8 hiring trends every Aussie HR lead should know

Summary: 2025 hiring trends in Australia

1. Skill shortages push Aussie companies to hire overseas.

2. Return-to-office demands meet work-from-home resistance.

3. Gen Z quits fast without clear career progression.

4. AI speeds hiring, but risks bias and missed talent.

5. Casual worker errors can now lead to prosecution.

6. Applicants skip job ads that hide the pay.

7. Green‑skill demand outpaces supply.

8. Pay-gap data is public and damaging employer brands.

These recruitment trends come from several respected sources. These include Rippling's Censuswide survey of 500 Australian business leaders, SEEK application data, Jobs and Skills Australia shortage lists, and Australian HR Institute workforce reports. We verified additional facts against LinkedIn’s Green Skills research, Deloitte studies on AI hiring, and WGEA’s March 2025 data release.

Trend 1: Global hiring goes mainstream

Australian mid‑sized companies don't think of global talent acquisition as a big‑corp luxury anymore. Rippling's survey found that 89% plan to hire overseas talent in 2025. For many of them, Singapore and the wider Asia‑Pacific will be their first stops. They cite three big draws: fixing local skill gaps (41%), expanding customer reach (44%), and increasing productivity with follow‑the‑sun teams (43%).

Jobs and Skills Australia’s recent shortage list shows that 33% of occupations lack enough local workers. Hiring only within Australia can mean scraping the barrel of a smaller, more expensive talent pool. Tapping into overseas talent pools can often mean access to plenty of skilled AI engineers, product managers, and sales pros. And sometimes at a friendlier price.

Why it matters

• Local shortages drive up salaries: A tight domestic pool pushes wage offers higher every quarter. Businesses that ignore global options can end up paying more for the same skills and hurting margins.

• Overseas hires unlock new revenue: Having sales or support staff in other time zones can keep lines open while Australia sleeps. Quick answers can be super valuable for closing deals and impressing customers.

• Cross‑border diversity can mean better innovation: A more diverse talent pool can often solve problems faster. A variety of viewpoints tend to stop groupthink and ignite product ideas that single‑country teams might miss.

Action tips

• Pick the right hiring vehicle: It can make sense to open your own entity when you know you’ll build a big, permanent team and send local invoices. But if you’re just trying out a new market, leaning on an employer of record (EOR) lets you hire quickly, cost-effectively, and compliantly.

• Set pay bands before you publish job postings: Research market rates, add a currency buffer, and lock the range in your human resources information system (HRIS). Clear bands can speed up job offer turnaround and keep overseas staff on par with local peers.

• Document global workflows from day one: A single, all‑in‑one HR platform can log every country’s onboarding steps, payroll dates, and public holidays in one living playbook. This way, the whole team stays on the same page and compliance becomes a lot easier.

'When you stop limiting hiring to your postcode, you unlock a global bench of talent that can drive growth and innovation.’ - Dan Shaw, Sales Director for Global Cloud APAC, Rippling

Trend 2: Flexibility gets new boundaries

Australian employers are quietly tightening the screws on flexibility. Rippling's survey shows 57% are now less likely to hire candidates who refuse five in‑office days. But workers aren’t rolling over. Knowledge workers still want an average 3.2 work‑from‑home days. Only 55% of them believe their company genuinely supports hybrid work. 

When businesses impose rigid return‑to‑office mandates, turnover spikes. One study pinned the jump at 14% after companies forced staff back into full‑time office work. The result is a growing tug‑of‑war. Businesses want clearer boundaries and more in‑person time. Employees are pushing for autonomy and enforcing their own boundaries.

Why it matters

• Expectation gap drives costly exits: When leaders tighten office rules while staff still want remote days, employees feel unheard and quietly start polishing their CVs. As top performers head to more flexible competitors, the scramble to replace them can drain budgets and throw project timelines off course.

• Flexibility is modern currency: Hybrid schedules save staff time and out‑of‑pocket costs, making them feel like a tangible perk. Strip that benefit away and workers may think of it as a pay cut, even if their salaries stay the same.

Action tips

• Set clear hybrid guard‑rails: Choose two or three regular in‑office days and let your team know upfront. Clarity beats ad‑hoc 'come in when you can' policies that often breed resentment.

• Offset the commute crunch: Offer a modest transport allowance or let teams expense one group lunch a week to soften the extra cost of office days. Small gestures can show you recognise the real price of in‑person work.

• Measure before and after: Track turnover, employee engagement, and offer‑acceptance rates for a few months before and after any policy change. If the numbers slip, adjust fast instead of doubling down.

• Coach managers on outputs, not chair time: Run micro‑sessions on outcome‑based KPIs and asynchronous tools so supervisors can judge results instead of desk hours. When leaders reward impact, the pressure for constant face‑time naturally declines.

'The evidence suggests a one‑size‑fits‑all approach to return to office could be detrimental.' - Nhlamu Dlomu, Global Head of People, KPMG International

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Trend 3: Gen Z is less loyal to employers

Rippling's survey highlights that 31% of HR leaders doubt Gen Z's long‑term loyalty. And 28% believe remote work has made them less connected to company culture. For many businesses, that creates a challenge. How do you keep Gen Z engaged when job-hopping, instant feedback, and algorithm-fed content are their baseline?

A report by the Australian HR Institute backs this up. Gen Z workers are the least likely of all generations to say they’ll be with their current employer in two years. This isn't really an entitlement issue. It largely comes down to expectation mismatches. Many Gen Z hires feel the recruiting process oversells growth opportunities. Once they’re in the door, they often find static roles and old-school management styles that don’t match the pitch.

Why it matters

• Turnover costs stack up fast: On average, an early exit costs 0.5–2x annual salary to replace. For lean teams, even a few Gen Z walkouts a year can hit your budget harder than giving raises or investing in development programs.

• Mismatch kills momentum: When employee expectations clash with how your business actually works, you can lose people and trust. It can erode company culture, derail onboarding, and leave gaps that impact delivery.

Action tips

• Add growth tracks to your onboarding workflow: Build growth into your onboarding process from day one by setting clear development goals alongside role training. Link these goals to your performance review cycle, so career conversations start early and continue through regular check-ins.

• Mentor early and often: Pair new Gen Z hires with peer or senior mentors during onboarding and beyond. People stay where they feel supported, not just supervised.

• Audit your recruitment process: Make sure job postings, interviews, and onboarding materials reflect actual day‑to‑day responsibilities. Overselling leads to fast exits and bad employer reviews.

'As Gen Zs and millennials navigate a rapidly changing world of work, they are reevaluating the capabilities they need to succeed and the support they want from their employers.' - Elizabeth Faber, Chief People & Purpose Officer, Deloitte Global

Trend 4: AI is everywhere in hiring

Artificial intelligence (AI) was once an experiment in recruitment. In 2025, it's the default. Rippling's survey shows 97% of HR teams now use AI tools somewhere in their recruitment process. It might be to write job descriptions, screen CVs, or schedule interviews. 

Beyond influencing how companies hire, AI is also reshaping who they hire. Rippling's survey revealed that 61% of hiring managers will drop candidates who lack AI experience. But they often do this without a clear benchmark for what that actually means. In a competitive job market, that can backfire fast. Filter too hard, and you can lose great candidates. Trust the tools too much, and you risk reinforcing hiring bias unconsciously. 

In 2025, it's important to balance speed with fairness and be deliberate about how you identify candidates with potential.

Why it matters

• Over‑filtering shrinks your talent pool: Buzzwords and tick‑boxes can screen out fast learners who just don't have experience with the 'right' tools yet. In a competitive job market, overlooking those candidates can set you back.

• Bias doesn’t fix itself: If you skip fairness checks when training your AI models, they’ll reflect the systemic bias in your historical hiring data. That can be detrimental to diversity goals and damage your employer brand.

Action tips

• Run quarterly bias audits: Review your AI tools regularly to see who they exclude, who they favour, and if that aligns with your equity goals. Ask vendors for transparency reports, and change tools if they won’t provide them.

• Swap tick‑boxes for skills demos: Instead of filtering for ‘AI experience,’ ask shortlisted candidates to complete a short, practical task relevant to the role. Implementing skills-based hiring can help you spot potential, even when the CV doesn’t scream it.

• Train your recruiting teams: Make sure recruiters and hiring managers understand how to interpret AI output and when to override it. At the end of the day, critical thinking will always be the best hiring tool.

'AI is catalysing a fundamental transformation in how work is structured and careers are developed.' - Dr Kellie Nuttall, AI Institute Leader, Deloitte Australia

Trend 5: Regulation drives headcount moves

Compliance has muscled its way into hiring strategy. On home soil, the Closing Loopholes Act now treats any wrongly labelled casual as a $93,900 breach. As a result, 23% of companies have already flipped regular casuals to permanent employees. Offshore, the stakes are just as high. Rippling's survey shows that 46% now rely on an EOR to hire overseas without tripping over foreign payroll and tax laws.

It's clear that regulations now influence where and how companies build their teams. They guide headcount moves both at home and overseas.

Why it matters

• Misclassification is costly: Just a single breach can wipe out months of profit, and repeat errors can drag directors into personal liability. Proactive conversions cost pocket change compared to fines, back‑pay orders, and potential legal fees.

• Cross‑border laws are complex: Payroll, tax, and employee benefits rules are different in every country. A simple, unintentional misstep can trigger back‑pay orders and big fines.

Action tips

• Audit casual roles: Review rosters for regular, predictable hours, model wage‑versus‑leave costs, and approach conversion requests proactively. Smart HR software can do the heavy-lifting for you, automatically, saving hours of manual admin.

• Bulk‑update systems: After you switch casuals to permanent positions, update payroll tags and load new minimum‑hour rosters, so time and attendance stay in sync. A good HRIS can handle most of this in a click or two.

• Use an EOR for global hires: An EOR acts as the legal employer, making sure payroll, tax, and benefits stay compliant. It enables you to scale headcount in new countries quickly, without the cost and red tape of setting up your own entities.

'Compliance isn’t a burden — it’s actually a strategic advantage.' - Dan Shaw, Sales Director for Global Cloud APAC, Rippling

Trend 6: Pay transparency moves from nice-to-have to must-have

Today's job seekers expect to see the numbers upfront. Data shows 69% of Aussies are more likely to apply when they can see the salary range. Over 25% won’t apply at all without it.

Because of this shift, pay transparency has moved well beyond a branding benefit into core‑funnel territory. Candidates are likely to overlook job ads that don't disclose salary ranges. They may even consider them a worrying signal about a company’s equity and culture.

Why it matters

• Hidden pay cuts your talent pipelines: When you don't list salary, you can lose up to half your applicants, typically starting with the most confident, qualified candidates. Hidden compensation bands are a sign of secrecy that can stall applications.

• Opacity risks internal backlash: As employees can now legally swap pay figures, undisclosed pay ranges encourage suspicion and can expose unexplained gaps. Employees who feel short‑changed are likely to disengage or even leave.

Action tips

• Publish midpoint‑to‑max ranges: Aim to list a realistic midpoint and top of band in every job listing. Link to your internal pay‑equity policy so candidates understand the logic behind the numbers.

• Standardise compensation bands: Load your approved midpoint‑to‑max ranges into your human capital management (HCM) system. The best platforms can flag any out‑of‑band figure before a job ad goes live, keeping pay equity and compliance in check.

'When you put in a salary, you get more applicants and you’ll also get a better quality of applicants.' - Nina Mapson Bone, President & Chair, Recruitment Consulting and Staffing Association ANZ

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Trend 7: Green-skills demand outpaces supply

Climate targets continue to raise the bar for every industry. Green capabilities now rank among Australia’s most critical skills. A recent LinkedIn report reveals an 8% jump in worldwide demand for green talent over the past year. However, supply only saw a 6% increase. This is a shortfall that HR professionals are already feeling locally.

Many employers now list carbon accounting, life‑cycle analysis, and ESG reporting ahead of traditional credentials. Businesses that can’t source (or upskill) green talent may face stalled projects and missed net‑zero milestones.

Why it matters

• Net‑zero timetables pressure every sector: Net‑zero deadlines put every industry under pressure, but carbon‑savvy hires are scarce and expensive. The shortage inflates salaries, delays projects, and can tarnish a company’s reputation with investors.

• Green know‑how drives funding and bids: Tenders and grants award extra points for ESG expertise. Businesses without it risk losing contracts to greener competitors.

Action tips

• Add one green competency to every role: List a skill like carbon accounting or sustainable procurement in each job ad. This makes your need for critical green skills obvious and can entice candidates already building climate‑focused portfolios.

• Partner with a learning vendor: Offer staff bite‑sized micro‑credentials in ESG and climate literacy. Upskilling closes skill gaps faster than external hiring and can keep purpose‑driven employees on your team.

• Map future demand in your HCM: Track emerging green skills alongside headcount plans inside your HR software. Early warnings can help HR professionals budget for training before the demand for a skill suddenly outstrips supply.

'This is the key decade, not only for Australia’s emissions‑reduction efforts but also in developing the workforce to drive this economy‑wide change.' - Kane Thornton, Chief Executive, Clean Energy Council

Trend 8: Pay-gap publishing is reshaping employer brands

In March 2025, the Workplace Gender Equality Agency (WGEA) published gender‑pay‑gap scores for over 7,600 private‑sector employers on its public Data Explorer. WGEA’s own review shows 68% of these employers had already run a pay‑gap analysis. However, the median total‑remuneration gap still sits at 18.3%. And the national headline figure says women earn 78 cents for every male dollar.

Gone are the days when pay equity could hide in an internal spreadsheet. It's now one Google search away from every candidate, client, and reporter.

Why it matters

• Talent checks the scoreboard: Job seekers may scan the WGEA site before they apply for jobs. A wide gap can push them toward competitors who publish better numbers and clear fixes.

• Media chase the outliers: Reporters rank employers by gap size and 'name and shame' those at the bottom of the table. Headlines that link a brand to unfair pay can reduce sales and increase churn.

• Investors track progress: Boards, ESG funds, and lenders fold pay‑gap trends into risk models. Slow improvement may lift the cost of capital and invite harder questions at annual general meetings (AGMs).

Action tips

• Publish a pay‑gap plan: Post the current gap, three concrete steps to close it, and a target date on your careers page. Link that page in every job ad and outreach email so candidates see progress in place of promises.

• Tie progress to pay and review it every quarter: Consider giving execs and hiring managers a cash bonus when they hit pay‑gap targets. Review progress every quarter, so the goal stays in sight and the momentum keeps rolling.

'56% of companies improved their gender pay gap in the last 12 months, so we’ve got progress. We need to accelerate that change.' - Mary Wooldridge, CEO, WGEA

Rippling: The fast lane to compliant growth

Nearly 90% of mid‑sized Aussie firms plan to hire offshore next year, while leaders tighten office days and salary‑free ads still scare off a quarter of candidates. Factor in huge fines for casual misclassification, a widening green‑skills gap, and WGEA’s public pay‑gap scores, and every hiring decision becomes a compliance minefield.

Rippling puts every worker, rule, and metric in one place. It enables HR teams to keep pace without added stress or headcount bloat.

‘Having a central repository for HR stuff… payroll, performance reviews, one-on-one [evaluations], spend management all in one place helps a lot. With Rippling, it's kind of like, you get started, you add [or] onboard somebody, and everything just gets sorted out.' - Hon Weng Chong, CEO & Founder, Cortical Labs

Australian hiring trends FAQs

Do I need to set up a foreign entity before paying hires overseas?

Not always. Your hiring decisions should come down to speed, cost, and risk.

Only need a few people to test a market? An EOR lets your talent acquisition team quickly whip up diverse teams while staying compliant. And without a local company, bank account, or tax registration needed. Setting up a big, long‑term hub where you’ll bill clients or employ heaps of staff? Then, it may make sense to set up your own entity.

What counts as ‘real’ AI experience on a CV?

Look for concrete proof over buzzwords. A good CV will name the specific AI tools used (for example, ChatGPT API or TensorFlow). It'll describe the problem solved and show a measurable result. Strong verbs like 'built', 'deployed', or 'fine‑tuned' alongside clear metrics can signal hands‑on work. 

During the hiring process, you can add a short technical assessment too. The results can feed straight into your candidate matching notes.

When must a casual switch to permanent under the Closing Loopholes Act?

Since 26 August 2024, the switch has been employee‑driven. Any casual, including existing employees at large employers, can lodge a Casual Employee Choice Notice once they reach six months’ service (or 12 months in a small business). The employer must consult and reply in writing within 21 days, either confirming the conversion date or refusing on one of the Act’s narrow grounds.

Small‑business casuals hired before the reform remain on the old employer‑offer system until 26 August 2025. After that, they too follow the employee‑choice pathway.

Regular roster reviews help you stay ahead by making sure genuine casuals keep their 25% loading and you promptly convert any casual working permanent‑style hours.

How often do I need to refresh pay bands with inflation still above target?

Prices are still rising faster than the Reserve Bank’s 2-3% goal. Leading companies tend to check their pay bands every quarter. Here’s how you might do this at your company:

1. Look at CPI: Consumer Price Index is Australia’s 'shopping basket' score. When groceries, rent, petrol, and other everyday items cost more, CPI goes up.

2. Update the numbers: Each quarter, gather the latest CPI and Wage‑Price Index figures, and see how much offers in your industry have moved. Next, you might nudge each salary band so new hires and existing staff stay in step with the cost of living.

3. Do quick spot‑checks in between: Keep an eye on jobs that suddenly become popular, with lots of companies hiring and pay rising fast. When that happens, it's a good idea to update the pay band straight away so your top talent isn't tempted to leave.