Insights

​For many organisations, salary is still seen as the primary lever for attracting and retaining talent. When a valued employee resigns, the first question often asked is whether they were offered more money elsewhere.

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But in our experience working with employers and senior professionals across Melbourne, the picture is rarely that simple. While salary can certainly attract candidates to a role, it is often not the main reason they decide to leave.

More often than not, the underlying issue is a lack of career development.

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The attraction of salary

Salary continues to play a significant role in job decisions. When candidates consider a new opportunity, remuneration is typically one of the first things they consider. It signals recognition, financial security and a sense that their skills are valued in the market.

Many organisations assume that if a competitor offers a higher salary, that alone will be enough to persuade someone to move. And sometimes that is true. In a competitive market, salary increases can prompt people to explore new roles.

However, what we consistently see in conversations with candidates is that salary often acts as the trigger for considering a move – not necessarily the deeper reason behind it.

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The role of career development

A far more consistent theme in exit conversations is career progression. Most professionals want to feel that they are learning, developing and moving forward. When that sense of progress stalls, even a well-paid role can start to feel limiting.

This is particularly true for mid-career and senior professionals who are thinking about the long-term direction of their careers. They want to understand how their current role is helping them build new capabilities, expand their leadership skills or move closer to their broader career goals.

When those opportunities are unclear or unavailable, employees often begin to look elsewhere.

Research consistently supports this pattern. Workforce studies regularly show that lack of career development is one of the most common drivers of employee turnover. For example, research from the Work Institute has found that insufficient career growth opportunities are the leading cause of employees leaving their jobs, ahead of factors such as work-life balance and management issues.

Similarly, LinkedIn research has highlighted that employees place a strong emphasis on development and learning opportunities, with 94% saying they would stay longer at a company that invests in their career growth.

In other words, people may accept a job because of the salary, but they frequently leave because they cannot see a pathway forward.

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Why a salary increase does not always solve the problem

Many employers attempt to retain talent by offering a counteroffer or salary increase once an employee has resigned.

While this can occasionally delay a departure, it rarely addresses the underlying issue.

If someone already feels their development has stalled, an increase in pay may provide temporary reassurance but does little to change their long-term outlook. Without meaningful growth opportunities, the same concerns often resurface within months.

From a business perspective, relying on salary increases alone can also create internal equity issues and place pressure on remuneration budgets without improving engagement.

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What employees are really looking for

In our conversations with candidates, the most engaged professionals tend to describe roles where they feel they are progressing in some way.

That progression does not always mean a promotion or title change. It can include:

• Exposure to new projects or challenges

• The opportunity to build leadership capability

• Learning new technologies or business skills

• Greater strategic responsibility

• Clear pathways for future advancement

When employees can see how their role contributes to their long-term career trajectory, they are far more likely to stay engaged and committed to the organisation.

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The importance of career conversations

One of the simplest but most effective ways organisations can support retention is through regular career discussions. Many employees do not expect immediate promotions or dramatic role changes. What they want is clarity about how their role fits into a broader development pathway.

Open conversations about career goals allow managers to understand what motivates their team members and identify opportunities for growth within the organisation.

In some cases, that might involve expanding responsibilities or introducing new projects. In others, it may involve planning longer-term development or leadership opportunities. These discussions also help organisations identify potential retention risks earlier, before an employee begins actively exploring the market.

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A broader view of retention

Retention strategies that focus exclusively on salary can miss the broader factors that influence long-term engagement. Organisations that succeed in retaining top talent typically take a more holistic approach. They invest in development, create clear progression pathways and provide employees with opportunities to grow their capabilities over time. When employees feel they are moving forward in their careers, compensation becomes just one part of a much larger value proposition.

For employers looking to attract and retain high-performing professionals, the question is not only how competitive their salary packages are, but also how clearly they can demonstrate a pathway for growth.

Because while salary may open the door to a new opportunity, it is career progression that ultimately determines whether someone chooses to stay.

If you’re reviewing your retention strategy or struggling to keep top talent engaged, our team can help. We work closely with organisations to understand what today’s candidates are really looking for and how to build teams that stay and grow.

To start a conversation, get in touch with one of our recruitment specialists at careers@bwsrecruitment.com.au