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Why are leadership and wellbeing a priority for so many Australian organisations?

2 days ago
4 min read

Because organisations want a return on what they invest in people.


On the surface, it's a simple exchange. We give you this, you give us that. The "this" is usually a salary and a few perks. The "that" is a person's time, energy and expertise. Deal done. Add AI and we get more productivity. Great. Retention? In 2026, do we even still care?


But that exchange isn't what decides whether the investment pays off. And at the moment, AI or otherwise, great organisations and SME businesses still need great people.


And what really shapes great people is what happens in the small moments.

The few seconds waiting for the kettle, when someone thinks about the day ahead. The project that's stalled, the colleague who drains them, the quiet question of whether their work is noticed, valued and secure.


In those moments, people draw conclusions about their role, their worth and whether they belong. And when an organisation genuinely invests in them, those conclusions change, and so does everything that follows.



What is going on right now with employee investment


  • Australian employers invested approximately $1,122 per employee in training in 2025, about $13.76 billion in total (AHRI, 2026).

  • 36 per cent of Australian employers say their managers are not proficient in problem-solving (AHRI, 2026).

  • Australia's leadership development program market is estimated at US$1.46 billion in 2025 (Future Market Insights).


How much do Australian organisations spend on training?


Australian employers invested approximately $1,122 per employee in training in 2025, about $13.76 billion in total, according to the Australian HR Institute (AHRI, 2026). Sixty per cent expect skills investment to rise and 2 per cent expect a fall; plans to lift learning and development spending rose from 37 per cent in 2024 to 58 per cent in 2025 (AHRI).


Reach is the catch. Only 38 per cent of the workforce received training in 2025, 15 per cent of organisations have no training budget, and employers with 2 to 19 staff spent around $549 per employee against $1,547 at those with 200 or more (AHRI).


For many employees, the message of being valued is not arriving.

Why is leadership development a major focus in Australia?


Leadership and management is 14 per cent of Australian employers' training priorities, level with AI, behind technical skills at 23 per cent (AHRI, 2026); Future Market Insights values the leadership development program market at US$1.46 billion in 2025, growing 8.2 per cent a year to US$3.22 billion by 2035. Employers rate managers not proficient in problem-solving (36 per cent), team development and people management (35 per cent) and strategic leadership (31 per cent) (AHRI).


Employees experience their organisation through their manager, so this is where the signal is sent or lost.

What does workplace mental health cost Australian employers?


In 2023-24, the median mental health workers' compensation claim in Australia involved 34.8 weeks off work and $68,600 in compensation, according to Safe Work Australia. Yet wellbeing services remain modest: employee assistance program (EAP) services are worth $389.6 million in 2026, growing 2.0 per cent a year since 2021, and corporate wellness $333.0 million in 2025-26, growing 0.3 per cent a year over five years (IBISWorld).


A counselling line is a safety net, but manager capability is the stronger case, because psychological risk is shaped by how work is led.


What is the Limestone Method?


The Limestone Method is a scientific framework for leadership, wellbeing and coaching, created by Monash University Doctoral Researcher, Suzanne Tonks, who is also the Managing Director of Limestone Group in Melbourne, Victoria, Australia.


It tests every investment in people through three lenses: psychology, communication and business.


Business. Macro influences (regulation, labour markets, sector growth) interact with micro factors (team structure, workload, leadership capacity), and conditional factors in each workplace decide whether learning transfers. Time and workload and budget are the biggest training barriers.


Psychology. Much of what we see at work is a state, not a fixed trait; behaviour and emotional regulation under pressure can be built.


Communication. Medium, message and mode decide whether the signal lands; inclusive key messages reach the sceptical as well as the engaged.


Frequently asked questions


How much do Australian employers spend on training per employee?

Approximately $1,122 in 2025 (AHRI, 2026).


How costly are workplace mental health claims in Australia?

The median claim in 2023-24 involved 34.8 weeks off work and $68,600 (Safe Work Australia).


How large is Australia's leadership development market?

About US$1.46 billion in 2025, forecast to reach US$3.22 billion by 2035 (Future Market Insights).


Who created the Limestone Method?

Monash University Doctoral Researcher, Suzanne Tonks, who is also the Managing Director of Limestone Group, Melbourne, Australia.


Talk to Limestone Group


Limestone Group is led by Managing Director Suzanne (Sues) Tonks, a Monash University Doctoral researcher and registered provisional psychologist, alongside Director Corinne Nyssen. If you are weighing what your next investment will say to your people, we would welcome a conversation.


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