Employers warned of consequences of 'rigid' office mandates
Organisations across Australia are being warned of the potential impact of rigid office-return mandates as more organisations pivot away from workplace flexibility.
Findings from the 2025 ELMO HR Industry Benchmark report found that 77% of 900 HR professionals in Australia are in organisations that are mandating some office attendance.
It found that 39% are already required to be in the office five days a week, while only 16% of employees have full control over their hybrid schedules.
"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, in a statement.
The need for in-person collaboration emerged as one of the top reasons (14%) why employers are implementing in-office work, according to the report.
Others said it was because of concerns over productivity (12%) and C-suite preferences (10%).
"As businesses struggle with productivity concerns and collaboration needs, they must also consider how rigid mandates could impact engagement, retention, and overall workforce satisfaction," Lyons warned.
The findings come despite more than a quarter of HR professionals agreeing that work-life balance (30%) and flexible/remote work (26%) are the top drivers of employee retention.
In fact, findings from Robert Half earlier this year even showed that employees want more remote working options (19%) from their employers this 2025, with demand the strongest for Millennials (22%).
According to Lyons, organisations need to "carefully consider" how their workplace policies shape their employer brand.
"Employees increasingly expect flexibility, and businesses that don't adapt may struggle to attract and retain top talent in a competitive market," he said.
The advice comes as 30% of employers admitted in the latest Australian HR Institute report that they are facing recruitment difficulties.
Lyons said business leaders should take a "nuanced approach" to workplace policies, especially with increasing productivity being their top priority this year.
"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," he said.
