There has been a “fundamental shift” in how Australian companies are approaching culture, with innovative policies helping to withstand the huge challenges facing businesses today, according to a new report.

The 2024 Great Place to Work report draws on insights from over 144,000 workers and reveals what the best companies to work at in Australia are doing to set themselves apart and lead the way.

It found that companies implementing innovative benefits and leave policies are standing out from the pack, and along with a focus on credibility and transparency, are better able to withstand significant economic headwinds.

“What we’re witnessing is a fundamental shift in how Australian organisations approach workplace culture,” Great Place to Work Australia general manager Rebecca Moulynox said.

“The most successful companies are those combining strong leadership integrity with innovative, people-first policies.

“It’s about creating an environment of trust, purpose and genuine care for employee wellbeing.”

Overall, the report found that employee satisfaction has decreased slightly in the last year, from 80 per cent to 78 per cent.

Small companies were the only sized business that experienced an increase in employee satisfaction, while micro companies had the highest satisfaction level of 91 per cent.

The report also found confidence in executive teams down by five per cent among those who had expressed strong confidence in the previous years.

The main things setting apart Australia’s best workplaces are the ability to revolutionise how benefits and leave is structured, transparent leadership and a focus on purpose and impact, the report found.

“Despite economic pressures, innovative organisations are maintaining strong cultures through intentional leadership and meaningful initiatives,” Moulynox said.

“These companies understand that investing in people and culture isn’t just good for employees – it’s essential for business success.”

Innovative approaches to culture

The report found that the best workplaces in Australia are moving ahead with innovative initiatives to better support their employees and build trust and loyalty.

These include gender-neutral parental leave policies of up to 16 weeks, “work from elsewhere” programmes facilitating global work flexibility, nine-day fortnights and innovative leave arrangements, comprehensive reconciliation action plans, and industry-first disability action plans.

“This evolving approach ensures that organisations are not only keeping pace with societal changes but also fostering an inclusive and supportive environment,” the report said.

A number of large tech firms have also moved to offer employees an extra week of annual leave in an effort to boost worker wellbeing and the economy in general.

Australian companies are at the “crossroads of significant change” Moulynox said.

“The global economic landscape is shifting, workforce expectations are evolving, and new technologies are reshaping industries at an unprecedented pace,” she said.

“Amidst these challenges, one thing is clear: workplace culture remains the bedrock of sustained success.

“Companies that prioritise trust, pride and camaraderie are not only better equipped to weather the storm but to emerge stronger in uncertain times.

“The companies that lead in 2024 are those that have embraced trust, fairness and purpose.”

Importance of good management

Of the top workplaces in Australia, 93 per cent of employees said that management shows a sincere interest in their workers as people, compared to just 52 per cent of workers at the rest of the companies.

Employees at the top companies were also far more likely to say that management shows appreciation for good work and extra effort, and that they recognise that honest mistakes are part of doing business.

Integrity and credibility are also crucial, with 96 per cent of workers at the top companies saying their management is honest and ethical in business practice, compared with just 54 per cent of overall employees.

There were similar recorded differences when it came to management delivering on its promises and management’s actions matching their words.

“When leaders demonstrate integrity by making ethical decisions and staying true to the company’s core values, they build a culture of lasting trust” the report said.

“And that trust isn’t just a nice-to-have, it’s essential for a thriving, successful organisation. Credibility must become ingrained as a cultural norm, not just a one-off event or an occasional act of integrity.

“Ultimately, credibility is the bedrock of any high-performing organisation. Without it, trust cannot be sustained, and without trust, a great workplace simply cannot exist.”