Andrew Kay warns of rise in offshore recruitment, 'devastated' business districts
The chief executive of Business SA has warned of offshore recruitment and devastated central business districts (CBD) as work-from-home or remote arrangements continue to gain ground across Australia.
Enabling WFH could lead to "employers choosing to outsource certain services to the best offer - typically offshore - rather than employ workers who they never see in the office anyway,” said Business SA chief executive Andrew Kay in an interview with news.com.au.
"If we assume that artificial intelligence and digitalisation are going to reshape the workforce in the years ahead, we need to seriously consider the impact of any policy decisions that make attendance in the workplace the exception rather than the rule.”
Impact of WFH on CBDs
Kay made the remarks as calls for WFH arrangements become more widespread in Australia, with the Commonwealth's public servants becoming the latest workforce to gain expanded rights on it.
The arrangement, however, could potentially impact the vibrancy and diversity of CBDs, according to the chief executive.
"Today's agreement has the potential to decimate foot traffic in metropolitan business hubs and serve as a disincentive for small businesses to stake their claim in our city," he said in a statement last week.
Noting that South Australia is eyeing a similar policy for its public sector workforce, Kay warned of remote work's potential effect on the Adelaide CBD.
"While acknowledging the benefits of flexible working arrangements we cannot dismiss the potential for a negative impact on CBD businesses, which heavily rely on a strong community of workers, given that most public offices are located in urban centres," Kay said.
He stressed that granting further WFH days to the local public sector would have a "devastating" effect on cafes, restaurants, and retail outlets.
"We can't allow an agreement like this to be made on a state level. Businesses that rely on city workers for their trade every day will simply not be able to survive a mass exodus of workers," he said.
This is not the first warning from an executive on remote work's possible impact on the vibrancy of cities, as organisations across the world push resisting staff to return to the office after years of working from home.
"Employers need to create environments where people want to engage and collaborate with their colleagues in person, even when flexible working arrangements are possible," Kay said.
