The first interest rate cut in more than four years may lead to a mass resignation of Australian workers who are feeling undervalued and under-recognised, according to a new report.

Global human resources platform HiBob conducted a survey of nearly 1,000 Australian knowledge workers and found that many were only staying in their current roles due the current economic climate and cost-of-living pressures.

The survey revealed that 43 per cent of respondents said they were ready to jump ship from their current workplace the moment the Australian economy improves.

That time may have come, with the Reserve Bank of Australia on Tuesday cutting interest rates by a quarter of a percentage point, the first time it has made a cut since November 2020.

The official interest rate is now at 4.1 per cent, with an Australian with a mortgage of $600,000 to save about $100 per month thanks to the cut.

‘Talent time bomb’

The survey, which was undertaken late last year before the rate cut was announced, found that just under a quarter of respondents were staying in their job just because of economic pressures.

Signs of an improving economy means Australian businesses are now facing a potential mass exodus of staff, HiBob country manager, ANZ, Damien Andreasen said.

“Australian businesses are sitting on a talent time bomb,” Andreasen said.

“While employees may appear content now, they’re biding their time until the economy improves.

“But when that happens, it won’t necessarily be good news for employers.

“Unless companies proactively address the underlying drivers of dissatisfaction – from a disconnect between hard work and actual career progression to poor guidance and feedback – a mass exodus is inevitable.

“The moment employees feel empowered to move, they will, leaving businesses scrambling to replace critical talent.”

Separate research from earlier this year also found that many Australians would be looking for a new job this year, with more than three in five ready to leave their workplace in 2025.

Work-life balance comes first

The research found that cost-of-living pressures were leading to significant dissatisfaction among the Australian workforce, and that more than 60 per cent of respondents said they planned to seek new employment this year, up from under 50 per cent in the previous year.

The HiBob research also found that Australians are prioritising work-life balance above nearly everything else.

Less than 30 per cent of those surveyed said they would extend their working hours in an effort to secure a promotion, while 54 per cent would stall career progression in order to have better work-life balance.

“Aussies value hard work, but they’re rejecting the outdated idea that success requires sacrificing their wellbeing,” Andreasen said.

“If businesses continue to link career growth to overtime, they’ll push their best people away.”

Australian full-time employees work an average of 3.6 hours in unpaid overtime each week. This figure dropped by a third in just months after the right to disconnect came into effect, which bans employees from punishing workers for not responding to “unreasonable” workplace communications outside of their paid working hours.

According to the HiBob research, three-quarters of surveyed employees support the right to disconnect.

“It’s clear that the future of work isn’t about staying late but about working smarter,” Andreasen said.

“Australian workers have spoken – they’re stuck in career limbo, waiting for the right moment to move.

“Businesses that listen and respond to their call for clear career paths, meaningful feedback and improved work-life balance will proactively shape the inevitable talent shift instead of scrambling to react when it’s too late.”

There are significant health and wellbeing issues among the Australian workforce, with recent research finding that one in five employees are languishing, meaning a “feeling of being dissatisfied with our life, who we are and where our life is headed”.

Ongoing efforts to pare back work-from-home rights and mandate a return to the office may also contribute to workers looking to find a new job, with this going all the way up to key senior executives, who say they are also likely to leave if required to return to the office.