### Declining Workplace Fulfillment

New research reveals that only **14%** of Australian knowledge workers report a healthy relationship with their work, placing Australia near the bottom among surveyed countries. This finding comes from HP's third annual **Work Relationship Index**, which assesses global job and workplace environment sentiments. In Australia, the percentage of workers with a positive work relationship dropped by **13 points** from the previous year, indicating a significant decline in workplace morale and satisfaction.

The study, involving 1,000 desk-based Australian employees as part of a global sample, highlights falling levels of workplace pride and engagement. Fewer workers now recommend their companies as great places to work or plan to stay with their current employer for another two years. The report notes a marked decline in **people-centric approaches** and **effective leadership**, leaving many employees feeling less cared for and disconnected from their organisation's purpose.

Brad Pulford, Managing Director for Australia and New Zealand at HP, commented on the broader trends: "The traditional employment model has fractured. Global disruption, economic pressures, and changing workplace expectations have created an environment that feels more demanding and less rewarding."

The report shows significant dips in work relationship scores across sectors like **finance**, **professional services**, **manufacturing**, and **education**, with double-digit declines. Business leaders also experienced a **15-point drop** in their Work Relationship Index scores, indicating pressures across the hierarchy. Only **44%** of knowledge workers feel their job provides a sense of purpose, and just **39%** feel adequately recognized for their efforts.

### Changing Conditions and Increased Pressure

Australian workers have faced considerable changes in the past year, including widespread organisational shifts such as **cost reductions**, **redundancies**, and evolving **hybrid work** arrangements. A majority—**58%**—of respondents believe that employer demands and expectations have increased, contributing to stress and disengagement.

### AI and Technology as Positive Influences

Despite these challenges, technology and **artificial intelligence** offer a potential pathway to improved workplace satisfaction. The report indicates that **77%** of Australian workers use AI tools in their jobs, with almost one-third using AI daily. AI adoption is growing rapidly among older employees, with boomers closing the gap with younger generations.

Employees in organisations that invest in the right **digital tools** and AI technologies are up to **five times more likely** to have a healthy relationship with their work environment. Productivity and engagement also rise in tech-enabled workplaces, with **42%** of employees categorized as having a "healthy" connection to work using AI daily.

> "This is a wake-up call for every employer in Australia. Despite the pressures around us, the drivers of fulfilment sit largely with employers; how we lead, how we recognise people, and how we put technology to work so it restores focus. That's the future of work Australians deserve: equitable collaboration, time back for focus, and AI that helps and never overwhelms."

The report found further optimism in technology, with **65%** of IT leaders, **57%** of business leaders, and **42%** of knowledge workers saying that technology makes them feel positive about the future.

### Action Points for Employers

The research suggests practical steps for employers to improve workplace relationships and boost fulfilment:
- Increase the frequency and relevance of **employee recognition**
- Make **hybrid meetings** more inclusive and purposeful
- Streamline workflows to reduce unnecessary **digital clutter**
- Provide clearly defined use cases, training, and responsible guardrails for **AI technology** to ensure it augments rather than overwhelms work

Managers are identified as key multipliers of positive change, with the report encouraging organisations to better equip leaders to manage workloads, foster clear communication, and maintain regular, high-quality engagement with their teams.

The Work Relationship Index, now in its third year, surveyed 18,200 desk-based employees across 14 countries, evaluating workplace relationships using a five-point scale and categorizing employees into "Healthy", "Watch-Out", and "Critical" groups for analysis.

Only 14% of Australian knowledge workers report healthy work relationships, but growing AI use offers hope to boost engagement and satisfaction.

AI to the Rescue: How Technology is Reversing Australia's Workplace Morale Crisis

## New Zealand's Flexible Work Decline Outpaces Australia

New data reveals that **New Zealand employers are scaling back remote-work options** more rapidly than their counterparts in Australia, a trend that experts warn could accelerate the **brain drain of talent to Australia**.

According to recruitment website Seek, only **7% of job ads in New Zealand now mention work-from-home or hybrid flexibility**, down from nearly 10% a year ago. In contrast, Australia maintains a higher rate at just over 9%, down from 11%.

![Image showing job ad flexibility comparison](https://www.thepost.co.nz/media/images/9Tzi8ywRz924XE3uHaD6DZ3Ef+IdbOiYlvIROR5vlqUeRrexTocZGobKRJ9od%2Fgnk3B%2FCeKTmTAsIjj6Q0YaYS86uYpJihfE4QiZM0FDQeeXEDHdjqVio5qaSO1TpdXYMwNvty+0qCMnK%2FD8%2FcwPtJlsU7mpyp7szfptpaUm6xaqD7gVU4uuh43%2FAmoblH4QgIQyleK05q4D71luOXZobUrqDdbV0F85i96Mwi16ZXSAPJXmNZ4dWvv3%2FtRIB5kMthN+pV%2FXMfLADLmgXONpGQ9LkqTmeZbx9rUZzag4BiVRw+wTHDl0qC6tmpOfywSkvklUvLtKtyglVr4GTTjH32CHG725+spZW1jF6i0w5DTr7yaU9WftzvSRzPyTEjR2i3X4P7EqVsUiM1ojISRLi2F7xDJd06Q%2FMnlbeVQMPVdcRlG5vkUKQCZFRh%2F%2FNhyayIwLNFNR3Gpjdhbk+VeZB7GyvjrQwRwm7+vW7PHHESJ5B15PBRodRMJ5cR%2FyrwtkXq0tiyKOxRdBPQiVHx5kSg==?resolution=1240x700)

*Caption: New data shows just 7% of new job ads on Seek in NZ mention work from home flexibility, compared to Australia’s 9%. Both countries have declined in flexibility, according to the job ad data. ROBERT KITCHIN / THE POST*

### Economic and Social Impacts

Seek senior economist **Blair Chapman** highlighted that this retreat "has the potential to exacerbate the brain drain to Australia, which has not retreated to such an extent." Applications from New Zealanders for Australian jobs surged in 2022 and remain elevated, growing about **1.3% per quarter** since November 2022, while international applicant growth for Australia has slowed to 0.5% per quarter.

Chapman noted, "During the pandemic, flexibility was a useful recruitment tool. Now, with more labour available, New Zealand employers don’t have to compete as hard."

### Legal and Union Responses

This week, the **Public Service Association (PSA) launched legal action against ACC** after it increased mandatory office days from two to three. PSA national secretary **Fleur Fitzsimons** criticized the move, stating, "It reduces morale when employers try to cut work from home allowances. Too many New Zealand employers have outdated ideas."

She emphasized, "Australian employers realise working from home is good for workers and good for business — it’s a genuine win-win." Fitzsimons attributed the shift to a "lack of trust rather than recognising the productivity gains that can occur."

![Image of Fleur Fitzsimons](https://www.thepost.co.nz/media/images/9Tzi8ywRz924XE3uHaD6DZ3Ef+IdbOiYlvIROR5vlqUeRrexTocZGobKRJ9od%2Fgnk3B%2FCeKTmTAsIjj6Q0YaYUc8B9L81Q4wyEYM39XWw2tqxeX1%2F3FHfbtz8ASYygwvQIZxOypGE6rNWzRQJNpjbyX3tadsFPeRFvL6k6+moqu%2FYW8dy%2FyzJMI20wQ5QILlIvyzqTOvhlNeicypcDAKYkIf2NGMyN5e2%2FzFQpc%2FRrbzdxgCXGCz5KVm3yA1EKGlG7Dm9AzVOoZk24opfe6DMzLAM70iED5EcIA4CWCpShTRn7fdzbdvbAYtGbdWS5tVXiHekRfoQIGIz8MnkshqW0gsgeJk8xfINInLHW0csTcM54TBcxdPshK862MndEdFKFZsYStq2hovB4gOwBqbDSm23VF5eRk623%2FHX0SyCuy8qT3gd0F%2Fik%2F06nLNCmOr3sl0wk0DLuh1EFh72eVhWh5w5G1t6gUzyENPiIdqS8Zp5Ydg4YIlQrVEmUoV07gi+OseJMQ6nspbihbFJ+eEkg==?resolution=1240x700)

*Caption: PSA national secretary Fleur Fitzsimons said Australian employers are recognising the value for flexible working to retain talent. DAVID UNWIN / The Post*

### Worker Experiences

Employees in New Zealand report increasing restrictions. An Auckland-based accountant, Christine, shared that she can only work from home one day a week with strict rules, such as no remote work before or after holidays and requiring two days' notice. She expressed, "After Covid we were trusted to work from home full-time – now it feels like a lack of trust, like being back at school."

A Christchurch employee at a major insurer described a similar tightening, with a new two-day office rule imposed after a leadership change, adding 90 minutes of daily commute. He noted, "Working from home is now seen as something that can affect salary or even trigger disciplinary review," and felt misled as permanent remote contracts were overridden.

### Legal Protections Disparity

In Australia, the **Fair Work Commission (FWC)** can intervene if an employer unjustly rejects a flexible work request, even approving it directly. For instance, the FWC recently ruled that Westpac failed to justify rejecting an employee's full-time remote work request.

Conversely, New Zealand's **Employment Relations Authority (ERA)** lacks such powers; it can only review if employers acted in good faith but cannot compel decisions. Employers must consider requests fairly but can deny them for valid business reasons, with fines up to $2000 for procedural failures. There are no plans to align with Australia's stronger protections.

![Image of Caleb Hulme-Moir](https://www.thepost.co.nz/media/images/9Tzi8ywRz924XE3uHaD6DZ3Ef+IdbOiYlvIROR5vlqUeRrexTocZGobKRJ9od%2Fgnk3B%2FCeKTmTAsIjj6Q0YaYbVsNcBcqQo6n6MqRprEkqkA5JLY0HNa124ktmFH1BaO6a+bY8ecloquLbApkDbkKDhZDkNNy1EhF4r3ubi1Q01zluQsjwoEjPkvhD9u4CYNYV7qdRACQtVB4jyh5oWpcZ63dir9+7F%2Fswey5CZ00cWOJOyxWLQSsizsTfELSovlkGguYTRr0WgU7bX2f%2FczNKZOgcGyoSwOnKzJs%2FMqNHvLEAJT2TsnnY%2FZH+ZQ98+WF4CvF2bUXR%2FClS1lC5FW75go6FMNPGjTbgyUHx8EVu3lpTErGUqvUS3AKAr1Ejvd6fK4pRuYYqABU4ulUDiunOjZxZOb2AdI+UpetEQ6XyxWO%2FvRF77VfiBGeUylYmkp5O3yzRN53xmVhVugNvVTYLYPmp3ui+8UIzfaZspA7eXHw1OnCyuMoXZs6BpULXK6BQFwt76b3hqUNkvLch0m%2FQ==?resolution=1240x700)

*Caption: Mana Communications founder and managing director Caleb Hulme-Moir said Australian workers have more legal protections. SUPPLIED*

### Success Stories and Future Outlook

**Mana Communications** founder Caleb Hulme-Moir highlighted that Australian policies, driven by government and unions, foster better employee conditions. His firm adopted a structured hybrid model with a set work-from-home day each Wednesday and a nine-day fortnight, proving no drop in quality during a four-day week trial.

Hulme-Moir stated, "Humans are social. Being together is healthy. Work from home is great for productivity, but it will never replace connectivity." His account manager, Robert Hoek, appreciated the flexibility as a new parent, which boosted his motivation and loyalty.

Chapman pointed out that **Gen Z values flexibility highly**, equating it with salary and purpose. He predicted New Zealand's remote work ads will continue declining before stabilizing above pre-Covid levels but below current rates.

Fitzsimons concluded, "There’s no going back to pre-Covid workplaces. Employers need to value this or they’ll lose more talented staff to Australia."

New data shows NZ firms advertising flexible working is dropping faster than Australia, which workers and experts say could be pushing staff offshore.

Remote In Australia Articles Published 5 days ago

Remote In Australia Articles Published 6 days ago