Marvin OnumonuTotaljobs’ Salary and Benefits Report 2026 found the workforce is set to split, with 41% of workers either looking for a new job or planning to move next year.
Higher pay was the main reason for moving, chosen by 51%.
Movement was highest in younger age groups, with 48% of those aged 18 to 29 and 47% of those aged 30 to 39 planning to move.
At the same time, 41% said they had no plans to leave their job, pointing to a growing number of ‘job-huggers’ seeking certainty in a cooling labour market.
Of those staying put, job security was the main reason, chosen by 53%.
Most workers saw their pay increase in the last year, with 63% reporting a rise and 73% satisfied with the amount.
Over half (53%) cut back on leisure spending, and nearly a third (32%) reduced spending on essentials such as food, heating and household bills.
68% of men said they felt comfortable asking for a pay rise, compared with 55% of women.
Only 46% of employees with less than a year’s service felt able to negotiate pay, compared with 68% of those with six to 10 years in the job.
Confidence was also lower among remote workers, at 54%, compared with 65% of hybrid workers.
Salary was the most important factor for workers choosing a job, chosen by 81%.
For those planning to move, higher pay was the main reason, picked by 51%.
Four in five candidates (80%) said they avoid applying for jobs without pay details, but many employers still do not disclose this information.
Flexible working hours were the most desired benefit, with 35% willing to take a pay cut to get them.
Career progression was also crucial, with 53% saying they would not apply for a job if progression opportunities were unclear.
Improving work-life balance (38%) was just ahead of earning more money (37%) as the top career priority for 2026.
Luke Mckend, managing director at Stepstone Group, said: “Heading into 2026, we’re seeing a clear divide between those ready to move for higher pay and those seeking stability in an uncertain labour market.
“Even with widespread pay rises, many workers are still feeling the financial squeeze, pushing salary, transparency and progression to the top of their priorities.
“These factors reflect a broader transformation in the jobs market. Workers are navigating not just short-term cost-of-living pressures, but long-term shifts in skills demand, automation and demographic change.”
Mckend added: “The competition for talent is becoming increasingly global, and UK employers must adapt to a workforce that is more mobile, more values-driven and more vocal about what they expect from work.
“Employers who recognise these pressures – and respond with clear pay information, meaningful career pathways and working arrangements that support balance – will be far better positioned to attract and retain the talent they need in 2026.
“Those who go further, aligning workforce strategies with wider economic realities and investing in the skills of the future, will not only weather uncertainty but also build resilience and growth for the years ahead.”
