Australian small businesses are leading the charge in providing flexibility in the workplace, according to new global research from Remote, a leading global HR platform for distributed companies.
With 69% of Australian businesses experiencing increased demand for flexible work options among employees in the last six months, the survey reveals how important flexibility is becoming to Australian talent. More than half (60%) of hiring leaders say their employers have lost employees to organisations who are less tied to traditional office hours and locations in the last six months.
The Global Workforce Report, which is based on an international survey with more than 4,000 business leaders of companies across 10 countries including 506 leaders from Australia, delivers a positive view of the current state of global companies. More than three-quarters (76%) of Australian businesses report having seen their workforce numbers swell over the past year, which is higher than the global average (73%). Other counties with notable growth include Germany (86%), the UK (81%), and the USA (72%).
SMBs writing the playbook on remote work
In Australia, flexible working hours and remote work are offered by 39% and 32% of businesses respectively. However, small businesses and small-medium enterprises are significantly more likely to offer these perks.
Most businesses with 1-9 employees (83%) and 10-49 employees (72%) offer flexible working hours, in comparison to only 41% of businesses with 250-499 employees and 53% of businesses with 50-100 employees. Similarly, remote work is currently offered at 69% of businesses with 49 employees or less, and less than a third of businesses with 250-499 employees (27%) and 500-1,000 employees (33%).
Flexible work drives productivity and company performance
Global workforces are growing quickly, and it is not just people’s desire for better life-work balance driving this growth. Companies are increasingly reaping the business benefits of flexible working models, including expanding their hiring options. The research found that, in Australia, an increase in productivity (40%) and improved business performance (29%) were two primary benefits that respondents attributed to operating remotely. This stands in contrast to the view of some high-profile organisations, who have introduced RTO (Return to Office) practices citing productivity as a reason for their move.
When asked about the impact remote working has on employees, 35% of companies said it increased employee satisfaction and 28% highlighted remote work as being crucial to an enhanced life-work balance for employees.
Finding candidates with the right skills is a challenge all companies face alike, with about a third of Australian businesses (31%) citing this as their biggest hiring challenge. Remote companies are leaning more towards hiring freelancers, with 48% looking for freelance or contractor talent in the last year as their workforce grew, in comparison to only 40% of office-based businesses.
The report also found that companies with mainly or fully remote workforces faced a range of challenges including:
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Managing compliance issues with international labour laws (74%)
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Managing remote teams (78%)
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Increased costs associated with remote technology implementation (75%)
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Assessing cultural fit of remote candidates (77%)
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Receiving AI-generated resumes with false information (77%)
However, this stands in contrast to the majority (82%) who were able to reduce office space due to implementing remote or hybrid models successfully.
“We have only just begun writing the playbook on remote work and will need to work together to identify and tackle these challenges,” explains Job van der Voort, CEO and co-founder at Remote. “This data echoes what we hear from many of our customers – the benefits of flexible and remote work far exceed the challenges. We believe that distributed work is paving the way to a more successful, balanced and fair business world and are committed to helping other companies in adopting flexible work and attract great talent from everywhere.”
