Australian businesses to boost global hiring in 2025

Australian businesses are set to increase hiring in 2025, focusing on global talent and AI competency while navigating economic and regulatory challenges, according to a new report by Rippling.

The "State of Hiring" report is based on a survey of 500 Australian business leaders, which highlights a cautiously optimistic hiring outlook for 2025. With local skills shortages continuing to present challenges, 86% of businesses plan to hire more employees, and 89% are considering international recruitment to meet demands, particularly in tech fields.

According to Rippling's Vice President and Head of Asia, Matt Loop, "Amid economic uncertainty and shifting regulations, Australian businesses are showing remarkable resilience by expanding their workforces globally. It's encouraging to see this groundswell of cautious optimism as we head into 2025. When businesses grow, so does the economy, and it's clear that companies are committed to sustainable growth, even as they tackle skill shortages and adapt to regulatory complexities."

AI tools are now a significant component of hiring practices, with 97% of businesses using them to streamline the recruitment process. The report found that 61% of employers are less likely to employ candidates lacking familiarity with AI tools such as ChatGPT, and AI skills are being prioritised in both technical and non-technical roles.

The report also indicates a shift in flexibility standards. While 57% of businesses are less likely to consider candidates unwilling to work onsite five days a week, there remains a need to balance flexibility with operational demands. A similar percentage expresses a reluctance to hire those who would not work beyond contracted hours, reflecting a recalibration toward productivity and engagement.

On the topic of workforce expectations, Gen Z's preferences for remote work and rapid career progression have raised concerns among employers. Matt Loop commented, "Businesses are rethinking flexibility to better align with productivity and team cohesion. While flexibility remains important, we're seeing a shift towards a more balanced approach that supports operational goals and reflects evolving workforce dynamics. This shift poses challenges in attracting and retaining Gen Z employees, who favour remote work and high flexibility. Employers need to find a balance by creating growth pathways that respect these preferences while also ensuring that essential skills and experience are developed along the way."

Additionally, 32% of businesses report difficulties in maintaining consistent policies across international teams, pointing to challenges in compliance with local workplace regulations. The use of Employer of Record services by 46% of companies is cited as a measure to manage these regulatory complexities.

Changes in casual employment laws have also impacted workforce management strategies, with 23% of businesses transitioning casual roles into permanent ones in response to these legislative adjustments. This move aims to provide greater job security but could result in increased costs for companies. Loop added, "IR reforms and regulatory changes are encouraging companies to provide greater job security alongside flexibility, helping them stay competitive and in tune with employee expectations. By tackling compliance challenges with solutions like EOR services, businesses can focus more on growth and creating an engaging workplace, confident that they're well-supported in managing complex regulations. This shift toward stability and flexibility builds trust with employees—a key factor for long-term retention and a resilient, motivated workforce."