Employee Benefits in Australia: What do Aussies Want?
A 2023 LinkedIn survey showed that Australian employees are 1.1x more likely to switch to a different company over internal career progression. This push and pull of the labor market begs the question: What employee benefits in Australia are most likely to attract and keep great talent in your organisation?
Recent Insights on the Aussie Workforce
Trading Economics said the employment rate was 64.40% in November 2024, and the recruitment rate hovers around 43%. The Australian Government’s recent report also mentioned that recruitment difficulty is at 50%.
This shows a good mix of challenges and opportunities in the Australian employment landscape. Both companies present in the market here as well as companies launching into the region need to know the expectations Aussie talent have from a benefits and career development perspective. This will help improve recruitment effectiveness and ensure you’re retaining the right talent.
Top Desirable Employee Benefits in Australia
Flexible Working Arrangements
One of the most sought-after benefits is flexible working arrangements. The traditional 9-to-5 workday is gradually becoming a thing of the past as employees seek more control over their work-life balance. A LinkedIn survey showed that 51% want flexible work arrangements, and 38% would not consider a job opportunity that did not provide this.
Benefits of Working From Home for Employers
Allowing employees to have flexibility in working arrangements can also help the company. Global Workplace Analytics found that companies can save up to $11,000 (A$17,300) per remote employee. Want a deeper dive into the pros and cons of the three main work models? You can check out our Start-up Guide blog.
Competitive Compensation Packages
Offering attractive salary packages, performance bonuses, and profit-sharing options can help companies draw and retain top talent. An important factor to consider is that the main working hubs of Australia – Sydney and Melbourne, are expensive cities relative to the global landscape. House prices, childcare and education are on par with some of the most expensive cities in the world such as London and New York. The addressable talent market however, is relatively small meaning that competition for talent can be fierce. This can drive salaries up and make incentives and performance rewards even more important.
A survey by PwC Australia found that 25% of employees stay in an organisation for the incentives and performance rewards they receive.
Performance bonuses inspire employees to reach targets, and profit-sharing options help them see their role in the company’s identity and success. Employees want to feel that their hard work is rewarded and recognised, and a competitive compensation package is a clear way to demonstrate this.
Health and Wellness Programs
Private health care is also a popular benefit, with the Australian government applying a Medicare Levy surcharge to individuals without appropriate private patient hospital cover (income dependent).
Australians are also very health conscious, and they enjoy active lifestyles. Giving health and wellness programs as one of your employee benefits in Australia can be compelling and also help reinforce that you value employee wellbeing as part of your culture. Perks like gym memberships, fitness classes, and health screenings are popular whilst also contributing to a healthier and more productive workforce.
Another benefit to explore is mental health initiatives. A study by TNS shows that 75% of Australian employees believe that employers should provide support for those experiencing depression or anxiety in the workplace.
Professional Development Opportunities
Australian employees also rank career growth opportunities very highly. Career progression and opportunities are driving factors (30%) for candidates in deciding whether they would accept a job or not. Companies that provide training and mentorship programs are more likely to attract ambitious individuals who are eager to advance their careers.
Supporting employees’ pursuit of higher education is another powerful retention tool. Programs like tuition reimbursement and study leave options work as employee benefits in Australia as they support employees to continue their education with less financial burden.
Generous Leave Policies
Leave policies are critical components of any Australian benefits package, and Aussie employees are particularly interested in generous leave options. Employee benefits in Australia include parental leave, annual leave, and personal leave (minimum legal requirements apply for all these). Above-average leave entitlements are likely to attract a higher volume and calibre of candidates than the standard legal requirements. With an incredible outdoors and favourable weather, Aussies love spending time outside and less time in the office.
Call for Growth
As the Australian labour market evolves, companies should regularly adjust their employee benefits in Australia to meet the needs and expectations of their present and future employees. Employers should establish a win-win ratio for both the company and talent.
Looking for more advice on hiring talent in Australia? Salient is a technology and sales recruitment agency with a long track record of helping companies launch into the region here. Contact us to learn more or build your new team.
