What to do when tensions are rising, but wages aren’t

Workers are staying put, asking for more, and raising concerns at increasing rates, with strong and clear leadership increasingly becoming the determinative factor for productivity and working experience.

Employees may be staying in jobs longer – but that doesn’t mean they aren’t concerned.

In its September quarter 2026 Australian Work Outlook, the Australian HR Institute (AHRI) found employee turnover remains near historic lows, sitting at 13.4 per cent overall and 12.9 per cent in the private sector.

At the same time, job-hopping has slightly fallen over the last year, meaning managers are dealing with a workforce that is staying in positions longer amid a cautious recruitment environment that raises questions around employee support and managing expectations while balancing productivity and financial demands.

Reflecting on recent findings that 32 per cent of employers have identified an increase in workplace complaints and grievances this year, with worker wage expectations also growing, AHRI chief executive Sarah McCann-Bartlett urged employers to understand management as a pressing, necessary feature of leadership, rather than just a soft skill.

“Managers are often the first people expected to deal with workplace problems. Giving them the skills and confidence to have difficult conversations early can be the difference between resolving an issue and watching it become a formal dispute,” she said.

Regarding lower job mobility, McCann-Bartlett explained that stability and experience can be offset by issues with engagement, especially if workers are staying in positions due to an uncertain employment or financial situation.

Acknowledging the challenge of making the most of existing talent – especially when recruitment isn’t always an option – McCann-Bartlett urged employers to consider skills development, internal mobility opportunities, and strong management.

And with wage expectations climbing from 3.1 per cent to 3.4 per cent this year, increasing business need to balance expectations with cost pressures, she added: “Benefits and flexibility can make a meaningful difference to the overall employee experience.”

“Where substantial pay increases aren’t possible, employers should be clear about what they can offer: whether that’s flexibility, development, recognition, or more predictable work. These measures can support retention, particularly when they reflect what employees value, but they need to sit alongside fair and transparent pay decisions.”

Similarly, McCann-Bartlett noted that rising rates of workplace grievances are a reminder that people management can be the differentiating factor for workplace culture, employee retention, and business performance.

In this way, she urged employers to address concerns before they are escalated into formal grievances or claims.

“That means giving employees a safe way to raise issues, listening without becoming defensive, and being clear about what action will follow,” she said.

“Line managers are essential to managing workplace grievances, as they are often the first people employees turn to when something isn’t right at work. Their ability to listen, address concerns early and navigate difficult conversations can make the difference between resolving an issue and seeing it escalate.”

McCann-Bartlett surmised that managers need to be equipped with the knowledge and capability to make confident workplace decisions and navigate difficult conversations through clear processes, practical training, access to advice, transparency, and empathy.

“For employers, the challenge is no longer simply how to retain people, but how to make sure a more stable workforce continues to develop, perform and adapt,” she said.

“This makes getting more from your workforce you already have, through better management, skills development and smarter ways of working, increasingly important.”

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