New report reveals low sense of value at work is fuelling departures
Feeling undervalued in the workplace is driving employees to leave, a new report has warned, highlighting how the lack of recognition can be a retention risk at work.
Findings from benefits provider Perkbox found that 29% of employees are likely to seek new employment this year. Among those who feel undervalued at work, 40% are planning to look for a new role.
The findings underscore how perceived value at work can impact intent to stay, but the report noted that employers might be unaware of how employees value themselves at work.
According to the findings, employees would rate their own sense of value at an average of 7.13 out of 10, with one in five saying their sense of value is at five out of ten or lower.
On the other hand, employers believe that their staff would rate their sense of value at 8.57 out of 10, significantly higher than how some employees would score themselves.
Daniel Sherrington, regional director APAC at Perkbox, said the research shows a "clear gap between employer perception and employee reality."
"When nearly one in three employees are considering a move, organisations cannot afford to assume their people feel valued," Sherrington said.
Retention is not the only thing at risk with this issue, as six in 10 employees who feel undervalued report that it leads to higher stress and poorer mental wellbeing.
Despite this, only 42% of employers recognise this connection.
What influences value at work
Benefits play a role in recognising the value of employees in the workplace, but the report recognised that a company's size can also influence how valued an employee feels.
Employees who are more likely to say their benefits make them feel valued belong to organisations with 50 to 199 people. They are also more likely to feel a sense of belonging at work, higher than the national average.
"As organisations grow beyond 200 employees, creating consistent and personal experiences becomes much more difficult," said Pippa Van Praagh, VP of operations, in the report.
"Even with significant budgets, you're working across large, diverse workforces, and communication and human connection can start to fragment."
Work location can also impact employees' sense of value in an organisation. Non-office-based workers feel less valued than their office-based counterparts.
Among undervalued deskless workers, 44% said they are more likely to leave within the next 12 months, higher than the 38% of office-based staff.
"The divide points to how the delivery and accessibility of benefits can shape how valued people feel in different working environments," the report read.
Addressing the problem requires initiatives from HR that work just as effectively in hybrid and remote environments as they do in the office, according to Sherrington.
"Flexibility is valued, but it does not automatically create connection. If employees feel invisible or overlooked, retention becomes a real risk," he said.
Support that reflects the different experiences of employees in the workplace will help foster belonging and value at work, the report added.
"Employees in Australia have been clear about what helps them feel supported and valued. What matters now is acting on that, by shaping benefits, recognition and ways of working around how value is experienced in practice," it said.
