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  • For the first time, the 2026 Workplace Trends Report expands its data set to include New Zealand.
  • This expansion makes the report Australasia's largest and most comprehensive study of employee-employer relations in the region.
  • This year, the report drills down into financial wellbeing, examining one of the most critical (yet least visible) risks impacting workforce performance.

Across Australia and New Zealand, organisations continue to invest in employee wellbeing. Yet the data tells a sobering story — progress has largely stalled. Key indicators such as wellbeing, engagement and retention have seen minimal movement in recent years.

This lack of progress raises an important question for business leaders: Are we focusing on the right drivers of performance?

Now in its fifth year, the Gallagher Workforce Trends Report: Workplace Wellbeing Index offers valuable insight into the mindset of employees and how employers can have a positive impact on their lives. The 2026 edition takes a deep dive into the financial wellbeing of employees across Australia and New Zealand. With insights from over 3,500 respondents spanning industries, seniority, tenure, age and gender, this report highlights the critical role financial wellbeing plays in organisational performance, employee engagement and risk management.

This year's findings reveal a workforce under increasing financial pressure, with 63% of employees financially unwell, one in three holding second jobs and one in four experiencing burnout. These challenges are not just personal; they directly impact businesses' bottom lines, productivity and retention rates.

Financial wellbeing: The hidden driver of workforce performance in 2026

At the centre of this challenge is an often under-recognised issue — employee financial stress. Our research shows:

  • 63% of employees are financially unwell, struggling to meet financial commitments and lacking security for the future.
  • 32% are working while unwell because they can't afford not to.
  • 37% say financial stress is impacting their sleep. 

This isn't just a personal issue; it's a business risk. Financial stress influences decision-making, productivity, safety outcomes and risk behaviour. In safety-critical or client-facing environments, this risk becomes even more material.

When a full-time employee isn't fully productive

A key trend emerging is the rise of the side hustle economy.

1 in 3 employees now
have a secondary income.
Nearly half rely on it to
manage cost of living or debt.

While often seen as a personal choice, or even entrepreneurial spirit, the organisational impact is clear. It can lead to reduced focus and cognitive capacity, increased fatigue, lower levels of creativity and problem-solving, and a decline in productivity per full-time employee. Put simply, employees spread across multiple income streams are less able to fully perform in their primary role.

Burnout: A lagging indicator with real cost

Over one in four employees are experiencing burnout, and it's often only visible once the impact has already materialised. Burnout shows up through unplanned leave, Workers' Compensation claims, increased turnover and reduced engagement — and the cost is significant.

Replacing an employee can range from 50% to over 200% of salary1, while psychological injury claims are up to five times longer and more expensive than others. This level of expense means burnout is more than a wellbeing issue; it's also a financial and operational exposure.

One workforce, three different experiences

In 2025, we segmented the workforce into personas for the first time. We looked across each data point and were able to define the workforce based on how they experience wellbeing in general. This year, we've taken a similar approach but focused specifically on financial wellbeing to paint a picture of a fractured workforce. Employees are not experiencing work in the same way.

  • Strugglers (31%): High stress, low awareness of support.
  • Survivors (36%): Managing competing pressures, at risk of burnout.
  • Thrivers (33%): Financially stable, engaged and high performing.

The challenge is that most benefit programs are designed for a single experience, while two-thirds of employees are under meaningful strain. The data shows even where strong benefits exist — including group insurance, Employee Assistance Programs (EAP) and superannuation — impact varies, and a more nuanced approach and understanding is required.

A leadership imperative

Employees consistently identify financial wellbeing and mental health as the key drivers of overall wellbeing. Despite this, financial wellbeing remains the area with the lowest satisfaction among employees. Forward-thinking organisations will recognise financial wellbeing as a priority and opportunity, but fewer have embedded it into performance strategy.

In this report, we're going to help you find the measures and indicators you need to shift to a targeted and data-led approach.

Download the report

Behind every statistic in this report is a real person struggling while their employer remains unaware. It should act as a wake-up call for Chief People, Finance and Risk leaders everywhere. The time to act is now.

For in-depth analysis and actionable strategies that can help you support your workforce, reduce risk and protect your bottom line, download Gallagher's 2026 Workforce Trends Report: Workplace Wellbeing Index.

VIEW REPORT

About Gallagher HR & Benefits Consulting Division

Enabling your people to be better, means your business can start achieving its best.

Gallagher specialises in maintaining the critical link between people's wellbeing and organisational success through people strategies that deliver results. When employees enjoy their work, appreciate their benefits and feel connected, your organisation thrives — boosting positivity, retention, performance and overall prosperity.

We can help you invest in and sustain a workplace culture offering growth and potential. The return on that investment? Attracting new talent and inspiring employees to deliver their personal and professional best.

Gallagher brings informed data, analysis and insights to help you anticipate and stay ahead of workforce trends and risks and achieve the outcomes that matter most.

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Sources

1 "What's the real cost of turnover? How to calculate (and prevent) employee replacement costs,"Forma, 15 Oct 2025