Australian Employers Are Getting Bolder: How 2026 Salary Negotiations Are Shaping Up

Australian employers are showing early signs of greater confidence in pay discussions for 2026. Most expect an improving economic outlook to shape salary setting over the next year, according to new research from recruiter Robert Half.

A survey of 500 employers found 71% expect the economic outlook in Australia to have a positive impact on their approach to salaries over the next 12 months. Another 20% expect a negative impact, 6% anticipate no impact and 3% are unsure.

Organisations still report tight controls on approvals and spending. Even so, employers appear more willing to revisit pay for roles where skills are scarce or business priorities are shifting.

Negotiation Returns

Salary negotiations look set to remain a standard part of hiring. Almost all employers surveyed (99%) said they are willing to go above an initial salary offer during recruitment for an average role.

Asked how far they would move beyond an initial proposal, 40% said they would increase an offer by 6% to 10%, while 16% said 5% or less. Larger adjustments were less common: 29% would go 11% to 15%, 12% would go 16% to 20%, and 2% would offer more than 20%.

The results suggest most negotiations for standard roles will stay within a relatively narrow band, with fewer employers keeping room for bigger moves when candidate quality or market conditions demand it.

Clinton Marks, Director at Robert Half, said the pay environment remains cautious, with employers planning for shifting conditions while keeping a close watch on costs.

"Employers are starting to plan for a change in the cycle, but salary growth isn't yet widespread," said Marks.

What Drives Offers

Skills and experience were the main reasons employers gave for raising an offer during negotiations. Highly specialised skills topped the list (52%), followed by years of experience (44%) and available budget (40%).

Other factors included seniority and a lack of qualified talent in the market (both 34%), as well as people management responsibilities (29%).

The findings highlight the importance of role-specific labour market conditions. They also show the influence of internal constraints, with budget remaining a key consideration even when employers want to secure a candidate.

Benefits Gap

When employers cannot meet salary expectations, most are prepared to discuss non-salary options. The survey found 97% would offer alternative perks or benefits if pay expectations fell outside their range.

Flexible work arrangements were the most common option (56%), followed by higher performance bonuses (55%) and professional development opportunities (52%).

More traditional incentives ranked lower. A one-time signing bonus was cited by 28% of employers, while insurance programmes and additional paid time off were cited by 26% and 25% respectively. Stock options were cited by 13%.

Marks said employers are weighing a broader mix of incentives in negotiations, particularly when salary budgets are constrained.

"Although competitive pay continues to underpin talent attraction, non‐financial incentives continue to gain prominence at the negotiating table. 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," said Marks.

Pay Benchmarks

Robert Half's guide also set out indicative starting salaries across finance and accounting, IT and technology, financial services, business support, human resources and marketing, using 25th, 50th and 75th percentiles.

In finance and accounting, the midpoint starting salary for a Financial Controller was listed at AUD $195,000, rising to AUD $210,000 at the 75th percentile. Finance Managers were listed at AUD $145,000 at the midpoint, Management Accountants at AUD $110,000, and Payroll Officers at AUD $85,000.

In IT and technology, the midpoint starting salary for a Cyber-Security Specialist was AUD $150,000, rising to AUD $180,000 at the 75th percentile. Cloud Engineers were listed at AUD $155,000 at the midpoint, Data Engineers at AUD $145,000, and IT Support roles at AUD $80,000.

In financial services, specialist and leadership roles showed higher figures. The midpoint for a Head of Financial Crime/AML role was AUD $220,000, rising to AUD $270,000 at the 75th percentile. Senior Compliance Managers and Senior Operational Risk Managers were listed at AUD $170,000 at the midpoint.

In business support, an Executive Assistant was listed at AUD $115,000 at the midpoint, while Office Managers were listed at AUD $100,000. In human resources, the midpoint for an HR Manager was AUD $145,000, and an HR Advisor was listed at AUD $100,000. Marketing roles included a Marketing Manager at AUD $140,000 at the midpoint and a Digital Marketing Specialist at AUD $100,000.

Overall, the results point to a hiring market in which employers expect to negotiate, maintain cost discipline, and pay more where skills are scarce. Where base salary budgets do not stretch further, many are leaning on flexibility, variable pay and development options.