Australian companies have begun tying pay increases and bonuses to in-office attendance, but workers are still putting flexibility above all else, according to new research.

Workers are now landing higher salaries and bigger bonuses if they attend the office, according to a survey conducted by recruitment firm Robert Half.

Just under 70 per cent of the hundreds of employers surveyed said they had already increased or decreased salaries based on office attendance in the last two years, and that they are doing the same when it comes to bonuses.

According to Robert Half director Clinton Marks, this is likely more to do with the effect of showing up in-person in the office, rather than formal policies being in place.

“Linking pay and bonuses to office attendance suggests employers are placing higher value on in-person presence, but this should be interpreted carefully,” Marks said.

“What the findings point to is an emerging perception that time spent in the office can influence how contribution is judged, rather than a clear or formal rule being applied across organisations.

“In many cases, the effect is likely to be indirect, where those who are more visible have greater access to decision makers and opportunities, which can then translate into progression over time.”

Proximity to power

More than three-quarters of bosses surveyed said that workers’ proximity to leadership will lead to increases in their compensation and career development opportunities, while just under 20 per cent said this would have no noticeable impact.

“Visibility is quietly becoming a form of currency in today’s workplace,” Marks said.

“While proximity to leadership can accelerate career progression, it also creates a challenge for organisations to ensure that recognition and opportunity are not unintentionally skewered toward those who are simply more present.

“The focus needs to shift toward designing systems where contribution is measured consistently, regardless of where the work is done.”

On top of potential pay rises, companies are also taking measures to lure workers back into the office.

Of those surveyed, one-third are offering flexible working hours and team building and social events, more than a quarter are providing free or subsidised meals, and just over 15 per cent are providing commuter subsidies or travel allowances.

Workers shouldn’t be punished for opting to work from home though, Marks said.

“It is important not to assume that flexibility is worth less, or that more flexible roles should come with lower compensation,” he said.

“The real risk for organisations is that these decisions become influenced by proximity rather than measured performance.”

New priorities

But the lure of extra pay may not be enough to convince Aussie tech workers to return to the office, with new research by the International Workplace Group finding that hybrid work has overtaken remuneration as the most effective way to attract and retain tech talent.

Nearly a third of Australians would trade a higher salary for improved flexibility and proximity to work, according to the research.

For tech professionals aged under 30 specifically, more than 40 per cent said work-life balance and flexibility were the most important parts of a company’s culture, while 30 per cent said financial compensation was key.

A number of Australian companies have recently tried to bring their workers back to the office more often, with many employees fighting back.

NAB last year announced changes to its work-from-home policy – something the banking union labelled “completely unnecessary” and “regressive”.

Earlier this year a tech worker lost an unfair dismissal case at the Fair Work Commission after they were fired for refusing to return to the office, but a Westpac employee was more successful, winning a case allowing them to work from home permanently.

In a blow to hybrid workers, the Federal Court this month sided with the Australian Taxation Office and ruled that an ABC worker could not claim rent and travel expenses as tax deductions when he was working from home during the COVID-19 pandemic.