Sustained candidate power in today’s talent market

Despite the current stagnation in the Australian labour market, uncertainty remains high. But what’s interesting to note is that candidates are not behaving as many leaders expect, writes Dion Love.

In an employer’s market, traditional thinking suggests candidates would intensify their job searches, accept smaller pay increases and be more willing to change roles. In reality, job searches have slowed, salary expectations remain elevated, and candidates are cautious about making moves. This has created a significant shortage of available talent.

Gartner research reveals 27 per cent of Australian candidates spent more than five hours per week on active job searches in 2Q25, down from 65 per cent in 2Q23. Higher compensation was identified as the top reason for accepting a job offer. In addition, job acceptance rates are significantly down – 52 per cent of candidates reported they accepted their most recent offer in 2Q25, down from 82 per cent in 2Q23.

Candidates may be raising their expectations for new roles or reacting more to uncertainty than to market stagnation. Either way, they are willing to wait for opportunities that meet their higher standards. As a result, recruiters face increased pressure to understand and deliver on candidate priorities.

To secure critical talent in this environment, organisations must adopt an approach that’s more consistent with a fluid labour market. A successful approach includes prioritising engagement with essential talent pools; enhancing the employee value proposition (EVP) by managing the right mix of job attributes; and addressing candidate concerns about career risks.

Selective talent engagement

Contrary to expectations, job search activity has declined. To address this, organisations need to focus on building deeper relationships with high-priority candidates, in a similar way to approaches used in more dynamic markets.

HR leaders can guide business leaders to focus on roles with the greatest impact or complexity, which is especially important when budgets are tight. Deploying recruiters skilled in long-term relationship building and automating hiring for less critical roles can help free up resources, allowing recruiters to concentrate on strategic hires.

Optimising the EVP

Many candidates are holding out for roles that meet all their expectations, not just higher pay. To close this expectation gap, organisations must amplify the right mix of attributes for the talent they’re targeting.

HR teams can help leaders identify the most critical skills and experience levels, then find current employees who fit those profiles. Conducting focus groups with these employees can reveal which attributes set the organisation apart for top talent.

Engaging current employees in crafting messaging – tone, emphasis, and content – helps ensure it resonates with desired candidates.

Reducing career risk

Candidates are increasingly hesitant to accept job offers in today’s climate, despite expectations. To address this, organisations must shift focus from persuading candidates to move jobs to helping them understand the risks of staying put.

Equipping recruiters to guide candidates through decision making, weighing risks, and building confidence is essential. When candidates feel supported, they are more likely to move forward. Developing recruiters’ advisory skills for more consultative, supportive conversations will also make a difference.

If HR leaders follow this path, they are not just reapplying the playbook from a fluid market. If the primary hesitation among talent is a fear of being “last in, first out”, then recruiters must shift the conversation from the risk of making the move to not making it.

Shaping the future talent strategy

Relying on traditional assumptions about candidate behaviour is no longer effective. Today’s market is shaped more by uncertainty than stagnation.

Until conditions change, organisations need to adopt a candidate strategy that mirrors a more fluid market – one that emphasises targeted engagement, clear value, and proactive risk management, especially when resources are limited.

Dion Love is a vice president of business and technology insights in Gartner’s HR practice.