Modern Australian
Men's Weekly

.

Australian Workplace Engagement Declines Amidst Shifting Employee Priorities

  • Written by Modern Australian






Global leader in employee engagement and HR technology, Reward Gateway, has today released its second annual Workplace Engagement Index. The report indicates a decline in employee engagement and productivity, alongside a growing emphasis on wellbeing, rewards, and recognition in the Australian workforce.

Based on a survey of 500 HR managers and 1,008 employees, the Index highlights that despite the continuing financial strain many Australians are facing today, employees are prioritising much more than pay in 2025 - the ‘Year of the Self’. 
 

Employees are prioritising what directly enhances their personal work experience - factors such as fair pay and benefits, a manageable workload that supports work-life balance, and a culture of empathy and recognition. While financial security remains crucial, it is no longer enough on its own; employees want workplaces that actively support their overall wellbeing and personal fulfillment.
 

A balancing act between productivity and pressure
 

As Australia’s GDP remains sluggish, employers have been put in a position of needing to do more with less. However, this mounting pressure to perform is taking a toll on employees with a third now reporting feeling frequently burnt out (34%) or overwhelmed (34%) which in turn has seen productivity start to slide. Now, less than half (47%) of all employees report feeling frequently productive, down from 68% in 2024. 
 

This pressure is disproportionately felt by women who are more likely to feel stressed (51% vs. 37% of men), burnt out (41% vs. 29%), and overwhelmed (43% vs. 27%). Age can also be a factor when it comes to feeling under the pump with younger employees - specifically Gen Z (44%) and Early Millennials (36%) - reporting feeling higher burnout levels than their older counterparts as they set up careers in an employer's market. 
 

And as pressure climbs, engagement retreats, leading 58% of the workforce to consider leaving their current job in the last six months. This sends a clear signal to businesses that wellbeing initiatives will be a core driver of long-term employee retention this year.  
 

Wellbeing, reward, and recognition take centre stage
 

HR leaders are proactively addressing this shift by prioritising wellbeing. Nearly three-quarters (73%) of this cohort believe employee mental wellbeing should be a top priority for businesses in 2025, followed by reward and recognition from managers (60%) and financial wellbeing (59%).
 

Employees are on the same page, ranking reward and recognition as the top driver of workplace productivity (43%). This even surpasses competitive compensation (38%), confirming the unbuyable importance of making employees feel valued and appreciated. 
 

“Australian workplaces are facing the dual tension of increasing productivity while addressing rapidly evolving employee expectations,” says Kylie Green, Managing Director, APAC at Reward Gateway. “As the labor market evolves, employees are increasingly focused on factors beyond just compensation. It’s vital for businesses to prioritise employee wellbeing and create environments that foster collaboration and connection to give employees a sense of focus that aligns to organisation purposes” adds Green. “Intentional interactions and meaningful recognition can significantly impact team happiness and productivity.”
 

Empowering current and future managers 
 

With recognition as the top driver of employee productivity in 2025, managers must acknowledge their pivotal role in providing that recognition. While peer-to-peer recognition is valuable, managers wield the most direct influence. The question then is, are HR leaders adequately supporting their managers?
 

While three quarters of Australian managers feel fulfilled and supported (74%), only 67% believe they received sufficient training when stepping into leadership. Gen X (71%) and Late Millennials (65%) feel the least supported. These are concerning figures as these generations typically form the backbone of middle management.
 

“The role of middle managers has evolved dramatically over the past few years and the current pressures are significant. With new generations entering the workforce, the expectations on our leaders to dial up their 'soft skills; to manage the complex demands of their teams whilst carrying out the operational requirements of their role are creating tension. Developing the capabilities of middle management is a firm focus in today’s evolving environment,” continues Green. 
 

“Leading organisations acknowledge the importance of their management bench in bringing value to their teams, driving the strategic objectives of the business, being ultimately the biggest influence on both engagement and productivity levels,” concludes Green. 
 

To learn more about the trends Australian employees and HR leaders are facing in 2025, read Reward Gateway’s new Workplace Engagement Index
 

Australian Classic Literature Enjoys Resurgence

Welcome back to the good old days of storytelling! As the modern world becomes increasingly more demanding, returning to childhood favourites offers...

Building a Governance Model for Headless Content Management at Scale

Image by pch.vector on Freepik There's never been a better time to implement a headless content management system (CMS) to gain the flexibility and ...

Understanding Trade Insurance: Essential Protection for Businesses

Image by Drazen Zigic on Freepik In the current economic environment, trade insurance is an important element for companies trading both locally an...

Choosing the Right Timber for External Cladding

Timber cladding is one of those finishes that pulls double duty: it makes a building look warm and welcoming, and it quietly shields the frame from ...

Top Services Offered by Diesel Mechanics in Brisbane

Keeping a diesel vehicle running at its best takes more than the occasional oil change. When you invest in regular specialist care, you protect the ...

Top 5 Benefits of Hiring Professional House Removalists

Moving day should feel like the start of a new adventure, not the end of your patience. Yet once the settlement papers are signed and the champagne ...

Navigating the Digital Landscape: Managed IT Solutions and IT Services in Townsville

As technology advances at an unprecedented pace, companies must adapt to embrace the transformation ahead. With an evolving technology landscape, mana...

Types of Catering You Should Consider for Your Next Event

Choosing the right type of catering service can elevate your event from ordinary to unforgettable. Whether it’s an elegant wedding, corporate func...

Understanding the Benefits of Split System Installation for Your Home

Climate control is essential to maintaining comfort in your home, especially during the extreme temperatures that many regions face. Whether you’r...

Best Aluminium Window Sliding Designs for Natural Light and Airflow

Bringing natural light and airflow into a space is one of the most efficient ways to create a healthy and comfortable home. In Sydney and across Aus...

Maximising Operational Efficiency: Electric Winch Hire Australia and Hydraulic Power Pack Hire Solutions

Image by jcomp on Freepik From urban construction sites and remote mining operations to coastal maritime facilities, specialised equipment solutio...

Navigating the System: Your Guide to Support Finding Work with a Disability Around Melbourne

Image by freepik Finding the right job can be a challenge for anyone, but it can feel particularly daunting when you're also navigating life with a ...

Say Goodbye to Draughts and Hello to Savings: Your Guide to Perth Window Replacement

Image by prostooleh on Freepik Are your windows looking worse for wear? Are you paying a hefty power bill due to sneaky draughts and poor insulation...

How to Choose the Right Horse Trailer for Your Riding Needs

Many horse owners travel long distances for riding lessons, competitions, or to move horses between properties. Having a safe and reliable trailer i...

Sydney Turf Installer for Instant Green Lawns and Long-Term Performance

Having a green lawn at home makes everything look better. Whether it’s the front yard, backyard, or a small patch beside the driveway, people in S...

Designing Better Living Spaces: Why New Kitchens in the Blue Mountains Are in High Demand

The Blue Mountains region is seeing a steady rise in home upgrades. According to recent housing data, kitchen renovations remain one of the most req...

The Role of Packaging Manufacturers in Reducing Supply Chain Costs

In today’s fast-paced logistics and distribution landscape, businesses are under constant pressure to optimise operations and reduce expenses. One...

Customising Roller Shutters for Warehouses, Factories, and Logistics Hubs

In today’s fast-paced industrial and commercial environments, security, functionality, and efficiency are paramount. Whether you manage a busy log...

LIFE STYLE

Australian Classic Literature Enjoys Resurgence

Welcome back to the good old days of storytelling! As the modern world becomes increasingly more demanding, returning to childhood favourites offers much-needed solace for many. Here’s why. A Hint of...

Top 5 Benefits of Hiring Professional House Removalists

Moving day should feel like the start of a new adventure, not the end of your patience. Yet once the settlement papers are signed and the champagne glasses are rinsed...

Understanding the Benefits of Split System Installation for Your Home

Climate control is essential to maintaining comfort in your home, especially during the extreme temperatures that many regions face. Whether you’re looking to cool down in the summer or stay...

Navigating the System: Your Guide to Support Finding Work with a Disability Around Melbourne

Image by freepik Finding the right job can be a challenge for anyone, but it can feel particularly daunting when you're also navigating life with a disability. The good news...

Say Goodbye to Draughts and Hello to Savings: Your Guide to Perth Window Replacement

Image by prostooleh on Freepik Are your windows looking worse for wear? Are you paying a hefty power bill due to sneaky draughts and poor insulation? Well, it might be...

Designing Better Living Spaces: Why New Kitchens in the Blue Mountains Are in High Demand

The Blue Mountains region is seeing a steady rise in home upgrades. According to recent housing data, kitchen renovations remain one of the most requested improvements in New South Wales...