Poor manager quality is the top reason employees are leaving organisations in Australia, according to new survey results. Other leading factors include a lack of respect and ineffective people management. The findings come from a report based on feedback from over 6,000 workers worldwide, including 855 in Australia.

Manager burnout

The survey highlights considerable challenges faced by managers, with many experiencing high levels of burnout. Managers cite heavy administrative workloads and insufficient organisational support as key issues contributing to their fatigue. This situation is affecting not only managers themselves but also their teams, with higher staff turnover and a negative impact on overall organisational performance.

“Many managers in Australia today are experiencing high levels of burnout, often due to overwhelming administrative burdens and lack of support. When managers struggle, their teams suffer – leading to higher attrition and diminished organizational performance. AI is emerging as a critical lever to address these challenges and empower managers to become more effective human leaders,” said Jonathan Tabah, Director, Advisory in the Gartner HR practice.

AI adoption

The survey found that use of AI tools can deliver productivity improvements for managers. Forty-six percent of managers surveyed in May 2025 reported improved productivity after adopting AI in daily workflows. Benefits include a reduction in administrative tasks, more available time for staff coaching and development, and personalised employee support enabled by data analytics. Artificial intelligence can also identify skill gaps and recommend targeted learning paths, supporting tailored team development.

Despite the potential advantages, few organisations in Australia are actively supporting AI adoption by managers. Research found that only 14 percent of HR leaders currently support managers in integrating AI into their daily work. Just 8 percent believe their managers possess the skills needed to use AI effectively, while only 38 percent expect AI to make a positive impact on manager effectiveness in future.

“AI can unlock higher levels of manager effectiveness, but few managers will achieve these benefits without the right guidance from HR on how and when to use AI. Unfortunately, many organizations in Australia aren’t supporting managers’ AI adoption, missing a significant opportunity to improve employee and organizational performance,” said Tabah.

Targeted support

Analysts recommend that organisations provide tailored training programmes that match varying degrees of AI readiness and specific use cases for managers. Uniform approaches are unlikely to address the diverse challenges managers face in different roles, so bespoke training and workflow support is crucial.

“To improve manager performance through AI, HR must support manager specific workflows and recognize they aren’t a homogenous group. Tailored training must be provided that focuses on distinct AI readiness levels and use cases specific to managers,” said Tabah.

Changing roles

According to the research, AI is not currently capable of fully replacing the role of managers, given the complex and human-focused nature of the job. Human relationships and people management aspects remain beyond the reach of automation. However, AI can be used to augment manager effectiveness by automating routine tasks and providing data-driven insights to support decision making and employee engagement.

“AI isn’t about replacing managers – it’s about transforming their role for greater impact. By automating routine tasks and guiding managers to leverage AI in ways specific to their workflows, HR leaders can help them deliver impact where it matters most: their people. This enables Australian organizations to boost employee engagement, strengthen performance and build an AI-ready workforce,” said Tabah.