AUSTRALIA
Global Talent Trends
October 2022
Global Talent Trends
October 2022
Global Talent Trends
October 2022
Data-driven insights into the changing world of work
In this report, we surface data insights from both LinkedIn’s Economic Graph and our member community to better understand how labor-market trends impact candidates, employees and workplaces.
Hiring trends
Hiring rates in Australia are slowing.
This year, we are seeing a slower pace of growth across major economies as hiring activity begins to ease off the back of the post-pandemic recovery that we saw the year before.
In Australia we’ve seen a 14% decrease in hiring rate since September 2021.
In a sample of 13 other countries, the hiring rate also decreased over the past year.
Change in hiring rate from September 2021 and September 2022.
Methodology: The LinkedIn Hiring Rate (LHR) is the number of LinkedIn members who added a new employer to their profile in the same month the new job began, divided by the total number of LinkedIn members in that country. By only analyzing the timeliest data, we can make month-to-month comparisons and account for any potential lags in members updating their profiles.
* = seasonally adjusted
What LinkedIn Head Economist APAC, Pei Ying Chua says:
This year, we are seeing a slower pace of growth across major economies in the Asia Pacific (APAC) region – namely Australia, India, New Zealand and Singapore – as hiring activity begins to ease off the back of the post-pandemic recovery that we saw the year before. Amidst the uncertain global economic climate, it is likely that the hiring rate will continue to decelerate from the historical highs of last year.
Regardless, the labor market in APAC remains tight, with many countries reporting low unemployment rates. As a result, in the coming year, it’s predicted that competition for talent with in-demand skills will remain fierce. In fact, LinkedIn data shows that skill sets for jobs have changed by around 25% since 2015 and is expected to reach 40% by 2025.
Pei Ying’s counsel to talent leaders:
Companies that hire for skills and cultivate a culture of internal mobility by investing in upskilling and reskilling their employees will find it easier to attract and retain top talent. In fact, our data tell us that companies that excel at internal mobility are able to retain employees for an average of 5.4 years – almost twice as long as companies that struggle with it. With a workforce equip with the most relevant and in-demand skills, companies will also be able to pivot and adapt quickly in times of uncertainty or disruption.
What LinkedIn Chief Economist Karin Kimbrough says:
What LinkedIn Chief Economist Karin Kimbrough says:
This year we are seeing a slower pace of growth, as the economy comes back down to earth after a meteoric rise last year in one of the fastest recoveries we have ever seen.
Nevertheless, labor-market dynamics remain tight. So, in many ways, employees still hold the power to demand more from their employers when it comes to salary, flexibility, and benefits. But this power balance is likely to start leveling out in the coming months.
Amid this uncertain backdrop, we anticipate further deceleration in hiring from the historical highs seen last year.
Karin’s counsel to talent leaders:
Continue to understand the skills your employees have, and the skills your company needs. That understanding will help you weather economic highs and lows, and labor-market volatility.
Trends in workforce confidence
Many workers are bracing for an economic downturn.
In eight countries included in our Workforce Confidence Index survey, candidates’ and employees’ confidence in their ability to improve their financial situation in the next six months has decreased or remains low.
In Australia, candidates maintained confidence since January 2022, gaining 2 points.
Point change from January 2022 to August 2022 in workers’ confidence to improve their financial situation in comparison to Australia:
Source: LinkedIn Market Research
Methodology: LinkedIn’s Workforce Confidence Index is based on a quantitative online survey distributed to members via email every day and aggregated every two weeks. On a 5-point scale, we ask members how much they agree or disagree “I feel confident about my ability to improve my financial situation in the next 6 months.” Over 12,000 members respond each wave and are randomly sampled/must be opted into research to participate. Students, stay-at-home partners and retirees are excluded from analysis so we can get an accurate representation of those currently active in the workforce. We analyze data in aggregate and will always respect member privacy. Data is weighted by engagement level to ensure fair representation of various activity levels on the platform. The results represent the world as seen through the lens of LinkedIn’s membership; variances between LinkedIn’s membership and the overall market population are not accounted for.
What Chua Pei Ying, LinkedIn Head Economist APAC says:
The past 12 months have been an economic rollercoaster. The rapid post-pandemic recovery that we saw in late 2021 has switched to record-high inflation rates and economic slowdowns. These constant changes will inevitably leave workers uncertain of what may be coming next, resulting in low confidence in their ability to improve their financial situation.
Pei Ying's counsel to talent leaders:
Employees' uncertainty and fears about financial security can lead to undue stress and mental strain, affecting their personal lives and work performance. Transparency is key to allay such concerns, and creating channels for employees to voice their concerns or ask questions can go a long way to creating a healthy workplace environment.
LinkedIn's Talent Drivers survey also shows that apart from compensation, APAC workers have ranked career advancement and upskilling highly on their list of priorities - consider establishing programs such as leadership training or holding courses to create win-win situations for both employers and employees.
What LinkedIn Principal Economist Guy Berger says:
The last few years have been full of economic curveballs: the pandemic, an exceptionally fast recovery, supply-chain disruptions, and the highest inflation in four decades. More recently, we’ve seen a sharp slowdown in economic growth in regions across the globe, leaving many unsure of what the future may hold.
Employees are acutely aware of this uncertain environment, too. In the past few years, they’ve been worried about their health, their job security, and their pocketbooks. The uncertainty filters into their lives both personally and professionally.
Guy’s counsel to talent leaders:
You can’t eliminate uncertainty, but you can do your best to mitigate it for your employees.
That may mean doing “more with less” – using scarce resources to support employee morale and confidence in a smart and targeted way. You may see more upside with increased benefits than pay – or vice versa. Consider relatively low-cost, high-value benefits that you might have overlooked before. And don’t underestimate the calm that can follow when you reassure employees that you hear them, and that tough times aren’t forever.
Trends in what candidates value
Australian candidates consider flexibility their top priority.
Since August 2021, flexibility has increased 10% to highest priority for candidates in Australia, overtaking compensation.
Flexibility and compensation have pulled away as clear leaders, with a margin of more than 5% ahead of security in third position.
Job security has also had a strong rise over the past year becoming the third biggest priority for Australian candidates overtaking work-life balance.
How candidates in Australia rank their priorities, August 2022
Flexibility
Flexible work arrangements (i.e. when and where you work)
Flexibility
Flexible work arrangements (i.e. when and where you work)
Compensation
Excellent compensation and benefits
Compensation
Excellent compensation and benefits
Security
Job security
Security
Job security
Work-life balance
Organizational support to balance work and personal life
Work-life balance
Organizational support to balance work and personal life
5. Advancement
Opportunities for career growth within the company
6. Management
7. Upskilling
Opportunities to learn new, highly desired skills
8. Mission
Company driven by values that match your own
9. Impact
Challenging and impactful work
10. Leadership
Clear goals and direction from senior leadership
Source: LinkedIn Market Research
Methodology: Candidate priorities are based on LinkedIn's Talent Drivers monthly survey of global members.
What LinkedIn Director of Talent Acquisition Emily Atkins says:
The pandemic taught us that performing your job does not require employees to be working 9 to 5 in a traditional office environment. With flexibility now overtaking compensation as the highest priority for Australian candidates over compensation. Through the extensive working from home periods during the pandemic it showed how we can integrate our work and personal life instead of seeking to find a balance. Employees recognized they didn’t have to make difficult choices about prioritizing work and career over family or personal commitments – they could design their work day to suit their day to day life and still produce the same outcomes in their work and achievements in their careers. Many worked around family commitments, home schooling and prioritised health and wellness. Companies that offered flexibility to their employees post the pandemic, reinforced that an employee-centered approach demonstrated that leadership value how their employees are feeling and they have individual needs to do their best work.
What LinkedIn VP of Global Talent Acquisition Jennifer Shappley says:
People are looking for stability amidst the economic volatility we live in and read about daily, so it makes sense that candidates are prioritizing compensation as they evaluate opportunities.
More interesting to me is that, even facing an uncertain future, people still highly value two areas of work life that have gotten a lot of attention since the start of the pandemic: work-life balance, and flexible-work arrangements – including remote work. I expect those two attributes to remain top talent drivers for years to come.
Jennifer’s counsel to talent leaders:
These days candidates are looking for companies that will value their whole selves and provide support in achieving work-life balance.
As talent leaders, we need to be prepared to speak to candidates about what our organizations value and how we support our employees. And this isn’t just a hiring strategy – it’s key to ensuring we retain our best talent, as well. Understanding these drivers and listening to our employees have never been more important in ensuring we’re building hiring and retention strategies that attract and retain top talent.
Candidates in Australia increasingly want remote work – as employers scale back on remote-job postings.
In Australia, remote-job postings on LinkedIn dropped slightly since September 2021, while applications to remote jobs increased by 3% in the same period.
● Remote-job posts in Australia reached an all-time high in April 2022, at 10.6% of all job posts in Australia, while also attracting a peak of 13.3% of all applications.
● By September 2022, remote-job posts fell to 5.5%, while the share of remote applications in Australia remains high at 10.8%.
Methodology: This insight is based on LinkedIn’s paid job posts globally over the past 12 months.
Trends in employee growth and transformation
Internal mobility increases employee retention in Australia.
Employees who make an internal move in Australia – through either a promotion or lateral change – are more likely to stay at their company longer than those who stay in the same role.
Companies in Australia were among the top three countries globally that saw the biggest improvement in employee retention among internal movers at the 3-year mark.
● After two years, an employee who has made an internal move has a 76% chance of staying at their company. While an employee who has not made an internal move has a 50% chance of staying.
● After three years, an employee who has made an internal move has a 65% chance of staying, and an employee who has made no internal moves has a 38% chance of staying.
France’s employee retention is low.
Of the 15 countries we analyzed, France had the lowest retention rate at the 3-year mark, regardless of options for internal mobility.
India and Japan have high employee retention – with internal mobility contributing to retention.
At the 3-year mark, India had the highest retention rate without high internal mobility in comparison to other countries.
Internal mobility feeds employee retention in Australia, U.K., and Singapore.
Companies in these three countries saw the biggest improvement in employee retention among internal movers at the 3-year mark.
Financial Services ranks #1 in retaining employees through internal mobility.
Of the 15 industries we analyzed, Financial Services companies saw the biggest improvement in employee retention among internal movers at the 3-year mark.
Retail is struggling with employee retention, with or without internal mobility.
Retail companies had the least likelihood of retention at the 3-year mark – even with employees who had moved internally.
Methodology: All data reflects aggregated LinkedIn member activity as of August 2022. The “likelihood of the average employee remaining at the company” is derived using time-to-event data. For this estimate, we studied the employment data of active members who work for companies with 200+ employees and started after 2013.
What LinkedIn VP of Talent Development Linda Jingfang Cai says:
We know people want to learn and grow at work, regardless of economic and market conditions. This almost always translates to employees asking themselves and their managers, “How can I do a better job so that I can get paid more, promoted, or land my next dream role?” Our new data insights show us that, even with some industry and regional nuances, if companies leave those questions unanswered, in most cases, people will leave the moment they find a better opportunity elsewhere.
I often think what gets lost in conversations about providing learning and growth opportunities that will help retain employees is: What do your employees want? And this may vary depending on the job functions and demographics. Just as businesses need new skills, employees need to discover their career possibilities and change, too.
Linda’s counsel to talent leaders:
Give employees more ownership over their career paths at your company. Start the conversation with them on their possibilities for learning, growth, and – ultimately – internal career transformation on Day 1.
For Global talent trends and insights, visit our Global Talent Trends Report and blog.