Job loyalty rises as Australians value pay security over perks

Australian workers are showing a heightened preference for financial security over flexibility, with new data indicating a marked reluctance to change jobs as economic pressures persist. Recent polling from people2people Recruitment reveals shifting workplace attitudes, as the desire for stability overshadows career ambition in 2026.

Security focus

The research found that 45% of Australian employees view a pay rise as the most important factor for security. This far surpasses the 8% who prioritise work flexibility. Additional income streams and job stability were chosen by 24% and 22% of respondents respectively. This trend points toward what experts are describing as "job hugging", with workers clinging to existing roles despite concerns about satisfaction.

"After years of workplace transformation, Australians are now craving security. Many are clinging tightly to their current jobs, not because they're completely satisfied, but because they're worried the grass isn't greener elsewhere," said Suhini Wijayasinghe, Head of HR Solutions, people2people Recruitment.

Generation caution

Three in five Australians say they are unlikely to apply for a new job, driven mainly by concerns about global economic outlook. Millennials and Gen Z are particularly hesitant, with 50% signalling reluctance to seek new roles. Baby Boomers, meanwhile, report the highest levels of financial worry, with three in five workers across all age groups saying they are more concerned about finances than they were earlier in the year.

"Younger workers, who once drove the Great Resignation, are now driving the Great Hesitation. Job hopping has turned into job hugging, as workers focus on stability and protecting their financial wellbeing," said Wijayasinghe.

Stress persistent

Workplace fatigue remains a significant challenge. The data shows 68% of Australians feel more stressed and burnt out compared to the start of the year. The rate appears unchanged from previous levels in 2024. Financial pressures are also affecting leave, with one in two Australians unable to afford holidays this year and choosing to forgo breaks.

Hybrid preference

Attitudes towards full-time office work remain entrenched. Two in five employees report reluctance to return to the office full time by 2026. Another 30% say they would leave their jobs rather than accept a full return. Among employees open to regular office attendance, most prefer a hybrid model of two to three days per week. Only 19% would accept a schedule of four or five days in the office.

Salary expectations

Pay expectations have softened but remain divided. In 2023, 62% of workers said they expected a pay increase if required to work full time in the office. This figure has dropped to 50%. However, 65% of Millennials and Gen Z workers still anticipate extra pay for full-time office attendance, compared to 53% of Generation X and 35% of Baby Boomers.

"The drop in pay expectations reflects a cooling job market. Candidates know the power has shifted, it's not as favourable for job seekers as it was two years ago," said Wijayasinghe.

Looking ahead

The approach to working life in 2026 is expected to be defined by pragmatism, with employees focusing on maintaining financial stability and prioritising wellbeing over career progression. Employers are likely to see more requests for moderate pay rises and sustainable workloads from workers hoping to consolidate their positions.

"Next year will be about consolidation. We'll see employees stay put, negotiate smaller pay rises, and push for sustainable workloads. Employers who respond with empathy and flexibility, rather than perks and slogans, will come out on top," said Wijayasinghe.