Aussie employers believe people have become too greedy – despite the skyrocketing cost of living – with 61 per cent finding a candidate for a new role in the last 12 months who had “unrealistic salary expectations“, new research has revealed.
The average salary request was 16 per cent above the amount initially offered with almost one in 10 employers finding a candidate requested more than 40 per cent higher than the first offer.
But jobseekers were also prepared to walk away if their demands weren’t met.
The research from recruiter Robert Half showed 41 per cent of candidates were successful in securing more than was originally offered, while 22 per cent did accept the original salary offer and almost a quarter walked away from the job offer altogether.
However, 14 per cent of employers also withdrew a job offer because of the candidate’s high salary expectations.
NSW employers were most likely to encounter “unreasonable demands” with almost seven in 10 business leaders receiving unrealistic salary requests, while Queensland companies received the least, with about half citing this trend.
“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 development ops and cybersecurity roles – may find they can negotiate for larger salary increments,” said David Jones, senior managing director at Robert Half Asia Pacific.
“Taking this further, 2023 will be a year where the candidate’s bargaining power has started to rebalance and it will become rarer to see high percentage increases for both candidates who move companies and those who stay with existing employers.”
Robert Half also released its salary guide showing the most in-demand permanent roles and their national average starting salary for 2023.
Finance roles continued to be one of the best paying jobs in the industry, according to the survey which showed finance managers are earning between $124,500 and $155,000, while a senior financial accountant was raking in up to $140,500.
Meanwhile, commercial analysts could command anywhere between $104,500 and $131,000 and a management accountant could earn up to $112,000.
Other financial services roles also attracted the big bucks with a senior credit risk manager on as much as $174,000, a senior compliance manager could demand as much as $141,500 while an operational risk analyst could be paid as much as $122,500.
Despite the tech sector experiencing a brutal round of job cuts in the industry, it was still one of the best paying industries, the survey revealed.
Cloud engineers could attract a salary as high as $171,000, cyber security specialists weren’t far behind with a salary of $165,0000, systems engineers could take home $153,000 annually, while business analysts pay packets could reach $136,000.
Human resources could also offer a lucrative career with HR managers attracting salaries of $154,000, HR business partners could earn up to $135,000, a HR adviser’s salary was as high as $108,000 while a HR co-ordinator still had a way to go with $79,500.
Business support roles paid far less with a data entry clerk earning $63,000, receptionist and customer support service jobs on just $64,000 and an administrative assistant on a salary of $67,500.
Last year, with the market heavily favouring candidates, those who were able to negotiate a higher pay were able to secure an average of 10 per cent higher than the original offer, yet 6 per cent lower than the average requested amount.
This means 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, found Robert Half.
“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,” said Mr 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 moves roles.”
However, the very best finance and accounting, technology, HR and business support professionals want to work for companies who are leading their industry sector, Mr Jones added.
“For businesses to position themselves as ‘leaders’ they will look beyond salary and consider employee experience and innovative career-building offerings that differentiate them from their competitors,” he said.
“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.”