Zoom today released its latest survey, titled “Navigating the Future of Work: Global Perspectives on Hybrid Models and Technology” at its EX Summit 2024 in Asia Pacific (APAC). This survey was performed in conjunction with ReworkedINSIGHTS, the world's leading community of employee experience, digital workplace, and talent management professionals. The study surveyed more than 600 IT and C-suite leaders and nearly 1,900 knowledge workers across the globe, including 604 in APAC, to explore their views on different workplace models, productivity levels across models, the impact of generative artificial intelligence (AI) on work, and other topics related to the future of work. 

Hybrid is preferred — but the models look different for every organisation 

The study found that the majority of organisations in APAC are embracing flexible working arrangements, with 84% of organisations adopting either a hybrid (58%) or remote (26%) working model. 

As organisations align their workplace models to meet the needs of their business and the demands of their employees, productivity has emerged as a top priority. Eighty-seven percent (87%) of leaders in APAC considered increasing productivity to be the biggest consideration when determining the best working style for their company, the highest figure compared to 86% in North America (NA) and 81% in Western Europe. 

Fortunately for leaders, the study found that employees feel most productive in hybrid settings, with 83% of employees in the region agreeing they get more work done in a hybrid/remote setting than in-office/onsite. While this can be due to many reasons, it is a testament to the importance of having the right technology in place to keep the workforce connected, regardless of workers’ physical locations.

Hybrid might be the preferred work model for leaders and employees alike, but many APAC companies are still experimenting with the various types of hybrid models to find their best fit. Notably, scheduled hybrid (27%) and flextime hybrid (19%) have emerged as the most common workplace models in the region, with another 13% of organisations adopting other kinds of hybrid workplace models organised around roles, locations, and outcomes. In fact, 97% of APAC leaders say they have made their workplaces more flexible in the past two years. 

However, more needs to be done to engage employees. Six in 10 leaders in the region report a decline in employee engagement attributed to hybrid models. 

“Workplace flexibility is not only becoming increasingly commonplace in the APAC region, but more diverse in itself — ranging from flextime to location, role, and even rotation-based models,” noted Ricky Kapur, head of Asia Pacific, Zoom. “Leaders today are faced with a new challenge of finding the best-fit hybrid model while keeping up with the evolving expectations of a multi-generational workforce and the impact of rapidly advancing technologies like AI.”

Generative AI is a key driver of future workplace success 

In order to prepare for the future of work, the study revealed that organisations need to improve their current tech stack. A majority of employees (81%) agree that the tools and technology their organisation currently uses for remote work needs improving, highest among the other regions surveyed (NA: 79%; Western Europe: 65%). 

Generative AI has emerged as a key tool to support employee productivity and overall experience in the hybrid era. APAC organisations recorded the highest use of meeting transcripts/summarisation (53% in APAC, 40% in NA, and 38% in Western Europe), and chatbots (59% in APAC, 52% in NA, and 58% in Western Europe).  

Organisations are already seeing the benefits of incorporating AI: 85% of APAC leaders believe that generative AI has made their workforce more productive. Sixty-nine percent (69%) of employees in the region strongly or slightly agree that “generative AI makes it easier to do my job.”

However, significant barriers to generative AI adoption for employees in APAC still remain: 

• 70% believe that generative AI has a high learning curve. 
• 63% are not yet comfortable with generative AI. 
• 55% are concerned that generative AI will negatively impact their job/position.

As it stands, generative AI is expected to have a great impact on the future of work. Leaders and employees may have slightly different opinions and concerns, but both groups accept that this technology is part of the future. Moving forward, increased education on the benefits, use cases, and how they can mitigate risks must be done before teams can fully unlock the true value of AI for their workforce. 

“While our study shows that APAC leaders generally recognise the productivity benefits that adopting AI at work can bring to their teams, many are not utilising AI to their full potential. As organisations seek to reduce friction in the transition to hybrid ways of working, AI is a critical tool at their disposal to help employees collaborate better and feel more connected to each other. Beyond direct productivity benefits, leaders should look toward exploring more AI use cases to engage, inform, and connect employees. This will be key to building and maintaining company culture amidst changing workplace dynamics,” added Kapur. 

Closing the engagement loop with employee feedback

Even as hybrid becomes the dominant work model, 77% of leaders in APAC say it is likely that their organisation will change its workplace model in the next two years. Globally, this figure sits at 75%. 

Ultimately, building a successful, future-ready workplace requires organisations to continuously adapt to employees’ feedback and evolving preferences. Having the right technology in place that can adapt and evolve with the organisation at the same time, including AI tools that are both scalable and right-fit, is also a key piece to the puzzle. In other words, organisations must keep employee engagement and experience at the core as they embrace workplace flexibility in order to thrive in the future of work. 

For a snapshot of the key APAC findings, please access the infographic here. 

Methodology

The Future of Work survey and the IT Leadership survey were global studies conducted by Reworked on behalf of Zoom. The companies surveyed more than 600 IT and C-suite leaders and nearly 1,900 knowledge workers across the globe including APAC, exploring their views on different workplace models, productivity levels across models, the impact of generative AI on work, and other topics related to the future of work. Markets in APAC included Australia, India, Japan, and Singapore. Data was collected online, all questions were required, and results were collected anonymously. Employer Survey dates: April-May 2024; Respondents: 624. Employee Survey dates: April-May 2024; Respondents: 1,870. 

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About Zoom

Zoom’s mission is to provide one platform that delivers limitless human connection. Reimagine teamwork with Zoom Workplace — Zoom’s open collaboration platform with AI Companion that empowers teams to be more productive. Zoom Workplace with AI Companion includes collaboration solutions like meetings, team chat, phone, scheduler, whiteboard, spaces, Workvivo, and more. Together with Zoom Workplace, Zoom’s Business Services for sales, marketing, and customer care teams, including Zoom Contact Center, strengthen customer relationships throughout the customer lifecycle. Founded in 2011, Zoom is publicly traded (NASDAQ:ZM) and headquartered in San Jose, California. Get more information at zoom.com.

Those who are most likely to be juggling an 80+ hour work week are Gen Zs (one in six) and millennials (one in seven)—with the majority of both groups saying they do so to save for a property (87% and 66% respectively) and to cover rising costs of groceries and other essential items (79% and 57%).

But how are white-collar workers managing the hours—and at what cost?

They borrow time from their primary employer. Nearly all (93%) white-collar workers with multiple full-time jobs perform their additional job on their primary employer’s time, with 65% doing so regularly.

They use AI to perform work. AI also plays a significant role in enabling people to work two full-time jobs. Almost all (94%) say AI helps them perform their primary job, and 92% say it helps them perform their additional job(s). Ninety-one percent say a key reason they can hold down multiple paid jobs is because they use AI, and the same again (91%) say they are so proficient at using AI that they plan to secure more additional paid jobs. 

Juggling multiple jobs comes at a cost. Almost eight in 10 (77%) say working an additional full-time job has taken a toll on their mental health, 75% say it has prevented them from looking after their physical health, 86% say it has prevented them from taking time off, and 82% say it has prevented them from spending quality time with their family. 

And it’s also costing Australian businesses, with 82% saying their additional paid job has impacted their performance and productivity in their primary job. 

Despite this, those working multiple full-time jobs say they would only consider giving up their additional paid job if they earned an extra $51,500 plus in their primary job—so the stakes are high. 

Sally McKibbin, Career Expert at Indeed, says:

“Indeed’s research findings are a stark reminder of the financial challenges people are grappling with.”

“As living costs and property prices continue to outpace earnings, Australian workers are responding by taking on additional paid work.” 

“Purchasing power has not kept up with soaring property prices. For Gen Z and millennials, the journey to property ownership is proving challenging and unachievable for many without multiple income streams.” 

“The use of AI to manage multiple jobs highlights how technology is reshaping the workforce. However, the toll on workers’ mental and physical health cannot be ignored. Balancing two full-time jobs—regardless of technology efficiencies—is pushing many to their limits.”

“It’s concerning to see so many workers borrowing time from primary employers to manage second jobs, as this is very obviously going to have a significant effect on business performance and workplace dynamics.”

That’s according to ELMO Software’s 2024 HR Industry Benchmark Report which identifies the key challenges and priorities for businesses, according to a sample of 700 HR professionals in Australia.

The report found it now costs an average of $20,000 to hire a new employee, yet around one in eight are failing to progress past their probation, and “what’s more, it now takes 35 days for a new recruit to become fully productive in their role, an increase of 11 days compared to the 2023 survey”.

ELMO CEO Joseph Lyons says the figures are eye-opening, not just for HR leaders but for the broader C-suite too.

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“At a time when productivity is front of mind for most businesses, it’s worth asking whether your talent processes are as efficient as they could be,” he says.

“Given the cost of hiring and the time it takes for recruits to get up to speed, it’s essential for HR leaders to know how successful their hiring and retention efforts really are.

“Otherwise, they could be wasting time and money, hindering productivity in the process.”

ELMO notes that the report’s findings closely mirror the company’s latest Employee Sentiment Index, a survey of over 1000 Australian workers, which reported one in eight (12%) new recruits are leaving within the first year and also asked respondents why they left.

Two in five workers (40%) said the main reason for leaving within the first year was due to the job or organisation failing to match the expectations set during the recruitment process - with one in three workers citing a poor impression of the workplace (34%) and a poor first impression or relationship with their manager (32%).

The survey also revealed that the first 30 days in a new workplace is the most critical time period for recruits, with two in five workers (38%) knowing if their new job was the right move within one month and just over a quarter (27%) making up their mind within one week or less.

Lyons says the Index’s findings further highlight how critical the employee experience is to retaining new talent.

“Meeting expectations and creating a positive first impression are vital for retaining new talent and businesses only have a small window of opportunity in which to do this,” he says.

“The better an organisation understands the success of their onboarding programs, the better position they will be in to retain new talent and minimise the impact on overall productivity and ultimately the bottom line.”

Elmo notes that employee engagement ranked as the top barrier holding back productivity and the Benchmark report also identified productivity as a top priority for Australian businesses in 2024 - but, according to HR professionals, if business leaders want to drive greater productivity, they need to tackle employee engagement first.

“A lack of employee engagement ranked as the top barrier holding back productivity in Australian organisations, followed by leadership capability and a lack of prioritisation,” the report notes, adding that “meanwhile, the uncertain economic conditions were highlighted as the biggest challenge facing local businesses this year, followed by a shortage of labour and hybrid work”.

The report also notes:

• Just under a third (27%) of HR professionals say they plan to use alternative employment arrangements, such as contractors, to cope with the economic insecurity this year. The same number (27%) plan to restructure their organisations.
• Around a quarter (23%) say they’ll reduce pay increases or freeze pay, 19% plan to reduce or scrap bonuses and 17% expect to make redundancies.

Lyons says organisations are taking a cautious approach this year as they wait to see whether interest rates will come down.

“The economic uncertainty is all the more reason for HR leaders to take a data-led approach to their strategy for 2024,” he says.

“Without visibility of key HR metrics and the costs involved in hiring and retaining talent, it’s impossible to manage budgets wisely. This year’s report drives home the importance of easily accessible data to view HR strategy from a commercial perspective.”

In a highly competitive employment market, where the Australian unemployment rate remains low at 4.1%, the recruitment processes of all organisations are increasingly under scrutiny from job seekers. This is particularly the case for frontline workforces, including healthcare, aged care, childcare, retail and hospitality, which have been under more pressure than ever before over the past three years and are facing ongoing staff shortages. The Australian Government’s latest ‘Skills Shortage Quarterly’ report showed occupation shortages in a number of frontline occupations, but particularly in healthcare which still has a low job fill rate of 56% and hospitality which experienced a decline in its job fill rate to sit under 60%.

 "With the job market being so competitive, employers really need to nail that first impression. The hiring process can make or break whether someone even applies, let alone wants to work for a company. So, if a business isn't hitting the mark in every step of the recruitment journey, they're going to have a tough time snagging top talent,” said Holly Barnes, Chief People Officer of Humanforce.

In Humanforce’s recent survey of Australian workers, the element of the recruitment process that was of highest importance to Australian workers was clear communication (94%). This strongly aligns with the pain points identified by respondents - 69% attributed their decision to abandon an application to complex instructions or unclear requirements, while around 50% expressed considerable frustration over inadequate communication from employers.

Arduous recruitment processes are a major barrier in attracting new talent, with 87% of respondents stating they were unlikely to accept a job offer from an organisation who had a lengthy or confusing hiring process. Additionally, 28% of Australian workers have abandoned a job application due to a lack of transparency around the recruitment timeline.

Highlighting the negative impact that a complicated recruitment processes can have on the overall perception of a business, almost all (95% of respondents) shared the belief that a company’s recruitment process mirrors its actual work culture.

"How a company handles its hiring process can give you a sneak peek into its culture. If it's all confusing and complicated, or arduous for candidates, they're going to think, 'Is this what working here will be like?' And ultimately that could sway their decision to take the job.

"These days, people want jobs that fit into their lives. Flexibility's a big factor. So, if a company's making you jump through hoops just to apply, it's really sending the message that maybe it's not the easiest or most flexible place to work," explained Barnes.

In a competitive job market, organistations are under more pressure to show themselves as an employer of choice by introducing streamlined systems that support new and existing workers. Advanced employee-centred and intelligent human capital management (HCM) solutions which help both employers and employees automate tasks such as shift management, onboarding, training, engagement, leave management, wellbeing and pay can help organisations deliver a positive employee experience and build an enviable employee value proposition (EVP). This approach will not only assist in attracting new talent but also in fostering a work environment that retains workers and keeps them engaged in their work.

Grant Montgomery, Managing Director of searh firm E.L Consult, says the “ zero result this month is actually more positive than it has been for months, but it is unlikely that it signals that job demand reached the bottom”.

“The trend is and has been down over the last few months down and unlikely to recover substantially for some time.

“Just two atypical performances by engineering and Technology jobs, have managed to keep overall demand at zero instead of negative.” Montgomery said.

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“The research results are patchy across the states and territories, with four of them rising slightly and four of them falling.

“The high scores in Engineering and Information Technology demand are excellent and probably the best two sectors to have a positive performance as they are both lead indicators for investment.

“What is more, the increases in these two sectors have not come as a result of “pump priming” by the public sector employing more people which often occurs when a recession is looming.”

Montgomery comments that engineering, is closely related to capital investment and apart from infrastructure development, it is safe to assume that there is some renewed interest in property development with the increasing immigration putting heavy demand on the housing sector.

“Increased demand for engineers may also be attributed to the push for renewables and the associated rewiring of the country.,” notes Montgomery.

“Figures show that there is very little capital investment going into industrial development however, as this sector, which desperately needs to invest to improve productivity, is continuing to die.

“Information Technology is also a good sector to rise, and indicates that some planning is underway for a potential boom created by Artificial Intelligence, particularly machine learning, as well as companies seeking to improve the efficiency of their service systems and back office.

“The improvements in these can have a multiplier effect on the rest of the economy over time – Engineering in the wider building industry and Information Technology because of the cost savings that can eventuate.

“The World Economic Forum predicts that while AI may replace around 85 million jobs by 2025, it will also create approximately 97 million new jobs,” Montgomery concluded.

EL Conasult reports that in March, among the states the results were split 50/50, and New South Wales was the major mover among the states, rising 5 per cent, other gains were in the Northern Territory, Queensland and the ACT - and all other states and territories were lower.

“Demand was higher in Engineering and Information Technology, with Engineering demand better across both online and offline job advertisements. Losses across the other sectors were relatively minor, with the Financial index recording the worst result,” EL Consult notes.

With its global headquarters in Atlanta, Manhattan Associates maintains a strong presence not only in Australia but also across the APAC region. The industry leader in enabling transformative initiatives within supply chain, inventory management, and omnichannel solutions, many of the world's top brands depend on Manhattan's innovative suite of software-driven solutions to improve their global operations and deliver an optimal customer experience.

"Amidst the growth and transformation occurring in Australia’s supply chain and logistics sector, this recognition reaffirms that our Manhattan work culture perfectly aligns with the dynamic pace of the industry. We’ve built a workplace that’s all about collaboration, innovation, and treating one another with respect,” commented Raghav Sibal, Managing Director, Australia & New Zealand for Manhattan Associates.

"This recognition holds great significance as it comes straight from our employees’ feedback. Their dedication to pushing boundaries, embracing change, and fostering a supportive environment truly reflects the values we uphold. It’s not just a celebration of our achievements in Australia, but also a testament to the global impact our hardworking team has made,” added Sibal.

Employee engagement is a priority at Manhattan Associates, where the company strives to support all aspects of an employee's personal life and professional development through its Be Your Best Self program. This program comprises Rewards, Wellness, Development, Family, Community and Career, and offers an extensive set of training and development opportunities, top-notch benefits, community outreach initiatives and innovative wellness programs.

Keith Hunter, head of HR for Manhattan in APAC added, "Here at Manhattan, our people always come first. It's truly heartening to see that those surveyed felt genuinely welcomed when they joined our team. These survey results are a real windfall that we'll use to shape a practical roadmap for taking our team's engagement to new heights in the years ahead."

For more information about joining Manhattan Associates, visit the company's Careers page for a full list of available positions. Receive up-to-date product, customer and partner news directly from Manhattan Associates on Twitter, LinkedIn and Facebook.

And the hiring market is experiencing significant change fluctuating between a “frenzied candidate-short market and a more cautious employer-driven market” according to the ‘More Than Money Salary Guide 2024’ just released by Talent.

The report features key salaries, roles and skills that are in demand for the Australian market including salaries and contract rates for key tech positions in 2024, the most in-demand tech skills for 2024, market insights from the Talent team including experienced recruiters - as well as hiring trends and predictions across the ANZ and the US regions in which Talent operates.

Talent notes that further insights include stats on the local tech talent pool, skills trends, stats on the cost of living across multiple cities, the needs of different generations in the workforce, and the benefits beyond salary that candidates are looking for including observations on the debate around flexible working arrangements.

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Talent lists key findings as:

• Salaries have increased by up to 35% across Cybersecurity, Sales & Account Services, Data Analytics, and Development roles since 2023.
• Contract rates have grown between 10-30% since 2023 for roles in Cybersecurity, Data Analytics, Cloud Solutions and Infrastructure.
• Looking at Talent’s hiring data from October 2022 to October 2023, federal and state government layoffs and hiring freezes across Australia have resulted in a 16% decline in contract hiring in this sector.
• Large companies have increased their offshoring by an estimated 10-40%.
• Demand for Project Services talent has decreased as many companies have paused their large-scale projects to save on costs.
• A Talent poll revealed that work flexibility beats out a competitive salary when it comes to what matters most to candidates when looking for a job – 35% noted flexibility as the most important, followed by 29% citing salary.
• A Talent poll revealed that 78% of workers value remote work the most when it comes to the flexible work arrangements that best align with their preferences, followed by 16% who value flexible hours, 6% compressed work weeks, and 1% job-sharing arrangements.

Demand remains high for the following skills:

• Artificial Intelligence
• Cybersecurity
• Data Analysis
• Cloud Computing
• Software Development

Top salaries for 2024 vs 2023 are as follows:

2024 1. Enterprise Architect - $234k 2. Cybersecurity Architect - $222k 3. Cloud Architect - $212k 4. Programme Manager - $210k 5. SOC Manager - $205k 6. Cybersecurity Manager - $202k 7. Business Intelligence Architect - $195k 8. Infrastructure Architect - $190k 9. Solutions Architect - $189k 10. Senior Data Scientist - $186k

2023 1. Enterprise Architect - $229k 2. Security Architect - $218k 3. Programme Manager - $209k 4. Cloud Architect - $204k 5. Business Intelligence Architect - $193k 6. Infrastructure Architect - $188k 7. PMO Manager - $186k 8. Data & Analytics Manager - $186k 9. Solutions Architect - $182k 10. Technical Architect - $182k

*Excluding C-Suite roles. Permanent salaries are exclusive of superannuation.

Commenting on the flex work debate for 2024, Matthew Munson, Talent Managing Director NSW, said: “For technology sales roles, we have seen the market revert to pre-COVID levels in terms of hiring for many go-to-market roles i.e., sales, sales leadership, and for some roles we have seen demand drop well below pre-COVID levels, i.e., customer success, channel/partner and pre-sales. From the job seekers perspective, there is higher demand on wanting more flexibility around working from home and general flexibility – but although this is the case, we are seeing the majority of companies are enforcing a return to the office (3-5 days per week). In a tougher market this may work, but Australia still has a skills shortage, so when the market lifts, we suspect employers that offer less flexibility will suffer.”

Simon Yeung, Talent Managing Director VIC, said there were significant changes to the national landscape, “A significant emphasis will be placed on bolstering network security, cyber resilience, and the safeguarding of cloud-basedg, data science, and software development is poised to rise as businesses prioritise digital transformation. The persistent trend of remote and hybrid work setups is expected to expand opportunities, attracting talent from diverse geographical locations.”

Young notes that the global technology market is evolving and growing, and as a $5 trillion global industry, it has “significant power in both providing opportunity to the workforce as well as rapidly disrupting the international work landscape”.

“A sense of caution remains prevalent in the hiring market, with a number of job families experiencing slowed demand as a result of company cost cuts. This has seen an increase in layoffs, hiring freezes, and projects placed on pause across the market. However, despite a slow in hiring, there are several jobs where demand and salaries have remained high,” Young concludes.

“Global Growth Technology is the future of global employment,” said Nicole Sahin, founder and CEO of G-P. “In 2023, G-P expanded the strategic vision of the company, accelerating our vision and innovating our technology and products for the greater good of businesses everywhere. Our momentum over the last year is an incredible foundation that will uniquely position us - and our customers and partners - for success in 2024 and beyond.”

Despite compounding pressures of economic uncertainty and talent shortages in 2023, growth is on leaders’ minds. G-P’s inaugural 2023 Global Growth Report revealed two-thirds of executives are focused on growing their organisation in the next year, but today’s business landscape requires a new, global approach to building sustainable organisations and teams.

As the innovator in the global employment industry, G-P has created opportunities for businesses to approach growth differently since its inception in 2012. In 2023, the company challenged the status quo again, redefining EOR and pushing the boundaries of global business growth with the introduction of Global Growth Technology, G-P Meridian™ Suite and new global employment products, G-P Meridian Advisor™, G-P Meridian Entity™, G-P Meridian eLibrary™ and G-P Meridian IQ™. The company also announced GIA, the first-of-its-kind generative AI-enabled Global Intelligence Assistant, combining more than a decade of G-P’s global employment expertise with AI-based intelligence to provide real-time expert guidance across the G-P Meridian™ Suite. These innovative solutions empower today’s businesses to unlock more opportunities and stay ahead of the competition.

A testament to its innovation and continued market leadership, G-P was recognised as the leader in the highest position in all industry analyst reports, and 12+ additional awards. Among others, EOR industry analyst firms The Everest Group, the IEC Group and Nelson Hall all ranked G-P in the highest position in their 2023 global EOR market analysis reports, touting the company’s best-in-class customer service and technology. G-P was also named to the 2023 Deloitte Technology Fast 500™ and was awarded two gold Brandon Hall Group Technology Excellence Awards™ for the best advance in business strategy and technology innovation and the best advance in unique HR or workforce management technology.

In 2023, G-P forged and deepened strategic partnerships with best-in-class HCM and payroll technology leaders, doubling down on the company’s strategy to continue to go-to-market with industry-leading payroll and HCM companies worldwide like Ceridian, Hawksford, IRIS Software Group, Paychex, Paylocity, Robert Walters A&NZ, SD Worx, TriNet, UKG and Y&Archer. G-P’s international partner ecosystem enables G-P’s customers to connect the G-P Meridian Suite with their existing HR technology stack.

In addition to G-P’s record customer growth in 2023, the company’s commitment to customer success remains at the forefront with its 96% customer satisfaction rating.

Learn more about G-P’s vision for global growth and its award-winning G-P Meridian Suite.

About G-P
G-P is the recognised leader of the global employment industry and has delivered world-class global compliance and workforce products designed to meet the needs of growing companies since 2012. G-P’s global growth platform is driven by the G-P MeridianTM Suite of SaaS-based global employment products. G-P helps thousands of customers build and manage teams quickly and compliantly in 180+ countries without navigating legal, tax or HR issues.

G-P: Global Made PossibleTM

To learn more, please visit: g-p.com or connect with us via Twitter, LinkedIn, Facebook, or check out our Blog.

According to Grant Montgomery, Managing Director of the E.L Group, the December 2023 EL Index on executive employtment shows that “middle Australia is paying a big price for our inflation” and Australia is “in contrast to other countries on interest rates”.

“As we have been predicting for some time the employment market, particularly for middle Australian executive positions, is dour and getting worse. This month it is just about in free fall,” warns Montgomery.

“It’s the largest fall in jobs in 6 months after continual declines for the last financial year. The level of executive demand fell by 11 per cent in November.

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“Unfortunately this executive job sector is the part of society most affected by the rising interest rates.

“They are middle Australia who mostly have an office job designated “executive” and could be working in either the government or private sector.

“This group is most likely to have a mortgage and be heavily impacted by RBA interest rate increases.

“These people are most likely to be on a salary with little flexibility - like being able to get overtime or work two jobs.

“They bear the full brunt of the RBA interest rates and now from the falling E.L index it is evident it will get harder and harder for them to get jobs.

“Best advice right now is if you have a job stay put,” advises Montgomery, noting that “remembering that the E.L Index is a lead index - it shows trends before they show up elsewhere - we are probably going to see some recessionary trends with higher unemployment occurring about March 2024 onwards.

“There is little doubt that Christmas spending will be reduced this year.

“The cash rate now sits at 4.35 per cent after the RBA held last month’s rate and there will be no change until February 2024 when the board meets again. Hopefully the cost of mortgages will finally create enough pressure on inflation to stop Governor Bullock pushing rates up again in the new year.

“The RBA is aiming to have inflation around 2 to 3 percent but doesn’t think inflation will come into this target band until the end of 2025.

“On the positive side, interest rates in Europe and the US seem to be on a decline, and this trend could start to flow on here as prices on energy like oil decline,” Montgomery concluded.

The EL Index shows that in November, among the states the results were mostly lower - and the only higher states/ territories were Tasmania and the ACT, while New South Wales and Victoria were sharply lower, with Western Australia and Queensland also lower.

And demand decreased across all executive sectors during the month, particularly Financial, Management and Information Technology, with web-based private sector results particularly on the decline.

Asked to nominate their tools of choice, more than half (55%) of respondents pointed to Generative AI tools such as ChatGPT. AI-powered candidate matching tools were nominated by 21% while AI-based assessments were named by 18% of respondents.

“The results confirm the rapid update of AI technology across the recruitment sector,” said Richard Lewis-Jones, VP Asia Pacific, SmartRecruiters.  “Clearly, leading recruitment firms understand the value the tools can deliver and the ways in which they can streamline the entire process.”

When asked which emerging recruitment technologies or trends they were exploring to remain competitive, more than half (53%) of respondents named AI-based sourcing. This was beaten only by skills-based hiring tools which was nominated by 56% of respondents.

Respondents were also asked to name the technologies and tools they have found to be of most value when it comes to talent acquisition. Application Tracking Systems (ATS) were nominated by 79% while AI-powered recruitment tools were nominated by almost a quarter (24%) of respondents.

“There is a hunger for technology among recruiters who continue to have to work in a constrained market for talent,” said Lewis-Jones. “As the power of tools continues to increase, we are likely to see their usage increase even further.”

 

Achieving a better candidate experience

The survey results echo other industry research that has found effective usage of digital technologies is high on priority lists across the sector. According to a recent report from KPMG, 77% of Australian talent leaders say talent acquisition, retention, and re-skilling was a top challenge during 2023 and 61% expect this to continue for at least the next three years.

“Getting the right people to perform the most effective tasks with the most efficient tools is more complex than it sounds, and this is no more evident than in the quest to create a positive candidate experience,” said Lewis-Jones. “Talent acquisition teams are not alone in the talent shortage, and many need to do more with fewer staff which means using technology to fill the gap.”

Lewis-Jones said the rapid uptake of AI-powered tools was unlikely to slow during 2024 as more firms come to understand the benefits they can deliver.

“Just as AI is reshaping many areas of business, it will continue to drive change across the recruitment sector,” Lewis-Jones said. “It will be fascinating to watch how things evolve during the coming year.”

The SmartRecruiters survey, which was conducted in November 2023, also found that talent acquisition managers are focusing their key initiatives in 2024 on improving time to fill positions and improving the quality of hires.

About SmartRecruiters

SmartRecruiters enables Hiring Without Boundaries™ by freeing talent acquisition teams from legacy applicant tracking software. SmartRecruiters' next-generation platform serves as the hiring operating system for 4,000 customers like Bosch, LinkedIn, Skechers, and Visa. Companies with business-critical hiring needs turn to SmartRecruiters for best-of-breed functionality, world-class support, and a robust ecosystem of third-party applications and service providers.

For more information visit www.smartrecruiters.com or www.linkedin.com/company/smartrecruiters.

https://kpmg.com/au/en/home/insights/2023/01/australian-business-leader-challenges-2023.html

https://kpmg.com/au/en/home/insights/2023/01/australian-business-leader-challenges-2023.html