Morgan McKinley research has shown than Australia’s hiring landscape remains highly competitive with 49 per cent of professionals planning to actively seek new job opportunities in the next six months. Meanwhile, 50 per cent of organisations are looking to recruit, intensifying the competition for skilled talent.
The Morgan McKinley 2025 Salary Guide also highlights the growing challenges employers face in attracting and retaining talent. In the last six months, 75 per cent of businesses reported losing out on potential hires due to uncompetitive salary and benefits packages. Additionally, 65 per cent of organisations in Australia found hiring to be ‘Very’ or ‘Quite’ competitive in 2024, with these challenges continuing in 2025.
Employee dissatisfaction with benefits remains an issue, with 56 per cent of professionals feeling ‘neutral,’ ‘dissatisfied,’ or ‘highly dissatisfied’ with their current packages.
Workplace flexibility is still a major priority for Australian professionals, with 41 per cent preferring to work remotely 1-2 days per week, 33 per cent opting for 3-4 days in the office, and only 11 per cent wanting full-time in-office work. Meanwhile, 15 per cent of employees prefer fully remote roles. Despite these preferences, 50 per cent of companies have increased in-office attendance expectations over the past year, creating a disconnect between employers and employees.
Salary stagnation has been another key challenge, with 36 per cent of organisations keeping their salary bandings unchanged in the latter half of 2024. However, 2025 is expected to bring change, as 75 per cent of employers plan to increase salary offers for hard-to-fill roles. Still, only 39 per cent of professionals are optimistic about receiving a salary increase in the coming year.
“The Australian job market continues to see strong hiring activity, but employers are struggling to secure top talent due to salary and benefit expectations,” said Dominic Bareham, Managing Director, Morgan McKinley Australia. “As nearly half of professionals are looking to change jobs in the next six months, organisations must act strategically to attract and retain the best candidates. Competitive salary packages, improved benefits, and flexible working arrangements are key to securing and retaining the best talent in the market. Companies that don’t align with these expectations risk losing talent to more adaptable competitors.”
For the full Morgan McKinley Australia 2025 Salary Guide, visit: https://www.morganmckinley.com/au/salary-guide?utm_source=morganmckinley&utm_medium=media-pr&utm_campaign=salaryguide2025&utm_content=insightssurvey2025
