New workplace report suggests how small businesses can win the war for talent over big competitors

Australian workers see a strong work-life balance as the most desirable trait among employers, new research shows, suggesting small businesses may be able to woo employees with benefits not provided by their larger competitors.

Global recruiting giant Randstad released its Employer Brand Research paper on Monday, tallying the thoughts of nearly 6,000 employees spread across 75 of the nation’s largest employers.

The number one criterion for an ideal employer is ‘good work-life balance’, the data shows, surpassing an attractive salary and financial benefits in second place.

The desire for a strong work-life balance was even between genders.

While work-life balance was the top-ranked factor for employers in both 2021 and 2022, it has only become more important to employees since then, the latest report states.

However, Australian survey respondents ranked work-life balance as the fifth-best attribute of their current employer, demonstrating what the authors called a “clear mismatch” between businesses and their staff.

Demonstrating the inability of some businesses to adapt, almost half of respondents said they would have to change jobs to improve their work-life balance.

Given the survey’s stated focus on big business, the data provides some insight into how smaller employers can beat bigger employers at their own game — even without handing out pay rises.

When asked what benefits would be most appreciated if a pay rise was out of the question, 48% of respondents said they would welcome flexible start and finish times.

Some 38% of respondents said they would appreciate reduced days, and 33% pointed to reduced hours, giving some credence to recent research around the proposed benefits of a four-day workweek.

Professional development and training, and a robust employee wellness program — covering anything from mental health and mindfulness support to gym access — were each supported by 32% of respondents.

Retaining staff a matter of work-life balance

The survey also has intriguing findings for businesses hopeful of retaining their employees, not just winning them over from larger competitors.

On one hand, the official unemployment rate took a surprise dip to 3.6% in May, defying market expectations that increasing economic pressures would slow the demand for employees.

Given the ongoing talent shortage, Randstad says 12% of respondents said they were fearful of losing their jobs, down from 19% last year.

On the other hand, the sentiment that Australia’s economy is cooling off still exists among workers, who are less concerned about losing their current employment than taking a sideways step with a new employer.

“Australian employees are less fearful of losing their current jobs than last year however are becoming more cautious about switching to a new job,” the report’s authors state.

Improving the work-life balance equation can help employers retain staff who are still considering a leap of faith, the data shows.

Among workers considering leaving their employer, 45% ranked a perceived improvement in work-life balance as the most likely reason.

“This applies to all groups, and aligns with the fact that this is also the main driver when looking for a new employer,” the report states.

“Since current employee rated their work-life balance as slightly worse than its importance, it indicates a potential turnover risk for employers.”