Return to office has become one of the most debated people issues of the past few years, especially with the current fuel crisis where several governments are mandating that workers stay home to save on fuel and the cost of living pressures. For many Australian leaders, the tension is real. Teams are harder to connect, culture feels thinner, and collaboration can feel slower through a screen. At the same time, employees have reorganised their lives around flexibility and are far less willing to trade it away without good reason.
The challenge is not return to office itself. It is asking people to return without being clear on why or failing to make the experience genuinely valuable. Australian research consistently shows that flexibility is now deeply embedded in how work happens. The Australian HR Institute’s 2025 Hybrid and Flexible Working report found that over 80 per cent of employers expect hybrid work to remain the same or increase, with improved retention and productivity cited as key benefits when it is done well. If return to office becomes a compliance exercise rather than a considered leadership decision, organisations risk losing capable people while gaining very little in performance.
Presence without purpose does not work
Employees are asking a simple question. What am I gaining by being here that I cannot get at home? When the answer is vague collaboration or visibility, people disengage quickly. They show up physically but not mentally. Australian data backs this up. AHRI research also shows that organisations that tighten office attendance without clear intent report negative impacts on recruitment and retention, particularly for women and people with caring responsibilities.
Return to office works best when leaders are honest about its purpose. In person time should support things that are genuinely better face to face. Problem solving, relationship building, learning through observation, and informal mentoring all benefit from shared physical space.If those things are not happening, staying home is often more productive.
Design the office experience, not just the roster
Many organisations spend far too much time debating how many days people should be in the office, and not enough time designing what happens when they are there. High performing teams treat office days as a different mode of work. They reduce status update meetings and increase hands on collaboration. They use time together to build capability, not just get through a checklist of tasks. This matters because productivity is ultimately about how work is organised, not where people sit. The Productivity Commission has repeatedly highlighted that flexible, well designed work arrangements can lift workforce participation, reduce friction, and support sustainable productivity when aligned to the work being done. Leadership presence matters too. Asking people to commute in to spend the day on video calls with managers who are remote sends a powerful signal, and not a good one.
Flexibility is now a retention lever
Flexibility is no longer a perk. It is a baseline expectation, particularly for experienced and in demand talent. According to Australian Bureau of Statistics data, around one third of Australians still work from home regularly, well above pre‑pandemic levels, and this has stabilised rather than collapsed over time. Organisations that abruptly remove flexibility often underestimate how quickly that decision shows up in attrition. This does not mean leaders have no right to set parameters. It does mean those parameters should be designed with empathy and a clear understanding of workforce realities. Hybrid models that provide clarity while allowing choice are consistently more effective than rigid mandates.
Managers make or break the experience
Policies matter, but day to day behaviour matters more. Employees take their cues from their manager, not the organisation chart. AHRI research highlights that manager capability is one of the strongest predictors of whether hybrid and return to office arrangements succeed long term. Managers who use in person time to coach, include quieter voices, and build trust create far better outcomes than those who rely on visibility as a proxy for performance. This requires support and skill building. Leading hybrid teams is a capability, not an instinct.
Trust drives productivity, not surveillance
Some return to office decisions are driven by fear. Fear that people are not working hard enough. Fear of losing control. Yet the evidence points in the opposite direction. The Australian Institute of Company Directors, drawing on AHRI research, reports that 45 per cent of employers saw positive productivity impacts from hybrid work, compared to a very small proportion who reported declines. Trust, clarity, and outcome-based expectations drive performance far more effectively than monitoring attendance.
The question leaders should keep asking is simple. If I were in this role, would I want to come in today? Return to office can strengthen connection, grow future leaders, and lift productivity. But only when it is designed with purpose, flexibility, and respect for people’s time and lives. Make it worth the trip, and people will come with energy rather than resistance.
