Australian employers are no longer relying solely on company performance to set pay, instead turning to market data and salary guides as workers consider their next career move in the new year.

Research from recruiter Robert Half shows most companies now blend profitability with industry benchmarks and online salary data when deciding salaries.

The survey of 500 employers across finance, accounting, IT, technology and HR found external market intelligence is especially influential when pay is being set for new and emerging roles.

For positions they hire regularly, employers still lean heavily on internal measures.

Half of those surveyed said company performance and profitability are the main factors in setting pay for established roles, just under half rely on HR guidance and internal salary benchmarks, and nearly 40 per cent use fixed salary scales.

However, market data still plays a role, with more than a third of employers also using industry benchmarking tools.

When it comes to new roles, external data becomes more important.

Nearly 40 per cent of employers use industry benchmarking tools to set salaries for these positions, while more than 35 per cent rely on online salary guides.

Don’t be out of step with the market

Robert Half director Nicole Gorton said businesses need to draw on a broad range of data when making pay decisions.

“Company profitability remains the top driver of pay for familiar roles, indicating that many businesses continue to take a budget-first approach to hiring,” Gorton said.

“While financial performance is important, relying on it alone can leave businesses out of step with the market.

“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.”

Salary expectations are now mostly shaped by skills scarcity, the complexity of the role and external demand for it, Gorton said.

“As job structures evolve and skill requirements change, flexibility and adaptability are becoming core elements of effective workforce planning,” she said.

“Increasingly organisations are relying on market-informed salary settings for new and emerging roles, reflecting a broader shift towards data-driven decision making.”

The external data

A growing body of research highlights how market forces — particularly in technology — are reshaping pay expectations.

The rise of artificial intelligence is driving demand for roles that didn’t even exist just years ago, according to the 2025-26 Australian Tech Salary Guide.

Directors of AI are earning an average of $236,000 a year, while machine learning engineers, data scientists and photonics algorithm engineers command significantly higher salaries than many traditional software development roles.

Separate research last year found that software developers, business analysts and cybersecurity experts are the most in-demand tech workers, with even entry-level roles netting more than $100,000 annually on average.

Workers, meanwhile, are preparing to push back.

A report released last year found 90 per cent of surveyed employees planned to ask for a pay rise within the next 12 months.

More than 80 per cent said it had become harder to negotiate higher pay compared with the previous year, and more than a third said they would look for a new job if they were unsuccessful.

While salary remains a key factor, flexible work is increasingly a dealbreaker. Research shows more than a third of young Australian workers would quit if forced back into the office full-time.