Dissatisfaction among workers costs Australian businesses $15.8 billion annually: Report

Dissatisfaction among employees around the globe has become one of the most concerning matters for businesses. A newly released report by SafetyCulture, an Australian-founded global technology company, has shone a spotlight on the widespread dissatisfaction plaguing Australia’s frontline workforce. 

The findings in the "Feedback from the Field: Time for Change" report underscore a critical issue for Australian businesses—worker discontent is costing the economy an estimated AUD $15.8 billion annually. This financial burden, referred to as the “Dissatisfaction Dollar,” highlights the deep-seated challenges facing frontline industries, from strained workplace relationships to inefficient tools and a growing skills shortage.

Australia’s frontline workforce, which encompasses over 5.4 million deskless workers in sectors like logistics, hospitality, and manufacturing, is at the center of this storm. According to the report, a staggering 76% of Australian workers are dissatisfied with some aspect of their job, with frustration stemming primarily from unreasonable work expectations (37%), slow responses to addressing issues (36%), and pressure to cut corners in order to save time or money (33%).

These discontents are not only affecting workers' morale but are having a direct impact on productivity. Workers who are dissatisfied report feeling less motivated (40%) and experiencing reduced productivity (31%), losing an average of 6.59 hours per month. This downtime, frequent errors, and absenteeism are contributing to significant operational inefficiencies, translating to the AUD $15.8 billion burden on Australian businesses annually.

One of the most glaring issues revealed by the study is the growing divide between management and frontline workers. A worrying 52% of all workers report a “them vs. us” mentality, with this sentiment being more pronounced in certain industries, such as distribution, logistics, and transport (66%).

Management’s failure to address the concerns of frontline workers is exacerbating this divide. Workers feel unheard, overworked, and undervalued, leading to deteriorating relationships between staff and leadership. This disconnect not only hampers workplace culture but also hinders overall business performance. 

SafetyCulture’s Chief Product Officer, Sam Byrnes, warned that failing to listen to the grievances of frontline workers will only widen this gap and damage business outcomes in the long run. Byrnes notes, “It’s time businesses woke up to the fact that listening to people on the frontline is one of the fastest ways to improve the bottom line.”

The disconnect between frontline workers and management also extends to what each group believes can resolve these workplace challenges. While the majority of frontline employees (62%) desire better pay and benefits, only 49% of managers agree that this would improve workplace conditions. A similar disparity is seen in performance recognition, with 51% of workers believing that recognition would mend relationships, compared to just 39% of managers.

Managers, on the other hand, tend to place more importance on visibility into company goals, with 36% seeing this as a solution, while only 27% of frontline workers agree. This misalignment of priorities is hindering efforts to improve workplace dynamics and close the growing divide.

The “Brain Drain” and Skills Shortages

Australia’s workforce is also grappling with another challenge—skills shortages and the looming threat of a “brain drain.” The report highlights that 62% of Australian workers believe their industries will experience a significant loss of skilled and experienced workers in the coming years. This belief is stronger in Australia than in any of the other regions surveyed, including the UK, the US, and Europe.

The concern is exacerbated by the poor processes for capturing and sharing knowledge within organizations. An alarming 62% of Australian workers feel that knowledge sharing in their workplaces is ineffective. As veteran workers leave or retire, this lack of effective knowledge transfer could lead to a widening skills gap, making it harder for companies to maintain operational continuity.

Additionally, 60% of Australian workers are concerned about skills and labour shortages in their industries. Of those, 22% say these shortages are already causing issues, while 41% believe the problems will emerge in the next three years.

A significant factor contributing to frontline worker dissatisfaction is the state of workplace tools and IT systems. According to the SafetyCulture report, 62% of Australian workers are dissatisfied with the tools and technology they are provided. Many feel the systems are outdated (37%), overly complex with too many tools to navigate (33%), or simply unfit for purpose (30%).

These inefficiencies have a tangible impact on productivity. Australian workers lose an average of 5.70 hours each month due to inadequate tools and systems. This cumulative inefficiency costs businesses an additional estimated AUD $13.7 billion annually, creating yet another financial drain on the economy.

The frustrations over outdated tools are further compounded by fears about emerging technologies. Two in five workers (40%) expressed concern about the rise of new technologies like AI, while 46% worry their jobs could be automated in the near future.

The collective impact of dissatisfaction, fractured relationships, poor tools, and the looming skills gap is taking a significant toll on Australian businesses. SafetyCulture’s report emphasizes that it’s time for businesses to take action. By addressing the concerns of frontline workers, improving tools and systems, and fostering better communication between management and staff, companies have the opportunity to not only improve workplace satisfaction but also boost their bottom line.

Sam Byrnes asserts that empowering workers by providing the right tools, creating platforms for effective communication, and recognizing performance are key to reversing this trend. “Workers are only as effective as their tools,” Byrnes says. SafetyCulture’s mobile-first platform, which focuses on improving safety and operational standards through better tools and knowledge sharing, is one such solution designed to meet the needs of Australia’s frontline workers.