When workers think innovation is lacking, it can severely affect business performance.
Australian employees report feeling uninspired by their leaders, as organisations prioritise growth and productivity over creating purposeful opportunities for their workforce to innovate, according to Gartner Inc.
Gartner’s latest Global Talent Monitor survey data (April–June 2024) reveals Australian employee perceptions of how innovative their workplace is have reached an all-time low of 14 per cent — a decline of nearly 10 per cent from a high of 24.5 per cent in the third quarter of 2021 (3Q: 2021).
The survey is made up of more than 6000 employees in 40 countries, including 855 in Australia in 2Q: 2024.
Gartner’s recent data shows the top three drivers of attraction in Australia are location, work- life balance and compensation for the third consecutive quarter, as employees seek to retain personal control of their working conditions.
“When organisations fail to motivate employees to innovate, it’s a fast track to poor business performance,” says Gartner HR research and advisory vice president Aaron McEwan.
Approaches to diversity, equity and inclusion (DEI) are also limiting innovation. Organisations that do it well are known to consistently produce superior business outcomes including innovation, according to Gartner. However, the overall confidence of Australian employees in their organisation’s DEI initiatives is at the lowest point recorded by Gartner in 2Q: 2024 — 61.9 per cent.
“To better support and inspire employees, leaders must focus on balancing the need for operational excellence with introducing products, strategic business partnerships and digital innovations that enable employees to thrive,” says McEwan.
Despite frustrations at a lack of workplace innovation, few employees have the confidence to find a new role in the current environment. Gartner’s survey found intent to stay increased from 36.1 per cent to 36.8 per cent in 2Q: 2024. In addition, overall employee wellness continued to fall for the second consecutive quarter from 31.1 per cent in 4Q: 2023 to 29.3 per cent in 2Q: 2024.
Access more information here.
This article first appeared under the headline 'Employees Uninspired’ in the November 2024 issue of Company Director magazine.
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