Kylie Terrell
The 5 biggest productivity drivers for Aussie workplaces in 2025 Productivity levels are dropping. In 2024, 68% of employees said they frequently felt productive. Now in 2025, that number has plummeted to just 48%.
With engagement and retention at risk, what’s driving productivity for Australian employees this year? The 2025 Workplace Engagement Index highlights five key factors:
- reward and recognition
- strong and supportive leadership
- competitive compensation
- engaging job scope
- seeing the impact of their work
Let's break them down. Plus, how HR and business leaders can act now.
1. Reward & recognition
Jumping up 10% from last year, reward and recognition have taken the top spot. Employees want to feel valued. But too many don’t!
- Only 23% of employees feel appreciated (down from 38% in 2024)
- Women (19%) and frontline workers (16%) feel the least appreciated
- Just 31% believe leadership does a good job of promoting recognition
What to do: Embed real-time, meaningful recognition into your culture. Make it peer-driven, leadership-led, and aligned to business goals.
2. Strong & supportive leadership (41%)
Great leadership is essential for productivity, but employees aren’t getting the support they need.
42% don’t feel comfortable talking to their manager about mental health or salary
Only 28% feel safe discussing work-life balance
1 in 3 managers lack sufficient leadership training
What to do: Invest in leadership development programs that help managers build trust, communication, and emotional intelligence.
3. Competitive compensation (38%)
Salary has moved up to the number 3 productivity driver (from number 4 last year), but it’s still not 1. Employees want a holistic Employee Value Proposition. not just a paycheck.
What to do: Offer total rewards beyond salary, including financial wellbeing support, flexible benefits, and performance-based incentives.
4. Engaging job scope (27%)
Fulfilling job responsibilities dropped from the top priority in 2024, signaling a shift towards external motivators like leadership, recognition, and compensation. Employees today need validation and support in a challenging work environment.
What to do: Provide meaningful career progression, autonomy, and development opportunities.
5. Seeing the impact of their work (25%)
Feeling appreciated goes beyond just rewards. Employees want to see how their work contributes to a bigger mission.
What to do: Help employees connect their daily work to business success, customer impact, and company values.
The bottom line
Recognition, leadership, and total rewards are shaping productivity in 2025. Businesses that prioritise these areas will boost engagement, retention, and performance.
Click on our accompanying infographic below to save the stats and share with your team, or download the full report at rg.co/wei.
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