Traditional sectors appear to ease workplace dress codes, report finds
The insurance sector has emerged as the top occupational group where dress standards are most relaxed in Australia, according to a new report from the Indeed Hiring Lab.
The report, which analysed job postings, found that 11.6% of job ads in the insurance occupational group mentioned "casual dress" in the June quarter. This follows a 7.5 percentage point increase since 2022, and is eight percentage points higher than in other occupational groups.
"Insurance is one of Australia's smallest occupational categories, with the national trend driven by a handful of larger employers that favour casual dress policies," the Indeed report read.
Meanwhile, the report indicated that traditional conservative jobs are also starting to drop extremely formal dress codes.
Job postings in the legal sector revealed that 3.6% of them mentioned relaxed dress standards, a 2.7 percentage point hike since 2022. This is followed by other traditionally conservative jobs such as accounting (2.9%) as well as banking and finance (1.8%).
"Interestingly, 'casual dress' appears more common in what might be considered traditionally conservative or stuffy jobs," the report read. "This may reflect a recent cultural shift in these sectors."
Easing dress code standards
The findings come as Australia eases dress standards in its job descriptions, according to the Indeed report.
In the June quarter, it found that 0.41% of job postings in the country mentioned terms such as "casual dress," "smart casual," or "dress for your day."
"Although that figure might seem low, many employers — particularly in healthcare, retail, and the trades — require uniforms or enforce strict dress codes, limiting the scope for individual expression," the report read.
It noted that mentions of relaxed dress standards have trended upwards over the past seven years, with the pandemic triggering an initial shift in dress codes and later social and cultural changes sustaining it.
Among the factors that sustained the shift is remote work, which the report said enabled flexible dress standards.
Data from people2people in 2023 revealed that 57% of Australians are choosing a more casual working wardrobe, with 66.5% saying they had stopped wearing suits to work two years prior.
Six in 10 employees said they now choose to wear jeans or shorts on a regular basis, as well as sneakers over heels.
Impact of Millennials, Gen Zs
Indeed pointed out that the entrance of Millennials and Gen Zs in the workplace also had an impact on workplace dress codes, noting they have different style preferences and expectations, and many of them are now in positions of influence.
"As these younger generations find themselves in positions of power or influence, workplaces will increasingly reflect their values," the Indeed report read.
"Consequently, while the pandemic may have triggered the shift to more relaxed dress standards, generational differences may prove to be why these trends persist, even if employers successfully convince workers to return to the office."
