, servicing those who don’t want a long commute but prefer not to work from home.
IWG said this trend has led them to open a number of locations in smaller towns and coastal hubs, including Wollongong, and the Sydney suburbs of Hurstville, Liverpool and Hornsby.
“This shift means employees no longer need to commute long distances daily but can instead benefit from the same or higher levels of productivity by working closer to home.”
The research explored the average cost of commuting for office workers employed in and around Sydney, comparing this to costs incurred when working some days per week from flexible workplaces closer to home.
Outside of the CBD, hybrid employees of Sydney companies in Concord and Lane Cove reported an average annual saving of around $3,500, while workers in Balmain saved $2,900 and people commuting to Parramatta were better off by $960.
These findings are supported by the Committee for Economic Development of Australia (CEDA)’s recent report, which found hybrid working saved the average Australian more than $5,000 per year.
Hybrid a positive for people, productivity and profit
For workers, hybrid arrangements offer a wealth of compelling benefits.
Seventy per cent of respondents to the Australian Hybrid Workers Survey said hybrid work helped them manage the rising cost of living, a phenomenon driving employees to quit in droves in search of higher-paid opportunities.
Other research has found hybrid workers also take fewer sick days than their in-person peers and report increased physical and mental wellbeing.
Hybrid arrangements offer a wealth of benefits. Photo: Shutterstock
With this in mind, it’s no wonder employees are beginning to value workplace flexibility over salary, with around 40 per cent of workers worldwide reporting they would quit their job if they were forced to return to the office full-time.
Hybrid and flexible work offerings have positive outcomes for businesses, too.
When it comes to productivity and innovation, research from Stanford University shows hybrid workers match their in-office counterparts, while beating them out for overall job satisfaction.
Indeed, some research indicates hybrid work models even increase productivity, and could inject an additional $18 billion into Australia’s economy over the coming decade.
Hybrid working can also save businesses money, reducing outlay for costs such as office space, utilities and expenses.
Increased flexibility has boosted workplace participation for carers, women with young children and people living with a health condition or disability.
“Companies are empowering their teams to work where they are happiest and most effective, allowing employees to stay productive by working closer to home out of a local coworking space or office,” explained Dixon.
“As a result, company headquarters are evolving to become hubs of creativity, collaboration and socialising.”
Some employers remain unconvinced
A recent report by the Australian HR Institute (AHRI) found more than 80 per cent of Australian employers expect to increase or maintain their current hybrid working model over the coming two years.
Further, only 44 per cent of Aussie employers are imposing minimum in-person requirements of three to five days per week, which is down from 2023’s 48 per cent.
However, some high-profile organisations are bucking this trend and taking measures to get their employees back in person, despite running the risk of losing talent to more flexible competitors.
In May, banking giant NAB was met with backlash from staff following a return-to-office mandate.
Tech giant Amazon made waves last year by requiring employees return to the office full-time.