Australian workers now value career progression over salary, with a lack of internal opportunities most likely to lead employees to quit, according to new research.
With global economic turmoil and uncertainty, Australian companies are looking to ensure stability and retain workers, as the competition for talent intensifies.
People2people Recruitment’s report, based on a survey of Australian workers and employers, found that limited career opportunities is now the main reason that employees are leaving their jobs.
This marks a major shift from previous research, which routinely finds salary is typically the primary reason workers look for a new job.
According to the survey, more than one-third of job seekers and more than 40 per cent of employers said limited career opportunities is now the main reason why people are quitting their jobs.
This came in far higher than uncompetitive salaries, with 15 per cent of job seekers and just over a quarter of bosses listing this as the main reason.
Main pressure point
Career development is now the “main pressure point” when it comes to employee retention, people2people Recruitment head of HR Sihini Wijayasinghe said.
“The clearest takeaway from our 2026 workforce research is that staff turnover is no longer being driven by pay,” Wijayasinghe told Information Age.
He said that progression pathways are no longer a “nice-to-have” for workers, but are “central to retention”
The research also revealed a lack of training or upskilling was reported more by job seekers rather than employers, while bosses reported misaligned job expectations far more.
“That suggests some businesses may be overestimating certain issues while underestimating what actually drives attrition,” Wijayasinghe said.
“Companies need to create visible career pathways, invest in upskilling, strengthen manager capability and ensure the reality of a role matches what was promised during recruitment.”
Workers in Victoria and South Australia were more likely to focus on career progression, while those in New South Wales listed a broader mix of reasons why they had left their job.
The tech sector
The findings are particularly relevant for the tech sector, Wijayasinghe said.
“For tech businesses, it is particularly significant because the sector has historically relied on compensation, perks and flexibility as retention levers,” he said.
“The data suggests that approach alone is no longer enough.”
A desire for regular learning and upskilling is likely more felt among tech workers, he said.
“With 15 per cent of job seekers citing lack of training or upskilling as a reason for leaving, this becomes especially relevant in technology, where skill relevance evolves rapidly and continuous learning is expected,” Wijayasinghe said.
“Tech professionals are often not just looking for a job, but for exposure to new tools, innovation and a clear path forward.
“The lesson for employers is that retention needs to be treated as a development strategy, not just a remuneration strategy.”
Where to go for career progression
A recent LinkedIn study looked at the best companies in Australia when it comes to career progression, and the list was dominated by tech-heavy organisations.
The report ranked the top 25 companies to work for career progression based on data from the LinkedIn platform grouped into eight central themes.
The Commonwealth Bank was listed as the top company, followed by tech firm ServiceNow.
Other tech companies also placed in the list, including Alphabet, Microsoft, Canva, Salesforce, CrowdStrike, Unisys, Adobe, IBM and Xero.
There are a number of initiatives bosses can put in place if they are trying to boost retention and improve career progression within their company.
Research from 2024 found most Australian workers would be more likely to stay with their current employer if they had a manager who cares.
Many reports have also found that introducing a four-day working week can also improve retention, with a successful six-month pilot involving 19 Australia and New Zealand companies validating this concept.
