Australian organisations struggle with cultural alignment

The 15th Annual Pulse of Talent report by Dayforce has highlighted that many Australian companies may not see their organisational culture efforts resulting in expected advancements.

This year, for the first time, the report introduced a Workplace Culture Index, classifying employees into Culture Promoters, Culture Passives, and Culture Detractors based on their perception of their workplace culture.

The report surveyed 1,068 Australian employees, exploring varied perspectives across workers, managers, HR leaders, and executives.

Brian Donn, Managing Director, APJ at Dayforce, noted the complexities Australian organisations face. "Australian organisations are in a constant balancing act between cultivating a strong culture where people can do their best work, and the needs of the business to be agile, efficient, and compliant," he stated.

Donn underscored the importance of making strategic cultural investments, adding, "Our research provides a data-driven playbook for Australian organisations to make the right investments in culture by aligning their benefits, initiatives, and technology with the needs of their people, thereby creating an advantage when it comes to attracting and retaining the types of employees they want and building a high-performing workforce."

The report highlights three areas where companies with strong culture, as perceived by Culture Promoters, excel more than those with weaker culture perceptions.

These include supporting productivity through appropriate technology, aligning benefits with employee needs, and offering flexible working conditions.

Findings indicate a disparity in technological support, with 85% of Culture Promoters satisfied with their technology, compared to 46% among Culture Detractors. Additionally, 55% of Culture Promoters believe AI positively impacts culture, versus only 28% of Culture Detractors. In terms of benefits, 82% of Culture Promoters feel their needs are met by company benefits, a stark contrast to the 20% of Culture Detractors.

Flexible work options are another key differentiator, with Culture Promoters more likely to report having flexibility in how (51% vs. 32%), when (55% vs. 32%), and where (55% vs. 42%) they work. Trust from employers is much higher among Culture Promoters, with 92% feeling trusted compared to just 27% of Culture Detractors.

The survey also addresses the sentiment towards artificial intelligence (AI) in workplaces. Australian respondents generally showed less enthusiasm compared to their global peers for AI implementation.

Only 46% of Australian respondents feel AI is used responsibly in their companies, compared to 49% internationally, and only 43% think it supports better decision-making, compared to the 46% global average.

Significantly, three-quarters of Australian employees (75%) reported they have turned down or would turn down a job opportunity due to cultural misalignment. The improvements in company culture were associated with higher engagement (59%), better mental health and reduced burnout (55%), and increased motivation to work harder (46%).