While salaries most commonly increase throughout an individual’s career (outside of inflationary adjustments), increasingly, employees are not experiencing a straight upward trajectory. Fluctuations in salary have become more common over the last decade, according to Seek. In fact, salary growth tends to plateau for most professionals in their late 40s or early 50s. At this stage, individuals often reach senior positions where salary increases are less frequent and more dependent on changes in role, responsibilities, or company performance rather than years of experience.

After thirty years in recruitment, Wayne Eaton has witnessed first-hand non-linear salary progression. “There are so many factors that influence candidate career choices, whether it be career transition, casual vs permanent jobs, work/life balance, training and development, issues with a manager or market shifts,” says Wayne. Some are a conscious choice, and others are driven by market changes, with the pandemic and AI two recent examples. “Yet, many hiring managers continue to reject candidates because they think they are overqualified or have earned a higher salary previously, even when candidates express different priorities or are simply trying to get back into the workforce.”

This unconscious bias may, in fact, result in missing out on top talent that can help your organisation reach its goals. We discuss key reasons salary trajectories are non-linear and why the lower salary on offer shouldn’t automatically exclude a candidate from the job.

Change in attitudes and expectations of work

While every generation changes the workforce in different ways, Millennials and Gen Z’s have influenced how most employees view work, with a little assistance from a global pandemic! In Australia, this has resulted in legislation such as the Right to Disconnect, greater expectations for flexible work and good working conditions, and many employees opting to polywork.

At the core of these changes is a preference for greater autonomy and improved work/life balance. And it has changed across many industries and professions, but not all. Many Gen Xers would say they work fewer hours and have more flexibility now than twenty years ago, although this is not everyone’s journey. Some engineers, for example, trying to complete projects with fewer resources than ever, may in fact have the opposite outcome. Likewise, teachers will argue that their workload has increased significantly in the last decade.

So, how does this change in attitudes and expectations impact productivity and salary? Those continuing to work long hours expect higher compensation for their efforts and interruptions to their personal life. Where this is not achieved, quiet quitting and decreased productivity have become more prevalent. However, it is the number of people opting to take a step back to achieve greater balance that is most notable.

There are also emerging societal trends impacting wages. Firstly, more people are avoiding leadership roles because they don’t want the perceived stress that goes with them. A recent Deloitte Gen Z and Millennial Survey found that while these generations prioritise career progression, many are not motivated by reaching leadership positions. They’re focused on work/life balance, learning and development. The survey indicates that finding meaningful work and well-being is as important as financial compensation. As a result, career moves involving opportunities to learn or work for a purpose-driven organisation may be acceptable at a lower salary. However, money, meaning, and well-being are tightly interconnected, and a lack of financial stability can shift these priorities.

The second trend is people scaling up or down in their careers as life circumstances change.

Adjusting to different life phases

According to Wayne Eaton, it is increasingly recognised that people will change jobs and careers in response to different life stages. There are many reasons why a person may take a step back in work hours and/or responsibilities, which impact salary, such as: 

• Caring for children, grandchildren or elderly parents
• Wanting to work interstate or abroad
• Transition to retirement (more flexibility and/or less responsibility)
• Specific or ongoing health issue/s
• Grieving a loved one
• Recovering from burnout following intensive work conditions
• Working on a passion project as a side gig
• Reduced financial pressure (i.e. kids no longer in private school or mortgage paid off)

Caring responsibilities have traditionally been divided along gender lines, with women (mothers, daughters or daughters-in-law) undertaking most of the work. However, this has shifted significantly from Gen X onwards.

It's now common for professional parents to alternate with their partners on taking jobs with greater responsibilities, enabling one parent to manage more of the family duties at a given time. This allows both to progress their careers over time, rather than one parent at the expense of the other. The reason why an individual is interested in the position does matter, and giving someone the benefit of the doubt in these scenarios can allow them to add value and progress in the future when they may be able to do so. 

Another example of this is experienced professionals scaling back in the last decade of their career, to allow for a healthier lifestyle, to travel or spend quality time with family and friends. These professionals can add significant value to an organisation as mentors and technical experts, without necessarily driving operations.

Reflection is a valued leadership skill, which is perhaps why many professionals are prepared to make the call to step back at different stages in their careers.

Career transitions and industry disruptions

There has been much discussion about how many career changes people may have in their lifetime, yet salary fluctuation is not necessarily included in this narrative. Research suggests that most people will change careers at least once, with the average person currently working expected to have between three and seven careers. This number may increase for upcoming generations of workers, which will again impact linear salary progression.

Unfortunately, career transitions are not always by choice. This century, Australia has seen a significant decline in the manufacturing industry, impacting professionals across many industries. “As a recruitment organisation specialising in engineering, scientific and technical recruitment, the offshoring of manufacturing most notably affected engineers in automotive and scientists in pharmaceuticals,” says Wayne. Many professionals in these areas were either forced to reskill or transition, and some who retained their roles experienced salary stagnation. However, these industries also lost great talent to other sectors and competitors abroad.

Artificial intelligence is predicted to be a significant disruptor in the coming years, which will mean career pivots for many. According to Forbes, a McKinsey report projects that by 2030, 30% of current U.S. jobs could be automated, with 60% significantly altered by AI tools. Goldman Sachs predicts that up to 50% of jobs could be fully automated by 2045, driven by the advancement of generative AI and robotics. Continuous learning will be essential for employees, which may lead to the need to change jobs to acquire essential skills.



The workforce has changed significantly, reshaping how careers and salary expectations have evolved. Hiring managers who focus on a candidate’s current motivation, skill sets, and future potential, rather than past salaries or job titles, will likely benefit in making more strategic hiring decisions. Managers who embrace flexibility, challenge unconscious bias, look for impact, and understand employe values and alignment, will be more likely to make successful hiring decisions. 

If you’re looking for work or people with specialist skills, get in touch for a confidential discussion today.