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Sydney, 20 December 2022 – New independent research by specialised recruiter Robert Half finds that more than one third (38%) of businesses have cancelled staff entertainment (summer and Christmas parties) to protect themselves from the impact of inflation. As the end of 2022 approaches amid a tight labour market, protective business measures affecting company culture could have a negative impact on retention rates and employee satisfaction going into the new year.

How cutting costs can impact company culture

Social, in-person events contribute greatly to company culture, however, in order to manage cost during a time of soaring inflation, more than one third (38%) of businesses have cancelled staff entertainment like end-of-year celebrations and holiday parties to protect themselves from the impact of inflation. This is especially true in medium-sized businesses, with more than half (54%) taking this measure. 

“Rising inflation is having a negative impact on Australian workers’ employee experience, with some companies cutting costs on events and experiences that contribute to a strong company culture. The idea of having premium corporate culture is becoming one of the biggest attraction and retention strategies amid a tight labour market, with candidates paying more attention to what their experience would look like if they took a job offer from a company. During the interview process candidates are inquiring about recognition efforts, social events, and company culture initiatives as a way to evaluate the quality of a job offer. Company culture is one of the main factors that entices existing employees to stay with their employer”, said Andrew Brushfield, Director Robert Half Australia in announcing Robert Half’s latest survey results.

“Cutting highly-valued social events like Christmas parties can leave a sour taste in employees' mouths as the year ends, potentially putting a negative light on the hard work they have done at a time when achievements are usually celebrated with peers. Before taking similar actions in the new year, businesses should consider other ways of managing costs like creating and sticking to a budget and keeping track of expenses.”   

“By understanding the qualities that candidates prioritise when assessing and choosing employers in 2022, hiring managers can create a strong company culture while managing costs during a time where cost of living is soaring. This works wonders in creating emotional buy-in from candidates and staff, lowers reliance on salary as a reason to start or stay at a business, and aids the retention of satisfied employees,” concluded Brushfield. 

Do employers and employees see eye to eye?

When considering what employers believe their staff value most from working at their company, leaders think their workers consider company culture (32%) in their top three priorities, behind career progression (35%) and flexible working conditions (33%). This is not far off from reality, with employees ranking company culture (27%) in their top four most important elements, behind remuneration, bonuses and subsidies (52%), flexible working conditions (46%) and career progression (27%). 

What contributes to a strong company culture

Beyond the specific benefits that employers can offer their workers, other intangible cultural and behavioural actions within the workplace can have a strong influence on the employee experience. The three most important contributors to a positive company culture among Australian office workers include feeling appreciated and recognised for their efforts (50%), being trusted to do their job regardless of where they work (45%), and being offered flexibility and choice in their work hours (40%). 

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EmployeePriorities_RobertHalf_Dec.pdf

Notes to editors 

About the research

The study is developed by Robert Half and was conducted online in June and November 2022 by an independent research company, surveying 300 hiring managers, including 100 CFOs and 100 CIOs, from companies across Australia. This survey is part of the international workplace survey, a questionnaire about job trends, talent management, and trends in the workplace.  

The Australian worker study is developed by Robert Half and was conducted online by an independent research firm in June 2022, surveying 1,019 office workers from across Australia.

For enquiries, please contact:

Courtney Fletcher

Courtney.Fletcher@roberthalf.com.au

+61 421 209 304