The Great Resignation may be over, but its effects linger: Australian employees are feeling increasingly disengaged and underappreciated.
A new report from a global leader in employee engagement and HR technology, Reward Gateway, reveals a surprising paradox – Australian employees are choosing to stay in their roles for longer, yet their engagement at work is rapidly declining.
The Engagement Paradox Report, based on a survey of over 2,300 Australian employees and HR and business decision makers, found that while 45% of employees are not looking to change roles in the next two years, nearly three quarters (74%) would leave their jobs when the economic climate improves. This suggests high retention rates are more a reflection of market conditions than genuine employee satisfaction.
Perceptions differ as engagement dips
Despite the ABS recently recording a decrease in job mobility for the first time in three years, over a quarter (27%) of Australian employees said they feel less engaged now than they did 12 months ago. This decline is a major concern for business and HR leaders, with 87% acknowledging the negative impact of poor engagement on employee and business performance, and over half (52%) estimating that low employee engagement costs them $20-100k each month.
The report also highlights a disconnect between leadership and middle management, with around half as many (33%) middle managers perceiving an increase in engagement, compared to their senior counterparts (63%).
“The findings raise major concerns around how differently employee engagement is perceived by middle and senior management,” says Kylie Green, Managing Director APAC at Reward Gateway. “The further from the front lines the manager is, the more insulated they are from the problem. This lulls them into a false sense of security that employees are happy and engaged, while the opposite is in fact true.”
Further perpetuating the gap between these two cohorts, the majority of middle managers feel burnt out (60%), stressed (57%) and overwhelmed (53%), while only around half as many (33%) senior managers report feeling burnt out, and a staggering 67% say they actually feel energised by the increased pressure.
Performance declines while colleagues pick up the slack
Today’s pressure cooker environment is taking a toll on productivity, with 80% of business and HR decision makers expressing concerns about the impact of underperforming team members. Additionally, a shocking 50% of employees admit to picking up the slack for underperforming colleagues.
Shouldering this burden while juggling the responsibility of mentoring junior team members and driving results to senior leadership, the middle manager is stuck between a rock and a hard place.
Consequently, the vast majority (80%) of this cohort reports feeling pressured to improve business performance, while nearly three quarters (73%) feel the strain of improving employee performance.
“This research is a wake-up call for Australian businesses,” says Kylie Green. “It’s clear that current strategies are not effectively addressing the root causes of disengagement and underperformance. Leaders need to bridge the gap between management and employees, prioritise employee wellbeing, and foster a culture of appreciation and support. Failure to act fast will mean organisations risk losing valuable talent once the market stabilises.”
The report also offers actionable insights for business and HR leaders, including:
- Prioritise transparency and communication: Be open with employees about the economic climate and the company’s plans for the future.
- Provide channels for feedback and support: Create opportunities for employees to share their concerns and suggestions.
- Focus on learning and growth: Invest in training and development opportunities to demonstrate commitment to employees’ long-term success.
- Encourage frequent recognition and micro-rewards: Celebrate employee achievements and contributions regularly.
To learn more about the trends Australian business and HR leaders are facing in 2024, read Reward Gateway’s new The Engagement Paradox Report.
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