The recent announcement of an Australian public service enterprise agreement that could grant federal employees unrestricted work-from-home privileges has ignited concerns about the potential negative impacts of flexible working arrangements.

While such arrangements can have benefits for both employers and employees, with an increasing number of workers opting for remote work, the ripple effect across our economy needs to be understood and addressed.

If work-from-home arrangements are uncapped, once-bustling CBDs will suffer from a reduced daily influx of workers. Small businesses that provide the morning coffee fix, offer retail therapy or nourishment during lunch and support post-work social gatherings, will not have the foot traffic and custom to survive.

Flexible working arrangements are now firmly entrenched in business across the globe. The pandemic accelerated the trend, and it is here to stay. Employees seeking better work-life balance and employers eager to engage in a competitive labour market have met somewhere in the middle to cement this change.

The arrangements play a positive role in improving female participation in the workplace, with nearly 70% of women acting as the main caregiver in the family needing flexibility in order to balance home life and employment.

When it comes to flexible working arrangements, working from home is the most basic of measures. While it may actually reduce some costs for business, the trade-off of an empty office can be a struggle to build culture, the mental health of employees and, in some cases, reduced productivity. In fact, a study just conducted by Stanford’s Institute for Economic Policy and Research, reports a 10%-20% decrease in productivity for fully remote workers.

For the broader business ecosystems in the CBD or major metropolitan areas, the absence of workers can be devastating, and empty shopfronts are already a testament to that.

So, what are the alternatives to working from home to create a flexible workplace offering? Employers should explore a multifaceted approach to flexibility, creating work environments that foster collaboration, creativity, friendships and productivity.

Many of our Business SA members are already doing this to achieve a balance between flexibility and providing a welcoming workspace. Examples include:

Embrace flexible start and finish times – Grant employees the freedom to adjust their workday, resulting in shorter and less stressful commutes. This can also assist working parents with school runs, enable employees to attend personal appointments and enhance satisfaction by offering autonomy over their schedules.

Celebrate extra-curricular commitments – Encourage staff to take on pursuits such as coaching children’s sporting teams, joining committees or charity groups; allow for the time for them to be involved and recognise the contribution they are making to their community.

Offer purchased annual leave – Provide employees with the option to allocate a small portion of their salary each week towards additional weeks of holidays. Extended breaks or more frequent short holidays can substantially benefit employee well-being.

Limit meetings – Streamline meetings to prevent an overwhelming calendar and boost productivity. Employees often find an excessive number of meetings frustrating, and improving efficiency in this area can enhance engagement and overall satisfaction.

Create a community – Encourage social club activities, team lunches and regular check-ins to promote healthy relationships among colleagues and cultivate a positive workplace culture.

Embrace flexible workspaces – Take inspiration from the experience of working from home and reevaluate office setups. Create versatile spaces where employees can take breaks from their desks and enjoy a change of scenery.

With all of these examples, a starting point for any business is to develop a clear policy on work hours and expectations.

Having staff in the office goes beyond keeping local businesses happy. Face-to-face interactions are important for nurturing a strong office culture. They also facilitate more efficient communication and can generate interaction that leads to innovation and ideas. In the right environment, they have a role to play in contributing to an employee’s well-being and personal development.

Striking the balance between flexibility and a vibrant workplace is part of running a business today. It is important we realise the means to achieve this without compromising the sustainability of our city centres, so that they continue to attract investment and create job opportunities well into the future.