A recent survey by Gartner, a leading business insights company, has revealed a shocking truth about the Australian workforce: poor management is the number one reason employees are leaving their organizations. This eye-opening finding highlights a critical issue that needs addressing.
The survey, conducted in the second quarter of 2025, polled over 6,000 employees across 40 countries, including 855 Australians. The results were clear: a lack of respect, ineffective people management, and, most significantly, poor manager quality, are driving employees away.
Jonathan Tabah, Director of Advisory at Gartner's HR practice, sheds light on the situation: "Many Australian managers are burnt out, often due to excessive administrative tasks and a lack of support. When managers struggle, their teams suffer, leading to higher turnover and decreased organizational performance."
But here's where it gets controversial... Tabah believes AI could be the solution to these management challenges. He suggests that AI can empower managers to become more effective leaders by reducing administrative burdens and providing personalized employee support.
A May 2025 Gartner survey of 3,002 managers supports this claim, with 46% reporting higher productivity when using AI tools. The benefits are clear: reduced administrative workload, more time for coaching and team development, and AI-powered analytics to identify skill gaps and recommend targeted learning.
However, a follow-up survey of 114 HR leaders in August 2025 revealed skepticism. Only 38% expect AI to improve manager effectiveness, and a mere 14% support managers in using AI for daily tasks. This skepticism is further highlighted by the fact that only 8% of HR leaders believe managers have the skills to use AI effectively today.
Tabah emphasizes the need for tailored training and support for managers to leverage AI effectively. He states, "HR must recognize that managers are not a homogenous group and provide training focused on their distinct AI readiness levels and use cases."
Gartner's research also indicates that AI is not yet ready to fully automate the manager role, as it cannot address the human needs of employees. Instead, HR should focus on augmenting manager effectiveness by increasing the value of their work rather than seeking efficiencies through increased control.
Tabah concludes, "AI is about transforming the manager's role for greater impact, not replacing them. By automating routine tasks and guiding managers to use AI specific to their workflows, HR leaders can help them deliver impact where it matters most: their people. This approach will boost employee engagement, strengthen performance, and build an AI-ready workforce in Australian organizations."
Gartner recommends that HR leaders redesign the manager role, develop targeted training programs, and update talent management processes to encourage meaningful AI adoption.
For more insights, Gartner clients can refer to the CHRO Guide for Using AI to Increase Manager Effectiveness.
The Gartner HR Symposium/Xpo, taking place this week in Sydney, will delve deeper into these topics, providing CHROs and their teams with expert advice and research-driven insights to reimagine their strategies.
