Why ignoring changing employee expectations is a losing strategy for businesses

Keywords: leadership, mentalhealth, futureofwork, productivity, sustainability

Date: 24 January 2025, WorkLife Digital

In the ever-evolving landscape of work, employee expectations are no longer what they once were. The latest findings from Randstad’s Workmonitor 2025 report (surveying over 26,0000 people across 35 markets globally) shine a spotlight on a fundamental shift in what talent values most, and it’s a wake-up call for business leaders who refuse to adapt. Economic uncertainty, technological advancements, and shifting social dynamics have reshaped the priorities of today’s workforce, placing greater emphasis on mental health, psychological safety, and workplace culture. Yet, many leaders remain sceptical or outright dismissive of these trends, to the detriment of their organisations.

The data speaks volumes: work-life balance has, for the first time, surpassed pay as the top motivator for employees. While compensation remains important, it is no longer the sole driving factor. Employees are seeking a deeper connection to their work, a sense of belonging, and alignment with personal values. Employers who fail to meet these expectations risk losing their best talent and, with it, their competitive edge.

Mental health and psychological safety: The new frontiers

A staggering 44% of employees have left jobs due to toxic workplace cultures, according to the Workmonitor 2025 report. This is not just a statistic; it is a clarion call for change. Toxicity in the workplace undermines trust, destroys morale, and directly impacts productivity. Psychological safety—the belief that one can speak up, express opinions, and be authentic without fear of judgment or retaliation—has become a non-negotiable for employees. Alarmingly, the proportion of workers who report hiding aspects of themselves at work has risen from 55% in 2024 to 62% in 2025. This trend is especially pronounced among Gen Z, highlighting the urgent need for inclusive and supportive work environments.

Yet, fewer than half of employees trust their employers to create a culture where everyone can thrive. Businesses that neglect mental health and psychological safety are not only failing their people but also sabotaging their own success. Research consistently shows that employees who feel valued and supported are more engaged, innovative, and productive.

Workplace culture: From nice-to-have to must-have

Workplace culture has transcended the realm of “soft issues” to become a critical business imperative. The Workmonitor 2025 report reveals that more than half of employees would quit if they didn’t feel a sense of belonging. Additionally, 36% would accept lower pay in exchange for a strong workplace community. These findings underscore the importance of fostering environments where employees feel connected, valued, and empowered to bring their whole selves to work.

Moreover, alignment with organisational values is now a decisive factor for talent. Nearly half (48%) of respondents say they wouldn’t work for a company whose social or environmental values didn’t align with their own—a sharp increase from 38% in 2024. For businesses, this is both a challenge and an opportunity. Leaders who embrace authenticity and align their organisations with meaningful causes will not only attract top talent but also build stronger, more resilient teams.

The flexibility revolution

Flexibility has become a cornerstone of modern work, with 65% of employees reporting flexible working hours and 60% enjoying location flexibility, both significant increases from the previous year. This shift reflects a broader trend: employees are no longer willing to conform to rigid, outdated work models. Instead, they expect jobs that fit seamlessly into their lives, offering the freedom to balance personal and professional responsibilities.

However, a persistent gap remains between employee expectations and employer policies. While many workers prefer hybrid arrangements, a significant share of employers still push for full-time office attendance. Closing this gap will require leaders to embrace flexibility not as a concession but as a strategic advantage that enhances trust, autonomy, and productivity.

Skilling and career growth: Non-negotiables for the future

In a world where technological change is accelerating, opportunities for skills development are no longer optional. According to Workmonitor 2025, 44% of employees wouldn’t accept a job without future-focused skilling opportunities, and 41% would leave if their current role lacked such offerings. Yet, just 10% of coaching programmes are open to all workers, highlighting a significant disconnect between employer intentions and employee needs.

This disparity is particularly concerning given the systemic talent scarcity facing many industries. Younger generations, in particular, view continuous learning and career progression as essential. Organisations that fail to provide equitable access to skilling opportunities will struggle to attract and retain the next generation of talent.

Why leaders must act now

The message from employees is clear: work is about more than just a paycheck. It is about purpose, community, and alignment with personal values. Leaders who dismiss these evolving expectations risk alienating their workforce and undermining their business’s long-term viability. As the Workmonitor 2025 report highlights, the cost of inaction is steep. Employees are increasingly willing to walk away from organisations that do not meet their needs, with 55% citing a lack of belonging and 31% citing distrust in leadership as reasons for leaving.

For sceptical leaders, the question is no longer whether to adapt but how quickly they can do so. Embracing a people-centric approach is not just about doing the right thing; it is about securing a sustainable future for your business. By prioritising mental health, fostering psychological safety, and cultivating inclusive workplace cultures, organisations can not only meet the expectations of today’s workforce but also unlock their full potential.

WorkLife Digital is a global mental-wellbeing consultancy driven by the mission to improve the sustainability of businesses. Our psychological wellbeing tool, Worklife Quotient (WL-Q), is modelled on cutting-edge scientific research and provides organisation-wide measurement and intelligence on the mental wellbeing levels and psychological resilience of staff. WL-Q also assesses the impact of organisational practices (i.e. people and culture, leadership styles, organisational purpose and values, social impact) that have a direct influence on staff wellbeing and provides strategic recommendations on addressing risks and promoting strengths.

For more information, get in touch at lisa@worklife.digital

REFERENCES

Workmonitor 2025: a new workplace baseline. Randstad

https://workforceinsights.randstad.com/download-the-workmonitor-2025-report