Why more Australians are quietly job hunting in H2 2026

Not every resignation can, or should, be prevented. But employers shouldn’t discover what mattered to a valuable employee for the first time during their exit interview, writes Catherine Kennedy.

Not everyone looking for a new job is unhappy enough to resign tomorrow.

In fact, one of the biggest retention risks for employers in the second half of 2026 may be the employees who appear perfectly settled.

They’re still performing. They’re turning up to meetings. They haven’t complained to their manager or announced that they’re unhappy.

But they’re watching the market.

The latest people2people Recruitment Market Report found that 36 per cent of job seekers are now passively looking for a new role or hesitant to move – up 12 per cent from 2025. At the same time, those who are actively looking aren’t necessarily considering one opportunity at a time: 62 per cent are involved in at least three interview processes simultaneously.

Together, these findings point to an interesting shift in candidate behaviour.

Employees may be more cautious about changing jobs, but that doesn’t mean they aren’t considering their options.

For employers, that’s an important distinction.

Employees don’t have to be unhappy to start looking

One of the biggest misconceptions about retention is that people only start looking for another job when something has gone seriously wrong.

Often, the decision is much more gradual.

An employee might like their manager and colleagues but feel there’s nowhere for them to progress. They may enjoy the organisation but want greater flexibility. They might be performing well while questioning whether their salary, workload, or career opportunities could be better elsewhere.

Our research shows that limited career opportunities are the leading reason employees leave, cited by 37 per cent of job seekers. Lack of training or upskilling and uncompetitive salary packages were each cited by 15 per cent, while poor work/life balance, unhealthy workplace culture and poor management also featured among the reasons employees quit.

The important point for employers is that these issues don’t necessarily cause someone to resign immediately.

They can simply give them a reason to start looking.

Passive doesn’t mean unavailable

The growth in passive job-seeking is particularly important for employers to understand.

Someone who is passively looking may not be spending every evening submitting applications. They might simply have job alerts switched on, be more receptive when a recruiter calls, or be willing to have a conversation when an interesting opportunity appears.

That creates a very different retention environment.

Your employee doesn’t necessarily need to want to leave. Another employer simply needs to give them a compelling enough reason to consider it.

And once someone does enter the recruitment process, employers may have more competition for that candidate than they realise. With 62 per cent of job seekers engaged in at least three interview processes simultaneously, businesses shouldn’t assume they’re the only opportunity a candidate is considering.

The same principle applies to your existing employees.

Career progression is becoming a retention issue

If employers want to understand what might make an employee receptive to another opportunity, career progression is a good place to start.

people2people’s research found career opportunities are the most important retention factor for 73 per cent of employees, followed closely by work/life balance at 72 per cent, management support and trust and job security at 71 per cent, company culture and team relationships at 69 per cent, and learning and skill development at 68 per cent.

These findings reinforce why retention can’t be reduced to salary alone. Employees want to understand where they’re going.

If someone has been performing the same role for several years without a meaningful conversation about what comes next, it becomes much easier for an external opportunity to attract their attention.

Career progression doesn’t always have to mean promotion. It might mean taking responsibility for a new project, developing specialist skills, mentoring others, moving into another part of the organisation or having access to additional training.

The important thing is that employees can see a future.

Don’t underestimate work/life balance

The research also shows just how important the overall employment experience has become.

Work/life balance matters to 72 per cent of employees, while flexible working is important to 59 per cent.

That means an employee considering another role is likely to assess much more than the salary.

What flexibility will I have? What will my workload look like? Who will I report to? What is the culture actually like? Will I have opportunities to learn? Will I be expected to be available outside normal working hours?

Flexibility can be particularly powerful because employees may place a different value on it than employers realise.

When people2people asked employees what they would consider instead of a pay rise, 38 per cent nominated greater work flexibility and 37 per cent additional training, ahead of additional annual leave at 25 per cent and a promotion at 24 per cent.

Employers therefore need to understand what individual employees value rather than assuming remuneration is always the answer.

Watch for the quiet signs

The challenge with passive job seekers is that employers may have no idea they’re considering other opportunities.

But there can be subtle changes.

Someone who regularly contributed ideas becomes quieter. An employee who volunteered for projects stops putting their hand up. Career conversations become less enthusiastic. Someone who previously asked about development stops asking.

None of these behaviours automatically means somebody is job-hunting. But they are reasons to have a conversation.

Managers should be asking employees what they want the next 12 months of their career to look like, what they would change about their current role and what skills or experiences they’d like to develop.

Good retention conversations happen before somebody has another offer.

Employers may be underestimating why people leave

There is also an interesting disconnect between what employees say makes them leave and what employers think is driving turnover.

For example, 12 per cent of job seekers nominate unhealthy workplace culture as a reason for leaving, compared with just 5 per cent of employers. Employees are also more likely than employers to identify lack of training and upskilling as a reason for leaving – 15 per cent compared with 8 per cent. Those gaps matter.

If employers misunderstand why people are leaving, they risk investing in the wrong retention strategies.

Exit interviews, engagement surveys and regular manager conversations shouldn’t simply be HR exercises. They are opportunities to identify patterns and act on them.

Don’t wait for the resignation

Once somebody has accepted another role, retention becomes significantly harder. By that point, they’ve likely updated their CV, spoken to recruiters, attended interviews and started imagining themselves somewhere else.

That’s why the rise of the passive job seeker should be a reminder for employers to have retention conversations earlier.

Ask your people where they want to go next. Review whether salaries remain competitive. Look at workloads and flexibility. Invest in development. Make sure managers are having meaningful conversations about careers rather than waiting for annual reviews.

Not every resignation can – or should – be prevented.

But employers shouldn’t discover what mattered to a valuable employee for the first time during their exit interview.

With more than a third of job seekers now passively looking or hesitant to move, the second half of 2026 isn’t just about attracting people who are actively searching. It’s also about retaining the people who haven’t decided to leave – but might be willing to listen when the right opportunity comes along.

Catherine Kennedy is the managing director in NSW at people2people Recruitment.

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