Top 3 Things Employers can do to attract and keep staff – from latest research

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Australian Employee Financial Wellness Hits Three-Year Low

A Gartner HR – Global Talent Monitor survey reveals that Australian employees’ financial wellness has plummeted to a three-year low in Q1 2025, driven by global economic uncertainty and stagnant wages.

KEY INSIGHTS

Top 3 Attractions to Employees: (1) Work-life balance (2) Location & (3) Remuneration

Top 3 Reasons Employees Leave: (1) Manager Quality (2) Remuneration & (3) Work Life Balance

In summary, Employers should offer fair compensation, work-life balance and a good manager to attract and keep employees – this goes up if they live close to work (or have work flexibility).

HIGHER PAY ELSEWHERE DRIVES QUITTING

The prospect of higher pay elsewhere reached 8.3%, the highest in three years, reflecting growing financial strain. Neal Woolrich, Director at Gartner’s HR practice, notes that this instability creates a “stay or go” paralysis, risking unproductive and toxic workplaces. Organisations must address workforce performance to mitigate these challenges.

The survey also shows a sharp decline in employees’ intent to stay with their current employer, dropping to 32.9% in Q1 2025 from 45.1% in Q2 2022, despite stable job availability confidence at 57.5%. This suggests employees are weighing financial gains against job security.

LEADERSHIP & TEAM CULTURE IS CRITICAL

Additionally, senior leadership reputation emerged as a key factor, rising four places to enter the top 10 reasons for leaving, underscoring the need for trusted leaders to foster morale and loyalty. Woolrich emphasises that respected leadership cultivates engaged, high-performing teams.

Amid return-to-office mandates, Gartner stresses that collaborative team culture, not location, drives productivity and connection. Job interest alignment also re-entered the top 10 attraction drivers, as employees seek roles matching personal values. To counter disengagement, organisations should prioritise transparent pay discussions, flexible work options, and leadership development. Addressing employee feedback and reducing workplace friction are critical to boosting engagement, as only one-third of employees believe their input leads to action.

As economic pressures persist, Australian employers face the challenge of balancing financial expectations with workplace culture. By investing in manager training, aligning roles with employee values, and fostering trust, organisations can enhance retention and performance, navigating the complexities of a financially strained workforce in 2025.

For more insights, visit the Gartner HR Newsroom

Table 1: Top 10 Drivers of Employee Attraction and Attrition, Australia, 1Q25
Table 1: Top 10 Drivers of Employee Attraction and Attrition, Australia, 1Q25

Source: Gartner (April 2025)


WEEKLY DIGEST

– WA Barrister Accused of Workplace Sexual Harassment: A Perth-based barrister working at a boutique criminal law firm is facing allegations of sexual harassment from a law clerk significantly younger than him. This case highlights the ongoing importance of addressing sexual harassment in all workplaces, including professional settings within WA.

– Focus on New WA Employment Laws: Since January 31, 2025, significant changes to Western Australia’s employment laws have come into effect. These include a new prohibition on sexual harassment, an increased minimum casual loading (to 25%), a new definition of casual employment focusing on the practical reality of the relationship, and the right for eligible employees to request flexible working arrangements. WA businesses and HR professionals need to be across these changes.

– Fit and Proper Person Test for WA Union Officials: A new requirement under WA’s amended industrial relations laws introduces a “fit and proper person” test for union officials seeking right of entry permits in the state.

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