{"id":299522,"date":"2025-12-01T11:00:25","date_gmt":"2025-11-30T23:00:25","guid":{"rendered":"https:\/\/www.reckon.com\/au\/?p=299522"},"modified":"2026-05-05T17:03:47","modified_gmt":"2026-05-05T05:03:47","slug":"rto-vs-wfh","status":"publish","type":"post","link":"https:\/\/www.reckon.com\/au\/blog\/rto-vs-wfh\/","title":{"rendered":"Return-to-office or Work-from-home: Which is better for your small business?"},"content":{"rendered":"<p>[et_pb_section fb_built=&#8221;1&#8243; _builder_version=&#8221;4.16&#8243; da_disable_devices=&#8221;off|off|off&#8221; global_colors_info=&#8221;{}&#8221; da_is_popup=&#8221;off&#8221; da_exit_intent=&#8221;off&#8221; da_has_close=&#8221;on&#8221; da_alt_close=&#8221;off&#8221; da_dark_close=&#8221;off&#8221; da_not_modal=&#8221;on&#8221; da_is_singular=&#8221;off&#8221; da_with_loader=&#8221;off&#8221; da_has_shadow=&#8221;on&#8221;][et_pb_row column_structure=&#8221;1_3,2_3&#8243; _builder_version=&#8221;4.23&#8243; background_size=&#8221;initial&#8221; background_position=&#8221;top_left&#8221; background_repeat=&#8221;repeat&#8221; width=&#8221;100%&#8221; custom_padding=&#8221;||0px||false|false&#8221; locked=&#8221;off&#8221; global_colors_info=&#8221;{}&#8221;][et_pb_column type=&#8221;1_3&#8243; module_class=&#8221;table-contents&#8221; _builder_version=&#8221;4.23&#8243; background_color=&#8221;#f3f2f6&#8243; custom_padding=&#8221;25px||25px||true|false&#8221; sticky_position=&#8221;top&#8221; sticky_limit_bottom=&#8221;section&#8221; sticky_position_tablet=&#8221;top&#8221; sticky_position_phone=&#8221;none&#8221; sticky_position_last_edited=&#8221;on|desktop&#8221; border_radii=&#8221;on|24px|24px|24px|24px&#8221; global_colors_info=&#8221;{}&#8221; custom_padding__hover=&#8221;|||&#8221;][et_pb_text _builder_version=&#8221;4.23&#8243; text_font=&#8221;||||||||&#8221; global_colors_info=&#8221;{}&#8221; background__hover_enabled=&#8221;on|desktop&#8221;][\/et_pb_text][\/et_pb_column][et_pb_column type=&#8221;2_3&#8243; _builder_version=&#8221;4.16&#8243; custom_padding=&#8221;|||&#8221; global_colors_info=&#8221;{}&#8221; custom_padding__hover=&#8221;|||&#8221;][et_pb_text admin_label=&#8221;Intro&#8221; _builder_version=&#8221;4.27.6&#8243; header_2_font_size=&#8221;32px&#8221; custom_margin=&#8221;||0px|||&#8221; hover_enabled=&#8221;0&#8243; header_2_font_size_tablet=&#8221;30px&#8221; header_2_font_size_phone=&#8221;26px&#8221; header_2_font_size_last_edited=&#8221;on|tablet&#8221; global_colors_info=&#8221;{}&#8221; sticky_enabled=&#8221;0&#8243;]<\/p>\n<p>Is working in the office or from home (WFH) better for your business? Depending on what industry you work in, the answer will be different. It makes more sense for retail, hospitality, and manufacturing to be mainly on-site. Whereas, if you own an e-commerce company, WFH would make sense for your workers, except for order fulfilment roles.<\/p>\n<p>Whatever WFH policy you choose, it&#8217;s important to make the right choice that benefits your business and your staff, so let\u2019s compare your options.<\/p>\n<h2>The benefits of working from home<\/h2>\n<p>[\/et_pb_text][et_pb_image src=&#8221;https:\/\/www.reckon.com\/au\/wp-content\/uploads\/2025\/11\/WFH-Pros-2.png&#8221; alt=&#8221;WFH pros are happy workforce, more productive and better talent&#8221; title_text=&#8221;WFH Pros 2&#8243; align=&#8221;center&#8221; _builder_version=&#8221;4.27.4&#8243; _module_preset=&#8221;default&#8221; global_colors_info=&#8221;{}&#8221;][\/et_pb_image][et_pb_text _builder_version=&#8221;4.27.6&#8243; _module_preset=&#8221;default&#8221; hover_enabled=&#8221;0&#8243; global_colors_info=&#8221;{}&#8221; sticky_enabled=&#8221;0&#8243;]<\/p>\n<p>Working from home is becoming the norm, and working entirely in the office is becoming rare in industries where the majority of work doesn&#8217;t require on-site presence.<\/p>\n<p>Here are some of the key benefits of working from home:<\/p>\n<ul>\n<li><strong>More productive workforce:<\/strong> By eliminating commuting time and on-site distractions, your employees (and you) can dedicate more time to tasks. Your staff are less distracted, motivated and take fewer sick days.<\/li>\n<li><strong>Fewer costs, better engagement:<\/strong> You save on costs, with your workforce taking less sick leave and logging on earlier. Fewer interruptions also mean they produce more work. At the same time, you save on office rental costs, which are a high ongoing cost for business operations.<\/li>\n<li><strong>Talent retention:<\/strong> WFH provides wider talent pools for interviewing and retaining your own employees. Employees love the flexibility and <a href=\"https:\/\/www.reckon.com\/au\/small-business-resources\/balanced-careers\/\">work-life balance<\/a> that WFH delivers, which provides a motivated and healthy workforce.<\/li>\n<\/ul>\n<h2>The advantages of returning to the office<\/h2>\n<p>[\/et_pb_text][et_pb_image src=&#8221;https:\/\/www.reckon.com\/au\/wp-content\/uploads\/2025\/11\/RTO-pros-2.png&#8221; alt=&#8221;RTO pros are face-to-face, stronger collabs and faster learning&#8221; title_text=&#8221;RTO Pros 2&#8243; align=&#8221;center&#8221; _builder_version=&#8221;4.27.4&#8243; _module_preset=&#8221;default&#8221; custom_margin=&#8221;-30px||||false|false&#8221; global_colors_info=&#8221;{}&#8221;][\/et_pb_image][et_pb_text _builder_version=&#8221;4.27.4&#8243; _module_preset=&#8221;default&#8221; global_colors_info=&#8221;{}&#8221;]<\/p>\n<p>As return-to-office mandates pop up in headlines, the discourse surrounding the decision is mainly negative. Most Aussie workers have experienced some form of WFH, and taking away those benefits is the difference between working for a company and not. But while there are legitimate reasons why returning to the office is unpopular, there are benefits to it for you and your staff.<\/p>\n<ul>\n<li><strong>Better communication:<\/strong> In-office communication is far more streamlined than using virtual meeting or messaging applications. Face-to-face communication is effective, fast, and more efficient.<\/li>\n<li><strong>Improved collaboration:<\/strong> An office or on-site environment enables better collaboration. You can problem-solve, innovate, and work more effectively in a close-knit environment. The social aspect of the office fosters collaboration, and as the team works together longer, it becomes more efficient.<\/li>\n<li><strong>Fast learning and upskilling:<\/strong> In-office training and education are far more effective. When new employees start or upskill, hands-on experience enables high-quality interaction, faster learning, and a structured environment that online learning doesn\u2019t provide.<\/li>\n<\/ul>\n<h2>Drawbacks of return-to-office and working-from-home policies<\/h2>\n<p>There are drawbacks to both policies\u2014the main critiques of both, RTO and WFH, centre on limitations that are hard to overcome. RTO makes achieving work-life balance harder, but WFH can\u2019t easily replicate genuine human interaction.<\/p>\n<h3>RTO drawbacks<\/h3>\n<ul>\n<li><strong>Inflexibility:<\/strong> Staff work-life balance is tricky to foster in an in-office environment. For in-office, you have strict work schedules and commutes that take far more than the face value 8-hour workday.<\/li>\n<li><strong>Expensive:<\/strong> Getting to the office is costly for your employees (commutes and lunches) and for you (office space rent and <a href=\"https:\/\/www.reckon.com\/au\/glossary\/operating-expenses\/\">operational costs<\/a>).<\/li>\n<li><strong>Attrition:<\/strong> Working in the office can exhaust your staff, leading to more sick days and more employee turnover, as WFH offers better work conditions.<\/li>\n<\/ul>\n<h3>WFH drawbacks<\/h3>\n<ul>\n<li><strong>Weaker cohesion:<\/strong> Where office environments thrive in communication and collaboration, WFH doesn\u2019t significantly reduce your staff unit cohesion. Without the social aspect of working together, your workforce is more disconnected and less likely to be \u2018creative\u2019 in problem-solving (watercooler factor).<\/li>\n<li><strong>Slower onboarding and learning:<\/strong> In-person onboarding and learning are at a disadvantage without the quickness of face-to-face interaction. Disengagement is a factor to consider, as is the need for discipline and monitoring when learning online.<\/li>\n<li><strong>Operational setup:<\/strong> To set up you and your staff, you need a significant IT investment. These costs are lower after the initial setup, but ongoing maintenance and staff training are required, and your staff must have a decent internet connection.<\/li>\n<\/ul>\n<h2>Hybrid workplace policy<\/h2>\n<p>Neither policy is perfect; you will get a range of workers who prefer one over the other. This is where hybrid working policies win out over going 100% one way or the other. By choosing a hybrid workstyle, you get the benefits of both while sidestepping each policy&#8217;s drawbacks.<\/p>\n<h3>It\u2019s not where you work, it\u2019s how you work<\/h3>\n<p>It\u2019s important to strike the right balance when implementing a hybrid work policy. One day of work from home yields mixed results, but 2-3 WFH days and 1-3 in-office days provide the greatest benefit to a workforce. For days spent in the office, focus on driving collaboration: look at outcomes, not hours spent, and adapt your <a href=\"https:\/\/www.reckon.com\/au\/blog\/leadership-in-small-business\/\">leadership style<\/a> to manage a hybrid team.<\/p>\n<p>For businesses in the hospitality, manufacturing, retail, and other industries that can\u2019t see how to implement hybrid policies, there are ways to do so. Frontline staff are obviously out, but what about support teams and finance teams? Do they need to be on-site? For hospitality, manufacturing, and retail, reducing office days offers cost-saving opportunities and better staff retention and productivity.<\/p>\n<h2>Hybrid workplace policy and your small business<\/h2>\n<p>Using a hybrid workplace policy gives the flexibility of WFH and the unit cohesion and collaborative benefits of RTO. To fully take advantage of hybrid&#8217;s benefits, focus on how you work rather than where you work, and enjoy a happier workforce and a stronger culture.<\/p>\n<p>[\/et_pb_text][ba_social_share icon_bg=&#8221;#03002e&#8221; icon_padding=&#8221;10px|12px|10px|12px|true|true&#8221; layout=&#8221;classic&#8221; show_text=&#8221;off&#8221; btn_padding=&#8221;0px|0px|0px|0px|false|false&#8221; btn_bg_color=&#8221;RGBA(255,255,255,0)&#8221; _builder_version=&#8221;4.23&#8243; _module_preset=&#8221;default&#8221; custom_margin=&#8221;50px||||false|false&#8221; custom_padding=&#8221;25px||||false|false&#8221; custom_css_before=&#8221; content: %22SHARE THIS%22;|| font-size: 16px;|| font-weight: 700;|| line-height: 22px;|| letter-spacing: 0em;|| text-align: center;|| color: #ff5447;|| margin-bottom: 10px;|| display: inline-flex;|| position: absolute;|| margin-top: 10px;&#8221; border_width_top_main=&#8221;1px&#8221; border_color_top_main=&#8221;#e4e4e4&#8243; border_radii_icon=&#8221;on|5px|5px|5px|5px&#8221; global_colors_info=&#8221;{}&#8221; custom_css_before_last_edited=&#8221;off|desktop&#8221;][ba_social_share_child _builder_version=&#8221;4.23&#8243; _module_preset=&#8221;default&#8221; global_colors_info=&#8221;{}&#8221;][\/ba_social_share_child][ba_social_share_child network_type=&#8221;facebook&#8221; _builder_version=&#8221;4.23&#8243; _module_preset=&#8221;default&#8221; global_colors_info=&#8221;{}&#8221;][\/ba_social_share_child][ba_social_share_child network_type=&#8221;linkedin&#8221; _builder_version=&#8221;4.23&#8243; _module_preset=&#8221;default&#8221; global_colors_info=&#8221;{}&#8221;][\/ba_social_share_child][ba_social_share_child network_type=&#8221;email&#8221; _builder_version=&#8221;4.23&#8243; _module_preset=&#8221;default&#8221; global_colors_info=&#8221;{}&#8221;][\/ba_social_share_child][\/ba_social_share][\/et_pb_column][\/et_pb_row][\/et_pb_section]<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Unsure if in-office or working from home works best for your small business? Discover the pros and cons of each and how to strike the right balance<\/p>\n","protected":false},"author":36,"featured_media":299523,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"on","_et_pb_old_content":"<p>Changes to how casual employees can transition to permanent employment are coming this year. The new process adds an employee-driven element, where, depending on certain circumstances, a casual employee can notify their employer of their intention to move from casual to permanent employment.<\/p><p>This is a marked departure from the previous rules, which were entirely up to the employers. So, what does this new process look like, and what does it mean for small businesses?<\/p><p>Let\u2019s go through it.<\/p><h2>Key changes to casual employment rights<\/h2><p>The \u201cClosing Loopholes\u201d amendment has directly changed how casual employees remain casual or transition to permanent employment.<\/p><p>Under the old rules in the National Employment Standard, a casual employee\u2019s employment status was entirely employer-driven. This meant that any conversation or initiation of a casual employee was through the employer's agreement or arrangement.<\/p><p>Now, employees can let their employer know their desire to change their working status, called the employee choice pathway.<\/p><p>Under the employee choice pathway, casual employees can pursue permanent employment by notifying their employers of their intent to change from casual to permanent. The following criteria have to be met before notice can be given:<\/p><ul><li>The employee has been employed for 6 months or more (or for small business, 12 months or more)<\/li><li>The employee believes that they no longer meet the requirements of a casual employee defined under the Fairwork Act 2009<\/li><\/ul><h2>Who is affected by the employee choice pathway?<\/h2><p>The changes have been in effect for medium-large businesses since 26 February 2025. Under the legislation, businesses with 15 or more employees must follow the employee choice pathway procedure.<\/p><p>The changes will come into effect on 26 August 2025 for small businesses (15 employees or fewer). Under the rules of casual employment, an employee may only notify their intent for permanent employment if they have been employed for more than 12 months.<\/p><h2>The process involved<\/h2><p>The employee choice pathway is twofold: a notice of intent to transition from casual to permanent, and the response to that notice. While this may seem simple, a number of factors determine the outcome. First, before a notice can be made to move from casual to permanent, we must look at what defines casual employment status.<\/p><h3>Defining casual employment<\/h3><p>The legal definition of what constitutes casual employment can be found in the Fairwork Act 2009 (15A). This is a rather large document, so for all intents and purposes, casual employment can be simply defined like this:<\/p><ul><li>The employment relationship is not a firm commitment to further ongoing work.<\/li><li>The employee is entitled to casual loading under the rate determined under their agreement, rate, or contract.<\/li><\/ul><p>If you are unsure about the definition of <a href=\"https:\/\/www.fairwork.gov.au\/starting-employment\/types-of-employees\/casual-employees\" target=\"_blank\" rel=\"noopener\">casual employment<\/a>, the Fairwork Ombudsman has materials and resources.<\/p><h3>Giving notice of employment change<\/h3><p>The notice a casual employee gives to their employer about moving to permanent employment requires two factors to be satisfied:<\/p><ol><li>The employee must have been employed for 6 months or more (12 months or more for small businesses), and;<\/li><li>The employee believes that they no longer meet the requirements of casual employment.<\/li><\/ol><p>Here is an example of a notice to demonstrate what this would look like in the workplace.<\/p><blockquote><p><em>Imagine a bartender working casually for over 10 months at a large pub with more than 15 workers. This casual employee has been given more responsibilities in the last few months, including rostering other casuals. The employee has also noticed they work fixed, regular, rostered shifts. With this information and a desire for more security in their employment, they approach their employer with notice to transition from casual to permanent employment.<\/em><\/p><\/blockquote><p>In this example, the employee meets the requirements to give notice and pursue the casual choice pathway. After notice occurs, the employer is required to respond. Let\u2019s take a look.<\/p><h3>Responding to a notice<\/h3><p>Once an employer receives a notice from their employee, they have 21 days to respond. Before a response is made, the employer should consult with the employee about what changes the transition would make to their employment. This discussion should include:<\/p><ul><li>Whether the employee would move to full-time or part-time permanent employment.<\/li><li>The change of hours the employee will work.<\/li><li>When the change of employment will take effect.<\/li><\/ul><p>After a consultation, the employer can accept or reject the notice of employment change.<\/p><h3>Accepting or rejecting an employment change notice from an employee<\/h3><p>When accepting a change, the employer needs to include what has been consulted previously and provide a new written employment agreement with their employee. The changes must immediately be implemented after the acceptance of employment status unless the employer and employee have agreed on a different commencement date.<\/p><p>When it comes to rejecting a notice, employers need a good reason. An employer can justify a rejection of the notice when either of the following circumstances apply:<\/p><ul><li>The employee still meets the requirements of casual employment.<\/li><li>Causes significant changes to the business organisational structure.<\/li><li>It will have a considerable impact on day-to-day business operations.<\/li><li>The change will break existing rules in an award or enterprise agreement.<\/li><li>The change violates recruitment or selection procedures that are protected by law.<\/li><\/ul><p>Accepting or rejecting an employee's notice must be thoughtfully considered, whatever the circumstances, and communication should be clear and concise. If there is a disagreement, it may come down to both sides not effectively communicating. However, dispute resolution procedures are in place if the relationship is beyond solving in the workplace. It also should be noted that <a href=\"https:\/\/www.fairwork.gov.au\/starting-employment\/types-of-employees\/casual-employees\/becoming-a-permanent-employee#protections\" target=\"_blank\" rel=\"noopener\">protections are in place<\/a> against any adverse actions taken in reaction to an employee submitting a notice.<\/p><h2>What happens if there is an employment dispute?<\/h2><p>Any dispute must be resolved first in the workplace. However, if a dispute occurs due to a disagreement about an employee\u2019s employment status, there are a number of avenues that can be explored:<\/p><ul><li>Consultation with the Fairwork Ombudsman<\/li><li><a href=\"https:\/\/www.fwc.gov.au\/issues-we-help\/casual-permanent-status\" target=\"_blank\" rel=\"noopener\">Resolution mediated<\/a> by the Fairwork Commission<\/li><\/ul><p>Unfortunately, if either of these doesn\u2019t remedy the situation, the matter may have to be resolved in court, arbitrated by the Federal Circuit Court.<\/p><h2>The bottom line<\/h2><p>As the changes on the pathway from casual to permanent employment are new, there will be a degree of awkwardness in implementation. What is essential is good communication and honesty when discussing an employee's future in your business. As the date for small businesses to follow the new rules is set for 26 August 2025, there is plenty of time to review your procedures for <a href=\"https:\/\/www.reckon.com\/au\/small-business-resources\/payroll-guide\/workforce-management\/\" rel=\"\">managing your staff<\/a>.<\/p><p>You may find that the new process has new opportunities for <a href=\"https:\/\/www.reckon.com\/au\/small-business-resources\/hiring-staff-process\/traits-good-team-member\/\" rel=\"\">dedicated employees<\/a> to commit fully to your business. Whatever the employee choice pathway brings, ensure you are prepared with proper <a href=\"https:\/\/www.reckon.com\/au\/accounting-software\/payroll\/\">payroll systems<\/a> to navigate the changing landscape.<\/p>","_et_gb_content_width":"","inline_featured_image":false,"_lmt_disableupdate":"no","_lmt_disable":"","footnotes":""},"categories":[343],"tags":[],"class_list":["post-299522","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-insights"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.5 (Yoast SEO v27.5) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>RTO or WFH: What&#039;s best for your small business? | Reckon Blog<\/title>\n<meta name=\"description\" content=\"Unsure if in-office or working from home works best for your small business? 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