AHRI Quarterly Australian Work Outlook - June 2023
June 2023
A new quarterly report offering a forward-looking view of the work environment facing HR and business leaders across Australia.
Each report will examine recruitment intentions and challenges, employee turnover, redundancy and pay intentions, and other topical workplace issues.
This first survey of 614 Australian senior business decision makers records a Net Employment Intentions Index of +45 for the June quarter. This index score is calculated by taking the percentage of employers intending to increase staffing levels and subtracting the percentage of employers intending to decrease staffing levels over the period.
Key Insights
Based on survey responses from over 600 senior business decision-makers, AHRI has been able to paint a picture of the near future of the Australian labour market.
General insights
Recruitment intentions are strong
The AHRI Net Employment Intentions Index, which measures the difference between the proportion of employers that expect to increase staff levels and those that expect to decrease staff levels in the June 2023 quarter of 2023, is firmly in positive territory (+45). 46% of organisations plan to increase staff levels in the quarter, compared with just 1% that plan to reduce the size of their workforce over the same period
Public versus private sector
Net employment expectations are higher in the public sector (+54) than in the private (+44) and not-for-profit sectors (+39). Public sector employers’ pay intentions in the 12 months to April 2024 higher (4.4%) than in the private (3.2%) and not-for-profit (2.2%) sectors.
Low redundancy intentions
Just 16% of employers are planning redundancies in the second quarter of 2023.
Recruitment challenges
While 69% of employers are planning to recruit in the June 2023 quarter, 47% of employers currently hiring are experiencing recruitment difficulties.
Turnover rates
The 12-month employee turnover rate to the end of April 2023 is currently 12%, with 20% of organisations reporting annual turnover of 20% and above.
Pay rise intentions
Employers reported that the mean basic pay increase in their organisation (excluding bonuses) will be 3.3% in the 12 months to April 2024.
Casual worker insights
Casual employment insights
The most common reasons for employing casual employees include managing short-term fluctuations in demand (46%), providing flexibility for the individual (42%), managing changes in business conditions (37%) and employee preference, e.g. higher pay (31%).
Casual employees’ tenure
Almost a quarter (24%) of employers say the typical length of service of casual employees at their organisation is more than two years.
Training opportunities for casuals
Around a fifth (17%) of casual employees are not eligible for the same training and development opportunities as permanent employees.
Engagement rates
Around two thirds of employers (66%) report no difference between the engagement levels of permanent employees and casual employees. However, a quarter of organisations (25%) say that employee engagement levels are higher among casual employees compared with permanent employees.
Casuals are paid higher rates
More than half (58%) of employers say they pay a higher rate for casual workers, compared with one in ten (10%) employers who say casual employees are paid less than permanent employees for doing the same or a similar role in their organisation.
For media enquiries, please contact:
Julie McNamara
Media Specialist, Mahlab
[email protected]
0419 595 688
