- 61% of Australian employers have had a candidate request an unrealistic salary in the past 12 months, with these candidates requesting an average of 16% above the salary initially offered to them.
- While 41% of candidates were successful in securing more than was originally offered, 22% did accept the original salary offer and 23% walked away from the job offer altogether due to it not meeting their expectations.
- 14% of employers withdrew a job offer because of the candidate’s high salary expectations.
Sydney, 6 March 2023 – With salaries for in-demand talent having increased significantly in 2022, the newly released 2023 Robert Half Salary Guide reveals that 61% of Australian employers have encountered a candidate in the last 12 months who has had unrealistic salary expectations about their new role by asking for a salary well beyond what may be considered reasonable.
Based on the research, the average salary request was 16% above the amount initially offered with almost one in 10 (8%) employers stating they had a candidate request more than 40% higher than what they initially offered.
Candidates are aware that many Australian employers paid premium salaries to secure skilled talent as business confidence grew post-pandemic, with the Wage Price Index1 also experiencing its highest growth in a decade, growing 3.3% in 2022.
Companies of all sizes have dealt with candidates asking for unrealistic salaries in the past 12 months. Medium-sized employers have been the most likely to encounter this, with two-thirds (66%) citing this situation, similar to 62% of large employers, and just over half (56%) of small business employers. NSW employers were most likely to encounter unreasonable demands with almost seven in 10 (68%) business leader receiving unrealistic salary requests. Queensland employers received the least, with only about half (53%) citing this problem.
“A candidate driven market in 2022 has created an environment in which many candidates still expect to receive high salaries in 2023. However, with more businesses being cautious about an economic downturn, with many focused on cost management, only those who have the very highest in-demand skills - such as financial partnering, financial modelling, and big data analytics, or those who work in technology DevOps and cyber-security roles – may find they can negotiate for larger salary increments”
“Taking this further, 2023 will be a year where the candidate’s bargaining power has started to re-balance and it will become rarer to see high percentage increases for both candidates who move companies and those who stay with existing employers,” says David Jones, Senior Managing Director at Robert Half Asia Pacific in announcing the launch of the 2023 Salary Guide.
Employers are knocking back many salary requests
Just as candidates are not afraid to ask for a premium above the initial salary offer, so too are employers not afraid to put their foot down and risk losing talent in the negotiation process.
While 41% of candidates were successful in securing more than was originally offered, 59% were not with 22% of candidates accepting the initial salary offered, 23% not accepting the original offer and 14% of employers even withdrawing their offer because of the unrealistic expectation of the candidate.
In 2022, with the market heavily favouring candidates, those who were able to negotiate a higher pay were able to secure an average of 10% higher than the original offer, yet 6% lower than the average requested amount. This highlights some candidates still have significant bargaining power to receive a salary higher than originally offered, but this may not last much longer as employers seem less likely to allocate higher salaries going into 2023.
“As a result of high inflation and interest rate announcements made by the Reserve Bank of Australia in the last several months, companies are reviewing team structures and considering the optimal use of their existing headcount. In addition, businesses are starting to preference contract talent, to flex resources in this developing market,” says Jones.
“People who are changing jobs need to start to consider what motivates them to move beyond a salary increment. In 2023, it will become more common for employers to hold firm on not meeting what they consider more unrealistic salary requests. This revised market direction will reduce significant salary increases as a primary driver as to why someone move roles.”
“The very best finance and accounting, technology, HR and business support professionals want to work for companies who are leading their industry sector. For businesses to position themselves as ‘leaders’ they will look beyond salary and consider employee experience and innovative career-building offerings that differentiates them from their competitors.”
“That being said, some candidates are still going into interviews with significant salary requests, expecting them to be met, which can increasingly be perceived as unreasonable to a new employer. At a time when efficiency and cost management is at the forefront for most companies, high in-demand niche skills and those who can make a significant difference to business operations, saving time, money and effort, are likely to be most favoured” concluded Jones.
Top in-demand roles for 2023
Robert Half’s 2023 Salary Guide reveals the in-demand permanent roles and their national average starting salary this year.
FINANCE
| Role | 25th percentile | 50th percentile | 75th percentile |
| Finance Manager | $124,500 | $138,000 | $155,000 |
| Senior Financial Accountant | $112,500 | $125,500 | $140,500 |
| Commercial Analyst | $104,500 | $117,000 | $131,000 |
| Management Accountant | $93,500 | $103,000 | $112,000 |
TECHNOLOGY
| Role | 25th percentile | 50th percentile | 75th percentile |
| Cloud Engineer | $126,500 | $149,500 | $171,000 |
| Cyber-security Specialist | $128,500 | $147,000 | $165,000 |
| Systems Engineer | $113,500 | $128,500 | $153,500 |
| Business Analyst | $108,500 | $123,000 | $136,000 |
BUSINESS SUPPORT
| Role | 25th percentile | 50th percentile | 75th percentile |
| Administrative Assistant | $59,000 | $64,000 | $67,500 |
| Receptionist | $54,500 | $60,000 | $64,000 |
| Customer Service Officer | $54,500 | $60,000 | $64,500 |
| Data Entry Clerk | $56,500 | $60,000 | $63,000 |
FINANCIAL SERVICES
| Role | 25th percentile | 50th percentile | 75th percentile |
| Operational Risk Analyst | $70,500 | $103,500 | $122,500 |
| Credit Risk Manager | $122,000 | $132,000 | $141,500 |
| Credit Risk Senior Manager/Executive Manager | $140,500 | $155,500 | $174,500 |
| (Senior) Compliance Manager | $131,500 | $141,500 | $155,500 |
HUMAN RESOURCES
| Role | 25th percentile | 50th percentile | 75th percentile |
| HR Coordinator | $69,000 | $74,500 | $79,500 |
| HR Advisor | $81,500 | $94,500 | $108,500 |
| HR Business Partner | $99,000 | $113,000 | $135,000 |
| HR Manager | $123,000 | $140,500 | $154,000 |
Robert Half’s tips on how employers can deal with unrealistic salary expectations
#1 Be familiar with industry salary trends
Enter a salary negotiation as informed as possible. To get a current, realistic view of the compensation landscape for the role, consult the Robert Half Salary Guide. It lists the current market rate for the position and experience level required, and national figures can be adjusted depending on the geographic location of the business in Australia. Pay particular attention to the "hottest jobs" and " in-demand skills" sections of the Salary Guide, as candidates who hold these skills are more likely to enter salary negotiation.
#2 Build your case
Once a salary request from a candidate is received, don’t just counter with a “yes” or “no”. Explain why the request is accepted or rejected. Highlighting industry trends, salary benchmarks, and/or company-specific reasons behind decisions can help ensure the candidate is informed and a successful agreement is negotiated.
#3 Lean on perks and benefits
Salary negotiations often include employee perks and benefits. It may be less costly than a bump in salary to concede ground on providing extra leave days, flexible hours or a work-from-home schedule, especially in today’s environment.
Consider what’s valuable to the candidate and what would make an offer more attractive. If they’re considering multiple offers, remember to directly compare or highlight career progression opportunities or specific wellness programs that can differentiate the company from the competition and allow the candidate to make an informed decision.
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Notes to editors
About the Robert Half Salary Guide
The Robert Half Salary Guide is the most comprehensive and authoritative resource on starting salaries and recruitment trends in finance and accounting, risk and compliance, technology, and business support. The results and insights of the Robert Half Salary Guide are based on comprehensive analyses, local job placements, local expertise, and independent research of industry executives.
Starting salaries are not a one-size-fits-all, which is they are separated into three percentiles. The percentiles account for differences in experience, skills, professional certifications, demand for the role, and the size/complexity of the company that’s hiring.
25th percentile
The candidate is new to the role, with little or no experience, and requires more than casual instruction or supervision to perform day-to-day duties.
50th percentile
The candidate has the experience to consistently perform core responsibilities without direct supervision and is very comfortable with processes and subject matter associated with the role.
75th percentile
The candidate’s value to the organisation goes far beyond the ability to perform normal job duties; the candidate has rare qualifications that enable consistent contribution in unique ways and is ready for the next career level when the opportunity becomes available.
Note: The 25th percentile is not the lowest end of the salary range, and the 75th percentile is not the highest or a cap. Robert Half provides these percentiles because they are the ones most commonly used. Salaries outside of this range occur far less frequently and, as a result, are not included in the Robert Half Salary Guide.
About the research
The study is developed by Robert Half and was conducted online in November 2022 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