The present economic conditions have profoundly impacted the globe, and the workplace has been no exception.
Employees in Australia are feeling increasingly uncertain about the future of work and their well-being, according to the latest Global Talent Monitor Survey conducted by Gartner, Inc. between October and December 2022.
The survey found that employee confidence in the economy has been steadily declining, with business confidence dropping from 50 per cent in the first quarter of 2022 to 44.5 per cent in the fourth quarter. This decline has been linked to a decrease in job search behaviour as employees become more cautious about the future. In addition, employees’ overall wellness has taken a hit, with financial, physical, and mental wellness at their lowest points in over two years.
In particular, financial and physical wellness has been hit the hardest, with Australian employees reporting all-time lows of 22.5 per cent and 25.3 per cent, respectively. The pandemic has created additional financial stress for many employees, with high-interest rates and a fast-growing annual increase in the cost of living since 1990.
This has left many employees feeling overwhelmed and uncertain about their financial futures, compounding the negative impact of the pandemic on their overall well-being.
The decline in wellness has also led to a shift in the top reasons for employees leaving their jobs. According to the survey, the top reasons for leaving in the fourth quarter of 2022 were manager quality, respect, and people management. This indicates a shift towards a human-centric workplace era, where employees prioritise being treated like a person over compensation or recognition from their organisation.
Aaron McEwan, Vice President of the Gartner HR practice, commented on the shift towards a human-centric workplace era, saying, “Just like the industrial and digital revolutions that completely changed the way we work and live, the human-centric revolution is set to disrupt life and work for the long-term. Good leaders know people can’t run marathons all the time. Instead, organisations should focus on small sprints, flexible working conditions, and providing access to meaningful wellbeing and psychological support.”
Gartner suggests focusing on providing flexible working conditions and access to meaningful well-being and psychological support to address this shift towards a human-centric workplace era. Employers must recognise that their employees are facing unprecedented challenges and adjust their approach to support them.
Flexible working conditions can help employees achieve a better work-life balance, which is a top driver of attraction in the workplace. Work-life balance was ranked as the second-most important driver of attraction in the survey, following location. Employers must also prioritise the physical and mental well-being of their employees. Providing access to meaningful well-being and psychological support can help employees cope with their challenges and maintain their overall well-being.
In addition to providing flexible working conditions and access to well-being and psychological support, employers must also prioritise manager quality, respect, and people management. These factors were identified as the top drivers of attrition in the fourth quarter of 2022. Employers must recognise that their employees want to be treated like people, not just employees.
Providing a positive work environment that values respect, empathy, and open communication can greatly improve employee retention and satisfaction.
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