iscover
The unpredictability of the job market in recent years has created tension among employees and employers alike. Now that we can finally see the light at the end of the tunnel, employees are taking the opportunity to explore their options. However, wellbeing continues to suffer.
As highlighted in Gartner’s latest Global Talent Monitor, the first quarter of 2024 saw employee business confidence reach its highest point in a year, hitting 44.6 per cent.
Similarly, confidence in job availability reached its highest point since 2021, with 58.1 per cent of respondents optimistic about job prospects.
These positive perceptions of the job market have seen an increase in employees looking elsewhere for opportunities, with active job search behaviour increasing by 1.6 per cent to 22.6 per cent from the previous quarter. Meanwhile, employees’ intent to stay with their employer decreased from 37.8 per cent to 36.1 per cent.
“Having waited in the wings for signs of business improvement, Australian employees are feeling more confident and willing to go in search of better compensation and support, so it’s important for organisations to prioritise remuneration, respect and wellbeing,” Robin Boomer, director, HR advisory in the Gartner HR practice, said.
Despite these positive attitudes, there are still a variety of issues affecting employee performance. The rising cost of living is unsurprisingly a major complication, and according to Gartner, it has caused wellbeing to reach an all-time low of 35.4 per cent, while financial wellness remained steady at 22.9 per cent.
As a result, compensation is a key driver of attrition, with the prospect of increased remuneration from changing employers increased from 5.6 per cent at the end of 2023 to 7.4 per cent presently. Furthermore, employee perceptions of pay fairness reached its lowest point in three years, dropping to 32.2 per cent.
Engagement is suffering as a result, with the number of employees who consider themselves to be “highly” engaged falling to its lowest level in three years, from 33.4 per cent in the second quarter of 2021 to 22 per cent.
Interestingly, while the engagement levels are bleak, the willingness of employees to go above and beyond for their employer reached its highest peak in three years of 18.4 per cent. According to Boomer, this trend is indicative of job security.
“When engagement isn’t the driver of discretionary effort, it’s usually motivated by fear of job security, or other financial incentives, such as a promotion or securing extra overtime or shifts. Employers should view this behaviour with caution and understand what’s behind this shift to determine if it’s sustainable. Not doing so leaves workforces exposed to a sudden drop in productivity and performance as a result of burnout,” Boomer said.
“Employees are no longer willing to ignore their self-worth and wellbeing. Employers should not wait to have important discussions around pay and personal progress, and instead must actively engage individuals to support their career needs.”
To put it in perspective, Gartner listed the top 10 drivers of both attrition and attraction. Employers could benefit by taking note and recognising exactly what is motivating their workforce.
Top 10 drivers of attrition:
- Manager quality
- Compensation
- Respect
- Work/life balance
- People management
- Recognition
- Future career opportunity
- Location
- Senior leadership reputation
- Co-worker quality
Top 10 drivers of attraction:
- Location
- Work/life balance
- Compensation
- Respect
- Manager quality
- Vacation
- Co-worker quality
- Future career opportunity
- Ethics
- Job interest alignment
RELATED TERMS
Attrition is defined as the process through which workers leave a company for whatever cause (voluntarily or involuntarily), such as retirement, termination, death, or resignation.
Jack Campbell
Jack is the editor at HR Leader.
