Addressing the ‘clear gap between employer perception and employee reality’

Employee–employer disconnect fuels higher rates of alternative job seeking and feelings of burnout, new research has revealed.

Australia’s dynamic employment market continues to prove its reputation, with a significant workforce shake-up forecast this year by Perkbox. The research, conducted by YouGov, revealed that 29 per cent of polled employees are likely to seek new employment this year, with feelings of being undervalued a prominent reason.

Of the population that felt undervalued, 40 per cent revealed they plan to look for a new role; this, according to Perkbox, strengthens the connection between perceived value and retention risk. And the numbers support this idea – while employers predicted staff would rate their sense of value at 8.57 out of 10, employees themselves averaged 7.13.

One in five employees scored their sense of value at five out of 10 or lower, but at the same time, a mere 3 per cent of employers believe their workforce feels undervalued at that level.

Rates were also higher among deskless workers. Among those who felt undervalued, 44 per cent reported a high likelihood of leaving within the next 12 months, 8 per cent higher than office-based employees.

As would be expected, trends by demographics also emerged. Generationally speaking, Millennials reported the highest average value score, 7.58, followed by Baby Boomers at 6.31, and the lowest being Gen X, averaging 6.15.

In addition, while male employees reported an average score of 7.27, female employees averaged 6.97. Nearly one-third of women also strongly agreed that feeling undervalued negatively affected their mental health or self-esteem.

Overall, while six in 10 employees reported feeling a flow-on effect on mental wellbeing, only 42 per cent of employers recognise the connection.

According to Perkbox Asia-Pacific regional director Daniel Sherrington, organisations “cannot afford to assume their people feel valued”.

He said: “Recognition and reward programs need to work just as effectively in hybrid and remote environments as they do in the office. Flexibility is valued, but it does not automatically create connection. If employees feel invisible or overlooked, retention becomes a real risk.”

Flexible working hours ranked as the most impactful benefit for both employers and employees, followed by work/life balance and financial wellbeing support. According to Perkbox, this suggests a degree of alignment between employers and their workers, but while 88 per cent of employers believe benefit packages can help employees feel valued, only 60 per cent reported the current existence of said benefits.

As such, benefits need to be visible, accessible and relevant to have an effect, lest organisations see more employees walk out the door.

And while this may seem to challenge the “job-hugging” trend that was identified in mid-2025, in which employees tended to remain in undesirable positions for the sake of job retention, it is not necessarily contradictory.

With these findings focusing on changing jobs rather than leaving jobs, it is possible that people are indeed staying in positions longer, but also keeping an eye and ear out for positions where they may feel more valued and moving on when an opportunity comes up, thus retaining financial security.