Australian workers may feel confident about keeping their jobs, but many are far less confident about their future with their current employer.
New research from Hays reveals a growing disconnect between job security and workplace satisfaction, raising concerns that a hidden retention problem could be building across the workforce.
The FY26/27 Hays Salary Guide, based on responses from more than 7,000 hiring managers and professionals across Australia and New Zealand, found that while employees are staying put, many are doing so out of caution rather than commitment.
Half of Australian workers said they feel underpaid, while concerns about career progression and limited wage growth continue to simmer beneath the surface.
Secure, not satisfied
The survey found that 66% of Australian workers feel quite or very confident about their job security over the next 12 months.
Yet that confidence is not reflected in broader workplace satisfaction.
Only 53% said they were satisfied or very satisfied with their role, while just 42% were satisfied with their salary. Half of all workers believe they are underpaid.
According to Matthew Dickason, chief executive officer, Hays APAC, employers should be careful not to misread low staff turnover.
"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," he said.
"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."
Pay squeeze
Average salary increases sat at around 4%, broadly matching inflation.
However, most pay rises were driven by rising living costs rather than individual advancement. Cost-of-living pressures accounted for 32% of salary increases, while company-wide adjustments made up 25%. Promotions accounted for just 18%.
The result is that many workers saw little meaningful improvement in their financial position.
Among employees, 42% reported little to no meaningful salary growth during the past year. Only 12% received pay rises of between 6% and 10%.
Lower-income workers were hit hardest.
The survey found that 62% of professionals earning less than AUD $79,000 experienced little or no meaningful salary growth. Among those earning more than AUD $80,000, the figure fell to 36%.
Employers expect average pay increases of 3.8% over the next year, slightly below the previous year's 3.9%.
Sectors such as legal, consulting and strategy, and accounting and finance expect stronger salary growth. Retail, hospitality and tourism, education, and the public sector remain more pessimistic.
Why people stay
Despite widespread concerns over pay, salary is not the only factor influencing retention.
The most common reasons employees remain in their current roles are relationships with colleagues and managers, cited by 42%, stable income and benefits at 42%, and job security at 34%.
However, when workers do decide to leave, pay becomes the dominant issue.
Salary and benefits were cited by 43% of respondents as a reason to move on. A lack of future opportunities was identified by 36%, while 30% pointed to low pay.
Career progression emerged as a particularly important issue.
Workers without clear promotion pathways reported lower satisfaction levels and were significantly more likely to be actively searching for a new role.
Among those considering a move, 36% cited a lack of future opportunities and 33% pointed to unclear promotion structures.
Flexibility standard
Flexible working arrangements appear to have shifted from a competitive advantage to a basic expectation.
Seven in ten employees said flexible working is very or extremely important. Yet only 30% cited it as a reason to stay with an employer, while just 16% said it would cause them to leave.
More than half of professionals already have flexible working arrangements, and 41% work from home two days each week.
A third of respondents said their preferred arrangement would be working from home three days a week.
The findings suggest employers offering flexibility are no longer standing out. Those failing to offer it may simply be falling behind.
Mixed outlook
Views on Australia's economic and employment prospects remain divided.
Among professionals, 32% were optimistic about the next two to five years, while another 32% were not optimistic. The remaining 37% were neutral.
Employers were slightly more cautious, with 28% optimistic and 32% pessimistic.
The survey also highlighted differences between age groups. Workers aged under 30 and those over 50 were more likely to express optimism than professionals aged between 30 and 49.
Meanwhile, skills shortages remain widespread.
More than 82% of employers reported difficulties finding talent.
Artificial intelligence is also becoming increasingly common in workplaces, though training has failed to keep pace. While 60% of professionals said they use AI regularly, 78% reported receiving no formal training.
Career choices
Dickason said employees considering a career move should first understand what is driving their dissatisfaction.
"If you're feeling dissatisfied, work out what's actually driving it before you make a move," he said.
"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."
For employers, the message is equally clear.
Staff may not be leaving in large numbers today. But beneath stable turnover figures, frustration over pay, progression and long-term prospects is quietly growing. The organisations that address those concerns now may be the ones best placed to retain talent when confidence to move returns.