Australian workers are reflecting on 2024 as a year of rising pressures and evolving priorities – with a cautious but optimistic 2025 outlook. New insights from people2people recruitment have highlighted key trends in workplace stress, holiday plans, and pay and flexibility.
Stress levels persist, and younger workers feel the heat
At the close of 2024, 68% of Australian workers were more stressed than at the start of the year. This is 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).
- Could companies… Take proactive steps to ease these burdens? Try offering robust mental health initiatives, flexible working arrangements, and resources like mindfulness workshops or financial counselling.
Holiday plans reflect the cost of living
Australians’ holiday plans for summer 2024-25 highlight ongoing financial pressures. As 61% of Aussies plan to holiday at home this summer, staycations are gaining traction – this is an increase from 57% last Christmas. More than 70% of Baby Boomers will staycation while Millennials and Gen Zs remain divided between being local and travelling. Meanwhile, 45% of workers are saving their annual leave this Christmas due to rising costs, compared to 41% last year.
- Could companies… Encourage employees to use their annual leave? Try offering flexibility in holiday scheduling. You could also promote initiatives like wellness days or subsidised team retreats to combat burnout and financial stress.
Financial confidence rises, but gaps remain
While economic pressures are easing slightly, the results paint a mixed picture. Overall, financial concerns decreased from 64% in 2023 to 53% in 2024. And there’s been a 14% drop in workers making lifestyle changes due to the cost of living crisis. Gen Xs remain the most financially anxious, with over half reporting increased worry heading into 2025.
- Could companies… Offer targeted support? Consider cost of living adjustments, financial planning workshops and salary reviews tailored to the needs of this demographic.
Pay takes the lead
2024 has marked a significant pivot in workplace expectations as 65% of workers now prioritise a 5% pay increase compared to 35% who would prefer more flexibility. This is a reverse of 2023, when 59% of workers valued flexibility over pay. Gen Zs and Millennials remain the most vocal about compensation.
- Could companies… Adapt to account for these changing priorities? Conduct market-aligned salary reviews, maintain transparency in compensation discussions and offer creative perks that complement pay. How about career development programs or performance bonuses?
Top tips for 2025
- 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, when you can’t afford to provide the salary increase the employee deserves.
- Support mental health: Introduce initiatives like wellness days and mindfulness programmes to address stress.
- Encourage meaningful breaks: Promote annual leave and offer flexible holiday scheduling to combat burnout and help employees recharge.
- Bridge financial concerns: Provide financial education workshops and consider cost of living adjustments to ease economic pressures.
