The Hays Salary Guide FY26/27: Australian professionals feel secure but increasingly dissatisfied, creating a growing retention risk
- The Hays Salary Guide FY26/27 found workers are confident in their job security but salary and job satisfaction are slipping, with 50% feeling underpaid despite pay rises
- Average salary increases sits at 4%, in line with inflation levels
- Lower-income workers are disproportionately affected by limited wage growth, with 62% earning less than A$79,000 reporting little to no meaningful salary growth, compared with 36% of those earning above A$80,000
- 20% have changed employers within the past year, while 71% have been with their current organisations for fewer than four years
- 53% feel satisfied or very satisfied in their roles, while 42% are satisfied or very satisfied with their salary
Half of Australians feel underpaid despite receiving salary increases, highlighting a growing disconnect between job security and job satisfaction, according to new research from recruitment and workforce solutions specialists Hays.
The Hays Salary Guide FY26/27, Australia and New Zealand’s largest and most comprehensive review of salaries and workforce trends, drew on insights from more than 7,000 hiring managers and professionals. It found that while two-thirds (66%) of workers feel quite or very confident in their job security over the next year, this confidence is not translating into stronger job satisfaction, with just 53% feeling satisfied or very satisfied in their roles.
Despite this, job mobility remains relatively low, with just 1 in 5 (20%) professionals changing employers in the past 12 months. Similarly, when it comes to changes to their career path and goals, 2 in 5 (38%) are planning no change in the next 12 months, suggesting employees are taking a more measured approach to career decisions, even as many remain engaged with the job market.
“Employers shouldn't confuse low mobility with low dissatisfaction. Only 1 in 5 changed jobs last year, yet 1 in 3 say there’s no clear promotion structure, and pay growth is only just tracking inflation. The conditions for a retention problem are building underneath stable turnover numbers,” said Matthew Dickason, CEO, Hays APAC.
“Workers are staying put out of caution, not contentment. Progression pathways remain unclear, pay is largely stagnant in real terms, and underlying dissatisfaction is building quietly.”
“This is a crucial moment for employers to pause, understand the concerns of their teams, and address these underlying issues before they translate into future turnover.”
Quiet retention crisis: wage growth falling behind expectations
While many professionals have received pay rises over the past year, wage growth is failing to keep pace with employee expectations and cost-of-living pressures, creating a quiet retention crisis.
Average salary increases sit at approximately 4%, in line with inflation, and have been most commonly driven by cost-of-living pressures (32%) and company-wide adjustments (25%), rather than a promotion (18%) or a new job (11%). Only 12% of professionals reported increases between 6 and 10% in the last 12 months, while 42% of employees claimed to receive little to no meaningful increase.
It’s no surprise that only 42% are satisfied or very satisfied with their salary.
Uneven wage growth is widening differences across the workforce
Lower-income workers are disproportionately impacted by low wage growth. The research found that three in five (62%) professionals earning less than A$79,000 reported little to no meaningful salary growth, compared with 36% of those earning above A$80,000, highlighting a widening gap in earnings.
When it comes to how employers anticipate salaries to change in the next year, legal, consulting and strategy, and accounting and finance sectors expect higher-than-average salary increases, while retail, hospitality and tourism, education and the public sector are most pessimistic about salary growth.
Employers anticipate an average pay rate change of 3.8% over the next 12 months, slightly below last year (3.9%). With inflationary pressures expected to persist, employers will need to take a more balanced approach to remuneration, career progression and broader employee benefits to keep employees engaged and reduce the risk of future turnover.
Cautious movement shapes the job market
Australians are taking a more cautious approach to career moves as dissatisfaction continues to drive job-hunting behaviour.
Among those considering leaving, lack of future opportunities (36%) and unclear promotion pathways (33%) are key drivers. Employees without defined pathways report lower satisfaction (42%) and are more likely to be actively job hunting (36%).
Similarly, those who have not received a salary increase report lower satisfaction (43%) and higher job-seeking activity (41%), reinforcing the link between pay, progression and engagement.
Drivers of job change also differ across groups. Women are nearly twice as likely as men to move roles due to a lack of challenge (18% compared to 10%), while men are more likely to change jobs for higher pay, with 26% citing a better offer compared to 8% of women.
Retention is shaped by more than pay
Retention is increasingly influenced by a mix of financial and non-financial factors. The most common reasons for staying in their current role include relationships with colleagues and managers (42%), stable income and benefits (42%), and job security (34%). In contrast, the leading reasons for leaving are salary and benefits (43%), lack of future opportunities (36%), and low pay (30%).
Flexible working has become an expected part of the employee experience rather than a key factor in attracting or retaining talent. While 70% of employees say it is very or extremely important, just 30% cite the benefit as a reason to stay, and only 16% as a reason to leave.
That said, 66% of employers have already incorporated flexibility into the workplace, and 51% of professionals report receiving flexible working arrangements, with most (41%) working two days from home. However, a majority would prefer to work from home more than they currently do, with 33% wanting to work from home three days a week.
Employees who already have access to flexible working place greater importance on it, highlighting how expectations become embedded once established.
Confidence holds in the short term, but long-term outlook is uncertain
While short-term confidence remains high, sentiment towards the longer-term outlook is more uncertain.
Among professionals, views are relatively evenly split, with 32% optimistic about economic conditions and job opportunities over the next two to five years, 32% not optimistic, and 37% neutral. Notably, optimism has increased by 7% year-on-year, while pessimism has declined by 4%.
Employers, however, are slightly more cautious. Just 28% report being optimistic, down 3% year-on-year, while 32% are not optimistic, also down 3%, with a growing share remaining neutral.
Broken down by age, the youngest and oldest Australians (aged 29 and below and over 50) are more likely to be optimistic (34%) about the wider economic climate and their employment prospects, compared with professionals aged 30-39 (30%) and 40-49 (29%).
Advice for employers
“A workforce that feels secure but not satisfied - that’s the picture this year,” said Matthew Dickason, CEO, Hays APAC.
“Where pay can’t do all the work, progression has to. Yet many organisations still treat career pathways as an internal HR mechanism, rather than something clearly defined and visible to their people. It remains one of the most underutilised levers.
“Employers should start by making progression tangible. Clarify what advancement looks like and equip managers to have regular career conversations, while strengthening the benefits, support and workplace relationships that keep employees engaged.”
Advice for professionals
“If you're feeling dissatisfied, work out what's actually driving it before you make a move,” said Matthew Dickason, CEO, Hays APAC.
“Sometimes it’s salary. Often, it’s progression, role clarity, or whether you can see a future where you are. These are different challenges with different solutions, and critical factors to weigh up when considering your next move.”
“Taking the time to consider what you value most in your job can help you make a more informed decision about whether to reset in your current role or move on.”
Download the Hays Salary Guide FY26/27.
