Seismic shift sparks warning for millions of Aussie workers: 'Honeymoon period is over'

Employees are slowly losing power when it comes to negotiating work-life balances and office policies. Staff across Australia have been able to call the shots over the last few years following the COVID pandemic as employers tried to desperately retain workers.

But a new report has revealed how the tide has started to turn and employers are in the driver's seat once again because staff want to hold onto their jobs. Recruitment expert Graham Wynn told Yahoo Finance while it's still hard to find good quality workers, staff don't have nearly as much bargaining power as they used to.

"As the labour market improves, and more people come into job searching, then that releases a little bit of pressure on employers, and they then get that bit more bargaining power back again," he said.

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As Australia came out of the pandemic, employees set their expectations high.

“In 2022 and early 2023, due to the many skill shortages, job seekers increased their salary and benefit expectations," Erin Devlin, people2people Recruitment’s Victoria managing director, said.

people2people's 2024 Employment and Salary Trends Report discovered the cost-of-living crisis and brutal job market have made employees less likely to try to look for new roles.

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A staggeringly high number (70 per cent) of Aussies and Kiwis said they are hesitant to switch jobs because of current economic uncertainty and now they've readjusted how they play the game.

"Now that the power has shifted in employers’ favour, job seekers’ focus has moved towards long-term opportunities," Devlin said.

That COVID honeymoon period is over

Wynn told Yahoo Finance there is a delicate balance now of employees wanting certain job perks like working from home without pushing the envelope too far.

But he said it will be pretty rare to find workplaces that will bend the knee to accommodate applicants' wishes.

"That initial honeymoon phase is definitely gone now," he said. "The good [jobseekers] are getting snapped up really, really quickly, but employers aren't having to offer as much as they were in the line of perks or temptations."

He had some advice for prospective employees who might be going into interviews armed with a list of demands.

"Sometimes what you need to do is get into a job...establish yourself, show them what you can do and once they see that then you've got more room to negotiate," he said.

"Trying to put too many conditions on before you even start working there can be off-putting because managers might worry if you're too high-maintenance."

What do jobseekers want the most?

The shift in workplace power came as new data revealed what job seekers prioritise when looking for a new role.

SEEK’s Laws of Attraction (LOA) study, which surveyed more than 14,700 people looking to change jobs in the next two years, found work-life balance was the most important quality in their search. Here's how the priorities played out:

• Work-life balance (15.4 per cent)

• Salary and compensation (13.9 per cent)

• Working environment (11.5 per cent)

• Management and quality of management (10.1 per cent)

• Career development opportunities (9.4 per cent)

It was followed by the salary and compensation on offer (13.9 per cent), working environment (11.5 per cent), the management and quality of management at any new role (10.1 per cent) and what career and development opportunities could be explored (9.4 per cent).

Career development rose to fifth place from seventh at the height of the Covid-19 pandemic – a testament to “workers going after progression and pay rises, as well the next generation joining the workforce in full strength”, the report continued.

A total of 36 per cent of Aussies surveyed said they still considered flexibility in working from home as a “must-have” when considering a job opportunity.

Meanwhile, 30 per cent said time in lieu “as compensation for overtime/additional hours worked” and additional leave were also must-haves.

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While everyone is hungry for a bit more coin, wider salary perks have emerged as a big aspiration. The survey found 23 per cent of workers believe having health or income insurance covered as part of their package was essential, which is up from 16 per cent in 2021.

Job seekers were also keen on a clothing (13.8 per cent) or a company car (11.7 per cent) allowance.

The report echoed the people2people study in saying workers now want to know they will benefit from staying at a workplace rather than jumping ship.

“While work-life balance continues to be the top priority for the majority of job seekers, it is becoming increasingly rivalled by salary and compensation, which has stayed strong in the face of the cost of living crisis,” the SEEK report stated.

“Work-life balance has gradually declined in importance … in favour of other drivers such as career development opportunities.

“This shows that what Australian workers want is increasingly becoming more complex and diversified, and reflective of shifting priorities as five generations coexist in the workforce.”

- with NCA Newswire