Work-life balance has overtaken pay as the primary driver for employees, according to a new report.
Surveying over 26,000 workers across 35 markets globally, the latest Workmonitor report by Dutch-based recruitment firm Randstad highlights a significant shift in workplace priorities. Despite economic and geopolitical challenges, employees are reshaping their expectations, with personalisation, community and skills development emerging as key demands.
For the first time in the report’s 22-year history, work-life balance (83%) surpassed pay (82%) as the top motivator for workers. It marks what the company says is the emergence of a new “workplace baseline” that employers must embrace to remain competitive.
The Cost of a Toxic Workplace
The findings reveal that employees are increasingly willing to act if their expectations are not met. A total of 44% of respondents said they had quit a job due to a toxic workplace — a 33% increase compared to last year. And nearly half (45%) have campaigned for better conditions at work, demonstrating a growing readiness to demand change.
Personal alignment with workplace values has become non-negotiable for many employees. According to the report, 29% of respondents have left jobs due to disagreements with leadership views, while nearly half (48%) said they would not accept a role if the company’s social and environmental values did not align with their own.
Flexibility is another dealbreaker, particularly for younger workers. Almost a third (31%) have left jobs due to a lack of flexible working arrangements. This demand is most prevalent among Gen Z, with 40% reporting increased flexibility in the past six months compared to just 17% of Baby Boomers.
Community Over Compensation
The report underlines the importance of a sense of community in the workplace. The vast majority, or 83%, of employees want their workplace to foster a sense of belonging, with over half (55%) willing to leave if they don’t feel they fit in — a significant rise from 37% the previous year.
Meanwhile, a third (36%) of respondents would accept a lower salary if it meant having close friends at work. The correlation between community and productivity is clear, with 85% believing they perform better when they feel a sense of camaraderie with their colleagues.
Successful businesses are those that will adapt and adjust to this new talent baseline. The solution lies in empowering our key resource: people — Randstad CEO Sander van ‘t Noordende
Skills development is another critical area where employee expectations are outpacing employer action. While 41% of employees said they would quit if denied opportunities to future-proof their careers — up from 29% last year — over a third (36%) report that they are not receiving adequate training.
AI skills top the list of sought-after development opportunities (23%), followed by IT literacy (11%) and leadership skills (7%). But only 9% of businesses currently offer coaching programmes for all employees, the report found.
Trust Issues Persist Between Managers and Talent
The report highlights a troubling lack of trust between employees and their managers. Nearly a third (30%) of respondents said they do not trust their manager to act in their best interests, while 33% expressed doubts about their manager’s ability to support their career progression.
This trust deficit is compounded by concerns over remote working. Over a quarter (28%) of employees believe their managers don’t trust them to maintain productivity while working from home.
Randstad’s CEO, Sander van ‘t Noordende, said company leaders must now pay more attention to staff’s needs or they risk losing top talent.
“Many expected the challenging economic conditions of 2024 to temper talent expectations,” he said, “but the Workmonitor shows the opposite has occurred. We have seen a new baseline established with talent continuing to hold multifaceted expectations.”
He said for many people, “the significance of work is complex and needs to be personalised” and that employees were making decisions about their jobs and careers based on “what truly matters to them as individuals and within their communities”.
Van ‘t Noordende added that “successful businesses are those that will adapt and adjust to this new talent baseline. The solution lies in empowering our key resource: people”.
