What Australian talent really needs in 2022
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Amid talk of a mass talent exodus, new research from Gallagher’s Benefits & HR Consulting Division sheds valuable light on where organisations might best refocus their wellbeing efforts
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personality factors). It then delved into how employees’ level of wellbeing translates into outcomes like employee engagement, performance and absenteeism.
The survey asked people to rate aspects of their work and life in terms of how important they perceived them to be, and how that compared to their level of satisfaction. With respect to key aspects of an individual’s life, there was a high degree of disconnect between importance and current degree of satisfaction in the areas of physical health (81% importance versus 54% satisfaction), mental health (83% versus 56%) and personal finances (79% versus 58%).
“That makes good intuitive sense given what we know not only about contextual factors at the moment but also what research tells us around what shapes overall life satisfaction the most,” says James Allen of Gallagher's Benefits & HR Consulting Division. “These particular factors have been heightened over the past year to 18 months as people have been dealing with the global pandemic and an ever-changing underlying level of uncertainty.”
Overall, 58% of respondents felt satisfied with their working environment. However, a notable misalignment appeared between the high importance placed on base salary and how satisfied people were with their pay (75% importance versus 54% satisfaction). Similarly, perks and incentives were valued highly, but 26% of people were dissatisfied with what was on offer.
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As the leading employee benefits and risk management consultant in Australia and around the world, Gallagher understands that your business is powered by your people. It considers your fundamental business objectives, marries them with your people needs, and shapes its services and advice to help your organisation achieve its goals. Gallagher is the chosen partner to more than 100,000 Australian businesses, from small businesses through to multinational corporations and iconic brands.
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“Those employees who’ve been able to work remotely report positive levels of engagement, and this trend is most evident for those in professional, scientific and technical service industries”
Dr James Allen (PhD Org Psych),
Gallagher
“Asking employees for feedback around their wellbeing – even in an ad hoc way – has a positive impact on the employee experience. Organisations need to listen to employees, show an interest, ask these questions and take action”
Dr James Allen (PHD Org Psych),
Gallagher
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NURTURE AND grow your younger talent; ask your workforce how they’re doing (then act on the feedback); give thought to aspects of the work environment that shape employees' experience; offer flexible working where you can; and tailor initiatives to the needs of your employees rather than following popular trends or adopting one-size-fits-all strategies. These are some of the key takeaways from a major new piece of research into employee wellbeing by consulting firm Gallagher.
The 2021 Workplace Wellbeing Index makes fascinating and insightful reading for organisations looking to get the best out of their workforces, get more bang for their wellbeing buck, and – not least – boost retention. Because while the Great Resignation may not yet have its feet firmly under the table in Australia, dissatisfied and disengaged workers are certainly not sitting tight.
Gallagher surveyed 1,660 employees throughout Australia – mainly full-time and part-time – across organisations of all
How satisfied are Australian employees?
Level of employee satisfaction with key aspects of their working environment:
Source: Gallagher’s 2021 Workplace Wellbeing Index
sizes. Employees in a wide variety of sectors and industries were asked whether they were working on-site, under a hybrid model or remotely. There was also a roughly even split between genders and between those in leadership and non-leadership roles.
Some of the results are surprising, and others confirm anecdotal evidence of the impact of the pandemic on workers.
One of the aims of the research was to provide an APAC benchmark for Australian organisations that conduct their own employee wellbeing surveys.
The research conceptualised employee wellbeing in terms of emotional and physical health and having a sense of purpose at work. It considered how wellbeing is affected by aspects of a person’s life; the work environment (such as supportive leadership, psychological safety, and aspects of a person’s job); and individual factors (psychological and
This disconnect comes as no shock given the pandemic-related salary freezes and a general belt-tightening around benefits in Australia during the pandemic, says Allen.
“Across a range of industries, people haven’t seen some of the typical incremental increases they might have received prior to the pandemic,” he says.
While this dissatisfaction with base pay and incentives is evident and understandable, the data confirms money alone is not the most important factor shaping an employee’s experience. The results confirm what is most important in influencing employees’ wellbeing and engagement at work are those aspects of the work environment that relate to psychological safety, support from their leader, a sense of purpose and connection, and, finally, the emphasis or priority the organisation places on employee wellbeing.
What benefits are most valued by employees, and what is currently being offered?
Unsurprisingly, the most highly rated benefit was flexible working, followed by additional superannuation contributions and career development programs. Some of the more superficial perks such as shopping discounts – which many Australian organisations offer – were valued less highly than more practical and ‘whole of employee’ options like progressing professional training and career development, salary sacrificing, and additional leave options. This is compounded when examining what employees are currently offered, with just 35% indicating they are currently provided with professional training and development opportunities.
25%
UNfavourable
23%
NEUTRAL
52%
favourable
The report identifies a major opportunity for employees: over 50% of the sample had flexible working available to them, but 33% either didn’t have it or just didn’t know if it was an option.
“Too often speaking with clients we hear of wellbeing or benefit strategies that were implemented with the best intentions and at significant cost but fail to be utilised by employees. Engaging with your workforce to understand what is important and valuable to them can provide compelling and practical suggestions around where you can focus discretionary spend or, equally, identify benefits currently offered that the workforce just isn’t seeing as important,” says Allen. “As the competition for talent continues to strengthen, a more dynamic and targeted approach is called for to ensure organisations remain attractive to both current and prospective employees."
The impact of wellbeing
The core outcome metric of the report is wellbeing, and here the findings reveal a big opportunity for employers to step up their efforts – as evidenced by 25% of respondents having unfavourable wellbeing. This is especially important given the impact wellbeing has on outcomes such as productivity, employee engagement, and how much time staff take off. The research clearly shows that employees with more positive wellbeing show stronger engagement, lower absenteeism and higher intentions to stay.
When asked, ‘Have you taken time off for your wellbeing in the past month?’, 31% of respondents said yes. Of those who took time off, the majority had taken between one and three days. In comparison, an even larger percentage (53%) of respondents continued to work when they felt they should have taken time off.
“This indicates that, beyond taking time off work, people are continuing to work when they are not as productive, or even not necessarily fit for work, which can raise a range of risks both for the individual and also for the organisation,” says Allen. “It’s important for employers to understand how this may be playing out in their own workplaces.”
Source: Gallagher’s 2021 Workplace Wellbeing Index
How do employees rate their current wellbeing?
When asked about their wellbeing (eg feeling good and experiencing fulfilment and purpose at work), employees rated it as:
Remote workers are more engaged, but...
From an engagement perspective, remote employees rated their engagement significantly higher than those who remained working on-site.
“Those employees who have been able to work remotely show positive engagement. Not surprisingly, their life factors have also shown to be stronger than employees working predominantly on-site,” says Allen.
However, the implications are more nuanced than 'remote is the way to go' or the only factor to consider, especially given that some industries – for example, retail and healthcare – simply can’t offer this option to all employees.
To reiterate, the strongest drivers of employee engagement remain centred on the perceived level of support from leaders, the organisation’s focus on wellbeing, and a sense of connection to the purpose and values of the organisation. This trend holds when controlling for working arrangements (on-site, hybrid or remote). While flexibility is critically important to employees, simply providing remote working options will not be sufficient to sustain employee engagement. Consideration must also be given to the support employees receive from their leaders, and to creating connection to the overall purpose of the organisation.
Your people care that you care
If you secretly doubted the value of employee wellbeing surveys, the index has news for you. It found a strong link between both employee engagement and wellbeing and how often an organisation asked for feedback about employee wellbeing. Those who said their organisations never asked about their wellbeing rated notably lower across key metrics such as employee wellbeing, engagement and intentions to stay. Employees who were asked the most frequently – monthly and quarterly – responded more favourably across these key metrics.
“This emphasises the importance of regular check-ins with employees,” says Allen. It should also be noted that respondents who indicated their organisation more regularly checked in on their wellbeing were also more confident about action being taken as a result of feedback from surveys.
“This tells us that asking employees for feedback around their wellbeing – even in an ad hoc way – has a positive impact on the employee experience. Organisations need to listen to employees, show an interest, ask these questions and take action, because if they don’t there’s likely to be quite an impact on people’s experience at work."
The sample responses also revealed an interesting age-related trend. Younger workers reported lower levels of wellbeing, while those closer to retirement were more satisfied – results that have likely been affected by the pandemic.
“Younger employees starting out their career have had a very different start to their career when compared to older colleagues, with many commencing their first full-time employment during the pandemic,” says Allen.
There was also a consistent trend of those in leadership responding more positively regarding engagement than those in non-leadership positions. Additionally, leaders reported higher life satisfaction and wellbeing. A potential explanation could be that people in leadership positions have a closer connection to the organisation’s strategy and may therefore have a higher sense of purpose at work.
While ultimately organisations need to create wellbeing solutions appropriate to their particular workforces, values and culture, the insights gathered from the 2021 Workplace Wellbeing Index provide a valuable starting point. Do you need to target your wellbeing spend more at your younger demographic, or harness the positivity of a potentially more satisfied older cohort via a mentoring scheme? Maybe you need to rethink the benefits on offer, or divert spend from free gym memberships to ensure employees have strong professional development opportunities?
“A real focus for organisations is ‘What do we need to do to attract, retain and keep employees motivated and engaged?’” says Allen. “This research provides a great foundation to assist organisations to first understand and then address these challenges.”
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People
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Copyright © 2022 Key Media
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Psychological safety
64%
Sense of connection to organisational purpose
63%
Support from
their leader
60%
Organisation’s level of focus on wellbeing
56%
Base salary
54%
Employee perks
43%
Incentives beyond base salary
43%
Psychological safety
64%
Sense of connection to organisational purpose
63%
Support from
their leader
60%
Organisation’s level of focus on wellbeing
56%
Base salary
54%
Employee perks
43%
Incentives beyond base salary
43%
Remote workers are more engaged, but...
From an engagement perspective, remote employees rated their engagement significantly higher than those who remained working on-site.
“Those employees who have been able to work remotely show positive engagement. Not surprisingly, their life factors have also shown to be stronger than employees working predominantly on-site,” says Allen.
However, the implications are more nuanced than 'remote is the way to go' or the only factor to consider, especially given that some industries – for example, retail and healthcare – simply can’t offer this option to all employees.
To reiterate, the strongest drivers of employee engagement remain centred on the perceived level of support from leaders, the organisation’s focus on wellbeing, and a sense of connection to the purpose and values of the organisation. This trend holds when controlling for working arrangements (on-site, hybrid or remote). While flexibility is critically important to employees, simply providing remote working options will not be sufficient to sustain employee engagement. Consideration must also be given to the support employees receive from their leaders, and to creating connection to the overall purpose of the organisation.
Your people care that you care
If you secretly doubted the value of employee wellbeing surveys, the index has news for you. It found a strong link between both employee engagement and wellbeing and how often an organisation asked for feedback about employee wellbeing. Those who said their organisations never asked about their wellbeing rated notably lower across key metrics such as employee wellbeing, engagement and intentions to stay. Employees who were asked the most frequently – monthly and quarterly – responded more favourably across these key metrics.
“This emphasises the importance of regular check-ins with employees,” says Allen. It should also be noted that respondents who indicated their organisation more regularly checked in on their wellbeing were also more confident about action being taken as a result of feedback from surveys.
“This tells us that asking employees for feedback around their wellbeing – even in an ad hoc way – has a positive impact on the employee experience. Organisations need to listen to employees, show an interest, ask these questions and take actions, because if they don’t there’s likely to be quite an impact on people’s experience at work."
The sample responses also revealed an interesting age-related trend. Younger workers reported lower levels of wellbeing, while those closer to retirement were more satisfied – results that have likely been affected by the pandemic.
“Younger employees starting out their career have had a very different start to their career when compared to older colleagues, with many commencing their first full-time employment during the pandemic,” says Allen.
There was also a consistent trend of those in leadership responding more positively regarding engagement than those in non-leadership positions. Additionally, leaders reported higher life satisfaction and wellbeing. A potential explanation could be that people in leadership positions have a closer connection to the organisation’s strategy and may therefore have a higher sense of purpose at work.
While ultimately organisations need to create wellbeing solutions appropriate to their particular workforces, values and culture, the insights gathered from the 2021 Workplace Wellbeing Index provide a valuable starting point. Do you need to target your wellbeing spend more at your younger demographic, or harness the positivity of a potentially more satisfied older cohort via a mentoring scheme? Maybe you need to rethink the benefits on offer, or divert spend from free gym memberships to ensure employees have strong professional development opportunities?
“A real focus for organisations is ‘What do we need to do to attract, retain and keep employees motivated and engaged?’” says Allen. “This research provides a great foundation to assist organisations to first understand and then address these challenges.”
The report identifies a major opportunity for employees: over 50% of the sample had flexible working available to them, but 33% either didn’t have it or just didn’t know if it was an option.
“Too often speaking with clients we hear of wellbeing or benefit strategies that were implemented with the best intentions and at significant cost but fail to be utilised by employees. Engaging with your workforce to understand what is important and valuable to them can provide compelling and practical suggestions around where you can focus discretionary spend or, equally, identify benefits currently offered that the workforce just isn’t seeing as important,” says Allen. “As the competition for talent continues to strengthen, a more dynamic and targeted approach is called for to ensure organisations remain attractive to both current and prospective employees."
The impact of wellbeing
The core outcome metric of the report is wellbeing, and here the findings reveal a big opportunity for employers to step up their efforts – as evidenced by 25% of respondents having unfavourable wellbeing. This is especially important given the impact wellbeing has on outcomes such as productivity, employee engagement, and how much time staff take off. The research clearly shows that employees with more positive wellbeing show stronger engagement, lower absenteeism and higher intentions to stay.
When asked, ‘Have you taken time off for your wellbeing in the past month?’, 31% of respondents said yes. Of those who took time off, the majority had taken between one and three days. In comparison, an even larger percentage (53%) of respondents continued to work when they felt they should have taken time off.
“This indicates that, beyond taking time off work, people are continuing to work when they are not as productive, or even not necessarily fit for work, which can raise a range of risks both for the individual and also for the organisation,” says Allen. “It’s important for employers to understand how this may be playing out in their own workplaces.”
The survey asked people to rate aspects of their work and life in terms of how important they perceived them to be, and how that compared to their level of satisfaction. With respect to key aspects of an individual’s life, there was a high degree of disconnect between importance and current degree of satisfaction in the areas of physical health (81% importance versus 54% satisfaction), mental health (83% versus 56%) and personal finances (79% versus 58%).
“That makes good intuitive sense given what we know not only about contextual factors at the moment but also what research tells us around what shapes overall life satisfaction the most,” says James Allen of Gallagher's Benefits & HR Consulting Division. “These particular factors have been heightened over the past year to 18 months as people have been dealing with the global pandemic and an ever-changing underlying level of uncertainty.”
Overall, 58% of respondents felt satisfied with their working environment. However, a notable misalignment appeared between the high importance placed on base salary and how satisfied people were with their pay (75% importance versus 54% satisfaction). Similarly, perks and incentives were valued highly, but 26% of people were dissatisfied with what was on offer.
This disconnect comes as no shock given the pandemic-related salary freezes and a general belt-tightening around benefits in Australia during the pandemic, says Allen.
“Across a range of industries, people haven’t seen some of the typical incremental increases they might have received prior to the pandemic,” he says.
While this dissatisfaction with base pay and incentives is evident and understandable, the data confirms money alone is not the most important factor shaping an employee’s experience. The results confirm what is most important in influencing employees’ wellbeing and engagement at work are those aspects of the work environment that relate to psychological safety, support from their leader, a sense of purpose and connection, and, finally, the emphasis or priority the organisation places on employee wellbeing.
What benefits are most valued by employees, and what is currently being offered?
Unsurprisingly, the most highly rated benefit was flexible working, followed by additional superannuation contributions and career development programs. Some of the more superficial perks such as shopping discounts – which many Australian organisations offer – were valued less highly than more practical and ‘whole of employee’ options like progressing professional training and career development, salary sacrificing, and additional leave options. This is compounded when examining what employees are currently offered, with just 35% indicating they are currently provided with professional training and development opportunities.
Gallagher surveyed 1,660 employees throughout Australia – mainly full-time and part-time – across organisations of all sizes. Employees in a wide variety of sectors and industries were asked whether they were working on-site, under a hybrid model or remotely. There was also a roughly even split between genders and between those in leadership and non-leadership roles.
Some of the results are surprising, and others confirm anecdotal evidence of the impact of the pandemic on workers.
One of the aims of the research was to provide an APAC benchmark for Australian organisations that conduct their own employee wellbeing surveys.
The research conceptualised employee wellbeing in terms of emotional and physical health and having a sense of purpose at work. It considered how wellbeing is affected by aspects of a person’s life; the work environment (such as supportive leadership, psychological safety, and aspects of a person’s job); and individual factors (psychological issues, personality). It then delved into how employees’ level of wellbeing translates into outcomes like employee engagement, performance and absenteeism.
Remote workers are more engaged, but...
From an engagement perspective, remote employees rated their engagement significantly higher than those who remained working on-site.
“Those employees who have been able to work remotely show positive engagement. Not surprisingly, their life factors have also shown to be stronger than employees working predominantly on-site,” says Allen.
However, the implications are more nuanced than 'remote is the way to go' or the only factor to consider, especially given that some industries – for example, retail and healthcare – simply can’t offer this option to all employees.
To reiterate, the strongest drivers of employee engagement remain centred on the perceived level of support from leaders, the organisation’s focus on wellbeing, and a sense of connection to the purpose and values of the organisation. This trend holds when controlling for working arrangements (on-site, hybrid or remote). While flexibility is critically important to employees, simply providing remote working options will not be sufficient to sustain employee engagement. Consideration must also be given to the support employees receive from their leaders, and to creating connection to the overall purpose of the organisation.
Your people care that you care
If you secretly doubted the value of employee wellbeing surveys, the index has news for you. It found a strong link between both employee engagement and wellbeing and how often an organisation asked for feedback about employee wellbeing. Those who said their organisations never asked about their wellbeing rated notably lower across key metrics such as employee wellbeing, engagement and intentions to stay. Employees who were asked the most frequently – monthly and quarterly – responded more favourably across these key metrics.
“This emphasises the importance of regular check-ins with employees,” says Allen. It should also be noted that respondents who indicated their organisation more regularly checked in on their wellbeing were also more confident about action being taken as a result of feedback from surveys.
“This tells us that asking employees for feedback around their wellbeing – even in an ad hoc way – has a positive impact on the employee experience. Organisations need to listen to employees, show an interest, ask these questions and take action, because if they don’t there’s likely to be quite an impact on people’s experience at work."
The sample responses also revealed an interesting age-related trend. Younger workers reported lower levels of wellbeing, while those closer to retirement were more satisfied – results that have likely been affected by the pandemic.
“Younger employees starting out their career have had a very different start to their career when compared to older colleagues, with many commencing their first full-time employment during the pandemic,” says Allen.
There was also a consistent trend of those in leadership responding more positively regarding engagement than those in non-leadership positions. Additionally, leaders reported higher life satisfaction and wellbeing. A potential explanation could be that people in leadership positions have a closer connection to the organisation’s strategy and may therefore have a higher sense of purpose at work.
While ultimately organisations need to create wellbeing solutions appropriate to their particular workforces, values and culture, the insights gathered from the 2021 Workplace Wellbeing Index provide a valuable starting point. Do you need to target your wellbeing spend more at your younger demographic, or harness the positivity of a potentially more satisfied older cohort via a mentoring scheme? Maybe you need to rethink the benefits on offer, or divert spend from free gym memberships to ensure employees have strong professional development opportunities?
“A real focus for organisations is ‘What do we need to do to attract, retain and keep employees motivated and engaged?’” says Allen. “This research provides a great foundation to assist organisations to first understand and then address these challenges.”
The report identifies a major opportunity for employees: over 50% of the sample had flexible working available to them, but 33% either didn’t have it or just didn’t know if it was an option.
“Too often speaking with clients we hear of wellbeing or benefit strategies that were implemented with the best intentions and at significant cost but fail to be utilised by employees. Engaging with your workforce to understand what is important and valuable to them can provide compelling and practical suggestions around where you can focus discretionary spend or, equally, identify benefits currently offered that the workforce just isn’t seeing as important,” says Allen. “As the competition for talent continues to strengthen, a more dynamic and targeted approach is called for to ensure organisations remain attractive to both current and prospective employees."
The impact of wellbeing
The core outcome metric of the report is wellbeing, and here the findings reveal a big opportunity for employers to step up their efforts – as evidenced by 25% of respondents having unfavourable wellbeing. This is especially important given the impact wellbeing has on outcomes such as productivity, employee engagement, and how much time they take off. The research clearly shows that employees with more positive wellbeing show stronger engagement, lower absenteeism and higher intentions to stay.
When asked, ‘Have you taken time off for your wellbeing in the past month?’, 31% of respondents said yes. Of those who took time off, the majority had taken between one and three days. In comparison, an even larger percentage (53%) of respondents continued to work when they felt they should have taken time off.
“This indicates that, beyond taking time off work, people are continuing to work when they are not as productive, or even not necessarily fit for work, which can raise a range of risks both for the individual and also for the organisation,” says Allen. “It’s important for employers to understand how this may be playing out in their own workplaces.”
The survey asked people to rate aspects of their work and life in terms of how important they perceived them to be, and how that compared to their level of satisfaction. With respect to key aspects of an individual’s life, there was a high degree of disconnect between importance and current degree of satisfaction in the areas of physical health (81% importance versus 54% satisfaction), mental health (83% versus 56%) and personal finances (79% versus 58%).
“That makes good intuitive sense given what we know not only about contextual factors at the moment but also what research tells us around what shapes overall life satisfaction the most,” says James Allen of Gallagher's Benefits & HR Consulting Division. “These particular factors have been heightened over the past year to 18 months as people have been dealing with the global pandemic and an ever-changing underlying level of uncertainty.”
Overall, 58% of respondents felt satisfied with their working environment. However, a notable misalignment appeared between the high importance placed on base salary and how satisfied people were with their pay (75% importance versus 54% satisfaction). Similarly, perks and incentives were valued highly, but 26% of people were dissatisfied with what was on offer.
This disconnect comes as no shock given the pandemic-related salary freezes and a general belt-tightening around benefits in Australia during the pandemic, says Allen.
“Across a range of industries, people haven’t seen some of the typical incremental increases they might have received prior to the pandemic,” he says.
While this dissatisfaction with base pay and incentives is evident and understandable, the data confirms money alone is not the most important factor shaping an employee’s experience. The results confirm what is most important in influencing employees’ wellbeing and engagement at work are those aspects of the work environment that relate to psychological safety, support from their leader, a sense of purpose and connection, and, finally, the emphasis or priority the organisation places on employee wellbeing.
What benefits are most valued by employees, and what is currently being offered?
Unsurprisingly, the most highly rated benefit was flexible working, followed by additional superannuation contributions and career development programs. Some of the more superficial perks such as shopping discounts – which many Australian organisations offer – were valued less highly than more practical and ‘whole of employee’ options like progressing professional training and career development, salary sacrificing, and additional leave options. This is compounded when examining what employees are currently offered, with just 35% indicating they are currently provided with professional training and development opportunities.
Gallagher surveyed 1,660 employees throughout Australia – mainly full-time and part-time – across organisations of all sizes. Employees across a wide variety of sectors and industries were asked whether they were working on-site, under a hybrid model or remotely. There was also a roughly even split between genders and between those in leadership and non-leadership roles.
Some of the results are surprising, and others confirm anecdotal evidence of the impact of the pandemic on workers.
One of the aims of the research was to provide an APAC benchmark for Australian organisations that conduct their own employee wellbeing surveys.
The research conceptualised employee wellbeing in terms of emotional and physical health and having a sense of purpose at work. It considered how wellbeing is affected by aspects of a person’s life; the work environment (such as supportive leadership, psychological safety, and aspects of a person’s job); and individual factors (psychological issues, personality). It then delved into how employees’ level of wellbeing translates into outcomes like employee engagement, performance and absenteeism.
Click icon to see more
Psychological safety
64%
Sense of connection to organisational purpose
63%
Support from
their leader
60%
Organisation’s level of focus on wellbeing
56%
Base salary
54%
Employee perks
43%
Incentives beyond base salary
43%
Source: Gallagher’s 2021 Workplace Wellbeing Index
How satisfied are Australian employees?
Level of employee satisfaction with key aspects of their working environment:
Hover to see more
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Get your copy of Gallagher Workplace Wellbeing Index here https://gallagherbenefits.com.au/wellbeing_index/
How satisfied are Australian employees?
Level of employee satisfaction with key aspects of their working environment:
Source: Gallagher’s 2021 Workplace Wellbeing Index
Click icon to see more