Organizations risk losing employees as household budget needs are prioritized
The challenging financial circumstances faced by many Australians have led to increased job search behaviour, with employees seeking better pay packets to address their household budget needs. Despite a slight decrease in business confidence and consistent employee perceptions of job availability, active job searches increased by 2 per cent during the first quarter of 2023.
Work-life balance has become the top factor employees consider when looking for a job, surpassing location, while compensation remains a key consideration. Manager quality, people management, and work-life balance are the top reasons cited by employees for switching jobs, indicating a willingness to leave their current roles.
The economic environment presents a risk for employees who consider changing jobs, as they may face the possibility of being the first to be laid off. However, financial struggles and poor managerial relationships can drive employees to take a chance and seek alternative employment opportunities.
In response to these challenges, Gartner emphasizes the importance of empathetic leadership. Employees are looking for leaders who demonstrate care, respect, and concern. Organizations can support their employees by extending programs that offer financial planning services, access to financial advice, and flexible work options that reduce commuting costs.
While some organizations are attempting to bring employees back to the office for collaboration and innovation, Gartner warns that this can further strain employees who are already facing financial difficulties. Maintaining work-life balance is crucial for employee retention, and employers should provide clear rationales for returning to the office while considering funding social gatherings to alleviate financial stress.
The survey data highlights the need for organizations to understand and address the financial well-being of their employees, as it not only impacts their personal lives but also their productivity and engagement in the workplace.