The factors determining salaries in 2026

New research shows what businesses are considering for staff salaries, and how potential employees are reacting.

An independent survey of 500 employers in Australia by recruiter Robert Half has revealed the difference between salary determination for familiar and new roles, and how evolving business needs are a determining factor behind demand.

When looking to fill a pre-existing role, employers consider internal company frameworks before external data, but this is then used to help validate and update internal benchmarks.

Of the determined approaches, 50 per cent of employers considered company performance and profitability, 47 per cent considered guidance from HR and internal salary benchmarks, and fixed salary scales, industry benchmarking tools, and manager recommendations all hovered in the 30 per cent range.

This tells us that there aren’t stark differences or significant outlier considerations, but rather only a medium degree of variability in these decisions.

Expectedly, external data drives salary decisions for newly created or unfamiliar roles, of which there are increasing numbers. However, internal reference tools are a close secondary and important reference point behind this decision.

Industry benchmarking tools are the most cited approach, at 39 per cent, but guidance from HR and internal salary benchmarks sit at 37 per cent, followed by online salary guides, company performance, and fixed salary scales, respectively, all sitting around 35 per cent.

As such, the direction of salary consideration is seemingly opposite for existing job requirements and new job requirements, but the latter is more equally reliant on both. While this would suggest that the business’ position is a crucial determining factor, this may be set to change in the future.

Director at Robert Half, Nicole Gorton, purports that “company profitability remains the top driver of pay for familiar roles,” but adds, “while financial performance is important, relying on it alone can leave businesses out of step with the market”.

“Salary expectations are increasingly shaped by skills scarcity, role complexity, and external demand.”

Changing employee priorities and less willingness to compromise on certain factors have put the onus on employers to adapt, or risk not filling roles in a timely manner. As reported recently, remuneration was identified as one of the key challenges employers faced in filling roles in time, with salary expectation mismatches reported by 58 per cent of surveyed hiring managers and more than 30 per cent experiencing offer declines as a result of uncompetitive compensation.

Gorton highlights how “flexibility and adaptability are becoming core elements of effective workplace planning.”

“Companies that balance internal performance with up-to-date market data are better positioned to attract and retain in-demand professionals, especially in sectors where salary expectations move quickly,” she said.