Salary increases are coming, but satisfaction remains low in Australia’s banking and insurance industry, according to the FY25/26 Hays Salary Guide.
“Employers in banking and insurance are trying to respond to cost-of-living pressures and skills gaps,” said Fiona Russell (pictured), business director of banking, insurance, and finance services at Hays.
“But moderate salary increases are no longer cutting it. The bar has shifted – employees now expect more holistic rewards including flexibility, growth, and wellbeing.”
The findings come as Australia’s Q2 CPI confirmed inflation is tracking back to the RBA’s 2–3% target, with headline inflation easing to 2.1% year-on-year. This disinflationary trend supports the likelihood of RBA rate cuts, a development that could relieve pressure on household budgets and influence wage expectations across the sector.
The top three benefits employees value are flexible working, extra leave, and health cover. Employers are instead focused on training, development, and career progression.
While 83% of employers plan to raise salaries, just 20% will lift pay by more than 5% – well below the 42% of employees expecting that level of increase.
In the past year, 33% of employees changed jobs, and another 61% plan to move within 12 months. Only 27% feel they have “significant scope” for progression in their current roles.
Top five roles in demand:
“These figures highlight a changing mindset,” Russell said. “Professionals are no longer willing to stay in roles that don’t support their long-term growth. To remain competitive, employers need to evolve their employee value proposition.”
Hays advises employers to benchmark salaries, align benefits to employee priorities, and create clear career pathways to retain talent.
Professionals should focus on in-demand skills, seek roles offering flexibility and purpose, and weigh long-term growth opportunities alongside pay rises.
Download the full Hays Salary Guide here: https://www.hays.com.au/salary-guide
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