Over two thirds of employees would give up a pay rise for more flexibility, finds research. To meet the changing needs of today’s workforce, it’s up to the public sector to lead the way.

A recent survey of over 2000 Australian employees conducted by Deloitte and Swinburne Edge found that nearly four in five (78 per cent) of workers who can work remotely would prefer to work hybrid or from home, and around two in three (67 per cent) would forgo a pay rise for more flexibility. 

Better work-life balance, less commuting, improved mental health and more physical activity were among the most common benefits of flexible working cited by the survey respondents.

Dr Damian West CPHR, Deputy Director-General of Workforce Capability, Governance, Workplace Safety and Industrial Relations at the Chief Ministers Directorate, spoke with HRM about how the public sector has been adapting to the new world of work and the progress that still needs to be made.

Wellbeing in the new world of work

While the fact that most employees would swap a pay rise for a flexible work arrangement may be surprising to some, perhaps even more remarkable is the fact that wellbeing was on a par with remuneration in the ranking of employee priorities revealed by Deloitte’s research. Pay and wellbeing shared the top spot on the list, with both factors considered highly important by 93 per cent of survey respondents.

Although it’s clear that employees associate flexible work arrangements with increased wellbeing, this poses a challenge for employers, since remote work also makes it considerably more difficult for them to monitor and tend to the health and safety of their people.

To try and bridge this gap, the public service has equipped employees with a swathe of resources to help them create a physically and psychologically safe workspace for themselves, says West. 

“We have been using tools to help people think about how to set up a home office and identify things they should be considering, such as techniques to ensure their own wellbeing, managing screen time and disconnecting from work.”

As well as provisions to help manage mental health, public sector employees also have access to resources such as virtual physio and virtual home office assessments to support their physical wellbeing, he adds.

A culture of trust

When crafting new policies and procedures around managing flexible workers, some organisations rush to implement monitoring software or site blockers to ensure that remote employees are actively performing their roles. 

However, West says going overboard with such measures can make employees feel micromanaged or worse, distrusted. They also often don’t add much value when considering the types of outcomes that we are seeking to achieve, says West.

“We’ve been very clear from a philosophical point of view that we focus our intention on the 95 per cent of the workforce that are engaged and committed to doing the right thing, rather than design a system that is focused on the small percentage of our workforce who are not. 

“If we empower and trust our employees and give them autonomy, they will reward us by performing really well.”

Excessively monitoring employees during work hours also undermines another key aspect of flexibility: while employees want more autonomy over where they work, they also want more say in when they work. 

Being open to flexible hours as well as remote work is a key step forward for inclusivity, says West, particularly when it comes to fostering greater participation and addressing gender imbalances that impact the workplace. 

“If we’re saying we’re prepared to acknowledge the other calls on [employees’] time throughout the day, and that as long as the job is being done, we’re flexible about how they’re achieving it, that provides an opportunity for more participation in the workforce, particularly from women.”

This sentiment is echoed in Deloitte’s research, which showed that female flexible workers were more likely than men to choose home as their ideal location (41 per cent versus 28 per cent) and less likely to choose the workplace (14 per cent versus 21 per cent).

Looking to the future

While organisations in both the public and private sectors have already taken huge steps to accommodate their employees’ desire for flexible work, there is still progress to be made in designing flexible work to bring the maximum benefit to both employers and employees.

“One of the things [employers] should do now is think about how we actually build these concepts into the enterprise agreements and the legal frameworks that guide our employment offering,” says West.

Another factor that leaders must not overlook is the importance of adapting learning and development initiatives, particularly for management, to suit the new operating model and  landscape.  

“If we empower and trust our employees and give them autonomy, they will reward us by performing really well.” – Dr Damian West CPHR

“It’s important to realise that some of the flexible approaches to work and the things employees are demanding of us now as employers have made the life of a manager, supervisor or leader even more complicated and difficult. That’s a different skill set that we need to continue to foster, to be effective at communication and engagement.”

By taking further steps to embrace flexible work, he says, public sector employers can not only accommodate the preferences of their employees, but also arm themselves with another weapon against the continuing skills shortage.

“Certainly for the public sector, particularly for many state governments, there’s always been a tension about where people are working; many state governments retain rules or directions that you have to permanently live in the state where you work. Particularly in skilled roles, where there’s a massive war for talent, it’s a very short-sighted view. 

“If someone can contribute really well to your organisation and they are the best candidate, then where they are based should be a second or third order question. Because the contribution they can make to your organisation has to be the thing that is front and centre in your mind.”

Want to hear more from West and other experts on the government’s future with flexible work? Book your spot at the webinar on the 18th November.