Aussie businesses that cut flexibility options are rapidly losing workers

New research has revealed that companies that are reducing flexibility for their employees are seeing an exodus of their people.

Research from International Workplace Group among recruiters has highlighted a direct correlation between a decrease in flexibility options and employees leaving organisations. This comes at a time when more and more organisations across the globe are cutting ties with flexibility – instead opting to usher in return-to-office (RTO mandates).

The report revealed that recruiters have seen a large uptick in applications from employees at companies requiring their teams to be in the office five days a week. The data shows that two-thirds (67 per cent) had seen an increase in candidates looking for new positions following mandates from current employers that require them to spend more time at a central office.

More data showed that three-quarters (75 per cent) of recruiters said they have had candidates reject job opportunities that don’t offer flexible working, while 72 per cent of said firms that don’t offer hybrid working are becoming less competitive in the job market.

“Flexibility is no longer a ‘nice to have’ for employees. Many will not consider new roles that require long daily commutes; they want access to workspaces closer to where they live in an environment that allows them to remain motivated and productive,” said Mark Dixon, chief executive and founder of International Workplace Group.

“Flexible working offers benefits to businesses far beyond employee retention. The hybrid model is proven to boost workforce productivity and job satisfaction while also cutting costs significantly.”

“It’s no surprise that more and more businesses continue to embrace hybrid working for the long term while giving their employees what they really want – the ability to say goodbye to the long daily commute.”

According to the data, the long commutes paired with the lack of flexibility is the clear reason for the exodus of employees from their organisations. Almost half (46 per cent) said they are actively looking for a new job that doesn’t require a long daily commute.

Along with this, three-quarters (77 per cent) stated that an office to work closer to home is a must-have for their next job move, while workers are four times more likely to choose an office close to home. The staunchness of this pro-flexibility movement cannot be understated, as almost two-thirds (63 per cent) said their employer is risking losing its best talent.

Dom Ashfield, SAP specialist recruiter at bluewaveSELECT, said: “Jobseekers are no longer just looking for a paycheck; they want the freedom to shape their work environment.”

“The demand for flexible and hybrid work models is growing rapidly, and employers who don’t adjust their policies risk falling behind in the talent race. Flexibility isn’t just about where you work – it’s about empowering employees to take control of their time and work in a way that supports their personal and professional lives.”