A quieter resignation letter tray may look like good news, but a stable workforce can still become a stagnant one. New research from the Australian HR Institute suggests Australian employees are becoming less likely to change jobs. The September Quarterly Australian Work Outlook placed average annual employee turnover at 13.4%, down from 15.2% in 2025 and close to the survey’s historic lows. Australian Bureau of Statistics data also showed that only 7.2% of employed Australians changed employer or business during the year to February 2026. Employers remain interested in recruiting, although they are becoming more cautious about each appointment. AHRI’s measure of employer confidence in workforce growth fell to an index reading of +33 during the September quarter. Simply put, venues still need to hire however, they are concerned about the quality of applicants. AHRI CEO and Managing Director Sarah McCann-Bartlett said this combination presented employers with a different workforce challenge. “Workers are staying put and employers are thinking harder about every new hire.” For hospitality businesses, lower turnover can bring welcome stability. Experienced employees know the venue, understand its customers and can often spot problems before they become expensive. A settled team may also reduce recruitment costs, ease pressure on supervisors and create a more consistent customer experience. However, staying in a job is not necessarily the same as feeling engaged by it. Some employees may remain because suitable vacancies are harder to find or because economic uncertainty makes changing jobs feel risky. If employers interpret their continued presence as proof that everything is working perfectly, dissatisfaction can quietly build beneath a stable roster. Good management therefore becomes even more important when employees are not moving. People still need useful feedback, recognition and opportunities to take on fresh responsibilities. Employees who have performed the same tasks for several years may be capable of supervising a shift, learning another part of the operation or helping improve a process that frustrates the entire team. Managers also need the confidence to address concerns early. AHRI’s research found 32% of organisations had experienced an increase in internal grievances during the previous 12 months. A straightforward conversation handled promptly can often prevent a manageable concern from becoming a much larger workplace problem. Hospitality will always experience some employee movement. Seasonal demand, changing personal circumstances and the nature of casual work make that unavoidable. The goal is not to keep every person indefinitely, but to ensure capable employees can see a worthwhile future with the business.
