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New research confirms workplace policies are in flux, with two-thirds of organisations planning changes in 2025

• 77% of Australian HR professionals report their organisation mandates some office attendance, while only 16% of employees have full control over their hybrid schedules.
• 39% of Australian employees are required to be in the office five days a week.
• Work-life balance (30%) and flexible working (26%) are among the top drivers of employee retention, highlighting the risk of rigid mandates.
• Change is on the horizon – 66% of organisations plan to revise their policies this year: 26% introducing some mandated office days, 23% shifting to employee choice, 3% to fully remote and 14% mandating full-time office presence.

COMPANY NEWS: As the debate over workplace flexibility intensifies, new research from ELMO Software reveals a growing divide between employer mandates and employee expectations. Despite flexible and remote work ranking as one of the top workplace priorities for employees, organisations are still enforcing in-office attendance policies.

The  2025 ELMO HR Industry Benchmark Report, which surveyed 900 HR professionals across Australia in January 2025, explores key workforce trends, including technology adoption, employee mobility, productivity, and HR challenges.

The findings show that 77% of HR professionals report their organisation mandates some office attendance, while only 16% of employees have full control over their hybrid schedules. Notably, 39% are required to be in the office five days a week, signalling a strong return-to-office push that may not align with employee expectations.

"Workplace flexibility has been one of the most in-demand employee benefits in recent years, yet some organisations are moving in the opposite direction," said Joseph Lyons, CEO of ELMO Software. "As businesses struggle with productivity concerns and collaboration needs, they must also consider how rigid mandates could impact engagement, retention, and overall workforce satisfaction. While I've seen first-hand the benefits of in-office collaboration, finding the right balance is key to supporting a thriving workforce."

The Driving Forces Behind Office Mandates
While some organisations cite technological advancements (15%) and employee demand for flexibility (12%) as key drivers on their workplace policies, an almost equal number justify in-office mandates based on the need for in-person collaboration (14%) and concerns over productivity (12%). C-suite preferences (10%) also play a role, highlighting a potential disconnect between leadership priorities and employee sentiment.

Despite the current focus on in-office mandates, productivity challenges persist. 91% of HR professionals acknowledge barriers to improving efficiency, with key obstacles including lack of clarity on goals and performance (32%), difficulty prioritising tasks (31%), and ineffective measurement frameworks (29%).

Looking ahead, workplace policies are set to evolve. While 34% of HR professionals report no planned changes in the next 12 months, 66% anticipate policy shifts – nearly half (49%) toward more hybrid models. Meanwhile, only 14% intend to mandate full-time office presence, reflecting a shift toward greater flexibility.

Retention at Risk? The Growing Case for Flexibility
HR professionals agree that work-life balance (30%) and flexible/remote working (26%) are among the top drivers of employee retention. And with flexibility ranking as the third-highest workplace priority in ELMO’s latest Employee Sentiment Index (Oct - Dec 2024), the challenge for organisations is clear: how to balance business needs with employee expectations in a way that fosters engagement and long-term retention.

"With talent attraction and retention remaining top challenges, organisations need to carefully consider how their workplace policies shape their employer brand,” said Lyons. “Employees increasingly expect flexibility, and businesses that don’t adapt may struggle to attract and retain top talent in a competitive market."

Australia vs. New Zealand: Key Differences in Office Mandates
A comparison with New Zealand’s workforce policies highlights regional differences. Australian businesses are enforcing stricter office mandates, with 39% requiring five days in-office/onsite, compared to 27% in New Zealand. Meanwhile, hybrid work adoption is higher in New Zealand (65%) versus 55% in Australia, reflecting a stronger commitment to flexibility across the Tasman.

At the same time, Australian businesses are more likely to measure workforce efficiency by productivity rate (47%), compared to 39% in New Zealand. Yet, strategic challenges persist. 87% of HR professionals in Australia cite barriers preventing them from operating more effectively, with the most common being limited access to real-time workforce data (38%) and lack of time (37%).

Adding to the complexity, 71% of HR professionals across ANZ report their organisation plans to revise its work policy, highlighting an evolving workplace landscape where many still grapple with defining and measuring workforce productivity.

Productivity and Performance: The Path Forward
As the conversation around flexible work continues to be a hot topic in Australia, with some high-profile organisations mandating greater in-office attendance and political debates shaping the landscape, the need for strategic workforce planning has never been greater.

“With increasing productivity ranked as the top priority for organisations over the next 12 months, business leaders must take a nuanced approach to workplace policies. Rather than enforcing rigid mandates, organisations should focus on data-driven strategies that balance flexibility with business performance, ultimately fostering an environment where both employees and employers can thrive,” Lyons said.

About the ELMO 2025 HR Industry Benchmark Report