Employers Warned Fair Pay and Mental Wellness Are Critical to Talent Retention
Gartner’s latest Global Talent Monitor survey data, collected between January and March 2024, revealed overall confidence in the current business environment among Australian employees increased to its highest point in 12 months, reaching 44.6% in 1Q24.
In addition, employee confidence in job availability peaked for the first time since 2021, extending to 58.1%. Active job search behavior increased as well, from 21.4% in 4Q23 to 22.6% in 1Q24. Following a brief increase last quarter, employees’ intent to stay in their current role declined from 37.8% to 36.1% over the last quarter.
“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 organizations to prioritize remuneration, respect and wellbeing,” said Robin Boomer, Director, HR Advisory in the Gartner HR practice.
Gartner’s 1Q24 survey data revealed location, work-life balance and compensation remained the top three drivers of attraction for Australian employees, whereas those leaving an organization are focused on the quality of their manager, compensation and respect (see Table 1).
Table 1: Top 10 Drivers of Employee Attraction and Attrition, Australia, 1Q24
| 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 (nil) |
| 3. Compensation (nil) | 3. Respect (+1) |
| 4. Respect (nil) | 4. Work-life balance (-1) |
| 5. Manager quality (nil) | 5. People management (nil) |
| 6. Vacation (+1) | 6. Recognition (+1) |
| 7. Co-worker quality (-1) | 7. Future career opportunity (-1) |
| 8. Future career opportunity (+2) | 8. Location (+1) |
| 9. Ethics (-1) | 9. Senior leadership reputation (+2) |
| 10. Job interest alignment (+1) | 10. Coworker quality (-2) |
Source: Gartner Global Talent Monitor Survey, 1Q24
Burnout and engagement major flags for organizations
The cost-of-living crisis, high interest rates and wage freezes have placed significant pressure on Australian employees. Gartner’s 1Q24 survey found mental wellness reached an all-time low of 35.4%, while financial wellness remained flat at 22.9%. In addition, the number of employees who consider themselves to be ‘highly’ engaged fell to its lowest level in three years, from 33.4% in 2Q21 to 22% in 1Q24.
Despite lower engagement levels and intent to stay this quarter, discretionary effort, or the willingness of Australian employees to go above and beyond for their employer, reached its highest level in three years to 18.4%.
“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,” said Boomer. “Employers should view this behavior 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.”
Fair pay and respect vital to retention
According to the Gartner survey, employee perceptions of pay fairness reached its lowest point in three years, decreasing to 32.2% this quarter. This reflects current fair pay conversations in Australia.
For employees seeking a career change, the Gartner survey reveals compensation is top of mind. The prospect of increased remuneration from changing employers increased from 5.6% in 4Q23 to 7.4% in 1Q24.
According to Gartner’s 1Q24 survey data, respect remains one of the top drivers for both attraction and attrition, regardless of whether employees are staying put or considering a change.
“Employees are no longer willing to ignore their self-worth and wellbeing,” said Boomer. “Employers should not wait to have important discussions around pay and personal progress, and instead must actively engage individuals to support their career needs.”
