The Hybrid Work Debate: Jane Hume vs. Stanford Research Insights

Issuing a demand to end working from home, Shadow Finance Minister Jane Hume cited research that supports one or two days a week of remote work. The Coalition has promised that if it wins the federal election, it will order public servants to return to the office five days a week, arguing that remote work has hurt productivity.

Senator Hume announced that it will be an expectation of a Dutton Liberal government that all members of the Australian Public Service (APS) work from the office five days a week, although exceptions could be made. The Coalition's stance is based on rights in the latest Australian Public Service bargaining agreement, which they argue prevent sensible flexible working arrangements.

Report Cited by Hume Found Some WFH Improves Productivity

Addressing the Liberal-aligned think tank The Menzies Research Centre, Senator Hume claimed that a Stanford report indicated working from home caused a significant loss in productivity. However, the same report concluded that hybrid working actually had benefits over fully face-to-face work.

"Studies of hybrid working arrangements often find productivity gains (relative to traditional arrangements) or no discernible effect," the Stanford researchers stated. They noted that working from home one or two days a week improves productivity and leads to happier employees.

More than half of public servants reportedly spend at least some part of their week working from home.

In another study cited, researchers examined 10,000 professionals during the COVID pandemic, finding that total hours worked increased by 30% with no measurable change in output, leading to a productivity loss of 20%. Communication and coordination costs rose during work-from-home periods, affecting parents the most due to children being home.

The Stanford researchers acknowledged that while fully remote work hurt productivity by 4 to 20%, they also warned that commute time savings could offset drops in productivity.

Hybrid Work Cut Employee Turnover by a Third

The Stanford report also highlighted that hybrid work led to significant improvements in employee satisfaction and lower turnover rates. A study on 1,612 employees at a Chinese tech company revealed that hybrid working reduced quit rates by a third, particularly among non-managers and female employees.

While the Coalition criticized public servants for allegedly taking advantage of flexible work arrangements, they do not aim to eliminate remote work entirely. Senator Hume noted that sensible arrangements were made in 2023 for flexible work where it suited the employees and departments, which she believes should be reinstated.

The future of working from home has been a topic of debate since the pandemic, with the Coalition linking it to ongoing productivity issues, while the federal government supports flexible work, especially for women aiming for full-time roles.