New study exposes 2025's biggest employee demand

In 2025, the Australian workforce faces an escalating demand from employees for less chaotic work environments, with a growing realization that businesses must prioritize people-centered strategies to achieve productivity and retention goals. The sixth annual Qualtrics Employee Experience Trends report highlights crucial insights into the state of the workplace, offering employers a clear path to improving employee experiences in the coming year.

The study, based on responses from 35,000 workers across 23 countries—including over 2,000 from Australia—underscores the pressing need for employers to address a wide range of employee concerns, from workplace chaos to AI adoption, if they hope to build more engaged and resilient teams. According to the report, key trends indicate that workplace chaos, a lack of trust in leadership, substandard first and last impressions, and gaps in AI enablement are top areas where Australian businesses are falling short.

1. Cutting Workplace Chaos: A Critical Need

As businesses continue to adjust to post-pandemic realities, many have introduced significant changes to working models, processes, and systems. However, this has often resulted in a gap between business objectives and employee needs. The report reveals that in Australia, while employees value workplaces where they feel empowered to meet customer needs and have a positive societal impact, these areas remain some of the lowest-rated attributes across the workforce.

Dr. Cecelia Herbert, Workplace Behavioural Scientist at the Qualtrics XM Institute, notes that “work has somehow become even more chaotic since the pandemic as employers pursue short-term wins and try to adapt ways of working for modern realities. Yet for several years now, the best employee experiences are about how and why work gets done—these two aspects are the most impactful pathway to sustainable productivity and positive people outcomes.”

The chaos and relentless change of recent years have left many Australian workers feeling overwhelmed. Approximately 40% of workers report feeling under increasing pressure to boost productivity, which paradoxically reduces their overall engagement and well-being. This workplace strain could lead to higher attrition rates as more employees disengage, feeling unable to meet escalating demands.

The top five drivers of employee engagement in Australia reflect this growing need for stability:

• 72% of employees say they feel more engaged when organisational processes enable them to effectively meet customer needs.
• 65% are motivated by their organisation’s social impact efforts, but these opportunities are underutilized.
• Workers want the opportunity to develop new and better ways to serve customers, with 67% favoring this.
• Only 63% believe their career goals can be met at their current organization, creating uncertainty about long-term growth.
• Social responsibility, a key factor in employee satisfaction, is a priority for 65% of workers.

Leaders who want to retain top talent in 2025 must focus on simplifying work environments and processes, helping employees achieve better results with less chaos.

2. Young Employees: Optimistic Yet Hard to Retain

Contrary to popular belief, young employees are often a business’s most engaged, motivated, and optimistic. In fact, the only employee experience indicator where younger generations lag is their intent to stay. Even when highly engaged, only one-third (39%) of young people who have their expectations exceeded plan to stay with their company long-term, compared to 76% of those aged 25 and above.

Dr. Herbert argues that “it’s time to end the scapegoating of young employees for workplace woes. These mindsets are crushing the optimism and fresh thinking younger workers bring to the workplace, creating a scenario that benefits no one.”

Rather than focusing on retention alone, leaders should prioritize nurturing the enthusiasm and creativity of younger workers while they are with the organization. Companies that provide young employees with opportunities to challenge the traditional ways of working and stretch their skills are more likely to maintain high levels of engagement, which will benefit the workforce long-term.

3. First and Last Impressions: A Major Missed Opportunity

The candidate and entry experience remains a significant issue in the Australian workforce. Employees report that the processes surrounding recruitment, onboarding, and even exiting a company often fall short of expectations. The data suggests that only 37% of employees with less than one year of tenure plan to stay with their employer for three years or more, highlighting a critical flaw in how companies handle the early stages of employee relationships.

“Every organisation’s brand and reputation is heavily influenced by the stories people tell about applying for a job and what it was like working there,” says Dr. Herbert. “Getting these first and final impressions right are key strategic levers, but right now they are being overlooked, meaning employees are negatively impacted before they have even worked their first day.”

The report finds that:

• 31% of candidates report that the application and interview process did not meet their expectations.
• Only 44% of employees say their onboarding experience exceeded their expectations.
• Similarly, only 34% report a positive experience when changing roles within the company, and 35% rate their exit experience favorably.

These poor first and last impressions damage both employee engagement and brand reputation. For employers aiming to boost retention and loyalty, improving the employee lifecycle—from the hiring process to exit—should be a top priority in 2025.

4. Short-Term Productivity Pressures Are Eroding Long-Term Trust

Trust in leadership is a crucial factor in employee engagement, but Australian employees report significantly lower levels of trust in their leaders compared to the global average. Only 47% of employees believe their leaders prioritize their well-being over short-term business gains, compared to 56% globally. Additionally, just 61% of workers feel their senior leaders are competent in their roles, compared to 68% globally.

“The relationship between employees and their leaders is getting more and more tense, fuelled by decisions to roll back investments in DEI or sustainability and poorly managed workplace change,” explains Dr. Herbert. “While trust is hard to earn and maintain during times of disruption and uncertainty, our study shows its impact is huge on both business and people-focused outcomes, which is why leaders need to know how to cultivate it in 2025.”

This trust gap is further exacerbated by short-term productivity pressures, with many employees feeling that their leaders are not making decisions in their best interests. To rebuild trust, leaders must focus on long-term employee well-being, even as they face pressures to deliver immediate results.

5. Employees Are Outpacing Companies on AI Adoption

One of the most significant findings of the report is the gap between employee adoption of AI and the support they receive from their employers. While many Australian employees have already begun using AI tools at work—often independently—only 35% of organizations provide formal AI training and enablement. This gap between employee enthusiasm for AI and company readiness to support its adoption creates considerable risk for both operational efficiency and employee experience.

Dr. Herbert highlights the urgency of addressing this issue: “It is not employee resistance holding back workplace progress with AI. The real inertia stems from the lack of the tools, training, and guidance employees need in the modern workplace.”

Without proper AI training and clear guidelines on the ethical use of these tools, businesses risk falling behind their employees’ technological capabilities, leading to inefficiencies and potential compliance issues.

For the full report and methodology, visit here.

Building a Better Workplace in 2025

The Qualtrics Employee Experience Trends report paints a clear picture of the Australian workplace in 2025. If employers want to get the best out of their workforce, they must address the chaos and misalignment between employee needs and organizational priorities. By simplifying work processes, nurturing the enthusiasm of young employees, improving the first and last impressions, and providing proper AI training, businesses can create a more engaged, productive, and resilient workforce.

As the workplace continues to evolve, the organizations that prioritize their people and adapt to meet their changing needs will be the ones that thrive in the years ahead.