The death of remote work is often announced but frequently exaggerated. Are its days truly numbered? It’s a question we frequently encounter on the New Zealand recruitment frontline, where employers and candidates alike share strong opinions about their preferences.
While we see more employers shifting away from remote work to a full return to the office or a hybrid work policy, the answer is, ‘it’s complicated’. We’ll pick apart the question, ‘Is remote work dead?’ – the answer may surprise you.
What the Data Says About Work from Home Jobs
Data from Statistics New Zealand shows the extent to which remote work or hybrid work is prevalent in Aotearoa. Between 2018 and 2023, the number of people mostly working from home increased by nearly 60%. Wellington and Auckland saw the highest growth in remote work during this period, with the number of people mostly working from home more than doubling in both regions (125% and 120%, respectively). More recent figures show that 43% of businesses are giving their employees a work from home option.
However, the calls for employees to return to the office are getting stronger. One KPMG survey recently garnered plenty of attention by revealing that 83% of CEOs expect a full-time return to the office within the next three years, up from 64% in 2023.
The global survey, which canvassed 1,325 CEOs across 11 industries, also highlighted divides about the issue along generational and gender lines. 87% of CEOs aged 60-69 and 83% of those aged 50-59 expect a full return to office, with expectations declining with younger age groups. Some 84% of male CEOs predict a return to the office, compared to 78% of female executives.
Perhaps most controversially, 87% of CEOs said employees who return to the office will be rewarded with more pay raises and promotions. Meanwhile, the number of remote jobs advertised on Trade Me reportedly dropped by 30% in Q3.
The prevalence of working from home that surged during the pandemic now faces growing pushback. For jobseekers and employees, that suggests the need to weigh the benefits of flexibility against potential career advantages tied to in-office presence.
The Corporate vs SME Divide
The push to return to the office may be more of a phenomenon within large organisations (including that of the public service, as demonstrated by Public Service Minister Nicola Willis, who has stressed that remote work is not an entitlement).
Some commentators have even pointed out that return-to-office (RTO) mandates are a tactic to make employees unofficially redundant, with the tacit understanding that demanding staff return to the office full-time will likely make many resign. One US survey revealed hiring managers were actually explicit about their intentions to create ‘voluntary turnover’.
The ensuing impacts from these strategies on employee morale, productivity and engagement will vary by organisation, but it’s fair to say that going all out on RTO mandates is not without risk.
If you’re hiring for a small or medium business, offering remote or hybrid work options could position you to attract talent that wants to escape the RTO directives of larger companies. This could be your moment to swoop in and hire the best people while your larger competitors are busy pulling everyone back to their desks!
Finding the Balance
A hybrid work policy could be the middle ground in the debate about working from home versus returning to the office. In another survey, KPMG found that 80% of New Zealand CEOs felt hybrid working had a positive effect on employee morale.
At Beyond Recruitment, we see more organisations adopting hybrid work policies. This might be the best way to strike a balance between organisational needs and keeping employees happy. After all, there are strong arguments for and against having everyone work together on-site.
Working in the office allows managers more visibility and the ability to onboard new team members effectively. Junior employees benefit from working side-by-side with experienced colleagues and receiving support from them. Perhaps most importantly, working on-site enables colleagues to build relationships with each other.
A hybrid work policy offers the best of both worlds, allowing employees to enjoy the flexibility of working from home while still maintaining in-person collaboration. Most people who work from home at least part of the week report higher productivity.
Looking Ahead
So, is fully remote work really on the way out? With more businesses moving back to full-time office work or settling on hybrid arrangements, it may seem that way, but the answer is far from straightforward. Hiring managers might need to find a balance between business needs and employee and candidate preferences. Jobseekers might have to adjust their expectations for remote work when applying for roles, as it may be a benefit that needs to be earned with tenure.
Get Support from New Zealand Recruitment Experts
For considered advice based on years of New Zealand recruitment experience, please reach out to our team here at Beyond Recruitment. Whether you’re searching for work from home jobs where your skills can shine, or need to attract new talent to your team, we can give you informed guidance on market trends and how to achieve the best result. Contact us today!
