Australian Workers Prioritise Work-Life Balance Over Wages Despite Cost-of-Living Surge

New research from Humanforce reveals that close to half of the 500 Australian workers it surveyed, including those working in the supply chain industry, have switched jobs in the past year. Despite a sharp increase in living costs, the driving force for 54% of these workers finding a new employer was not higher pay, but the pursuit of better work-life balance and wellbeing.

Holly Barnes, Chief People Officer at Humanforce said, "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."

With 98% of respondents citing the importance of the overall employee value proposition (EVP) in their decision to move, it's clear that today's employees are looking for more than financial benefits. Today, their focus is much wider, with the most appealing aspects of an EVP being work-life balance initiatives, and career growth & development opportunities.

Barnes adds, "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."

Contrary to expectations that financial pressures would make higher wages the primary focus into the future, many workers are now refocusing on longevity in roles that align with their lifestyle needs. This sentiment was reinforced by 60% of survey participants expressing little to no interest in changing jobs in the next six months.

Forty percent of those who had changed roles in the past year reported lower job satisfaction than anticipated, showing there is still a lot of scope for businesses to take greater initiative in supporting employee wellbeing.

"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," Barnes explains. "Businesses that recognise and act on this by offering a high-quality EVP will set themselves apart as employers of choice."

There are four critical areas that an EVP should encompass, including emotional wellness (mental health), social wellness (workplace culture and life outside of work), physical wellness and financial wellness.

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

The Humanforce research also underscores the vital role HR technologies play in supporting a business’ EVP. An overwhelming majority of the Australian workers—96%—said these technology innovations are 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 its 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.

"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," Barnes concluded.