AUSTRALIAN workers are reflecting on a year of rising pressures and evolving priorities, with a cautious but optimistic outlook for 2025.
New insights from people2people recruitment highlight key trends in workplace stress, holiday plans, and changing expectations around pay and flexibility.
The close of 2024 finds 68% of Australian workers feeling more stressed than at the start of the year, a modest rise from 65% in 2023.
Baby Boomers report lower stress levels than their younger counterparts, Millennials and Gen Zs, who continue to bear the brunt of workplace and financial pressures.
Managing Director at people2people recruitment Erin Devlin said, “Stress continues to be a defining feature of today’s workplace, especially for younger generations.”
“The financial pressures faced by Millennials and Gen Zs, coupled with the challenges of early and mid-career development, are contributing to these elevated stress levels.
“Employers should take proactive steps to ease these burdens by offering robust mental health initiatives, flexible working arrangements, and resources like mindfulness workshops or financial counselling.”
Australians’ holiday plans for summer 2024-25 highlight the ongoing impact of financial pressures, with “staycations” gaining traction: 61% of Australians are planning to holiday at home this summer, an increase from 57% last Christmas.
Over 70% of Baby Boomers are opting for staycations, while Millennials and Gen Zs remain divided between staying local and travelling.
Nearly half (45%) of Australian workers are saving their annual leave this Christmas due to rising costs, compared to 41% last year.
While economic pressures are easing slightly, the results paint a mixed picture:
- Confidence is improving, with a 14% drop in workers making lifestyle changes due to the cost-of-living crisis.
- Overall financial concern has decreased from 64% in 2023 to 53% in 2024.
- However, Gen Xs remain the most financially anxious, with over half reporting increased worry heading into 2025.
- 65% of workers now prioritise a 5% pay increase, compared to 35% who would prefer more flexibility. This is a reversal from 2023, when 59% of workers valued flexibility over pay.
- Gen Zs and Millennials remain the most vocal about compensation, with more than 30% expecting a salary increase of over 10% to return to the office full-time. Ms Devlin emphasises the need for employers to adapt to these changing priorities.
When preparing for 2025, here are some tips for employers to make your workplace more settled.
- Prioritise competitive salaries: Conduct regular salary reviews to ensure alignment with market expectations and address the growing focus on financial security. Consider non-financial benefits including work flexibility.
- Support mental health: Introduce mental health initiatives, wellness days, and mindfulness programs to address identified workplace stress.
- Encourage meaningful breaks: Promote the use of annual leave and offer flexibility in holiday scheduling to combat burnout and help employees recharge.
As Australian businesses prepare to close out 2024 and step into the new year, understanding the evolving needs of the workforce will be essential.
