Your pay rise might be lying to you

I read the Hays 2026 Salary Guide for you. You’re welcome.

Over 7,000 people across Australia and New Zealand chipped into this thing, which means it is big enough to be useful and long enough to make you question your life choices.

Here’s the sassy version:

Employees and employers are looking at the same labour market.

But they are not seeing the same thing.

Pay. Progression. Flexibility. Skills. AI.

Same market.

Very different interpretations.

I spoke about this last year, but the employment deal is still being renegotiated. Salary still matters, obviously. We are not paying our mortgages with “culture”.

But pay is not enough on its own anymore.

People want clearer progression, real development, useful AI support, and flexibility that works in actual life — not just in a PDF policy nobody reads.

Employers know this.

Yet many are still treating these as separate HR problems instead of one connected workforce issue.

Shocker.

So what matters?

First up: salary.

On the surface, things look rosy. We expect an average pay increase of 3.8%. Bosses in Australia reported an average increase of 4.0%.

Except averages do what averages often do.

They politely lie by omission.

Hays found 42% of us had a decrease, no change, or an increase below 2.4%. So the question this year is not: “Yay, I got a pay rise.”

The better question is: “Did my pay keep pace with the market, my skills, and what I actually contribute?”

Less catchy. Much more useful.

Next: progression.

Oooft.

If I had a dollar for every conversation I have about people leaving because they cannot see a future where they are, I’d have enough money to buy petrol without checking the price first.

Lack of future opportunities is the number-one reason we gave for wanting to leave. That’s 36% of people. Yet only 26% of organisations see career development as something that helps attract talent.

Also, only around one in ten of us say promotions are frequent and based on clear performance criteria.

Which is corporate speak for: “No one knows how to get promoted, but everyone is pretending there is a system.”

Here’s the nugget that matters.

Where there is no clear promotion structure, satisfaction drops to 42% and active job search rises to 36%.

And who is currently sniffing around for a new role?

Gen X.

Of course they are. My generation has spent years being useful, reliable and slightly dead inside. Now we’re looking around thinking, “Is this it?”

So if progression matters to you, do not accept vague interview lines like: “There’s plenty of room to grow here.” Ask: “What does progression actually look like here, and how is it assessed?” If they waffle, that tells you something.

Finally: AI and skills.

Hays found 82% of organisations reported skills shortages. At the same time, 57% of us believe our skills are current.

That does not automatically mean employees are delusional.

It means many of us cannot see the capability gaps our employers are worried about.

AI makes this messier. Sixty per cent of us are using AI regularly at work. Yet only 22% have received training or support.

And despite the stupid amount of media coverage claiming AI is about to take everyone’s jobs, only 3% of organisations have fully embedded AI into their workflows.

Translation: AI is here. But most workplaces do not have their act together.

So, if you are 40-plus and feeling twitchy about your job, you are not imagining it.

The Hays guide suggests many mid-career professionals are looking from a place of fear.

Job security. Redundancy. Retirement timing. Unclear future pathways.

That does not mean panic-applying to every job on Seek like a squirrel with Wi-Fi. It means getting clear. What is your market value? Where are you exposed? What is your next move? And is staying where you are actually strategic? Or just familiar?

Because familiar can feel safe.

Right up until it isn’t.

~Lisa

Your Q&A

Too Old to Start Again?

Hi Lisa,

I am 63 years old and looking for a change. I have been in banking and finance for 40 years, and it’s time to look beyond my current role.

My concern is my age, as I am unsure how I will gain employment elsewhere, even though my skills are transferable. Over the past 20 months, it has been a difficult journey for me due to a change in leadership. I am now at my breaking point and need to leave. I am a people leader and am very passionate about people, coaching, upskilling and delivering exceptional customer service.

Leisa

​

Hi Leisa,

I’m going to say something that may sound strange.

Your age is not the first problem.

Yes, ageism exists. Pretending it doesn’t would be ridiculous. Like pretending “we’re a family here” is always a good sign.

But the bigger issue is this: You’re trying to leave while exhausted.

And exhausted people often make panic decisions dressed up as career decisions.

So before you leap, get specific.

Do you want another people leadership role? Do you want something lighter? Or do you want a role where coaching, customer service, operations and team development are still central, but without the corporate nonsense buffet?

Those are different job searches.

After 40 years in banking and finance, you don’t need to prove you have transferable skills. You need to show employers where those skills transfer.

That means being very clear about the kind of roles you’re targeting, then backing it up with evidence: teams led, change handled, service standards improved, people developed, problems solved.

Do not market yourself as “older but still capable”.

Market yourself as commercially experienced, calm under pressure, people-focused and useful from day one.

That’s a much stronger position.

You may be at breaking point, but don’t let your current workplace write the ending. Write the next chapter properly.

Thanks for writing in.

~Lisa