The New Normal: WFH, Pay Gaps and Later Retirement

Even as the world settles into a post-pandemic rhythm, WFH is holding strong in Australia. According to the latest HILDA report, 35% of employees now work from home at least some of the time and 15% do most of their work remotely. For perspective, WFH peaked during the pandemic in 2021 at 38% for any WFH and 23% for most hours. Full-time WFH of five days or more remains under 5% but a flexible hybrid model has clearly become the norm.

Increasing traffic has caused commuting times in mainland capital cities to return mostly to pre-pandemic levels, whereas regional workers are spending more time on the road itself. Longer commutes are linked to lower job satisfaction and higher turnover intentions, highlighting a large benefit for many who choose to WFH.

The report also revealed that women’s pay, which had steadily grown for two decades, took a hit in 2022. While there was a small 1.2% increase in 2023, earnings remain below 2021 levels. Men’s earnings also experienced fluctuations but overall have risen steadily since 2001.

Finally, retirement is being delayed: fewer people aged 60–69 are retiring than two decades ago, influenced by both economic factors and higher pension thresholds.

Our Take

For employers, these trends are clear signals for your recruitment and workforce planning. WFH arrangements are now expected and companies that ignore flexibility risk losing talent. Pay equity, especially for women, remains a concern with transparent policies and clear growth paths remaining essential. Long commutes affect satisfaction and retention, so flexibility isn’t just a perk, it’s a retention tool. And with retirement ages rising, supporting older employees with adaptable roles and ongoing development is key to a sustainable workforce.

Action Items:

• Reassess WFH policies - Offer hybrid options where possible and clearly communicate expectations to ensure fairness across teams.

• Conduct pay audits - Identify any gender or role-based discrepancies and implement adjustments to close gaps.

• Support commuting flexibility - Consider staggered hours, satellite offices, or transportation subsidies for regional workers.

• Plan for an aging workforce - Invest in upskilling, mentoring programs and workplace adjustments to retain experienced staff.

• Monitor engagement metrics - Track satisfaction, turnover intentions and productivity to understand how policies are impacting your workforce.

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