Uncover Workplace Tax Secrets and Learn How to Avoid Them

Australia’s tax landscape is well-known, but there’s a hidden cost workers often overlook. This hidden burden arises from the workplace dynamics shaped by team sizes and communication practices.

Understanding Workplace Tax Secrets

Brian Chesky, CEO of Airbnb, introduced the concept of a “communication tax” in the workplace. He highlighted that increased meeting participants can hamper productivity. According to Chesky, the key to combating this inefficiency is to limit attendees in meetings.

The Impact of Team Size on Productivity

Adding more team members may seem beneficial for distributing workloads, but it results in a communication tax. This tax manifests as extra time spent on meetings and administrative tasks. Middle managers often carry this burden, tasked with managing up and down the organizational ladder.

Jeff Bezos of Amazon advocates for small team sizes with his “two pizza rule.” This rule suggests keeping teams small enough for members to share two pizzas, typically between six and eight individuals.

Statistics Reflecting Team Dynamics

• Gallup’s data shows an increase in average team size reporting to a manager, from 10.9 in 2024 to 12.1 in 2025.
• Stewart Butterfield, co-founder of Slack, estimates that communication within small teams occupies 20% of an employee’s time, which can double in larger teams.

In 2020, Gallup performed a meta-analysis involving over 200,000 teams. Surprisingly, the analysis revealed that a manager’s engagement level was a crucial contributor to team success, rather than the number of direct reports.

Choosing the Right Team Size

While workers generally have limited input into team sizes, they can influence outcomes on assigned projects. For teams focused on communication, larger groups may disperse information effectively. However, for specific objectives, smaller teams can minimize the communication tax, enhancing the potential for success.

In conclusion, understanding workplace tax secrets, such as the communication tax associated with team size and dynamics, is essential for fostering productivity. Effective team management can make a significant difference between achieving success and losing efficiency.