Economic outlook improving, but ‘salary growth isn’t yet widespread’

Cautious and early-stage confidence is characterising salary and hiring practices in 2026, Robert Half has revealed.

The economic outlook is starting to improve in Australia, and salaries are beginning to reflect this, according to the 2026 Robert Half Salary Guide. Employers are responding to this changing economic cycle in an encouraging manner, with 71 per cent reporting a positively impacted approach to setting salaries this year.

However, tighter approvals, fewer new projects, and more centralised decision making mean budget and approval discipline have not been disregarded, meaning employees will still need to negotiate salary – something an encouraging 99 per cent of surveyed businesses are reportedly open to.

According to Robert Half director Clinton Marks, “even with a slight rise in interest rates, many businesses recognise they need to invest deliberately to stay competitive for in-demand talent”.

“Employers haven’t forgotten the intensity of the last few years, and that context is shaping decisions today,” he said.

“With mandated office days rising, real wage growth under pressure, and teams doing more with less, salary is moving back to the centre of workforce decision making but through a measured, targeted approach rather than across-the-board increases.”

Specialised skills and depth of experience are the strongest current drivers in negotiations, with the data suggesting employers will move quickly for candidates that demonstrate capability in harder-to-find areas, such as transformation and project delivery.

While negotiations are more than 50 per cent likely to land in the 10 per cent or less range, “it’s not a hard ceiling”, according to Marks.

He said: “Where capability is genuinely scarce, employers will stretch further, and refreshed budgets could drive sharper movement in those areas even if the wider market stays measured.”

In addition, an estimated 97 per cent of employers are willing to offer other benefits or perks should salary expectations not be met, many of which are consistently desirable, such as increasingly flexible work arrangements, higher performance bonuses, and even a one-time signing bonus.

These non-financial incentives are gaining “prominence at the negotiating table”, Marks identified.

With 20 per cent of businesses expressing that the economic outlook will have a negative impact on staff salary and 9 per cent stating there will be no impact or they are unsure of the potential impact, it is clear that salary expectations should be tempered.

For the more in-demand roles, primarily in finance and accounting, IT and technology, financial services, business support, HR, and marketing, the likelihood of meeting salary expectations is higher, but still determined by organisational budget constraints.

“Employers are adopting more creative and flexible approaches to align with candidate expectations, especially when hiring pressures are high and salary budgets are under strain,” Marks said.