Australian workers have some of the lowest levels of workplace location flexibility in the world, leading to declining engagement rates.
The latest ADP Research People at Work report found less than one in five (16 percent) Australian employees reported being fully engaged on the job, down from 18 percent last year.
ADP Australia Human Resources Director Emmy Andriotis said the two-percentage-point decrease contrasted with sustained engagement growth on a global level.
Ms Andriotis said the research found Australia’s engagement rates were higher for those working in the office or on-site (17 percent) compared to hybrid workers (15 percent), with remote workers experiencing the lowest engagement rate at 7 percent.
“This contrasts with the global trend, where hybrid workplace arrangements have been shown to promote greater engagement among the workforce.”
She said the difference suggested that besides ongoing economic pressures and an uncertain job market, Australian hybrid and remote workers may be experiencing a more profound disconnect from their teams and company culture, exacerbated by evolving expectations of work-life balance and the challenges that often came with remote collaboration.
“Our research demonstrates employee engagement ultimately comes down to how connected employees feel to their teams and employers, no matter where they work. Businesses should recognise that one-size-fits-all approaches no longer work, especially in an increasingly hybrid workforce.”
Ms Andriotis said the study showed a strong relationship between work location and employee engagement.
She said while 56 percent of employees surveyed worldwide said they worked on-site every day (up 2 percent compared to 2024), only 12 percent worked exclusively remotely (down 1 percent) and 32 percent worked in hybrid mode (down 2 percent).
“Above all, it seems that it is employee autonomy that has a significant impact on high levels of engagement.
“The study shows that respondents who have complete freedom of choice regarding their workplace, meaning they can choose to work on-site or elsewhere without any restrictions, are much more engaged than others.”
She said in Australia, just over one in five (21 percent) workers had complete flexibility of choosing their work location, a lower percentage compared to other APAC countries such as India (45 percent), Singapore (27 percent) and neighboring countries like New Zealand (24 percent).
“What the findings highlight is that those who have the choice, even if they work on-site or at home, are more engaged given that they benefit from more freedom.”
