According to research from Morgan McKinley, Australia’s job market is shifting with nearly half (49%) of professionals planning to seek new job opportunities within the next six months. At the same time, 50% of businesses are actively hiring, intensifying competition for skilled talent.
Why the Change?
A major driver behind this job-seeking trend is the difficulty employers are facing in attracting and retaining talent. The research also reveals that 75% of companies have lost out on candidates due to uncompetitive salary and benefits packages. With 65% of organisations describing the hiring landscape as highly competitive, businesses must rethink their strategies to stay ahead.
Flexibility is Key
Flexibility remains a top priority for workers. The research shows that 41% of employees prefer to work remotely 1–2 days a week, and 15% want fully remote roles. Yet, 50% of companies have increased in-office attendance expectations in the past year, creating a disconnect. Employers who don’t offer flexible work options risk losing talent to competitors who are more adaptable.
Salary Expectations for 2025
While 36% of businesses kept salary ranges unchanged in the latter half of 2024, 75% plan to increase pay for hard-to-fill roles in 2025. Despite this, only 39% of professionals are optimistic about receiving a salary increase, highlighting a gap between employer intentions and employee expectations.
What Employers Can Do
To remain competitive, employers must focus on these top three employee expectations :
- Competitive salary packages
- Improved benefits
- Flexible working arrangements
According to Dominic Bareham, Managing Director of Morgan McKinley Australia, companies that do not align with these expectations risk losing top talent to more adaptable competitors.
As the talent market continues to evolve, Australian employers need to rethink their strategies to attract and retain top talent. With more professionals looking for flexibility, competitive salaries, and better benefits, companies must align their offerings to meet these demands or risk falling behind. The organisations that adapt to these changing expectations will be the ones that thrive in this competitive job market.
This article originally appeared in Staffing Industry Analysts. https://www.staffingindustry.com/news/global-daily-news/australian-professionals-plan-to-switch-jobs-as-job-market-heats-up
