Almost Half Of NZers Would Consider Quitting If WFH Allowance Reduced

New research from a leading New Zealand recruitment firm shows just how much value Kiwi office workers place on flexible working arrangements, and why the Government's move to recall public sector staff to the office may come back to bite them.

Auckland-based recruitment firm Cultivate surveyed more than 1,000 New Zealand office workers, with results revealing that flexible working arrangements, and particularly work-from-home (WFH) options, are crucial for retaining and attracting staff.

The survey has found that 45% of New Zealand office workers would reconsider their future with their organisation if their WFH flexibility was reduced.

The data also shows that flexible working options are incredibly important to job seekers with 38% of respondents considering WFH benefits a "deal breaker" when choosing a new role, and an additional 47% identifying it as a preference.

Cultivate Co-founder Tony Pownall says it’s clear that offering some form of work from home entitlement makes roles far more attractive to staff.

“The majority of jobseekers Cultivate engage with will have rebuilt their lives around hybrid working, and it has become challenging to source talent for roles without offering at least one day of working from home per week,” said Pownall.

“The results clearly demonstrate that organisations need to embrace the notion that work is no longer defined as the place you go, but rather what you do. The concept that workers are most productive when in the same room is a hangover from the industrial revolution and doesn’t fit our increasingly knowledge-based economy.”

The research also found that of those currently offered flexible working, only 7.5% of respondents are entitled to work fully remotely, with two days a week working from home the most common entitlement at 29%, followed by 1 day or 3 days from home, both at 15%. Respondents indicated they do value office time to collaborate with colleagues, with 65% of workers saying they would work between 1-3 days from home if given the choice and only 12% saying they would work fully remote.

The main reasons employees gave for utilising WFH is to save on commuting time (30%) and being more productive at home (27%).

Cultivate Co-founder Trina Jones says decreasing work from home entitlements could have a material impact on employee wellbeing, travel costs, and productivity, not to mention further worsening congestion in our cities.

“The Government's decision to reduce flexible working in the public sector contradicts what employees are expressing as their strong preference, and I believe this will lead to staff departures and make it more difficult to recruit for roles,” said Jones.

“Many people we talk to say they are more productive at home than in the office where they can save the time commuting as well as the office distractions of meetings, interruptions, and background noise. So the idea that workers need to commute to the office to be most productive is simply not the case.

“Businesses need to embrace hybrid working, not as a temporary measure but as a permanent fixture of the modern work environment, to remain competitive in the talent market. COVID only accelerated a trend that we saw happening anyway. We know that happy team members are productive team members so giving staff WFH allowances is a win-win for both employers and employees”, said Jones.

16% of respondents answered that their organisation had decreased working flexibility in the last 12 months. The research also clearly showed that executive leaders, involved in setting flexible policies, were least likely to personally utilise WFH or value it in a new role. “Leaders should therefore be careful to ensure their own views on flexibility don’t influence decisions on organisational policy,” said Pownall.

The survey found that overall, 72% of organisations continue to offer some work from home entitlement, with respondents from Utilities & Energy (87.5%), Government (87%), and Information & Communication Technology (86%) sectors most likely to have an ongoing work-from-home entitlement.

With the recent government update driving heightened interest in WFH policies, Cultivate is offering an exclusive preview of its WFH data, with the full report to follow soon.

Cultivate Flexible Working Survey Results

Almost half (45%) of NZ employees with WFH arrangements would reconsider their employment if their current flexible working arrangements were taken away from them.

38% of respondents said WFH flexibility is a "deal breaker" when considering roles, while 47% see it as a preference. Only 15% are indifferent to flexibility in their job.

Executive leaders are less likely to take advantage of or prioritise WFH, with 46% indicating that a reduction in flexibility would have no impact on them personally. Executives also more likely to feel that their organisations offer too much flexibility compared to other staff.

Women are more likely to use flexible working options, with 94% taking advantage, compared to 85% of men. They are also more likely to see WFH as a deal breaker when considering new roles.

Almost all office workers appreciate the importance of connecting in person with colleagues, with only 12% of respondents claiming they’d work 100% from home if given the choice. In fact, 54% of respondents would prefer either 2 or 3 days from home.

Only 7.5% of respondents are entitled to work fully remotely. 2 days work from home is the most common entitlement at 29%, followed by 1 day and 3 days, both at 15%.

Of those employees offered ongoing WFH, 91% take advantage of the entitlement. The primary reason for those that do is saving on commuting time (30%), closely followed by the belief they are more productive (27%).

Overall 72% of organisations continue to offer some work from home entitlement (WFH), with respondents from Utilities & Energy (87.5%), Government (87%), and Information & Communication Technology (86%) sectors most likely to have an ongoing work-from-home entitlement.

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