Australian Gen Z Workforce Is Disillusioned, Not Just Disengaged: New Study by Engaged Strategy Sounds The Alarm On Silent Crisis in Employee Engagement

·       52% of Australian business leaders believe their Gen Z staff are disengaged

·       60% of business leaders say they do not find it easy to inspire and lead Gen Z

·       56% of Gen Z women say they do not feel encouraged to have an open dialogue, while 54% say they do not have the support to maintain a healthy work-life balance

·       50% Gen Z men say their leaders do not discuss or provide clear pathways

Brisbane, 21st July 2025

Australia's famously laid-back yet industrious workplace culture is facing an invisible crisis. A groundbreaking new report by brand consulting firm Engaged Strategy, titled Gen Z Crisis at the Workplace Calls for Urgent Alignment, reveals a troubling disconnect between Gen Z employees and the leaders who manage them. As Gen Z increasingly dominates the global workforce, Australian leaders are struggling to connect with this purpose-led generation.

The study paints a sobering picture: just 52% of Australian business leaders believe their Gen Z team members are disengaged, and 40% admit that they find it difficult to inspire them. Gen Z employees themselves don't outrightly disagree, but they are far from content. Only 60% of Australian Gen Z respondents reported feeling engaged at work, a figure that falls behind global benchmarks. But the problem is not laziness or entitlement; it' is leadership misalignment.

"Gen Z in Australia is not simply disengaged, but they are disillusioned," said Christopher Roberts, Founder and Managing Director of Engaged Strategy. "Outdated leadership styles simply haven't evolved to meet what this generation values. Leaders are confident that they are doing enough, but Gen Z is not experiencing it on the ground."

One of the most telling disconnects is in communication. While 73% of Australian leaders believe they clearly communicate the "why" behind key decisions and changes, only 64% of Gen Z employees feel they actually understand those rationales. The gap is even starker among Gen Z women, only 60% of whom feel adequately informed about business compared to 69% of their male peers. In a culture that prides itself on openness and directness, this reveals a blind spot in inclusive communication.

Feedback, long known as a cornerstone of performance, also falls short. Just 65% of Australian leaders say they offer frequent and constructive feedback. This number dips further among male leaders (60%). Yet, over 40% of Gen Z employees say they are not receiving the kind of feedback that helps them grow. Despite Australia's reputation for egalitarian workplaces, this data suggests a deeper issue where feedback may be too informal, infrequent or unclear to create real impact.

The empathy gap is another serious red flag. Only 58% of Australian Gen Zs perceive their leaders as empathetic and approachable. This is significantly lower than the global Gen Z average of 68%. And while 73% of male leaders and 70% of female leaders believe they are accessible and empathetic, the disconnect lies in Gen Z's lived experience. The generation is seeking authenticity and vulnerability, not just approachability in theory.

Gender-based expectations further complicate the picture. Gen Z women in Australia prioritise inclusion, psychological safety and well-being. Their male counterparts lean heavily on clarity, structured growth, and purpose-driven work. Despite these differences, both groups share a common frustration: they crave open dialogue and constructive feedback - the two areas Australian leaders most often underdeliver.

"This isn't about ping-pong tables or casual Fridays," Mr. Roberts added. "Gen Z wants purpose, feedback, psychological safety and leaders who listen rather than just lead them. Australian organisations can't afford to brush this aside. The emotional and cognitive engagement needs of this generation are deeply strategic. Ignoring them won't just hurt retention, but will stifle innovation and culture."

The report, based on hundreds of cross-generational responses, unpacks five key engagement levers and 16 workplace attributes across which perception gaps are most prominent. These include Transparent Communication & Feedback, Purpose & Values Alignment, Development & Growth, Flexibility & Wellbeing, and Inclusive & Authentic Leadership. Backed by both quantitative data and powerful qualitative insights, it serves as a roadmap for culture transformation.

More than a diagnostic, the report delivers prescriptive, actionable strategies tailored to Australian leadership and Gen Z realities, including across gender. From training leaders to reward curiosity and questions, to fostering DEI that goes beyond policy, the report provides a toolkit to future-proof Australian workplaces.

Whether you are a CEO, HR Head or Team Leader navigating generational change, this report is your wake-up call, and your competitive advantage.

Find out more about the report here: https://engagedstrategy.com/genz-leadership-study-372686

About Engaged Strategy:
Engaged Strategy is a boutique consulting firm with nearly two decades of experience in building brand-aligned cultures, improving employee engagement and activating customer loyalty. Their client work spans global and national brands across Australia, India and Southeast Asia. Engaged Strategy possesses knowledge of 200+ brands across 20+ industries, and has surveyed 10,000+ employees and over 1 million consumers.

Contact:

Linda Roberts: 07-38232146

Email: enquiry@engagedstrategy.com.au

Website: www.engagedstrategy.com.au