- 45% of Australian employers report more shortlisted candidates have negotiated compensation packages this year compared to last year, while 40% have experienced more existing employees doing the same
- Salary (44%) is more common than non-salary perks (22%) to be negotiated
- 34% of shortlisted candidates and existing employees want to negotiate both salary and non-salary compensation factors
Sydney, 19 September 2023 – Job candidates and existing employees are more frequently negotiating compensation packages compared to last year, research by specialised recruiter Robert Half finds.
This comes as another symptom of Australia’s historic low unemployment rate, which has remained at 3.7% from the latest ABS Labour Force statistics.
“In an era defined by skills shortages, employers are witnessing a growing frequency of compensation negotiations, where the pursuit of talent meets the constraints of a squeezed marketplace. As the demand for top talent continues to outgrow the available supply, organisations are finding themselves reconciling the requirements of their business with those of their employees too. They must entice and retain skilled professionals while navigating the constraints budgets and company policies. In this environment, compensation negotiations have become a critical tool for both employers and employees,” says Nicole Gorton, Director at Robert Half.
Jobseeker negotiations ramp up
Between shortlisted candidates and existing employees, candidates are more likely to enter compensation negotiations, which indicates that applicants may feel they have a stronger hand during the interview stage.
| More are negotiating compared to last year | Fewer are negotiating compared to last year | About the same are negotiating compared to last year |
Shortlisted candidates | 45% | 30% | 25% |
Existing employees | 40% | 26% | 34% |
More workers are negotiating non-financial benefits
Between monetary and non-monetary compensation measures, 44% of employers report having more salary discussions, 22% report having more non-monetary compensation talks, and 34% report an increase in negotiations for both monetary and non-monetary perks.
Non-monetary compensation measures include increased time off, hybrid or remote work, and professional development opportunities.
“The cost-of-living crisis means financial compensation is front of mind for workers who are more willing to test the negotiation waters this year.
“While salary is still king, there is an uptick in professionals who want to amend their benefits to facilitate a greater sense of work-life harmony and options for professional development. Employers need to remember that a company’s perk and benefit structure is reflective of their wider company culture so innovative and comprehensive offerings do not only help attract and retain top talent, it can also support a long-term talent pipeline of employees and help build overall staff engagement.
“Before entering negotiation discussions, professionals should keep in mind that they will need to provide evidence as to why their efforts should be rewarded with an improved compensation package, and ensure their requests are reasonable,” concluded Gorton.
Tips for jobseekers to negotiate their compensation
Jobseekers who want to negotiate the compensation package with an employer can take several steps to best position themselves for the conversation.
Research industry trends
It is important to be realistic about the current market value of your skills and experience. To understand the salary and benefits landscape of your industry, consult the Robert Half Salary Guide. It outlines the current salary range of thousands of roles. Jobseekers can also use filters to highlight the salary range being paid to employees in their geographical area.
Build your case
Before negotiating salary, prepare to explain why you deserve more by listing concrete examples of how your skills and experience will benefit the company’s bottom line. By highlighting your strengths and detailing the extra benefits the company will receive with someone of your unique experience, you will make a solid case as to why you should be paid more.
Factor in perks and benefits
Negotiations by nature involve give and take. Define what is most valuable to you that would make the offer more attractive, either financially or non-financially. Take into consideration perks being offered, such as professional development opportunities, that you may not have considered. If you have received offers from multiple employers, directly compare all perks and benefits such as health insurance coverage, retirement savings, employee discounts, allowances and subsidies.
Know when to quit
Identify the lower limits or the non-negotiables that you are prepared to accept before entering the negotiation, and if the company cannot meet your requirements after a few discussions, respectfully withdraw your application. It is better to focus your own needs as well as that of the potential employers’ on opportunities that better match expectations.
Robert Half - candidate negotiations - September.pdf
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Notes to editors
About the research
The study is developed by Robert Half and was conducted online in June 2023 by an independent research company, surveying 300 hiring managers, including 100 CFOs and 100 CIOs, from companies across Australia. This survey is part of the international workplace survey, a questionnaire about job trends, talent management, and trends in the workplace.
For enquiries, please contact:
Courtney Fletcher
Courtney.Fletcher@roberthalf.com.au
+61 421 209 304