The True Cost of Workforce Challenges
Australian businesses lose billions annually to absenteeism, presenteeism, burnout, and turnover. Understanding these costs is the first step to transforming them into opportunities.
$17B
Annual absenteeism cost
to Australian businesses
AIHW, 2024
$59B
Annual presenteeism cost
lost productivity
Unmind research 2024, Intellect research 2024
81%
Workers facing burnout
across Australia
GoodHabitz, 2023
10.8%
National turnover rate
down from 21.4% in 2022
Mercer, 2024
Burnout Crisis
Burnout has reached epidemic levels in Australia, with younger workers hit hardest. The impact extends beyond individual wellbeing to productivity, engagement, and retention.
Source: Robert Half, GoodHabitz, UiPath research (2023-2024)
Research Findings
Robert Half
81-85% of Australians experiencing burnout
GoodHabitz (2023)
81% of workforce battling stress/burnout
UiPath
82% of knowledge workers feel burnt out
Gartner
~75% experiencing burnout to some extent
Foremind
61% of Australian workers reported burnout
Key Insight: Burnout is highest in Technology and Professional Services, while Government roles show lower rates due to job security buffers.
The Hidden Productivity Drain
Presenteeism costs 3× more than absenteeism, yet remains largely invisible to most organisations.
Absenteeism
When employees are away
8.4
Avg. days absent/year
$340
Cost per day
$4,025
Average cost per employee per year
DHS Absence Management Report, 2023
Presenteeism
When employees work while unwell
$59 Billion
Annual national cost
Unmind research 2024, Intellect research 2024
The Cost of Losing Key Talent
Replacing an employee costs 50-200% of their annual salary, with senior roles at the higher end.
Source: Gallup, SHRM, Australian HR Institute
Recruitment & hiring
15-25%
Job postings, agency fees, interviews, assessments
Onboarding & training
20-30%
Training programs, mentorship, documentation
Lost productivity
25-40%
Ramp-up time, team disruption, project delays
Knowledge loss
10-20%
Institutional knowledge, client relationships, processes
Replacement Cost by Role Level
Entry Level
33-50%
of annual salary
$28,000
Based on $70k salary
Mid-Level
75-100%
of annual salary
$87,500
Based on $100k salary
Senior/Executive
150-213%
of annual salary
$270,000
Based on $150k salary
Source: ClearlyRated (33% average, up to 213% for executives), Edwards HR (2025), Harrison HR
Cost Comparison by Industry
Annual workforce costs per employee (200-499 employee band)
| Industry | Absenteeism | Presenteeism | Burnout | Departures | Unfilled | Total/FTE | Turnover |
|---|---|---|---|---|---|---|---|
Technology Skills shortages, high burnout (≥60% of IT professionals) | $2,800 | $8,500 | $7,500 | $22,000 | $14,000 | $55,300 | 15% |
Professional Services High billable time value, senior departures costly | $3,000 | $9,000 | $7,500 | $21,000 | $12,000 | $52,500 | 12% |
Financial Services Regulatory burden, compliance bottlenecks | $3,000 | $9,000 | $6,500 | $21,000 | $13,000 | $52,500 | 11% |
Healthcare Chronic staff shortages, high emotional load | $2,800 | $8,500 | $6,500 | $17,000 | $11,000 | $46,300 | 12% |
Education Teacher stress, limited career progression | $3,000 | $9,000 | $6,500 | $14,000 | $9,000 | $42,500 | 10% |
Manufacturing Physical demands, shift work challenges | $2,500 | $7,500 | $5,000 | $16,000 | $10,000 | $41,000 | 10% |
Government Job security buffer reduces turnover | $2,500 | $7,500 | $4,000 | $9,000 | $7,000 | $31,000 | 8% |
Retail & Transport High turnover, lower replacement costs | $2,000 | $6,000 | $3,000 | $11,000 | $6,000 | $28,000 | 20% |
Source: ABS Employee Earnings and Hours, ABS turnover/vacancy rates, Medibank, Foremind, Allianz studies
Average Earnings by Industry
Full-time adult ordinary earnings (ABS, May 2025)