Why Retention Will Be a Bigger Challenge Than Hiring in 2026

Australia’s technology sector is shifting again. After two years of steady hiring conditions and cautious growth, 2026 is shaping into a year where the biggest challenge for leaders will not be recruitment. It will be retention. 

Turnover is rising. Hybrid expectations are changing. Leadership capability is under pressure. Tech professionals are becoming more selective about where they stay and how long they stay. The data from major research bodies shows a clear pattern. Organisations that want strong performance in 2026 will need to keep their people engaged, supported and connected. 

This long form breakdown explores why retention pressure is increasing across Australia and what leaders can do to protect capability. 

Turnover is rising as mobility returns to the market 

Many technology professionals stayed in their roles throughout 2023 and 2024. Economic uncertainty and restructuring created hesitation about moving. That caution is fading. The Microsoft Work Trend Index reports that 46% of employees are considering a job change. The strongest intentions come from younger workers and technology specialists. 

The Tech Council of Australia has reported a lift in mobility across cloud, engineering, cybersecurity and data roles as organisations accelerate new transformation projects. 

Why this matters? Movement creates pressure for teams that are already stretched. When capability leaves, the impact on delivery, performance and culture is immediate. Retention becomes a strategic priority, not a nice to have. 

Hybrid work is exposing gaps in communication and leadership 

Hybrid is permanent in Australia. The model itself is not the problem. The problem is unclear expectations. The Atlassian State of Teams Report found that dispersed teams struggle with connection, clarity and decision making. 

People do not leave hybrid work. People leave uncertainty. 

Australian technology professionals want flexibility, but they also want simple rules, consistent communication and leadership that stays steady. Retention improves when teams know what is expected of them and how decisions are made. 

Leadership capability is under pressure across the industry 

Most leaders are managing more complexity than ever. Expectations continue to rise while time and resources continue to shrink. The Deloitte Global Human Capital Trends research shows a widening gap between what employees want from leaders and what leaders currently have the capacity to deliver. 

This is reinforced by McKinsey. Their research shows that people stay when leaders communicate clearly, make steady decisions and provide real development opportunities. 

Why this matters? Poor leadership is not always a capability issue. It is often a capacity issue. When leaders are stretched, teams feel unsupported which directly increases turnover. 

Career growth is becoming the strongest driver of retention 

Salary is important, but it is not enough to hold talent. Australian technology professionals want real growth. The LinkedIn Workforce Insights data shows that people stay significantly longer in organisations that provide clear internal mobility. 

The PwC Future of Work research supports this. Long term stability, skill development and clear progression are now essential to retention. 

If capability is not growing, people start exploring other options even if they enjoy their team and environment. 

People want steady workplaces that communicate honestly 

Australian employees are not asking for perfection. They want workplaces that feel reliable. The Harvard Business Review highlights that trust and psychological safety are now leading predictors of retention and performance. 

Across our conversations with Australian technology teams, the same themes appear again and again. 

People want: 

• Clear direction 

• Honest communication 

• Development that matters 

• Leaders who listen 

• Workloads that make sense 

Retention improves when the environment feels steady and leadership behaviour stays consistent. 

What Australian organisations can do now 

Retention does not improve through slogans or announcements. It improves through clarity and consistency. Leaders across Australia are focusing on practical actions that strengthen team connection and capability. 

• Set clear expectations – Teams want simple rules for hybrid work, communication and delivery.  

• Have regular conversations – Workload, capability and direction should be discussed often. People stay when leadership is present. 

• Support leaders properly – Coaching, tools and time help leaders make better decisions and build stronger teams. 

• Create visible career pathways – Growth needs to be simple, structured and easy to understand. 

• Lift team connection – Connection improves trust which improves performance and retention. 

None of these actions require large budgets. They require leadership attention and a clear plan. 

How Exclaim IT supports retention across Australia 

Exclaim IT works closely with organisations across Australia to build strong and steady technology teams. Our focus is simple. We help leaders understand what people value, where teams are feeling pressure and how to build an environment where talent stays and performs. 

Through workforce planning, targeted hiring and real conversations, we support organisations that want long term capability, not short term fixes. 

Retention will matter more than recruitment in 2026. The organisations that take it seriously now will be in the strongest position as the market shifts again. Get in touch with our team today.