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The percentage of Australian business leaders looking to increase staff year-on-year has grown, however offering competitive salaries to prospective candidates has been identified as a key challenge, new research has found.
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Greater salary expectations plaguing Australian business leaders
21 January 2022
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According to new research by Robert Half, 71 per cent of Australian business leaders are more confident about their growth prospects this year than in 2021.
Of the 71 per cent who feel confident about their growth prospects, expanding business opportunities (63 per cent), a better economic situation (61 per cent) and successful restructuring (55 per cent) are cited as the top influences on increasing growth prospects in 2022.
Further, the research found that 82 per cent of those surveyed are planning to hire permanent employees in 2022, with 44 per cent of Australian employers planning to maintain headcounts and 38 per cent of business leaders planning to expand their workforces by actively adding new positions.
On the opposite end, 13 per cent of those surveyed intend to freeze headcounts entirely and five per cent plan to reduce workforce numbers.
Despite the positive hiring intentions, more than half (54 per cent) of those surveyed said they believe finding qualified employees in 2022 will be more challenging than it was pre-pandemic.
Thirty-nine per cent of business leaders said meeting candidates' salary expectations would be their primary challenge in recruitment. This was followed by reskilling and upskilling existing employees, which 36 per cent of respondents said, and finding candidates who possess the right technical skills, which was selected by a further 36 per cent of respondents.
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“Competition for talent is strong, and professionals with in-demand skills are aware of the hiring market challenges and the bargaining power this gives them – particularly with regards to salary. Companies are increasingly turning to poaching talent from the competition to tap into a broader talent pool and many are receiving multiple job offers with generous salary increases, bespoke benefit packages, and title changes,” said Nicole Gorton, director at Robert Half.
“With more opportunities and enticing packages on offer, employers will need to benchmark their salaries to maintain their remuneration at or above market rates or they risk losing their preferred candidates to competing offers – particularly for select roles that can adapt business operations or drive revenue-generating initiatives.
“This primarily includes technology roles in data management, software development, and cyber security as well as financial accountants and financial analysis roles within finance. To assist with mounting hiring and talent management pressures, HR business partners and talent acquisition managers are also in high demand.
“Alongside remuneration, sign-on bonuses, opportunities for advancement and concrete efforts to support employee work-life balance through hybrid working will also distinguish employers of choice in the war for talent this year.”
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