Chapter 1
Hybrid Working
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Hybrid working has become a defining feature of modern workplace culture in New Zealand, significantly impacting office attendance and in-office days across major cities like Auckland, Wellington, and Christchurch.
As businesses continue to fine-tune their hybrid models, the focus remains on balancing remote work flexibility with the benefits of in-office collaboration. This section explores the latest findings from the 2024 CBRE New Zealand Office Occupier Sentiment Survey, shedding light on how hybrid working practices are evolving and their implications for workplace culture and employee engagement.
Discover the unique dynamics of hybrid working in New Zealand's key urban centers and how organisations are adapting to this new normal.
As businesses continue to fine-tune their hybrid models, the focus remains on balancing remote work flexibility with the benefits of in-office collaboration. This section explores the latest findings from the 2024 CBRE New Zealand Office Occupier Sentiment Survey, shedding light on how hybrid working practices are evolving and their implications for workplace culture and employee engagement.
Discover the unique dynamics of hybrid working in New Zealand's key urban centers and how organisations are adapting to this new normal.
Hybrid workplace models adjust towards greater employee presence in the office
Office attendance varies widely based on industry, organisational size, and where decision-making sits but the overall average has increased from 3.2 days per week in 2023 to 3.3 days this year.
The increase in office attendance represents a fine-tuning rather than the rejection of hybrid working practices, given their continued use by 91% of workplaces surveyed.
This shift occurred via an 11% increase in the number of organisations where employees attend the office four days a week, with a reduction occurring in two or three-day-per-week attendance rates. At the same time, three days per week in the office remains the predominant mode of operations for 49% of our survey respondents.
The increase in office attendance rates is not surprising, this was signalled in last year’s survey where 21% of respondents were looking to retain hybrid working but boost office attendance, compared to 2% of respondents looking to increase the time spent working remotely.
Increasing employee presence in the office has been a universal trend but the most notable increases occurred in the public sector where the average lifted from two and a half to three days. The legal sector already had the highest attendance rate, but this has lifted further to now sit at an average of 4.1 days per week.
The increase in office attendance represents a fine-tuning rather than the rejection of hybrid working practices, given their continued use by 91% of workplaces surveyed.
This shift occurred via an 11% increase in the number of organisations where employees attend the office four days a week, with a reduction occurring in two or three-day-per-week attendance rates. At the same time, three days per week in the office remains the predominant mode of operations for 49% of our survey respondents.
The increase in office attendance rates is not surprising, this was signalled in last year’s survey where 21% of respondents were looking to retain hybrid working but boost office attendance, compared to 2% of respondents looking to increase the time spent working remotely.
Increasing employee presence in the office has been a universal trend but the most notable increases occurred in the public sector where the average lifted from two and a half to three days. The legal sector already had the highest attendance rate, but this has lifted further to now sit at an average of 4.1 days per week.
In-office days increasing as hybrid work becomes the ‘norm’
Although hybrid working is firmly entrenched as business as usual, the number of in-office working days is increasing. A combination of geographic and sectoral factors paired with decision-making differences play a part in how many days employees are in the office.
Participants also described an alternative to the organisation-, team-, or individual-led decision-making; a senior-management framework that enabled autonomy in decision-making, but within boundaries such as a minimum number of days in the office, or a client-led approach that was dictated by the needs of customers.
Participants also described an alternative to the organisation-, team-, or individual-led decision-making; a senior-management framework that enabled autonomy in decision-making, but within boundaries such as a minimum number of days in the office, or a client-led approach that was dictated by the needs of customers.
Refinement to hybrid work practices will continue to boost future office attendance
Nearly two-thirds of respondents indicate that current hybrid practices won’t, or are unlikely to, change although hybrid working norms continue to be fine-tuned.
The trend of those expecting to increase vs those expecting to decrease employee office presence shows a future reduction in working from home by an overall net 15% of respondents. This compares to a net 20% who were looking to decrease the extent of hybrid work in their organisations last year; a move which has resulted in the average days in the office shifting from 3.2 to 3.3 days per week from 2023 to 2024.
The trend of those expecting to increase vs those expecting to decrease employee office presence shows a future reduction in working from home by an overall net 15% of respondents. This compares to a net 20% who were looking to decrease the extent of hybrid work in their organisations last year; a move which has resulted in the average days in the office shifting from 3.2 to 3.3 days per week from 2023 to 2024.
The fundamental reasons some organisations favour greater office presence tend to focus on culture and its impact on organisational performance, and L&D, as highlighted by these quotes from respondents:
Better collaboration in the office, better mentoring and supervision to juniors.
Ideas, talking points and team culture cannot be enhanced working from home.
Employees get better support & learning opportunities by being in the office.
Maintaining a strong workplace culture is top of mind
The past three years of hybrid working have fundamentally changed how organisations approach ‘workplace culture’. The primary challenge affecting the functioning of hybrid workplaces remains the impact on organisational culture. The task of perfecting this is becoming more nuanced, highlighting a growing recognition of culture as a key organisational attribute.
There’s also an increasing focus on measuring productivity, which has risen to become the second greatest challenge in relation to hybrid work. This heightened emphasis on measurement is reflected in the growing number of organisations adopting systems to regularly track office space utilisation.
While the focus has somewhat shifted from the challenge of boosting office attendance, organisations continue to offer incentives to attract employees. Initiatives around social events, wellness, and food and beverage remain popular. However, technology improvements and parking provision have seen the greatest increase from last year’s survey. This indicates a heightened focus on removing practical barriers to support office use.
The ongoing focus on providing employees with a better-quality working environment through relocation or refurbishment, in conjunction with parking, underscores the continued importance of optimised workplaces.
There’s also an increasing focus on measuring productivity, which has risen to become the second greatest challenge in relation to hybrid work. This heightened emphasis on measurement is reflected in the growing number of organisations adopting systems to regularly track office space utilisation.
While the focus has somewhat shifted from the challenge of boosting office attendance, organisations continue to offer incentives to attract employees. Initiatives around social events, wellness, and food and beverage remain popular. However, technology improvements and parking provision have seen the greatest increase from last year’s survey. This indicates a heightened focus on removing practical barriers to support office use.
The ongoing focus on providing employees with a better-quality working environment through relocation or refurbishment, in conjunction with parking, underscores the continued importance of optimised workplaces.
Hybrid working's impact on workplace culture
Occupiers have noted that maintaining or enhancing company culture is a challenge when people spend less time in the office due to hybrid working. Despite this, the majority view hybrid working as having a positive influence on workplace culture.
In fact, 63% of occupiers believe that hybrid working has positively affected their workplace culture. This suggests benefits such as improved employee satisfaction, engagement, and productivity. However, responses varied geographically. For instance, Auckland-based occupiers reported a more positive impact of hybrid working on their workplace culture than those in Wellington or Christchurch. This difference could be attributed to the significant role of commuting in Auckland.
The data also showed interesting year-on-year changes. In Auckland, there was an 18% increase in organisations reporting a somewhat negative impact of hybrid working on workplace culture, with 21% reporting such an impact in 2024. In Christchurch, fewer occupiers reported a positive impact, with 39% indicating a neutral effect on workplace culture. Wellington saw minor changes, with a slight increase in the number of organisations reporting positive or neutral impacts, and a slight decrease in those reporting somewhat negative impacts.
In fact, 63% of occupiers believe that hybrid working has positively affected their workplace culture. This suggests benefits such as improved employee satisfaction, engagement, and productivity. However, responses varied geographically. For instance, Auckland-based occupiers reported a more positive impact of hybrid working on their workplace culture than those in Wellington or Christchurch. This difference could be attributed to the significant role of commuting in Auckland.
The data also showed interesting year-on-year changes. In Auckland, there was an 18% increase in organisations reporting a somewhat negative impact of hybrid working on workplace culture, with 21% reporting such an impact in 2024. In Christchurch, fewer occupiers reported a positive impact, with 39% indicating a neutral effect on workplace culture. Wellington saw minor changes, with a slight increase in the number of organisations reporting positive or neutral impacts, and a slight decrease in those reporting somewhat negative impacts.