Robert Half report details positive hiring trends for Australia in 2023

Research by recruitment agency Robert Half has revealed that 75 per cent of employers are planning to sustain or expand hiring in 2023.

Director at Robert Half, Nicole Gorton commented on the data: “Despite fears of a recession, the job market is expected to remain strong in 2023, especially for specialised professionals with in-demand skills. Where employers were once paying huge amounts to get staff through the door to meet surging demand for their skills, now they are making less ‘panic hires’ and shifting their focus on [sic] boosting the productivity of their existing employees,” said Ms Gorton.

“At the same time as ‘right-sizing’ their businesses, heavy goal setting off the back of 2022 has seen many businesses set ambitious growth targets, meaning headcount is necessary in achieving those growth initiatives,” she explained.

According to Robert Half, technology is the main factor behind these trends. With companies expanding digitisation, there is a large demand for tech skills. Thirty-nine per cent said they are planning to increase tech jobs at their organisation. Thirty-seven per cent said they’re likely to maintain current staff, 17 per cent said they’re likely to freeze hiring, and just 4 per cent are reducing tech positions.

“The technology sector is leading the charge in hiring ambitions as businesses intend on uplifting their network security and customer experience, calling for specialists across the board from infrastructure, governance, and development. The skills-short market is showing no signs of easing with business leaders finding it increasingly challenging to secure qualified technology talent,” Ms Gorton commented.

“But technology candidates are still moving around, especially those with in-demand skills, and they continue to hold the power in today’s tight market,” she added.

Eighty-two per cent of employers said that battle to secure employees has jumped since 2021. However, it appears most companies are planning for expansion, with 12 per cent of respondents easing hiring in 2023, and just 5 per cent lowering staff levels.

Ms Gorton continued: “Most Australian businesses seem to be operating on a ‘business as usual’ model in terms of the number of professionals they plan to hire in 2023 but it is clear however, that some companies plan on taking more drastic actions in the lead up to a potential recession by implementing hiring freezes or even reducing positions. Even though this is a minority of companies, extensive thought is needed when deciding to issue layoffs as it can tarnish future attraction and retention strategies.”

The size of organisations and their location play a role in the results.

Forty-seven per cent of large organisations are anticipating increased hiring of permanent staff, while 30 per cent of SMEs said the same. Each state saw different levels too, with 41 per cent of Western Australia and Victorian companies expanding headcount, dropping to 35 per cent in Queensland and 25 per cent in NSW. Some of the top industries for hiring are healthcare, mining, construction, and professional, scientific and technical services.

With recession fears, most organisations said they are expecting to take “alternative actions” rather than reduce staff levels.

If recession hits, 24 per cent would freeze hiring and 16 per cent would dismiss employees. Meanwhile, 36 per cent would improve communication between leaders and employees, 27 per cent would reorganise their workplace, 26 per cent would hold off on projects, and 22 per cent would freeze wages.

“The fear of an economic downturn is prompting leaders to think about ways to achieve the same or better outcomes in 2023. Utilising contract talent as a measure against potential recession and staying flexible in a time of economic uncertainty is a strategic way to access skills in the market when it suits their business,” Ms Gorton said.

She concluded: “More drastic actions like salary freezes and layoffs will help with cost management but will also have big impacts – not only on projects and headcount, but also on company reputation and staff retention. For multinationals, hiring freezes in company headquarters can impact the hiring activity for offices in Australia but this currently seems to be happening at a minimal scale.”

This research was based on 300 respondents from companies in Australia.