Beyond the payslip: How employee happiness powers retention in modern workplaces

There’s no denying that pay matters. Fair and competitive compensation remains key for all businesses, especially in a cost-of-living crisis. However, salary alone is no longer enough to attract or retain talent in the long term, writes Emmy Andriotis.

At ADP, we’ve witnessed a clear, seismic evolution in what Australians value at work. Beyond base pay, employees seek a holistic experience and benefits that recognise and value their people, knowing them as people and not just the role or function they occupy. This is the modern retention strategy built for employee happiness – not just dollars.

The rise of holistic workplace offerings

What was once a straightforward discussion about salary has transformed into a multifaceted conversation. Today’s employees are asking:

• What wellbeing support do I have access to?
• Can I work flexibly – not just remotely, but with adjusted hours?
• What benefits are on offer that match my personal values and interests?

They’re not just looking for a job but evaluating whether organisations can support the life they want to lead, aligning with their personal and family values.

At ADP, we’ve responded by embracing a holistic approach to remuneration. From flexible working models, mental health programs, additional leave benefits, healthy living benefits, life insurance, and everyday discounts, we’re designing benefits that help people live better. For some people, discounts on essentials like groceries, fuel, retail, and travel can equate to between $2,000 and $8,000 income boost – a tangible, everyday difference.

Flexibility, connectedness, and inclusion

Flexibility remains one of the most sought-after perks for Australian workers – but it’s not just about a person’s work location. True flexibility means empowering employees to manage their work in ways that complement and balance their personal lives.

Working together on designing an effective hybrid working environment, both in the office and remotely, is key to balancing organisational success, productivity, and employee flexibility. Likewise, face-to-face collaboration and interaction are still foundational in driving emotional proximity to ensure employees feel connected to their organisation’s culture and purpose.

Equally, understanding that as lives change, so too do the priorities of employees. Real flexibility considers the dynamics of an employee’s life stage – whether that’s new to the profession, the early 20s, the busy parent managing school pick-up, or closer to retirement. With multiple generations working side by side, businesses must thoughtfully support each group in ways that are relevant and respectful to each individual. At ADP, we accomplish this by fostering connection and community through initiatives like the ADP Generations Business Resource Group – our fastest-growing internal community – designed to support employees at every stage of their professional journey.

Happiness is the real retention strategy

The ultimate goal isn’t just satisfaction – it’s happiness. When people feel emotionally connected to their work, recognised as individuals, and seen for their contributions and personal values, they stay. And more than that – they thrive. Happiness and connections start with being heard, valued, and included.

If you’re only talking about pay, you’re behind

Salary may bring people through the door, but it won’t make them stay. Organisations that want to retain talent must look beyond the transactional and offer best-practice market benefits that suit all generations.

Emmy Andriotis is the HR director at ADP Australia.