Report is a 'wake-up call' for employers, who are advised to review processes, tools and recognition to address the issue
Fewer Australians are reporting a happy relationship with their work as satisfaction declines and employer demands increase, according to new research.
HP's third annual Work Relationship Index found that only 14% of Australian knowledge workers have a healthy relationship with their job, down by 13 percentage points from a year ago.
The figure is lower than the 15% average reported in eight developed markets in the HP report, with Australia ranking second-lowest in the list, just above Japan.
"The traditional employment model has fractured," said Brad Pulford, HP's managing director for Australia and New Zealand, in a statement.
"Global disruption, economic pressures, and changing workplace expectations have created an environment that feels more demanding and less rewarding."
According to the report, there were major declines in workplace satisfaction across various Australian sectors, including finance, manufacturing, and education.
Only 44% of employees said their work is giving them a sense of purpose, while just 39% said they feel adequate recognition for their contributions.
The decline in healthy work relationships in Australia also comes as more than half of knowledge workers experience workplace changes, such as cost-cutting, redundancies, and shifts in hybrid arrangements.
More than half of employees (58%) also noted that demands and expectations from their employers have increased.
AI as a potential solution
The report highlighted AI as a potential solution, noting that employees who work for companies that invest in the right tools and AI are five times more likely to have a healthy relationship with their work.
AI adoption in Australian workplaces has been expanding, with 77% of employees saying they are using it at work, including 31% who use it daily.
The report underscored the need for organisations to provide clear guardrails, training, and role-relevant use cases to enable AI to augment employees' work.
Repairing work relationships
To further address the declining healthy work relationships, it further recommended frequent, specific recognition linked to values and outcomes. It also suggested:
- Designing in-office time around collaboration, not presenteeism
- Streamlining workflows and cutting tool sprawl
- Equipping managers to set clarity, balanced workloads, and maintain high-quality check-ins
"This is a wake-up call for every employer in Australia. Despite the pressures around us, the drivers of fulfilment sit largely with employers; how we lead, how we recognise people, and how we put technology to work so it restores focus," Pulford said.
"That's the future of work Australians deserve: equitable collaboration, time back for focus, and AI that helps and never overwhelms."
