Key Takeaways:
- 26.5% of Australian employees are actively job hunting, up from 19.4% six months earlier (Gartner).
- Pay ranks second as a reason to join but sixth as a reason to leave. Manager quality and respect top the list of reasons to leave.
- At 12%, super is often the second-largest part of the package and the part employees most often overlook.
- Confusion over whether pay is inclusive or exclusive of super can make a lower offer look like a raise.
- Managers need the full package picture, super included, before an outside offer arrives.
Throughout most of 2025, Australian employers experienced low turnover, as cost-of-living pressures and a sluggish job market encouraged employees to remain in their roles.
Recent Gartner data indicates this trend is shifting. The latest Global Talent Monitor, which surveyed Australian employees from April to June 2026, shows confidence in job availability rebounding after a three-year low at the end of 2025. The proportion of employees actively seeking new roles increased from 19.4% to 26.5% over six months, while the proportion planning to stay dropped from 38.1% to 34%. Gartner advises employers not to expect 2025's low turnover to persist, as many who postponed job changes are now re-entering the market.
In our earlier article, we looked at how candidates review their offer around ten times before signing, then rarely look at their total rewards again once they're employees. When more employees are open to other offers, that drop-off matters more.
What Gartner's Ranking Says About Pay
Gartner also ranks the factors influencing why Australian employees join or leave employers. Compensation is now the second most common reason to join, but has dropped to sixth as a reason to leave. Manager quality and respect are the leading reasons for departures, and recognition has risen significantly.
This suggests that the way pay is communicated now influences how employees assess their managers and employers. When managers clearly explain pay decisions and employees understand the full value of their package, it demonstrates respect and recognition. The absence of clear communication undermines both.
Why the Australian Package is Easy to Undervalue Super
Employers currently contribute a 12% Superannuation Guarantee on top of ordinary time earnings. For example, a $150,000 base salary results in $18,000 per year contributed to super. Although super is often the second-largest component of an employee’s package, it is frequently overlooked because it is not paid directly into their bank account.
This also leads to common confusion about whether a salary figure includes super. Australian offers are presented as either "base plus super" or as a total package, sometimes called total fixed remuneration, and the distinction is often not specified.
For example, an employee earning $140,000 plus super may be approached about a role offering a $150,000 package. This appears to be a $10,000 increase, but if the $150,000 includes super, the base salary is approximately $133,900—about $6,000 less than their current earnings. Employees who understand their package structure will recognize this difference; those who do not may overlook it.
Payday Super
Since 1 July 2026, employers have been required to pay super with each pay cycle rather than quarterly. This benefits employees, as contributions now appear in their super fund app every week or fortnight.
However, more frequent visibility of contributions does not necessarily improve employee understanding. The fund app displays a growing balance but does not show how super aligns with base pay, bonuses, equity, leave, or the total employer contribution.
Contributions Above the Minimum
Many employers contribute more than the 12% minimum, continue super payments during parental leave, or offer salary sacrifice options. These valuable benefits are often mentioned only during onboarding and rarely revisited. If employees are unaware their employer pays 15% instead of 12%, the additional 3% may have little impact on retention.
Other Parts of the Total Rewards Package
Several other components are frequently overlooked:
- Leave loading, typically 17.5% of annual leave pay under awards and agreements, is paid but seldom considered part of total rewards.
- Long service leave accrues over time and usually receives attention only when an employee is close to qualifying. This is also when it becomes most relevant if they are considering a job change.
- Paid parental leave top-ups beyond the government scheme are often among an employer’s most generous benefits, yet they are rarely discussed.
- Employee share schemes can be difficult to value, especially for those less familiar with equity. A share count alone provides limited insight. Allowing employees to explore potential value under various scenarios offers greater clarity.
Managers and the Pay Conversation
Our earlier article referenced research indicating that 84% of employers rely on managers to communicate pay, yet only 38% believe their managers are well trained for this task. With manager quality now the leading reason Australians leave, addressing this gap is essential.
Recent regulatory changes reinforce this need. Pay secrecy clauses are now restricted under the Fair Work Act, and the Workplace Gender Equality Agency publishes gender pay gaps for larger employers. Employees are increasingly likely to ask how their pay is determined, and managers must be prepared to respond. This includes clarifying whether figures include super, the employee’s market position, and the rationale for any pay increases.
Team View provides managers with a comprehensive view of their team’s compensation, including current and historical pay and market positioning, with access limited to each manager’s scope. The Pave Agent, an AI compensation analyst, compiles analyses and rationales for pay decisions to support managers' explanations. The Agent offers recommendations and displays its reasoning, while the manager makes the final decision and leads the discussion.
Six Steps for Australian Rewards Teams
Choose a single convention for super. Decide whether pay is presented inclusive or exclusive of super, and apply this consistently across offers, portals, review letters, and manager communications. In all cases, display base salary and super as separate amounts alongside the total.
Present super as part of the total package. Employees should be able to view their super contributions alongside other rewards, not solely in their fund app. If your contribution exceeds 12%, ensure this is clearly communicated.
Assign a clear value to less visible benefits. Display leave loading, long service leave accrual, parental leave top-ups, and share scheme scenarios in dollar terms. A Total Rewards Portal allows employees to access this information at any time, not just annually.
Prepare managers in advance of review conversations. Begin with employees in high-demand roles, ensuring their managers can explain the full package, including super, before external offers arise.
Maintain consistency in the offer experience after hiring. Candidates who reviewed a Visual Offer Letter should receive the same clear, detailed view as employees. For example, Dropbox provides both candidates and employees with a personalized rewards overview. All candidates viewed their interactive offer, and 75% of employees accessed the rewards portal.
Conduct an audit. The Five Leaks Audit consists of ten questions scored out of twenty and provides a quick method to identify gaps before the next review cycle.
Improve Retention Through Total Rewards Communication
As more Australian employees consider new opportunities, they will compare their current packages with external offers. Employees who understand their full package, including super, accrued leave, and equity, can make informed comparisons. Since employers already invest significantly in these benefits, ensuring employees understand them is a practical step toward improving retention.
Charles is a member of Pave's marketing team, bringing nearly 20 years of experience in HR strategy and technology. Prior to Pave, he advised CHROs and other HR leaders at CEB (now Gartner's HR Practice), supported benefits research initiatives at Scoop Technologies, and, most recently, led SoFi's employee benefits business, SoFi at Work. A passionate advocate for talent innovation, Charles is known for championing data-driven HR solutions.
