The latest Hays Salary Guide for FY26/27 reveals a striking disconnect in the Australian workforce: **50% of workers feel underpaid**, even as **66% feel secure in their jobs**. This gap between job security and satisfaction is a ticking time bomb for employers.

## The Pay Reality Check

- **Average salary increases** were about **4%**, barely matching inflation, leaving many with **no real wage growth**.
- **42% of employees** received **little to no meaningful increase** in the past year.
- Only **12%** saw raises between **6% and 10%**.
- **Lower-paid workers** (earning under AUD $79,000) were hit hardest: **62%** saw minimal growth vs. **36%** of higher earners.

## The Retention Illusion

While only **20%** changed jobs in the past year, this low mobility masks **growing dissatisfaction**. Among those considering a move:
- **36%** cite **lack of future opportunities**.
- **33%** point to **unclear promotion pathways**.

**Matthew Dickason**, CEO of Hays APAC, warns: *"Employers shouldn't confuse low mobility with low dissatisfaction. The conditions for a retention problem are building underneath stable turnover numbers."*

## Why Workers Stay & Why They Leave

**Top reasons to stay:**
- Relationships with colleagues/managers (42%)
- Stable income/benefits (42%)
- Job security (34%)

**Top reasons to leave:**
- Salary/benefits (43%)
- Lack of future opportunities (36%)
- Low pay (30%)

**Flexible working** has become a **standard expectation**, not a perk. While 70% value it, only 30% cite it as a reason to stay.

## The Skills & AI Gap

- **82% of employers** face **skills shortages**.
- **60% of professionals** use **AI regularly**, yet **78% have no formal training**.

## Outlook

- **32% of professionals** are **optimistic** about the economy; **32% are not**.
- Employers are more cautious: **28% optimistic**, **32% not**.
- **Younger workers (under 29)** and **those over 50** are more optimistic than the 30-49 age group.

Dickason advises workers: *"If you're feeling dissatisfied, work out what's actually driving it before you make a move. Sometimes it's salary. Often, it's progression, role clarity, or whether you can see a future where you are."*

Cost-of-living pressures are leaving many staff with little real wage growth, even as most remain in jobs they see as secure.

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