Workplaces have become more demanding, less rewarding, employees say

Only 14 per cent of knowledge workers have a healthy relationship with their working environments, dropping 13 points from last year, a report has found.

For its report, Work Relationship Index 2025 (WRI), HP collected survey responses from 18,200 desk-based workers across 14 countries, with 1,000 in Australia, which explored how people around the world felt about their relationship with work.

Decline in relationships with work

Based on its findings, just over one in 10 (14 per cent) Australian knowledge workers reported that they have a healthy relationship with work, revealing that Australia had the second-lowest “relationship with work” compared to the other 14 countries surveyed, and it was a 13-point decline since last year.

Workers in professional services experienced double-digit drops in WRI scores, and business leaders experienced a 15-point decrease. This decline resulted in fewer workers feeling proud of their company, wanting to recommend it as a “great place to work”, or seeing themselves staying for two more years, the research revealed.

Changing work environment

Additionally, the research revealed that nearly three in five employers (58 per cent) said the demands of their employer have increased; however, fulfilment and recognition have declined.

Brad Pulford, managing director at HP Australia and New Zealand, noted that workers felt that the work environment was “more demanding and less rewarding” due to global disruption, economic pressures, and changing workplace expectations.

More than one in two Australian workers reported workplace changes in the past year, including cost-cutting, redundancies, and shifts in hybrid arrangements. Further, the findings unveiled that less than one in two (44 per cent) knowledge workers said their work gave them a sense of purpose, and less than two in five (39 per cent) reported receiving adequate recognition for their contributions.

‘Biggest levers for change’

Gen Z workers reported that they would trade part of their salary for more flexibility and autonomy, it found. Despite the drops in WRI scores, Gen Z remained more optimistic and enthusiastic, with a WRI score 4 percentage points higher than average. In addition to these findings, nearly four in five (77 per cent) use AI at work, while three in 10 (31 per cent) use it daily. Employees who reported that their company invested in AI were five times more likely to have a healthy work relationship.

HP recommended that organisations develop a recognition system that is more frequent and is linked to values and outcomes, establish better collaboration through hybrid work, create more streamlined workflows, and implement impactful AI use. Pulford said this underlines an “urgent challenge” and “unique opportunity” for HR departments as it highlights that fulfilment, leadership, and people-centric practices “must become business priorities”.

Pulford said the drivers of fulfilment are entirely up to 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,” he added.

HP data showed that employer-led leadership, a people-first culture, and smart tech will be the “biggest levers for change”. Thus, Pulford stressed that HR departments play a crucial role in creating workspaces where workers feel purpose and belonging.

“By leading with empathy and leveraging AI responsibly, we can help every employee thrive in the future of work,” he said.