Australian workers prioritise work-life balance over higher pay

New research from Humanforce has revealed that nearly half of the 500 Australian workers surveyed have switched jobs in the past year.

Despite the sharp increase in living costs, 54% cited the pursuit of better work-life balance and wellbeing as their primary motivation rather than higher pay.

Holly Barnes, Chief People Officer at Humanforce, noted, "This trend challenges the traditional belief that higher wages are the foremost concern for Australian workers, particularly during economic downturns. Our research findings suggest that workers are instead placing greater value on whether their workplace is a good fit for their overall lifestyle and if it affords them the flexibility they require."

According to the survey, 98% of respondents indicated that the overall employee value proposition (EVP) played a crucial role in their decision to change employers. The research highlighted that employees now prioritise work-life balance initiatives and opportunities for career growth and development over mere financial benefits.

"For today’s workers, a compelling EVP extends well beyond one’s salary. It's integral to creating a workplace where employees' personal lives and professional goals are recognised and supported - a strategy that is proving essential for attracting and retaining talent, even in tough economic times," Barnes added.

Contrary to the expectation that financial pressures would push workers to focus primarily on higher wages, many individuals are now seeking long-term positions that align with their lifestyle needs. Nearly 60% of survey participants expressed little to no interest in changing jobs within the next six months.

Interestingly, 40% of those who had changed roles in the past year reported lower job satisfaction than anticipated. This points to the need for businesses to take more comprehensive measures in supporting employee wellbeing.

Commenting on this, Barnes stated, "Our data indicates that after a few turbulent years where high numbers of employees jumped ship to new employers, there is now a shift towards long-term satisfaction in the workplace, where wellbeing and stability are paramount over quick financial gains. Businesses that recognise and act on this by offering a high-quality EVP will set themselves apart as employers of choice."

Humanforce's research indicates that there are four critical areas an EVP should cover: emotional wellness (mental health), social wellness (workplace culture and life outside of work), physical wellness, and financial wellness.

Many companies are already making efforts to retain their talent, with nearly 70% of employees confirming that they had received support from their current employers in efforts to keep them in their roles.

The role of HR technologies in supporting a business' EVP was also highlighted, with 96% of Australian workers deeming these technology innovations crucial in creating positive workplace experiences.

"Businesses are urged to complement their needs of driving organisational growth, profitability, compliance confidence, and productivity with a genuine focus on their people. Give employees control and flexibility over their working life with easy access to their rosters and payslips. Ensure that they feel heard and really feel part of your company," Barnes said.

She added, "Humanforce's HCM suite directly supports the shift towards employee wellbeing and flexible roster-driven work by giving employees the tools to manage their work-life balance. It's about practical autonomy - the ability to align work schedules with personal needs. This approach not only meets employees' expectations but also enhances overall job satisfaction, leading to better retention and productivity for businesses."