Australia’s Workforce Has Changed. Why Haven’t Our Offices?
At the 2021 Census, Millennials had caught up to Baby Boomers as Australia’s largest generation. Each cohort numbering over 5.4 million Australians (ABS, 2021). Gen Z is rising fast, and together Millennials + Gen Z are projected to dominate the workforce in the years ahead (Deloitte, 2025).
Yet many offices still run on outdated assumptions held over from previous generations: rigid desks, presenteeism, corner offices — management by sight, not by outcomes. In a world where work moves faster and expectations are shaped by instant access and instant feedback; these old models fall flat.
“How do we shape workplaces that support the widest mix of generations, managerial styles, and expectations? With diversity comes challenges — different ways of working, leading, and measuring outcomes — but also enormous opportunity. Workplace strategy brings these perspectives together: it considers not just who we’re supporting today, but how current and future ways of working can align with where the organisation wants to be, before translating that vision into design.”
— Dr Eileen Sim: Senior Associate – Workplace Strategist at Concept
What Makes the Office Worth the Commute
It’s not just about flexibility. A broader, more human picture emerges from recent data:
- Flexibility is expected: Nearly 98% of Australian organisations now offer some form of flexible working (AHRI, 2025). Around 32% of Millennials prioritise flexible location and 27% prioritise flexible hours when choosing a role (Jabra, via Inside Small Business, 2024).
- Attendance misconceptions: Despite assumptions that younger generations avoid the office, Leesman data shows employees under 25 are among the most likely to spend much of their week in the office (3–5 days). They also place high importance on community and learning gained from in-person interaction (Leesman, 2024).
- Purpose matters: In Leesman’s Purposeful Presence report, employees said they come to the office primarily for collaboration, spontaneous interactions, and mentoring opportunities — tasks they see as better done in person (Leesman, 2024).
- Belonging drives engagement: Over 70% of organisations globally cite fostering collaboration and knowledge sharing as the key reason for maintaining office space. In addition, 43% cite connection and community as a top factor (Leesman, 2024).
“One of the clearest red flags is when you start to hear: ‘I don’t understand why I need to be in the office.’ That’s usually a sign the organisation hasn’t defined – or employees haven’t internalised – a workplace strategy that connects space to purpose. Without it, you risk losing both talent and culture.”
— Dr Sim
The Risk of Staying Stuck
The data is clear: flexibility is now expected, younger employees value the office for community and learning, and people come in for collaboration, mentoring, and belonging.
But when offices are designed without data to back assumptions, organisations risks:
- Talent loss, as employees choose employers who offer the flexibility and purpose they expect.
- Disengagement, as the office fails to deliver on what makes the commute worthwhile.
- Cultural erosion, with weaker alignment between brand, culture, and the physical environment.
And ultimately, they risk employees asking: “Why am I here? What’s the role of this workplace?”
Workplace health-check: What percentage of your people are asking, “Why do I need to be in the office?”
Even a small percentage can signal a bigger gap between your workplace’s purpose and how it’s experienced.
Ready to rethink the role of your workplace? Book a consult with Concept
Stay tuned for our next piece on Workplace Strategy and the gaps it helps to bridge.
Resources:
Australian Bureau of Statistics — 2021 Census shows Millennials overtaking Boomers
https://www.abs.gov.au/media-centre/media-releases/2021-census-shows-millennials-overtaking-boomers
Australian Bureau of Statistics — Snapshot Australia (Generational breakdowns)
https://www.abs.gov.au/statistics/people/people-and-communities/snapshot-australia/latest-release
Infographic: Reproduced from Seer Data & Analytics — Australia in Snapshot
https://seerdata.ai/census-2021-australia-in-snapshot/#
Deloitte — Gen Z + Millennials projected to make up ~74% of global workforce by 2030
https://www2.deloitte.com/us/en/pages/about-deloitte/articles/millennials-survey.html
Australian HR Institute — Hybrid and Flexible Working Practices in Australian Workplaces 2025
https://www.ahri.com.au/resources/hrm-magazine/hybrid-work-enters-stabilisation-phase-in-australia-ahri
Inside Small Business (AU cut of Jabra research) — Young Aussie workers prioritise flexibility at work
https://insidesmallbusiness.com.au/management/planning-management/young-aussie-workers-prioritise-flexibility-at-work
Jabra Hybrid Ways of Working Global Report
https://www.jabra.com/hybridways
Leesman — Redefining the Workplace for the Future
https://www.leesmanindex.com/articles/redefining-the-workplace-for-the-future/
Leesman — Purposeful Presence Report
https://www.leesmanindex.com/publications/purposeful-presence/
Leesman — The Workplace: Why? (Drivers for maintaining office space)
https://www.leesmanindex.com/articles/the-workplace-why/
Roy Morgan Research — Australians working from home (Aug 2025)
https://www.roymorgan.com/findings/9367-working-from-home-august-2025
