Why flexibility, balance and authenticity matter more than perks in the post-RTO era

Melbourne. Trendy, caffeine-addicted Melbourne. The place where your barista’s side hustle probably has a pitch deck.

It’s no surprise then that Melbourne’s tech professionals are still among the country’s most independent, curious and career-mobile. But in 2025, the reasons they change jobs (and the things they stay for) are shifting in ways that should make employers sit up and take note.

According to Talenza’s latest Tech & Transformation Talent Outlook (TTTO), 64% of tech professionals in Melbourne plan to change jobs in the next 12 months, while over 44% already have in the past year. That alone should spark a retention rethink.

But here’s the interesting part: they’re not leaving just for money.

Sure, salary still matters (it always will). But for Melbourne’s tech cohort, flexible working arrangements (59.7%) now outrank pay and perks (47.3%) when it comes to employer preference.

What does that tell us? That culture is carrying weight again. Rigidity is a risk factor. And if your EVP still hinges on Friday drinks, you might be missing the point.

This article explores how to truly engage and retain Melbourne’s evolving tech workforce in 2025. We’ll explore:

• The new motivators (and why “balance” means more than days WFH)
• The demographic makeup of Melbourne tech teams today
• What’s actually working for employers who are getting it right
• And the simple shifts leaders can make to win trust

Because in a city powered by ideas, espresso and ethical debates about AI, the way you show up for your people matters. Let’s dig in.

Melbourne’s tech talent in 2025: What’s changed?

If you’re hiring in Melbourne this year, you’re speaking to a workforce that has seniority, is selective, and increasingly self-aware.

Talenza’s 2025 Tech & Transformation Talent Outlook paints a clear picture of who makes up the city’s tech ecosystem. And do you know what? They’re quietly recalibrating behind the scenes.

Let’s start with the makeup:

• Gen Y and Gen X account for 88% of Melbourne’s tech workforce (50% and 38% respectively)
• Gen Z make up just 9.4%, making it one of the most experienced (and least entry-level) tech cities in Australia
• And while just over 20% are managers, a solid 30.7% are sitting at senior level, driving strategic influence across teams and programs

In other words, this isn’t a market full of junior engineers or digital generalists looking to break in. It’s rich in tenure, transition, and expectation.

So what are they thinking about in 2025?

Here’s what the data shows:

• 64.6% plan to change jobs in the next 12 months
• “Finding a new job” is still their top concern (16%)
• But salary isn’t what’s keeping them up at night – it’s now fourth on the list
• Upskilling (15%) and work-life balance (14%) have climbed the ranks
• And nearly 1 in 10 are focused on keeping up with role demands

This points to something bigger than market movement. It suggests a growing appetite for roles that fit, not just roles that pay. Ones that allow people to stay sharp without burning out, and recognise a senior title doesn’t mean round-the-clock availability. These roles honour the complexity of leading transformation in a city where both the projects and the people are layered.

For Melbourne employers, this is a flashing neon sign. Your people want to grow, yes, but on their terms. So the question becomes: are you offering real alignment?

What Melbourne tech candidates care about in 2025

Spoiler: it’s not just the money. Melbourne’s tech talent are taking control of how they live. And that means the old EVP levers don’t pull the same weight.

Here’s what matters now:

• Flexible working arrangements – 59.7%
• Good work-life balance – 47.3%
• Attractive salary and benefits – 47.3%
• Financially healthy employer – 42.5%
• Focus on balance and wellbeing – 41.4%

Can you see the values shift? Compare them to 2024’s most important considerations: finding a new job, boosting my salary, getting a promotion, upskilling, and maintaining work-life balance.

Flexibility isn’t a nice-to-have anymore. Whether you’re a start-up in Collingwood with a WeWork membership or a big four bank, if your working model can’t accommodate autonomy, you’ll struggle to attract serious tech talent.

Why? Because hybrid work isn’t just about location. In 2025, your people are asking for the freedom to decide how deep work gets done. It’s about trusting senior professionals to manage their energy, not just their hours.

That’s why balance now sits above salary in Melbourne’s hierarchy of needs.

And jobseekers aren’t just hoping employers will get it – they’re actively leaving when they don’t. With six out of ten team members planning to switch roles this year, the cost of not evolving your EVP is written in resignation letters, not just Glassdoor reviews.

Let’s not overlook stability either. A financially healthy employer ranks higher than ever in 2025. It’s not about prestige, but predictability. Tech professionals want to grow without watching their role disappear in the next restructure.

Why Melbourne’s mid-to-senior talent is so hard to hold

It’s not just you. Retention is tough in Melbourne right now – and it’s not for lack of trying.

You’re working hard to keep your best people. You’ve adapted policies. Made flexibility the default. Built an EVP that’s more values-aligned than ever. But still, your top performers are fielding calls. Thinking about next moves. Sometimes taking them.

So what’s going on?

Melbourne’s tech workforce is far from disengaged. It’s evolving. More than ever, people are discerning.

These are experienced professionals (with Gen X and Y making up nearly 90% of the market) who’ve lived through enough transformation to know what “good” looks like, and what isn’t worth compromising on anymore.

Here’s the heart of it: they’re not rejecting you. They’re realigning with what fits their life now.

That might mean:

• Trading prestige for predictability
• Prioritising learning environments over legacy brands
• Choosing impact over job titles

And in a market where 15% say upskilling is a top priority, and another 10% are focused on keeping pace with their role, they’re choosing roles that make them better (not just busier).

So yes, holding onto high performers means more than offering perks or even pay. It means tuning into what this cohort is becoming. Because Melbourne’s talent isn’t standing still – and the employers who retain them won’t either.

What high-retention companies are doing well (and how you can replicate their success)

Some companies in Melbourne aren’t struggling to hold onto tech talent. They’re thriving. Quietly and consistently. And when you look closely, they’re not doing one big thing differently. They’re doing lots of small things intentionally and with a deep respect for their people.

So, what’s working?

1. They make flexibility feel personal, not performative

It’s not just a line in the job ad. High-retention employers back it up with structure:

• Real autonomy over hours, not just locations
• Managers trained in outcome-based leadership
• Systems that respect different chronotypes, caregiving setups, and neurodiverse work rhythms

Here’s a suggestion worth trialling:

If you haven’t already, coach your leaders to stop rewarding presenteeism. That means moving beyond ‘it’s okay to leave early’ and into ‘we expect you to set boundaries.’ The difference is cultural, not policy-based. But that’s what makes it stick. Teams don’t change because they’re told to. They change when they see what’s quietly respected, celebrated, or sidelined.

2. They know balance isn’t just a wellbeing perk – it’s a delivery strategy

You already know the mid-to-senior crowd doesn’t want yoga credits. They want headspace. High-trust teams are designing for this. Think: no-meeting Wednesdays, workload forecasting tools that flag when teams are stretched, and leadership OKRs that include retention and team capacity, not just output.

Because if your best engineers are burned out, it doesn’t matter how “engaged” they are on paper. These orgs get that. And they act early.

3. They treat internal mobility like a product

You wouldn’t ship a platform with no roadmap. So why treat internal growth like an afterthought? High-retention companies treat development like an always-on, multi-channel system.

• Shadowing and job rotation without the politics
• Career planning sessions that feel like coaching, not performance reviews
• Clear lateral pathways that don’t force people into people management just to grow

Another idea to consider:

Try adding a quarterly “explore your next move” conversation into each function. Not as a formal HR thing, but as a peer-led, opt-in chat. It’s a simple way to normalise growth conversations before your top performers start quietly disengaging.

The safest time to talk about career progression is before it becomes urgent. When people see a future with you, they stop shopping for one elsewhere.

4. They close the gap between values and experience

Melbourne’s tech professionals are among the most values-aware in Australia. They’re not just asking what you offer. They’re asking: do you live it?

The best employers are deeply consistent. If they say they care about equity, their salary bands are transparent. If they say they support learning, there’s budget and time. If they say wellbeing matters, leaders model those same boundaries. Trust isn’t a strategy. It’s the sum of all your choices when nobody’s watching.

Want to retain better? Start by asking your team: what’s getting in the way of your best work? Then actually do something about it.

Melbourne’s tech professionals don’t need perfection. But they do notice when intent becomes action. And that’s what makes them stay.

Final thoughts: Develop and invite clarity

If Melbourne’s tech talent feels hard to hold in 2025, don’t mistake their intentions – it’s not because they’re fickle. It’s because they’re focused. They know what matters to them and they’re watching to see who listens.

They’re looking for a role that reflects who they’ve become and where they’re going next.

So if you’re not sure what’s landing? Ask. Invite feedback. Revisit what flexibility actually looks like to your team. Start experimenting with moments of trust, not just programs of change.

And when in doubt, come back to this: your strongest EVP is built from what your best people stay for. Make that louder.

Want more insights? The Tech & Transformation Talent Outlook breaks down who’s moving, what’s shifting, and where your next hiring advantage might lie. Grab it. Share it. Rethink how you show up. Because in Melbourne, talent isn’t just attracted. It’s earned.