New report reveals the drivers of salary decisions for new, existing job roles
Employers across Australia are relying on external market data to determine salary decisions for new roles at work, as these positions emerge amid ongoing transformation in workplaces.
Jobs and Skills Australia recently identified 37 emerging roles across data and technologies, health, care, and medical, net zero, as well as science and engineering.
Some of these positions include AI engineer, cloud developer, climate change analyst, electric vehicle technician, mental health practitioner, and community mental health worker, among other positions.
In response to these emerging roles, more than a third of employers are using industry benchmarking tools (39%) and online salary guides (36%) to inform their salary decisions, according to the latest insights from Robert Half.
"As job structures evolve and skill requirements change, flexibility and adaptability are becoming core elements of effective workforce planning," said Nicole Gorton, director at Robert Half.
"Increasingly, organisations are relying on market-informed salary setting for new and emerging roles, reflecting a broader shift towards data-driven decision making."
Despite the shift, more than a third of employers are still factoring guidance from HR and internal salary benchmarks (37%), company performance and profitability (34%), and fixed salary scales (34%) for their salary decisions.
Salary decisions for existing roles
Meanwhile, Robert Half's data also found that company performance and profitability is the leading factor employers take into account when making salary decisions for regularly hired roles.
Half of employers in the report cited this approach when asked in the survey. Other factors employers consider include:
- Guidance from HR or internal salary benchmarks (47%)
- Fixed salary scales (38%)
- Industry benchmarking tools (36%)
- Recommendations from the direct manager (34%)
Gorton said the findings indicate a "budget-first approach to hiring" among many businesses.
But she warned that relying on financial performance can leave businesses "out of step" with the market.
"Salary expectations are increasingly shaped by skills scarcity, role complexity, and external demand," Gorton said.
"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."
