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Employees Want to Work From Home But Employers Still Reluctant

Despite the growing popularity of remote work arrangements amongst employees, a study has revealed that employers remain sceptical about the benefits of working from home.

Remote Work in Australia: Why Employees Want It & How Employers Can Adapt
Mike Kermode

Jun 18,2025

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Since 2020, remote and flexible work arrangements have rapidly shifted from a perk to a priority. Today, more employees than ever are asking for hybrid or fully remote roles—and they’re willing to switch jobs to get them. Yet, many employers are still hesitant to fully embrace the shift.

So, what’s holding them back? And what can businesses do to meet employee expectations while maintaining productivity, culture, and security?

Remote Work Still Drives Productivity and Retention

The benefits of remote work are well documented. Studies by Deloitte, PwC, and the Australian Bureau of Statistics (ABS) all point to consistent or increased productivity in flexible work settings. Other benefits include:

  • Improved morale and mental wellbeing
  • Lower absenteeism and burnout
  • Increased employee loyalty and retention
  • Cost savings on commuting and office expenses

Workers see flexibility as a sign of trust and autonomy—and respond with greater engagement. For many, it’s not just about working from home—it’s about having control over their schedule and environment.

Employer Concerns: Still a Barrier

Despite the proven upsides, some employers remain cautious. Common concerns include:

  • Trust: Will employees actually work if no one is watching?
  • Data security: Can remote access be made secure?
  • Technology: Do employees have the tools to work effectively at home?
  • Visibility bias: Will managers overlook remote workers for promotions?

Research from recruitment firm Robert Half found that while 85% of HR leaders acknowledge the value of flexible work for retention, many still limit access on a case-by-case basis—or don’t offer it at all.

Shifting the Mindset: From Concern to Control

Andrew Morris, Director at Robert Half Australia, recommends moving beyond binary thinking. “The key,” he says, “is to set clear expectations, timelines, and deliverables—so performance can be measured by results, not visibility.”

He also suggests introducing frameworks that ensure regular communication, such as:

  • Weekly video calls or team stand-ups
  • Use of collaborative platforms (e.g. Slack, Microsoft Teams)
  • Defined KPIs and performance metrics
  • Regular feedback loops and check-ins

These practices help maintain alignment, encourage accountability, and give remote employees the “face time” they need to stay visible and connected.

Face Time Still Matters—Even Virtually

Research from the University of California and London Business School has shown that even when remote workers are equally or more productive than in-office peers, they can be rated less favourably—simply because they’re less visible. This is known as “proximity bias.”

To counteract this, organisations should train managers to assess performance fairly, ensure inclusive meeting practices, and encourage regular digital visibility across teams.

The Flexible Future Is Already Here

Whether it’s hybrid rosters, remote-first companies, or flexible hours, the future of work is not fully remote—but it is undeniably more flexible. The demand is particularly strong among parents, carers, and knowledge workers who value the freedom to structure their days.

“Employees don’t just want to leave work early,” says Morris. “They want the freedom to pick up the kids, go to the gym, or manage life admin—and then log back on if needed. That flexibility is powerful, and it benefits companies too.”

Want a Career with Flexibility Built In?

If you’re looking for a role that allows you to work remotely or in a hybrid model, focus on industries that embrace digital workflows. Popular options include:

To make yourself more competitive, upskill in remote collaboration tools and time management strategies. You can also check Business.gov.au for support if you’re setting up a home-based or freelance business.

Ready to take the next step? Explore our flexible online courses and find the career path that works around your life—not the other way around.

About the author

Mike Kermode writes about career strategies, study options, and professional development for Career FAQs readers.

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