Rising inflation prompts pay rise demands among tech staff

The Robert Half 2025 Salary Guide indicates that sustained inflation and increasing responsibilities are prompting demands for higher pay among tech employees in Australia, while many find it challenging to negotiate pay increases.

The research conducted by Robert Half has highlighted a significant difference in salary expectations and experiences between tech workers and their employers. Nearly half (49%) of employers noted that job candidates are more assertive about salary demands compared to the previous year. Contrastingly, 79% of tech workers reported that negotiating a pay rise has become more difficult than last year, with only 2% stating it has become easier.

Nicole Gorton, Director at Robert Half, commented, "Our 2025 Salary Guide paints a picture of the complex salary dynamics that will shape the job market this year. The current work environment faces a salary dilemma. Employers continue to face budget constraints and focus on cost management while the demand for higher pay has become louder from employees who haven't had a significant pay rise during a turbulent few years despite their hard work and their need to feel financially stable."

The guide reveals that the urge to seek a pay rise is strong, with 92% of workers intending to request an increase. Workers highlighted reasons such as consistently exceeding performance goals (38%), taking on new projects or workload (37%), and the need to cope with the rising cost of living (31%) as primary motives for seeking a raise.

Employers also face pressure to justify salary adjustments, with 30% of them agreeing that pay rises are merited based on performance goals being met or exceeded, and 26% evaluating all employees on similar criteria.

If employers cannot concede to demands, professionals show varied responses. The guide shows that 40% of workers might choose to be patient and continue maintaining a good work ethic, while 38% are likely to look for a new job. Other strategies include focusing on professional development (37%) and discussing salary prospects again in a few months (36%).

Gorton further noted, "Employees are becoming more vocal about their contributions and compensation expectations the more inflation affects their hip pocket. Failing to recognise and reward top performers is a costly oversight. While salary increases aren't always feasible, open communication, robust benefits packages and professional development opportunities are necessary for maintaining morale, engagement and loyalty. After all, competitive compensation and comprehensive rewards are essential for attracting and retaining top talent as well as remaining an employer of choice."

The Robert Half 2025 Salary Guide provides insight into the most sought-after tech roles and their corresponding average starting salaries. Key positions such as Software Developer, Business Analyst, and Cyber-Security Specialist are listed with salaries varying based on experience, with Software Developers earning between AUD $84,000 and AUD $120,000, and Cyber-Security Specialists earning between AUD $133,000 and AUD $181,000.