Organizational Transformation

4 Strategies That Power Workforce Performance in Australia

Our survey of 2,000 Australian workers shows what really motivates performance and productivity—and it isn’t just salary.

How the Right Motivation Impacts Productivity and Performance

Despite a record increase of hours worked in Australia, studies show productivity growth is not keeping pace.

And the results of Korn Ferry’s Workforce 2024 survey found that Australian workers also have lower motivation than their global counterparts, at 63% compared to a global average of 71%.

Given that motivation and engagement significantly impact performance and productivity, what do Australian workers really want?

Based on the Workforce 2024 report, we’ve identified four ways HR leaders can improve engagement and productivity.

1 Foster a Flexibility Mindset

If a competitor could offer just one thing to lure your top talent away, it’s flexibility.

Forty-six percent of Australian respondents said that’s the number one incentive to leave their job—even higher than salary. What’s more, 23% told us they’d quit their current job if they were required to work in the office full-time.

Flexibility means different things to different people, including control over work hours, patterns, or location.

The Australian survey data showed women value flexible work more than men, and older employees, aged 45 to 65, value control over their hours the most. Hybrid work options are more appealing for employees aged 25-34.

So does flexible work impact productivity? Juliet Warne, a high-performance leadership expert with Korn Ferry, says the evidence she has seen so far is mixed. And she believes management skills are the missing link: managers need to enable productive remote and flexible work.

“A high number of employees have structured their lives around some remote working, so it’s unlikely a full return to the workplace can happen,” she says. “But flexibility can require a mindset shift for some leaders. They need to be equipped to manage productivity and performance in this environment.”

This includes a culture reset, making the new norms for hybrid or flexible working clear across the organization. Modeling these behaviors starts at the top. Some managers may need upskilling in how to lead in a hybrid environment—such as by showing empathy as well as appreciating individual work preferences.

2 Take a Balanced View of Compensation

After flexibility, competitive compensation is the next thing on the Australian worker wish list:

Forty-five percent of Australian respondents said a better package could lure them away
52% agreed low pay would make them more likely to leave
38% believe their current salary and benefits are below their contribution to the company

With Australian salary growth expected to slightly outpace inflation this year, HR leaders need to consider the whole package when they benchmark pay rates—including benefits.

It’s also worth remembering people’s priorities can change and it’s not a case of one size fits all. “People value different aspects of employment at different times in their life,” notes Warme. “They also want to work in a role and industry they like, and they value training opportunities.”

3 Prioritize Upskilling and Reskilling

Learning and development opportunities are another reason Australian workers stay with their employer. Continuous learning plays a vital role in job satisfaction and future employability—especially for the next generation of talent.

When asked about the top incentives to move to a new employer or role, 27% of respondents aged 25-34 chose 'excellent learning and development opportunities’—a higher proportion than any other age group. In contrast, this would be a priority for just 17% of those aged over 45.

So with a limited training budget, where should you invest resources? One area is the skills to adapt to emerging technology.

The majority of Australian employees told us they want to learn new skills to stay relevant as AI technology evolves. However, 36% feel certain they’ll be replaced by AI in the next three years—and those people are more likely to be actively planning to leave their role. So if you want to keep your best people, you need to help them upskill or reskill.

Warne also sees opportunities for upskilling around managing psychosocial safety at work, with Safe Work regulations now addressing mental health and related concerns. “Some organizations are running dedicated training to give managers the skills to handle nuanced conversations around performance issues, for example,” she says.

4 Ask for Feedback on Your Culture

Workplace culture, also known as ‘the way we do things around here’, has a significant impact on talent engagement.

It’s hardly surprising: most people want to work with a good manager and a great team, feel supported in their development, and believe their leaders care about them.

The majority (70%) of Australian workers agree that company values are extremely important to them. And younger employees value company culture even more than their Gen Z and Baby Boomer colleagues.

A toxic company culture is second most popular reason—low compensation being the first—that Australian employees leave their employers.

Warne works closely with clients to create healthy company cultures. “The organizations that impress me are making sure executive teams listen to explicit employee feedback and taking action to address it,” she says.

People Strategy & Performance

Competitive edge starts with your people

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Performance Beyond Productivity

Over the last few years, fundamental assumptions about how and where work is done have changed. And there’s no turning back.

By understanding what your people really value, you can get a clearer idea of what will drive your organization’s performance. Find out more in Korn Ferry’s Workforce 2024 report.