A recent survey by Gartner, Inc. has revealed a shocking truth: poor management is the number one reason employees in Australia are leaving their jobs. This eye-opening study, conducted in the second quarter of 2025, surveyed over 6,000 employees across 40 countries, including 855 from Australia. The results paint a clear picture of the challenges faced by Australian workers.
The Manager Problem: A Burning Issue
The survey identified three key reasons for employee turnover: poor manager quality, lack of respect, and ineffective people management. Jonathan Tabah, Director of the Gartner HR practice, sheds light on the situation, stating that many Australian managers are experiencing burnout due to administrative burdens and a lack of support. This, in turn, negatively impacts their teams, leading to higher attrition rates and diminished organizational performance.
But here's where it gets controversial... Gartner analysts, discussing AI trends at the HR Symposium/Xpo in Sydney, believe that AI could be the solution to these management challenges. They argue that AI can empower managers to become more effective human leaders by reducing administrative workloads and providing personalized employee support.
AI-Driven Management: A Game Changer?
A May 2025 Gartner survey of 3,022 managers supports this notion, with 46% reporting higher productivity when using AI tools. The benefits are clear: reduced administrative tasks, more time for coaching and team development, and AI-powered analytics to identify skill gaps and recommend targeted learning. However, Tabah cautions that managers need guidance from HR on how and when to use AI effectively.
And this is the part most people miss... An August 2025 Gartner survey of 114 HR leaders revealed a surprising level of skepticism. Only 38% expect AI to improve manager effectiveness, with just 14% supporting managers in using AI for daily tasks. A mere 8% believe managers have the skills to use AI today.
So, how can HR improve manager performance through AI? Tabah suggests that HR must recognize that managers are not a homogenous group and provide tailored training focused on their distinct AI readiness levels and specific use cases.
Transforming the Manager Role with AI
Gartner research indicates that AI is not yet ready to fully automate the manager role due to 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 emphasizes, "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 their unique workflows, HR leaders can help managers make a real difference where it matters most: with their people.
Gartner recommends that HR leaders redesign the manager role, develop targeted training programs, and update talent management processes to encourage meaningful AI adoption. This approach will boost employee engagement, strengthen performance, and build an AI-ready workforce in Australian organizations.
If you're an HR leader, how do you feel about the potential of AI in management? Do you agree with Gartner's recommendations? Share your thoughts and experiences in the comments below!
