Employer-employee transparency gap widens retention risks

While most employers say they don’t plan to reduce headcount this year, almost half of employees plan to find a new job in the next six months, a global report shows.

Amidst growing job security concerns, almost half of employees (49%) in a global survey are planning to actively look for a new job in the next six months.

However, redundancies are not top of mind for most employers in a global report. Nearly two-thirds (63%) have planned no reduction in headcount for 2026, and 57% plan to maintain current headcount, according to the 2026 Workplace Trends Report: The New Employment Equation by global talent and recruitment company Morgan McKinley.

“One of the strongest themes our global research found is that workforce anxiety is beginning to affect employees,” the report said. “As they become more uncertain about job security, restructuring, AI disruption, and future career prospects, they naturally become more defensive in how they behave at work.”

Employees who feel their job is at risk are more likely to start applying elsewhere (85%) than upskill (64%), build their professional network (51%), save more money (51%), or explore contract or freelance opportunities (42%).

While 64% said they would immediately look to upskill if faced with job insecurity, only 23% said they receive sufficient support to upskill. Over half of employees (56%) in the report believe their employer underinvests in professional growth.

Artificial intelligence (AI) and data skills were the highest development priority for employees. AI also was identified as one of the main skills that hiring managers are struggling to find in talent pools. Employers are focused on talent development, the report found, but that focus was unclear to employees.

“Organisations that combine transparency with a strong focus on career development are likely to be better positioned to attract and retain talent,” the report said.

The communication gap between employers and employees is also evident when it comes to perceptions about salary.

Nearly 70% of employees reported no salary increase over the past six months, up from 65% last year. But almost half of employers (48%) said they raised pay across their organisations, though over half (52%) kept new hire offers flat compared with offers in the previous year.

“The findings indicate that employees experience pay stagnation more acutely than employer data alone would imply,” the report said. Despite perceptions of pay stagnation, 48% of employees remain optimistic about receiving a pay increase over the coming 12 months.

Overall, the leading driver of retention is not financial. For most employees, working from home remains the most valued benefit (70%), followed by health insurance and a bonus (both at 65%). Employers view flexible work patterns (49%), career progression (45%), and a good benefits package (36%) as important nonsalary levers for attracting talent amidst salary pressures.

Even though 64% of employees said flexible working influences their decision to accept or decline job offers, almost half of employers (47%) are pushing for more than three days a week in the office, the report found. For employees with a hybrid preference, 45% want to spend one or two days a week in the office.

Morgan McKinley based the report on the responses of about 2,800 employees and 200 employers globally.

— To comment on this article or to suggest an idea for another article, contact Steph Brown at Stephanie.Brown@aicpa-cima.com.

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