A return to more office based working for public servants, predominantly in Wellington, has been welcomed by both Hospitality NZ and the Restaurant Association of New Zealand.
The Government’s announcement, made this week by Nicola Willis, Minister for Public Service, that it wants to see more public servants return to their place of employment each day, will increase both foot traffic and patronage to the capital city, home to many government departments.
Nicola Willis said working from home arrangements for public servants must be mutually agreed, ensure employee performance and agency objectives are not compromised, and be actively monitored and reported to the Public Service Commission.
Steve Armitage, Hospitality NZ’s Chief Executive said having more people working from offices will improve foot traffic in city centres.
“Foot traffic drives a significant portion of sales for hospitality businesses such as cafes, restaurants and bars. City centres rely on a constant flow of people, including office workers, tourists and shoppers who engage in spontaneous purchases or stop for food and drinks as they move about their days.
“With the rise in the number of people working-from-home, many hospitality businesses have felt the pinch. Wellington, where the majority of the public service is located, has felt the impact of working from home acutely.
“Our members and other hospitality businesses have reported that Mondays and Fridays, which are the most common work-from-home days for the public service, have seen a big drop in patronage.”
Vibrancy & Activity
The Restaurant Association of New Zealand has also welcomed the Government’s new work-from-home guidelines.
“Since the introduction of flexible working arrangements we have witnessed a dramatic reduction in foot traffic and revenues, particularly in the Wellington CBD where hospitality businesses rely on the daily activity and vibrancy that office workers bring,” said CEO, Marisa Bidois.
“The capital city, home to many government departments, has been notably impacted by this shift, as fewer workers in the office equates to reduced demand for cafes, restaurants, and other services that thrive on the bustle of city life.
“Updated guidance for the public service will make it clear that working from home is not an entitlement and must be agreed and monitored, setting an important precedent for the corporate sector.
“If we want to see vibrant, thriving city centres, we need to see a balance of more workers back into CBDs, where their presence supports the recovery and growth of local businesses that have been hard-hit by decreased office occupancy.
“While we understand the vital role flexible working plays, we believe there should be a balanced approach. Encouraging a culture where remote working is the default option for the majority of the time undermines the vibrancy of our cities and the health of sectors like hospitality.
“Flexibility is essential in today’s world, but it’s important to regularly review and monitor its impact, as these decisions affect the broader economy. Many of our businesses cite working from home as a key factor contributing to the downturn they’re experiencing.”
