Beyond the Paycheck: How Australian companies can adapt to the Great Talent Migration

Why are so many Aussies ready to leave?

The data shows it’s about much more than pay. Employees are craving meaning, progress, and balance — and too many feel they’re not getting it where they are.

Perkbox's report found that many employees feel disconnected, underappreciated, or stagnant in their roles. This emotional undercurrent is driving a wave of exits. Among the top reasons employees are leaving are lack of competitive salary (60%). lack of career progression (35%), and inadequate recognition (37%). Others are frustrated by rigid work structures or a mismatch between their personal values and their company’s mission.

And while salary still matters — especially with cost-of-living pressures mounting across Australia — it’s clear that employees are looking beyond the paycheck. According to Gallup’s State of the Global Workplace report, only 23% of employees globally are engaged. This means that more than three-quarters of the workforce is either passively checked out or actively seeking change.

Work is no longer just about money. People want to grow, be seen, and be part of something that aligns with their values.

The true cost of losing great talent

High attrition isn’t just a headache — it’s expensive. Replacing an employee doesn’t just mean recruiting someone new. It means lost productivity, training costs, knowledge gaps, team disruption, and potential brand damage. Deloitte estimates that the cost of losing a single employee can range from 1.5 to 2 times their annual salary.

The emotional toll of high turnover is just as critical. Teams that experience frequent departures often suffer from decreased morale, lower trust, and higher levels of burnout. This cycle becomes self-reinforcing, making it even harder to retain the talent that remains.

And retention isn’t optional; it’s a critical business imperative.

Three strategies to retain top talent

So what can employers do to stem the tide of departures and build a workplace where employees actually want to stay? Based on the Perkbox report and other industry research, here are three proven strategies.

1. Flexibility isn’t optional — it’s expected

In Beyond the Paycheck, 35% of employees said flexible work arrangements are essential to their job satisfaction. Whether it’s hybrid work, flexible hours, or location independence, employees want the ability to tailor their work around their life — not the other way around.

Harvard Business Review has reported that companies offering flexibility see a 55% increase in employee loyalty, making flexibility an essential part of any retention strategy.

What does this look like in practice?

• Let employees choose when and where they work

• Offer hybrid and remote options for applicable roles

• Design asynchronous workflows that support diverse schedules

By giving employees more autonomy over their time, companies build trust, reduce stress, and boost engagement.

2. Make career growth visible and accessible

One of the loudest messages from employees is this: "I want to grow, or I’ll go."

A lack of career development is consistently one of the top reasons employees leave their roles. According to LinkedIn’s Workplace Learning Report, companies that promote internally retain employees 41% longer than those that don’t. Yet many businesses fail to provide clear development paths or opportunities for advancement.

To fix that, companies must embed career growth into the employee experience. That means:

• Offering individual development plans and goal-setting frameworks
• Funding upskilling and learning programs
• Making internal mobility part of the talent strategy
• Highlighting internal success stories

When employees can see their future at your company, they’re far more likely to stay and invest their energy.

3. Recognition that’s personal and powerful

It’s not enough to simply recognise people; you have to do it in a way that matters to them. Perkbox found that only 22% of employees feel consistently recognised at work. Meanwhile, Gallup found that employees who receive meaningful recognition are four times more likely to be engaged and five times more likely to stay with their employer.

Recognition that works is:

• Timely: don’t wait for the annual review
• Specific: call out exactly what the person did
• Aligned: tie it back to company values or goals
• Personal: tailored to the individual’s preferences

Companies that implement structured recognition programs see measurable boosts in morale, productivity, and retention. And it doesn’t have to break the bank — peer-to-peer recognition, digital shoutouts, and personalised messages often mean more than big-ticket rewards.

Build a culture that makes people want to stay

The companies that win the talent war are the ones that make employee experience a strategic priority. That means creating a culture where people feel safe, supported, and connected.

Psychological safety, inclusive leadership, and transparent communication are key ingredients. Employees want to work somewhere that values who they are, encourages open dialogue, and celebrates their contributions.

And yes, culture is built one interaction at a time. Recognition in meetings, authentic check-ins, leadership visibility, and storytelling around values all contribute to a place where people feel they belong.

Beyond the paycheck = beyond expectations

If you want to retain your best people in 2025, it’s time to evolve. Today’s top talent wants more than compensation. They want:

• Flexibility that supports their lifestyle
• Career growth they can actually see
• Recognition that feels sincere and personal

And if they don’t get it, they’re ready to walk.

The companies that thrive in this new era of work will be those that look beyond the paycheck and commit to building meaningful, human-centric workplaces.