In a sign that organizations are starting to respond to workers’ needs, 17% of Australian employees were actively seeking a new job in the second quarter of 2022, down slightly from 18% in 1Q22, according to a survey by Gartner, Inc.

The Gartner survey of 855 employees, conducted between April and June 2022, also found that the proportion of Australian employees engaging in passive job search behavior (such as updating a CV or thinking about quitting) continued to increase, from 55% to 57%.

Despite rising inflation and the possibility of a recession, employees are quietly optimistic about their future, with confidence in job availability increasing from 54% in the first quarter to 56%.

For the second consecutive quarter, location was cited as the top reason to switch jobs. The top three drivers of attrition stayed the same compared to 1Q22 (see Table 1). 

Table 1: Top 10 Drivers of Employee Attraction and Attrition, Australia, Q2 2022

Source: Gartner Global Labor Market Survey, 2Q22

The Gartner Global Labor Market Survey is made up of more than18,000 employees in 40 countries, including 855 in Australia in 2Q22. The data above is reflective of market conditions during the quarter.

Aaron McEwan, vice president in the Gartner HR practice, said the data shows Australian employers are listening and responding to the needs of workers.

“Employees have just spent the past two and a half years working hard to support their organizations through challenging times,” said McEwan. “As we start getting used to the new world of work, workers have created their own personal boundaries and employers are increasingly respecting that.”

Organizations are embracing the human deal

Respect has remained in the top three reasons for both leaving an employer and joining a new one.

Organizations are finally listening to their employees and are paying more attention to the overall well-being of their staff, according to McEwan.

“Being treated like a person is one of the most important priorities for Australian employees,” said McEwan. “We’re now seeing organizations providing more flexibility, stability, and importantly, more manageable workloads,” said McEwan.

Employers warned not to waste progress

According to McEwan, employers will face two key challenges in the next 12 months: maintaining engagement among a fatigued workforce and managing the impact of potential economy-led redundancies.  

The data collected by Gartner in 2Q22 found the proportion of employees showing high discretionary effort – willingness to go above and beyond at work – dropped from 17% in 1Q22 to 15% this quarter.

“Organizations should be proud of the work they’ve done, particularly when it comes to the flexibility they’ve given to their employees. However, given the possibility of a recession and potential redundancies or cuts, taking a step back would be a mistake,” said McEwan.

Organizations faced with making difficult decisions about their staff should take a human-centric approach to manage productivity or downsizing requirements, according to Gartner.

“Consider alternative options for exhausted staff, such as offering a pay cut to take a break from work or promote job-sharing where appropriate. Think about your staff in a holistic manner and make sure they rest and recharge when needed,” said McEwan.

To compare their HR function’s performance and prioritize future investments, HR executives can download the complimentary Gartner report 2022 HR Budget and Efficiency Benchmarks.

About the Gartner HR Practice

The Gartner HR practice brings together the best relevant content approaches across Gartner to offer individual decision makers strategic business advice on the mission-critical priorities that cut across the HR function. Additional information is available at http://www.gartner.com/en/human-resources/human-resources-leaders. Follow news and updates from the Gartner HR practice on Twitter and LinkedIn using #GartnerHR. Members of the media can find additional information and insights in the Gartner HR Newsroom.