The University of NSW found two-thirds of the workforce were paid less than what their qualifications, experience and labour warranted after being under-classified in their award.
At the same time, workers feel they are dealing with more complex patient issues and experiencing more extreme examples of family violence.
More than half the frontline workers surveyed dealt with clients experiencing family violence, despite many not being specialists in that field.
Karen McKinney, a family case worker from the NSW central coast, reached the highest award level for frontline staff seven years ago.
She said many staff, including lots of younger workers, leave their jobs citing tough working conditions.
"It's give, give, give … you need experienced workers to stay around and to share their experiences and knowledge with younger workers, but you can't move up levels," she told AAP.
"You think about (leaving), but I love the job and I believe in the job, but younger workers come in and don't have the experience, they don't know what to expect and sometimes they can't manage it."
The study, in conjunction with the Australian Services Union, surveyed 3000 social workers with an analysis of workplace agreements finding 67 per cent were at an award level less than their skills warranted.
ASU Assistant national secretary Emeline Gaske pointed out the "paradox" with services turning away people in need due to staff shortages, while also potentially pushing the workforce away due to conditions.
"This is a workforce in crisis and urgent action is needed to ensure those employed in crucial frontline social and community sector roles are properly classified, and paid, for the work they do," she said in a statement.
"Fair compensation is a cornerstone for building a resilient and effective workforce capable of meeting the needs of our communities."
Ms McKinney suggested the "vicarious trauma" her colleagues were experiencing was getting worse, adding funding bodies needed to understand the reality of a day-to-day worker.