In the wake of the pandemic and against rising economic uncertainty, Australian employees are feeling nervous about the future of work and their wellbeing, according to Gartner, Inc.

Gartner’s latest Global Talent Monitor Survey conducted between October and December 2022, indicated that employee business confidence has continued in a downward trajectory, from 50% in 1Q22 to 44.5% in 4Q22.

“As confidence in the economic outlook declines, weary workers are likely to stay put, and organizations could instead see a rise in quiet quitting as workers only put in minimum effort rather than going above and beyond,” said Aaron McEwan, Vice President in the Gartner HR practice.

Overall employee wellness experienced a decline in 4Q22, dropping to 34.5% (from 36.5%). This decline has continued in 2023, with financial, physical and mental wellness falling to their lowest points in more than two years. In particular, Australian employees reported that their financial and physical wellness are now at an all-time low of 22.5% and 25.3% respectively.

Employee perceptions of job availability declined for the first time since 1Q22 by 0.4% and active job search behavior decreased by 1.6% during 4Q22.

Table 1: Top 10 Drivers of Employee Attraction and Attrition, Australia, Q4 2022

Source: Gartner Global Talent Monitor Survey, 4Q22 

For the fourth consecutive quarter, location was cited as the top reason to switch jobs, followed by work-life balance and respect. In stark contrast to 3Q22, work-life balance fell three places and was replaced by people management, which joined manager quality and respect as the key drivers of attrition in 4Q22.

“We’re continuing to hear from employees that being treated like a person is one of their most important priorities,” said McEwan. “It comes above compensation or recognition from their organization.”

Aftershocks from the pandemic continue
McEwan suggested the data is consistent with the fourth wave of a pandemic, which is characterized by psychological trauma and economic injury.

“The negative impact of the pandemic on employee wellness is compounded by the additional financial stress many employees are currently facing,” McEwan added. “It’s not just about increased workload or burnout, Australians are battling high interest rates and the fastest growing annual increase in the cost of living since 1990. They’re likely to do the bare minimum this year, with many telling themselves there’s more to life than work.”

The human-centric revolution
With manager quality and respect named as the top reasons to leave a job, McEwan believes we are in the midst of a new human-centric workplace era.

“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,” said McEwan. “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.”

Editor note
The Gartner Global Talent Monitor Survey is made up of more than 6,000 employees in 40 countries, including 992 in Australia in 4Q22. The data is reflective of market conditions during the quarter.

About the Gartner HR Practice
The Gartner HR practice brings together the best relevant content approaches across Gartner to offer individual decision makers strategic business advice on the mission-critical priorities that cut across the HR function. Additional information is available at http://www.gartner.com/en/human-resources/human-resources-leaders.

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