The guide, which is recognised as Australia and New Zealand’s most comprehensive review of salaries and workforce trends, gathered insights from over 7,000 hiring managers and professionals. It paints a complex picture of the Australian job market, where two-thirds of workers (66%) express confidence in their job security for the coming year. However, this sense of security is not mirrored in job satisfaction levels, with only 53% of respondents feeling satisfied or very satisfied with their roles.

Matthew Dickason, CEO of Hays APAC, highlighted the underlying issues, stating, "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."

Despite the apparent job security, salary satisfaction remains a pressing concern. The report found that average salary increases are hovering around 4%, aligning with inflation levels. Yet, half of the workforce feels underpaid, and only 42% are satisfied with their salary. This dissatisfaction is particularly pronounced among lower-income workers, with 62% of those earning less than A$79,000 reporting little to no meaningful salary growth, compared to 36% of those earning above A$80,000.

Dickason further elaborated on the issue, warning, “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.”

The report also indicates that job mobility remains relatively low, with only 20% of professionals changing employers in the past year. However, this stability does not necessarily equate to contentment. Many employees are taking a cautious approach to career moves, with 38% planning no change in the next 12 months, despite being engaged with the job market.

A significant factor contributing to this dissatisfaction is the perceived lack of career progression. For those considering leaving their current roles, the absence of future opportunities (36%) and unclear promotion pathways (33%) are key drivers. As Dickason advises, “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.”

The report also highlights the uneven impact of wage growth across different sectors and demographics. Legal, consulting and strategy, and accounting and finance sectors are expected to see higher-than-average salary increases, while retail, hospitality and tourism, education and the public sector are less optimistic. Women, in particular, are nearly twice as likely as men to change roles due to a lack of challenge, while men are more likely to move for higher pay.

Retention, it seems, is influenced by a mix of financial and non-financial factors. While salary and benefits are the leading reasons for leaving (43%), relationships with colleagues and managers, stable income and benefits, and job security are common reasons for staying. Flexible working arrangements, although important, are no longer seen as a primary factor in retention, with only 30% citing it as a reason to stay.

Looking ahead, the report reveals a mixed outlook on the economic climate and job opportunities over the next two to five years. While 32% of professionals remain optimistic, an equal percentage are not, and 37% remain neutral. Interestingly, optimism has increased by 7% year-on-year, suggesting a cautious yet hopeful outlook among Australian workers.

In conclusion, the Hays Salary Guide FY26/27 underscores a critical juncture for employers and employees alike. As Dickason aptly puts it, “A workforce that feels secure but not satisfied - that’s the picture this year.” For professionals, he advises, “If you're feeling dissatisfied, work out what's actually driving it before you make a move.” Understanding the root of dissatisfaction, whether it be salary, progression, or role clarity, is crucial for making informed career decisions.