Nearly all corporates have a culture based on flexibility

Work-from-home arrangements have been made available in 88 per cent of corporate workplaces; however, nearly two in five (39 per cent) of businesses reported they have a working-from-office policy, with 6 per cent actively developing return-to-work policies, a report has said.

For its latest report, 2025 Australian Benefits Review, Mercer analysed data from 535 organisations – 45 per cent of which had more than 500 employees. The report provides insights into the prevalence and impact of flexible work practices in Australian corporate workplaces.

Prevalence of flexible work

According to its data, 95 per cent of businesses have embedded flexible work arrangements into their culture and policies. Despite this, Mercer revealed that while paid primary caregiver leave (89 per cent) seemed to be a standard offering, 87 per cent reported that their workplaces did not provide benefits for elder care, and 91 per cent reported that their workplaces did not provide support for disability care.

Mercer Pacific’s head of market insights and data, Chi Tran, said: “Supporting carers beyond parenthood is critical to fostering equity and enabling employees to focus fully on their work, ultimately driving productivity gains.”

“For others, access to leave to care for older loved ones could be a vital determinant in the offerings made to employees. This inclusive approach can transform workplaces – by strengthening workforce wellbeing as well as driving workplace performance.”

Lower turnover rates

Further, Mercer’s research showed that the voluntary turnover rate (11.9 per cent) is at its lowest since 2021. Tran said: “The ‘Great Resignation’ is over, and the long retention might be here – provided employers understand that employees are assessing both tangible and intangible benefits together.”

“One-size-fits-all approach to workforce needs doesn’t cut it. Every employee is at a different stage of their life journey and with unique needs. Better matching the responsiveness of a workplace to the needs and aspirations of their employees can become a critical determinant of workplace retention.”

“The workplaces of today and tomorrow are flexible – but employees are expecting them to be caring too.”

A workforce wrestling with flexibility

This data was published amid recent news surrounding workplace flexibility, including the recent pledge by the federal government to pass “Priya’s Law”, which will entitles workers whose child dies due to stillbirth to their planned parental leave; and the proposed changes to the clerks award, which could potentially affect entitlements and flexibility for workers under the award.

Although Mercer’s findings showed a high uptake of flexible work arrangements in corporate workplaces, the report found that just over half (56 per cent) of Australian employees were satisfied with the benefits that their workplace provided.

Mercer general market leader workforce solutions Nithya Abraham said: “Wellbeing benefits are no longer just additional perks – they are vital for creating a healthy, resilient, and positive work environment, and essential for building a sustainable and engaged workforce.”