Change Fatigue, Softening Labor Market and Cost of Living Pressures Are Driving Employee Sentiment
Gartner’s latest Global Talent Monitor survey data, collected between October and December 2023, revealed Australian employees’ intent to stay with their employer increased to 37.8% from 35.4% in 3Q23. While overall business confidence increased for the first time in 2023 to reach 43.1%, discretionary effort declined from 17.5% to 16.5%.
“Employees experienced a multitude of enterprise changes last year, including return to work mandates and technology disruptions,” said Neal Woolrich, Director, HR Advisory in the Gartner HR practice. “Change fatigue, combined with the rising cost of living and a softening labor market in Australia has many employees taking a cautious approach to their next career move.”
Gartner’s 4Q23 survey data reflects the growing need for constancy this year, with stability entering the top 10 drivers of attraction for Australian employees, up three places to ninth spot (see Table 1).
Table 1: Top 10 Drivers of Employee Attraction and Attrition, Australia, 4Q23
| Drivers of Attraction (change in rank) | Drivers of Attrition (change in rank) |
| 1. Location (nil) | 1. Manager quality (nil) |
| 2. Work-life balance (nil) | 2. Compensation |
| 3. Compensation (nil) | 3. Work-life balance (+1) |
| 4. Respect (nil) | 4. Respect (-1) |
| 5. Manager quality (+1) | 5. People management (nil) |
| 6. Co-worker quality (-1) | 6. Future career opportunity (+3) |
| 7. Vacation (nil) | 7. Recognition (nil) |
| 8. Ethics (nil) | 8. Coworker quality (nil) |
| 9. Stability (+3) | 9. Location (-3) |
| 10. Future career opportunity (nil) | 10. Health benefits (+4) |
Source: Gartner Global Talent Monitor Survey, 4Q23
While longer tenures can be an advantage for employers, disengaged employees can affect both productivity and workplace culture. Gartner recommends organizations review their Employee Value Proposition (EVP) to identify the employment attributes most likely to foster engagement and address change fatigue.
Reengaging the workforce
According to the Gartner survey, while engagement levels remained steady in 2023, less than one-quarter (24.3%) of Australian employees consider themselves to be ‘highly’ engaged. Most (73.9%) state they are only ‘somewhat’ engaged.
“Organizations need to be aware that traditional retention strategies won’t work in the current environment,” said Woolrich. “Leaders need to balance pay discussions with effective non-compensation EVP components, such as respect, manager quality and career progression to retain employees.”
Woolrich added, “Employers also need to think about the whole person, not just the employee, as they customize their EVP. It’s essential to understand what employees need and want from their role. An agile approach that provides a rich portfolio of experiences, support and opportunities will be key to maximizing productivity and engagement.”
Addressing change fatigue
Change fatigue is fueled by more than just the number of changes experienced by an employee, according to Gartner research. A new project, task or process can erode trust, impact wellbeing and contribute to a lost sense of purpose if communication from management is not clear.
“Employers must prioritize their relationships with employees to foster strong psychological safety and trust,” said Woolrich. “When employees understand that there is room to try, fail, reset and try again, they will soon start to thrive in an environment of change.”
Gartner recommends two-way dialogue between leaders and employees, which can significantly increase change success and psychological safety. Furthermore, when managers effectively allocate resources and goals to accommodate change, their teams are more likely to sustain workforce health through the disruption.
