By Gary Pinchen, Principal of A Whole New Approach Pty Ltd, with over 30 years of workplace experience. Gary is not a lawyer. He is an acknowledged workplace advisor, author and commentor. Read more to find how workplaces changed forever after Covid-19.
March Madness
Most individuals can remember what they were doing in March 2020. Days prior to human pandemonium and crazy workplace changes. In human history it feels akin to the moment before a disaster. A point in time that people can pinpoint, isolate, and say ‘that is when it all changed’. However, that moment lasted months, and for some, years.
In March 2020, Australia was fighting the remnants of devastating bushfires. Legendary basketball player Kobe Bryant, and his daughter, died in a helicopter accident. Holden left the Australian market. Then started the cancellation of major events and decrease in available toilet paper.
While 5 years may feel too soon for some people to hear the words “Covid-19”, there is undoubtedly change to society and how we engage with each other. Furthermore, being forced into social isolation has resulted in drastic workplace changes for many industries. Workplace etiquette, expectations, and attitudes have changed.
An isolated world
For many, the introduction of covid-19 meant “a 2 week holiday away from work”. At the time, no one expected the pandemic to unfold as it did. At first many people joked and expressed that this was a well-deserved break. However, very quickly employees, employers, and entire industries had to adjust to the work from home lifestyle.
Many industries and offices were not able to accommodate the 1.5-meter rule that was quickly established. People had left personal items, plants, and food that they wouldn’t see again for almost two years.
In the months after Covid-19 was announced there were devastating impacts to Australian businesses. According to the Australian Bureau of Statistics, Most businesses reported at least a 64% reduction in turnover and demand. Hospitality jobs that were affected the most with an overall payroll reduction of 35%.
Underemployment reached a historic high of 13.8%, with almost 2 million working 0 hours. With youth underemployment hitting 23.6%. In June 2020 unemployment peaked at 7.5%. The highest it had ever been in over 20 years.
Fortunately from August 2020, there were signs of a recovering workforce. Job vacancies recovered by 87%. Fewer businesses were reporting decreases in their revenue. By January 2021, almost 93% of jobs lost during Covid-19 had been recovered. They were signs that office, professional, and managerial jobs were recovering. While hospitality and entertainment roles were still impacted, they were predicted to return to their pre-covid conditions once restrictions were lifted.
Mental health crisis
Employees were undoubtedly impacted. There was a mass shift that suddenly impacted millions of Australians job security, income, loans, and everyday routine. A study done by the Fair Work Commission and Swinburne University of Technology, highlighted that by May 2020 at least 72% percent of Australia’s workforce had a change to their employment. Whether that be having hours reduced, increased, working from home, redundancy, or another change.
One major and lasting change to employment was the workforce’s attitude to working from home. During the height of covid at least 33% of people were working from home. With major industries being finance and insurance, public administration, and defense. Whereas retail, agriculture, and transport were less affected.
Employees’ mental health had also changed during the pandemic. Studies showed that employees who worked from home rated themselves to be significantly more stressed and less productive during that pandemic, compared to before the pandemic. Employees working from home were able to identify more than double the stressors in their life (12), compared to people who did not work from home (5).
However, the study also highlighted the relevance of “work related constructs” such as workplace wellbeing and social adjustment. Therefore, employers who acknowledged the importance of proper work-life balance (and other work constructs) during Covid-19 helped improve the mental health of their employees.
Relationships build communities
Additionally people who worked from home during Covid-19 noted that it negatively impacted their workplace relationships. There were no more everyday conversations, it was only discussions about work. Studies also found that employees perceived to have a greater workload and that they needed more time to complete tasks.
With a greater decrease in personal time and work life balance. Employees who worked from home felt more loneliness and isolation. While feeling the effects of their sedentary lifestyle on their physical health.
It was quickly realized how important connections and relationships were to the human psyche. And for many people their workplace was an avenue to connect with others in a way that they couldn’t do elsewhere. People were forced to talk to their Neighbours and build connections and other ways. However, that remained difficult for many as Covid-19 installed fear of socialization in case of catching the virus.
Healthcare front line risk their lives
Unlike many Australians, front line workers, first responders, and essential workers had worked more than ever during Covid-19. For many, there was a newfound appreciation for these professions as they upheld their communities. From healthcare workers who cared for the sickest and elderly, to supermarket employees who stocked face masks and disinfectants.
Unfortunately for many healthcare and first responders, Covid-19 had resulted in significant mental health impacts and burnout. Information provided by Charles Sturt University, found first responders were ten to four times more likely to have severe depression and anxiety than the general population. Over half the population showed levels of burnout. Which was significantly lower prior to Covid-19. With many more essential workers considering quitting their jobs.
While Covid-19 was a catalyst, many considered the root of their poor mental health and burnout was due to poor communication and a lack of support from their employers. There was a clear lack of communication where information was being interpreted differently across management. Employees did not feel listened to or consulted during Covid-19. Ultimately resulting in a lack of trust.
A need for major workplace changes
There was a clear need for “succinct, accurate, and authentic” information coming from one source. As the alternative was repeated and sometimes contradictory information provided by multiple sources. By having a singular point of contact for information for essential workers there could have been more efficient processes that would have reduced the workload. While also providing employees with a direct outlet to be listened to.
Covid-19 highlighted a significant need for change among these industries. People were risking their lives to help others. Students and individuals not specialized in viruses were asked to work amongst Covid-19 patients due to its unpreceded numbers. The Australian government was not equipped or prepared to aid and support their employees. It was a national disgrace for the Australian government to allow essential industries upholding our communities to do so unsupported themselves.
Workplace stress
In 2024, the department of the Prime Minister and Cabinet organized a round table summary to discuss the impacts of Covid-19 on health services. In which they highlighted a number of important factors. To name a few, Covid-19 had exacerbated pre-existing work for shortages and retention issues.
Workforce pressures would be mitigated if healthcare professionals were allowed to commit to the entirety of practice training prior to entering the workforce. All of which are particularly important for rural and remote areas.
To aid in prevention of burnout there should be investment in well coordinated national programs supporting frontline workers. Furthermore, having paid clinical student models enabled a successful surge in workforce.
As the government has been able to identify the adventures and disadvantages of the healthcare system during Covid-19, better regimes and processes can be put in place to prevent mass burnout and negative effects to mental health in the future.
Who immediately benefitted from Covid-19?
As it is for all disasters, there are some companies and industries that benefited from the tragedies of Covid-19. According to SBS news, BHP (and the mining industry) benefited the most out of any Australian company. However, the rise in mining revenue was considered an extension of Russia’s invasion of Ukraine during Covid-19. Rather than purely the effects of Covid-19 itself.
Woolworths and the supermarket industry were the second most profitable. With supermarkets using their power during Covid-19 to inflate prices. Who are now undergoing accusations of price gouging. The supermarkets knew that consumers were in a state of panic and that supermarkets were one of the very few places people were allowed to visit during the height of lockdown restrictions.
Other profitable industries include national and regional commercial banks, general insurance companies, and funds management services. Other industries that became more popular included IT services, e-learning platforms, and general online shopping. This would be no surprise as the internet, for many, was the only escape from monotonous everyday life.
Long term workplace changes after Covid-19
There have undoubtedly been long term workplace changes to culture and etiquette due to the effects of Covid-19. Most will have a personal anecdote to the effect of “people just aren’t the same as they used to be prior to Covid”. Whether that be a positive or negative change.
There has been a notable change to the way that people network. Particularly in the younger workforce, there is less drive and socialization between younger employees. While there is an overall greater emphasis on workplace flexibility, mental health concerns, and technological improvement.
Young people entering the workforce
Unemployment rates continue to decrease, however young people continue to struggle to enter the workforce. During Covid-19, at the age where many young people would find work and start their career journey, many entry level jobs were no longer available. Particularly fast food, hospitality, and retail. Therefore, there has been a decrease in young people finding and retaining work, and being able to develop soft skills.
A part of the problem is that young people are not well matched to their role. Where the quality of their first job is quite low, making it harder for them to climb their company’s corporate ladder. While Australia is also entering a recession, there is limited opportunity for young people to transition in employment. Stagnating their skill set and lowering their motivation for promotions.
Recession ‘scarring’
Recessions also have the ability to psychologically scar young people. More so than older generations who already have work experience. Young people are more prone to becoming pessimistic about their future job prospects and that can reduce their motivation to find further work.
The motivation for young people to work has also changed since the time of their parents entering the workforce. All previous generations worked in order to save for houses and other large portfolio expenses. However it has become increasingly common that young people no longer believe they have the ability to purchase houses.
Therefore their motivation for working and what they’re looking for in terms of long term employment have shifted. A key factor for the shift is due to rising prices and the cost of living crisis post pandemic.
Younger employees are no longer motivated to stay at a company long-term. Most are more willing to “jump jobs” to search for better entitlements. There is also greater emphasis on taking leave and having time to make memories outside of work. Covid-19 exacerbated these feelings when the only thing people could do was work.
Working From Home epidemic
One of the most notable and longer lasting workplace changes is the work from home expectations. Most industries, where possible, have adapted to include at least one day to work from home. Whereas, prior to Covid-19 working from home was a rarer luxury.
According to the Australian Bureau of Statistics, at least 37% of Australian employees regularly work from home. While that percentage has been slowly decreasing over time it is still significantly higher than pre pandemic conditions.
In the last 12 to 24 months there has been a considerable shift and for companies to try and force their employees back into the office. Some employers have used more forceful tactics. Including the threat of redundancies or demotions. While others have used a more gift giving approach and have promised additional benefits to those who returned to the workplace.
There has been ongoing debate as to whether employers can mandate employees to return to the office. Some argue that it is an employee’s workplace right to work from home as it is clear that industries have shifted to allow the accommodation. Employees have been accustomed to the work from home lifestyle, and it would be a detriment to reverse that.
However, in the alternative, employers are allowed to enforce reasonable directives that dictate how the company will operate. Certain allowances, such as where and employees allowed to work, are within an employer’s rights to dictate. As it currently stands, employees who do not comply with such directives are at risk of their employment being terminated. However, these circumstances are specific to each employee and employer.
Is it healthy?
The reason why working from home has maintained its popularity is because there are genuine advantages and disadvantages. It is more than a trend or gimmick. Furthermore, depending on the company, working from home has been a genuine tool used to better the company. Whereas, for others it has become a hindrance.
For some, working from home has allowed flexibility, which enables employees to work more efficiently or complete more tasks than if they are forced to work in the office. It is easier to complete half days or work on certain projects. Furthermore, working from home has allowed for greater job prospects as people work further from work, interstate, or overseas.
Additionally, there are cost saving benefits as employees do not have to commute or buy lunches. While companies have also had the ability to downsize and potentially save on their office costs.
Right to disconnect
In comparison, there have also been major long-term disadvantages to working from home. It has been noted that there has been a blurring between work and personal life. Where it may be difficult for employees to separate where work stops. Or from employers to know when it is no longer acceptable to be contacting the employee.
This has also been reflected in recent legislation through the “right to disconnect” laws. Enforcing that employers cannot be harassing employees after work hours. Allowing employees to feel safe to complain about after work harassment without the fear of retaliation or its impact to their job security. The effectiveness of these laws is yet to be determined as they were established recently in August 2024.
As time continues one of the most popular and seemingly effective methods to allow one or two working from home days with the employees discretion. However, enforce that there is a day of the week where all employees must be in the office. Which will allow for both flexibility within a work week, while ensuring there is adequate socialization and communication amongst peers.
Are we going back?
It is unlikely that the idea of working from home will revert the way it was pre-pandemic. Working from home has largely shifted from a workplace luxury to a workplace expectation. Additionally, with the increase of technology working from home will only become easier.
Therefore, due to its flexibility and already strong presence within the workforce it is highly unlikely that the option to work from home will disappear. However, in saying that, the current trend is that it is becoming less popular amongst employers. This is a workplace change that will stay relevant for years to come.
Artificial Intelligence
An interesting side effect from Covid-19 was the subsequent increase and commercial use of artificial intelligence (AI). AI has existed for decades. However, it wasn’t until during and after Covid-19 that it was more commercialized for public use. Covid-19 was a catalyst for technological advancement. Employers realize that there was a demand for company processes to become more automated, and to use technology to increase efficiency amongst staff.
Companies invested in AI during the pandemic while they were already changing those technological processes. The pandemic allowed for companies to experiment when there wasn’t the opportunity to prior. With the Harvard Business Review stating that “52% of companies accelerated the AI adoption plan because of the Covid crisis”.
Furthermore, AI was successfully used in the prediction and tracking of Covid-19 (source). Which may have also contributed to its overall success and integration into key workplace changes. The software was found to be as accurate as human experts. AI was also used in contact tracing, monitoring of Covid-19 cases, and aided in early diagnosis. Overall reducing some burden from medical experts and healthcare staff.
In the present-day AI has become unavoidable. AI is embedded into almost all essential websites and apps. It can be seen on the first page of Google, within search bars of social media apps, or even embedded within our phones themselves. Industries have adapted to produce their own tailor made forms of AI. Revolutionizing their own processes, efficiency, and workplace structure. It is almost guaranteed that AI will continue to be a workplace tool and will only continue to adapt to workplace requirements.
Workplace changes to controversial Artificial Intelligence
The use of AI has not come without its controversy, with many speaking out about its ethical concerns. Firstly, it is unknown where and how information input into AI is being used. There are rising safety concerns as confidential information is increasingly being inputted to AI software. However, no one has been able to guarantee whether third party AI software is using confidential information elsewhere or not.
Furthermore, there have been ethical concerns surrounding creative positions. AI has been found to use an amalgamation of other creators’ work to produce “new” content. However, with the formatting AI currently holds it is impossible to give appropriate credit to the artwork being taken. In addition, this issue is creating concerns regarding Australia’s copyright laws and how it is protecting Australian artists.
Finally, the concern that AI is going to “take all our jobs”. The ABC and other reputable sources have confirmed that AI has already forced Australians to lose jobs. However, AI has also allowed new jobs to emerge. The issue for many employees is that the new jobs being created are not tailored for the same people who lost their jobs to AI. Therefore they’re still a displacement of employees who have not been able to find further work.
However, it does force employees to upskill in order to stay relevant to a change in work environment. Whether it’s AI or another form of technology, that is the unfortunate truth for many employees. Technology changes and employees are expected to adapt in order to survive.
Workplace changes to small businesses
Small businesses were undoubtedly and disproportionately affected by Covid-19. Many small businesses could not adequately adhere to social distancing and health requirements. Furthermore, many didn’t have the resources to rearrange their business model in order to fit Covid’s society.
For the ones who did, many turned towards e-commerce or take away options. Many businesses started to sell a wider variety to accommodate the demand of their immediate communities.
Unfortunately, small businesses have not been able to bounce back as quickly as their larger counterparts. Many small businesses rely on natural demand growth in order to supplement their revenue. However, as cost of living prices rise less people have the exposable income to afford small business prices. Many are reducing their spending on non-essential items or looking towards larger businesses with cheaper prices.
In a recent article, the Reserve Bank of Australia has explained that small businesses continue to make similar profit margins as their pre-pandemic averages. However, the current economic crisis has resulted in higher prices of labor, resources, and rent. Leaving small businesses in a collapsing environment. It is not hard to see that there are increasingly more empty stores that used to have thriving businesses.
Support small business
In saying that, not all small businesses are doomed to fail. Many businesses have been able to adapt to the changing Australian market. With many successful small businesses accrediting their success to e-commerce. Furthermore, business owners were able to use their new fund time during the pandemic to start their businesses. With many finding their niche or area of demand during lockdown restrictions.
As many small businesses continue to struggle there are a few ways consumers can help. Where possible people are recommended to shop small businesses and support the local economies. This may be easiest to find during local markets. Leave helpful reviews online and follow media pages. Additionally, by buying gift cards for birthdays, friends, and loved ones.
Change of workplace habits
Business structures, motivations, and etiquette has changed since Covid-19. Naturally businesses will evolve and change as the market does. However, Covid-19 was a catalyst for many workplace changes that either happened sooner than it should have or altered industries altogether.
There is a new level of appreciation for communication. We now communicate more frequently and more effectively than before. There is an amalgamation of different websites and apps that cater towards company communication and organization. Whether it be texting, calling, Zoom, Teams, Slack, LinkedIn, Skype, or more. With an undoubted increase in virtual meetings conferencing.
Covid-19 also encouraged the visibility and approachability of leaders and management. Many argued that company culture benefited from companies that had present and approachable management who led by example. Particularly during that pandemic where employees were no longer able to have ‘casual conversations’ online as they would in the office. Therefore, post pandemic, companies have been able to utilize that information and enforce greater middle management strategies so that there are more present and communicative leaders.
Post pandemic many career professionals are considering changing their profession. With recent reviews finding that up to 24% of Australians are seeking other employment. The reasons vary however many are linked to the burnout effects of the lockdown. Employees are less engaged with their current employer than they were prior to the pandemic. With many people having more time to reflect on what they wanted their future to look like. Rather than being busy with the ‘everyday grind’ that will usually entail from full-time work.
Looking ahead
Looking towards the future Australia will continue to suffer this effect of the recession. This naturally may lead to a downturn in employment and an increase in redundancies until the recession is eventually over. However, long term Jobs and Skills Australia have predicted that total employment is projected to increase by 14.2% over the next 10 years.
Until then, employees will continue to enforce flexible workplace rights and continue implementing new technology and automation in the workforce. In line with our motivation for technology, industries such as software, accountants, ICT security specialists, database administrators, and financial advisers, are projected to be in demand over the next coming years.
In order to keep up with Australia’s changing work landscape, it is advised to continue upskilling and learning more in order not to be left behind with outdated skills. Usually this can include upcoming technology, leadership skills, dispute resolution, or anything specific to your industry.
Is also advised to continue networking even if you’ve been in your industry for a few years. There will always be someone doing something new, having new ideas, or be able to provide new opportunities. Continue to build bridges and find meaningful connections with your peers.
Finally, always remember that improvement and progress is not always linear. Certain things will happen that are outside of your control (such as a pandemic) that may feel like a step backwards. However, no matter what happens you have the ability to have a positive outlook and keep trying.
Have you felt the effects of your workplace changes?
We are A Whole New Approach, we are not lawyers but Australia’s leading workplace advisors and mediators. Anything to do with the workplace give us a call on the number below. We will either help you or point you in the right direction.
Forced to resign, casual employee issues, adverse action are amongst the matters that we advise and represent employees. It is better to call and be sure than forever question whether you should have or not. Call on 1800 333 666 for prompt, confidential advice.
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