New report reveals gradual reopening of salary negotiations during hiring
Most employers in Australia are now willing to go beyond initial salary offers as economic optimism gradually opens up more pay negotiations, according to a new report.
The newly released 2026 Robert Half Salary Guide revealed that 99% of employers are now open to going above their initial salary offers during the recruitment process.
Among them, 40% of employers are open to offering a six to 10% salary increase to employees. Others are willing to provide:
- 5% or less (16%)
- Between 11% and 15% (29%)
- Between 16% and 20% (12%)
- More than 20% (2%)
"Most negotiations for standard roles are landing within a 0 to 10% range, reflecting disciplined, targeted increases rather than broad-based lifts. But it's not a hard ceiling," said Clinton Marks, Director at Robert Half, in a statement.
"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."
Specialised skills emerged as the top factor that would make an employer more willing to increase a salary offer during negotiations, according to the findings. Other levers that employers consider are:
- Years of experience (44%)
- Available budget (40%)
- The seniority of the role (34%)
- Scarcity of qualified talent in the market (34%)
- People management responsibilities (29%)
"Specialised skills and depth of experience are the strongest levers in negotiation right now. Employers are still disciplined, but they will move quickly and decisively when a candidate brings capability that's hard to find, particularly in areas tied to transformation and project delivery," Marks said.
Benefits as an alternative
But when employers can't match what jobseekers want when it comes to salary, 97% said they would offer alternative benefits to secure the hire.
More than half of employers said they would offer more flexible work arrangements (56%), higher performance bonuses (55%), and more professional development opportunities (52%). Others said they would offer:
- A one-time signing bonus (28%)
- Insurance programme (26%)
- More paid time off (25%)
- More stock options (13%)
This shows that non-financial incentives continue to gain prominence at the negotiating table, according to Marks.
"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," he added.
Optimism in the market
Employers' rising willingness to go beyond initial salary offers is in line with their growing optimism in the market, according to the report.
Nearly three in four businesses (71%) said the economic outlook in Australia will positively impact their approach to setting salaries for staff in the next 12 months.
Only 20% said the economic outlook will have a negative impact on pay.
"Salary conversations are gradually opening up again. Even with a slight rise in interest rates, many businesses recognise they need to invest deliberately to stay competitive for in-demand talent," Marks said.
But he noted that businesses are being more "disciplined" when it comes to salary increases.
"Employers haven't forgotten the intensity of the last few years, and that context is shaping decisions today," the director added.
"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."
