A staggering 45% of employers have seen a surge in shortlisted candidates haggling over compensation packages this year, compared to the previous year, according to research conducted by Robert Half.
Job candidates and existing employees are increasingly negotiating compensation packages compared to the previous year. This trend is a direct result of Australia’s historically low unemployment rate, which has remained at 3.7% according to the latest ABS Labour Force statistics.
Nicole Gorton, Director at Robert Half, points out that in a skills shortage-driven era, employers are experiencing more frequent compensation negotiations. They are now balancing the need to attract and retain top talent with budget constraints and company policies. In this environment, compensation negotiations have become a crucial tool for both employers and employees.
“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,” says Nicole Gorton, Director at Robert Half.
“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 of budgets and company policies. In this environment, compensation negotiations have become a critical tool for both employers and employees.”
The negotiations are more prevalent among job seekers, especially during the interview stage. This suggests that candidates may feel they have a stronger bargaining position in the current job market.
The research also reveals that more workers are negotiating non-financial benefits in addition to monetary compensation. Among employers surveyed, 44% reported an increase in salary discussions, 22% reported more talks about non-monetary compensation, and 34% reported an increase in negotiations for both monetary and non-monetary perks. Non-monetary compensation measures include additional time off, hybrid or remote work arrangements, and professional development opportunities.
Gorton emphasizes that due to the cost-of-living crisis, financial compensation remains a top concern for workers. However, there is also a growing interest in benefits that promote work-life balance and professional growth. Employers should consider that their perk and benefit structure reflects their company culture and can play a significant role in attracting and retaining top talent.
For jobseekers looking to negotiate their compensation packages, Gorton offers several tips:
- Research Industry Trends: Understand the current market value of your skills and experience by consulting resources like the Robert Half Salary Guide. This guide provides insights into salary ranges for various roles and geographical areas.
- Build Your Case: Prepare to explain why you deserve better compensation by providing concrete examples of how your skills and experience will benefit the company. Highlight your strengths and how they align with the company’s goals.
- Factor in Perks and Benefits: Consider both financial and non-financial perks when negotiating. Think about professional development opportunities, health insurance coverage, retirement savings, employee discounts, allowances, and subsidies.
- Know When to Quit: Define your lower limits or non-negotiables before entering negotiations. If the company cannot meet your requirements after a few discussions, it may be better to respectfully withdraw your application and focus on opportunities that better align with your expectations.
Keep up to date with our stories on LinkedIn, Twitter, Facebook and Instagram.
