Why salary is no longer enough to attract and keep talent

John Summers:
Probably the first question I’m asked when I'm recruiting a role would be is it hybrid? That is the first question before I'm asked about salary. You know, I think sometimes that as a lack of understanding around that, if you don't offer that, you are actually, reducing your candidate pool by quite a large amount.

Adrienne Biscontin:
Welcome to INTHEBLACK. I'm Adrienne Biscontin, External Affairs Advisor at CPA Australia. Salary remains the biggest reason Australians change jobs, but the latest Hays Salary Guide shows it's no longer the only factor shaping career decisions. Career progression, flexibility, workplace culture, and AI are all playing an increasingly important role.

So, what do today's employees really want? Where are the skill shortages still emerging? And what does it all mean for accounting and finance professionals? Joining us is John Summers, Business Director for Accountancy and Finance at Hays. We'll unpack the key findings from the 2026 Hays Salary Guide and explore what they mean for employers and professionals in the year ahead. John, welcome to INTHEBLACK.

John Summers:
Thanks, Adrienne. Great to be here.

Adrienne Biscontin:
So, let's start, John, by what are the standout findings for the 2026 Hays Salary Guide? And what do they tell us about the state of Australia's labour market?

John Summers:
So, yeah, the Australian labour market remains relatively resilient, but it is characterised by high talent mobility, some skills shortages, and a growing demand for career progression within a workforce that is rapidly embracing AI adoption as well.

Adrienne Biscontin:
Right. That's interesting. So, salary remains one of the key reasons that people change jobs in Australia, but career progression is also becoming just as important. What does that tell us about changing employee expectations and behaviour? And how should employers respond?

John Summers:
Yeah, look, salary does remain probably the biggest driver, but it's not as clear cut as perhaps it would have been in the past that there are other things that are equally as important now. So, within the salary guide, for example, we've found that 36% of employees were actively looking with 34% being open to opportunities. So, that's 76% that have actually been looking and that are actually open to new roles. But 43% cited better pay and 36% cited lack of progression or lack of opportunity.

So, I think that shows that it's no longer just around salary, but there is a real drive now for accountants, for example, to push on and grow their careers as much as salary is still important.

Adrienne Biscontin:
That's interesting, isn't it?

John Summers:
Yup.

Adrienne Biscontin:
Two-thirds of the market have one eye on the market at any one time.

John Summers:
Yeah, look, that is quite common. Obviously, that's something that we speak to a lot of people on a daily basis. And yeah, you do tend to find that, although some may not be actively looking, they're what we would be called passively looking. So, if the right opportunity came up, they would absolutely consider it. And there is varying reasons for that. It's not necessarily that someone is not happy, but that we can unpack that as we go on.

Adrienne Biscontin:
Flexibility now seems to be an expectation rather than a differentiator as it would have once been. In a competitive talent market, what are organisations doing well when it comes to attracting and retaining people with flexibility being one of them?

John Summers:
Yeah, look, I mean, flexibility, you're right, it's definitely... It's more an expectation now. It used to be a unique selling point. But probably the first question that I'm asked when I'm recruiting a role would be, "Is it hybrid? How many days in the office?"

Adrienne Biscontin:
Is that right?

John Summers:
The fact is, more often than not, that is the first question before I'm asked about salary.

Adrienne Biscontin:
There you go.

John Summers:
So, I think just the work landscape has changed a bit from that perspective where what we see now is people are really big on flexibility. And that means different things to different people, right? So, it could mean hybrid working model with three days in the office or two days at home, or it could just mean the ability to drop the kids at school, do pickup, and just have that real flexibility.

Adrienne Biscontin:
Flexibility of hours as well as days.

John Summers:
Yeah, yeah, of hours as well as days. But there is definitely, I find it really difficult to recruit a role if it was five days in the office, for example, compared to if it was hybrid.

Adrienne Biscontin:
Yes, it seems those days are long behind us.

John Summers:
Yeah, definitely. And I think employers need to be aware of that. I think sometimes there is a lack of understanding around that if you don't offer that, you are actually reducing your candidate pool by quite a large amount these days, so.

Adrienne Biscontin:
What other things are they doing well to attract and retain people as well as flexibility?

John Summers:
Yeah, I think, as I mentioned, career progression and having a genuine career development plan and genuine options that are obvious to people when they're working. So, a lot of people do leave a company because they don't see the obvious career development. Whereas, if it's clearly laid out and you've got a clear development plan that someone can follow, they'll say, "If I do this, I know I can get to this level." That significantly increases retention within the business.

Whereas, if someone doesn't have that, they may think they have to move externally to get it. And that's why we do see a lot of people, four years is now, that's a long time from what I can see at the moment, so.

Adrienne Biscontin:
Yeah. No longer is the 20-year gold watch something to aspire to.

John Summers:
This is year 14 for me at Hays. So, I don't see a lot of that in the candidates that I speak to. But yeah, different times.

Adrienne Biscontin:
The report highlights ongoing skills shortages alongside growing use of AI in the workplace. How are these trends reshaping workforce planning and talent development?

John Summers:
Yeah, look, I think AI is a big one. So, within the salary guide survey, what we've found that 60% of employees were using AI, but only 22% had actual formal training on it. So, there's definitely a gap between what employers are looking for compared to what employees are offering. And ultimately, with AI, it's something that if you don't learn how to use it and use it properly, whether it's in an accounting role or something else, then there is a chance you will be left behind and you'll be doing a lot more work than you probably have to.

Adrienne Biscontin:
That's interesting. I wonder if it's something that employers need to start looking at differently, how they're using AI in their workplaces and how they make that a part of the job that they're recruiting for.

John Summers:
Definitely. Yeah. Look, it's one of those things that is such a big assistance to productivity. So, if you're not utilising it well, you're actually decreasing the productivity of your workforce. So, I think organisations that actually embrace AI and actually pioneer it, there's certain AI projects that we do within Hays, for example, and that's something that is really a massive push for us, and I'm sure it should be a massive push for a lot of businesses.

Adrienne Biscontin:
Yeah, for sure. So, turning to accounting and finance industry specifically, what are you seeing in terms of talent demand and salary growth and the skills associated with that sector?

John Summers:
Yeah, look, so what came out of the salary guide was that there wasn't necessarily as large a skills gap in accountancy than there was within the general broader market, but we're only talking by 3%. It was 82% in the general market and 79% in accountants. So, still really high, but it definitely does vary depending on what the roles are and what the level are. For example, professional practice, it is still very difficult for a lot of accountancy firms to find talent. That's a really highly competitive skill short market. And it was already skills short before the lack of training that maybe occurred a bit during COVID. So, that's really feeling the impact.

Adrienne Biscontin:
So, what numbers are we talking about in skill shortages in that sector? In public practice, accountants and finance? We have seen skill shortages in the public practice sector and accounting and finance more broadly. And it's something we talk about at CPA Australia as well, skill shortages and fostering the pipeline. What do you see in the salary guide there?

John Summers:
Yeah. Look, it's definitely showed that salaries within that area have increased. And that is just, I guess, natural when there is a competitive market and there's a war for talent essentially, then that does drive salaries up maybe only by 3% or 4%, but it still does go up. But that technical accounting background is really important.

And that's something that although there is a huge demand for business partnering and commercial analysis and those real stakeholder engagement type roles, they're obviously very important now. Having that real technical grounding and that CPA qualification, for example, within a firm is still very attractive.

Adrienne Biscontin:
Yeah, that's good to hear. So, looking ahead, what should employers and accounting and finance professionals be paying close attention to over the next 12 months in terms of trends?

John Summers:
Yeah. Look, I think I think employers and accounting are realising that pay alone is not going to be enough to attract and retain the best talent. Yeah. You know, you know, obviously it was over 30% of people did put that as their main priority. But career progression being almost as important and flexibility being almost non-negotiable. Now, you know, I think if you are offering, you know, a package with all of those things, you know, so good remuneration, attractive remuneration doesn't necessarily have to be market leading.

But if you're offering a career development plan alongside that genuine progression, access to AI tools and flexibility, then you would position yourself as an employer of choice in the market. I think offering a real benefits package is important for employers now. So it could be extra annual leave, additional super, you know, health insurance things like that.

Because what we have now is a workforce that is very focused on health and wellbeing and what life balance, much more so than perhaps, you know, ten years ago and beyond. So I think if you can offer things like that, then it does really set you apart.

Adrienne Biscontin:
Yeah. As a whole package to attract people. So, you think these are the trends that employers should be focusing on in the next 12 months?

John Summers:
Yeah, so salary, flexibility, health and wellbeing, genuine career progression. I think that package will help you attract the right talent.

Adrienne Biscontin:
Certainly, sounds good. Which accounting and finance roles are changing most rapidly as AI and automation become more embedded in the workforce?

John Summers:
There is always a risk with AI that perhaps the more junior processing type roles would be more at risk. But to be honest, I don't think it's at the level yet where we've seen that become a huge issue. We are still busy in those markets.

So, I think if anything, it's been able to use it to enhance what you're doing at the moment. So, if it's like a commercial finance role, a finance business partnering role, these tools are excellent. But I just think for any accountant who wants to develop their career, you want to make sure that you're up-to-date with AI and you're taking steps. If your employer's not offering it, you could be taking steps outside of that to do it personally. It could be through CPA might be offering things like that, for example. So, it's definitely something that I would really encourage candidates to...

Adrienne Biscontin:
Concentrate on your own development in that sector.

John Summers:
Yeah, yeah. Or you might be left behind.

Adrienne Biscontin:
So, John, just turning to accounting and finance sector specifically, what are some of the tips that you have in your experience that accounting and finance professionals can do?

John Summers:
Yeah, look, I think the biggest thing now with AI automating routine tasks, the most valuable professionals will be the ones that can combine that technical accounting experience with commercial insights, the ability to interpret data and add to decision-making. Those will be the candidates that will be able to secure those bigger roles in the future.

Adrienne Biscontin:
So, human skills and technical skills.

John Summers:
Being able to influence is really important. The biggest career opportunity for accountants that we see at the moment would be move closer to decision-making. Move as close to decision-making as you can.

Adrienne Biscontin:
For clients. And would that be right across the career? I mean, what about mid-career? If you've been in the sector for quite a while, have you got any tips for those people? Do they retrain? Do they look at AI development? Do they look at other tools they can learn?

John Summers:
I could probably break it down. If someone is just qualified, for example, so if we look at them first, the strongest opportunities for those candidates that have just qualified that probably have a really strong technical grounding already would be try and get experience with the commercial insights piece and the analytical piece. Because we do see a lot of those candidates that come through, they don't necessarily want to go into a financial accounting role. They want to go straight from perhaps audit or something similar into a business partnering role.

So, I think gaining experience within financial planning and analysis, commercial analysis, and finance, business partnering, even systems accounting, all of that can really stand you in good stead for your career going forward.

I think in mid-career, so a lot of those candidates already may have the commercial skills. They may have the business partnering skills. But I think there is ways to still progress to maybe a more senior finance business partner or a commercial finance manager. And I think being able to translate the data into real insights is something that those candidates already do well, but AI could really help drive that forward. So, it's important that they're embracing the tools that they have at their disposal.

Adrienne Biscontin:
Yes. Look at new tools, and then look at ongoing learning and see if there's interesting ways out there for you to learn and develop those skills.

John Summers:
Yeah, definitely. And I think with senior leaders, those who are already perhaps in a financial control or CFO role, for example, for them, it's not about embracing change. It's often about leading change. So, you need to make sure that you absolutely understand because there's a chance you will be leading in driving these change initiatives that involve the systems and the AI side of things. So, it's really important that you stay relevant and you stay up to speed with it.

Adrienne Biscontin:
So looking ahead, what should employers and accounting finance professionals be paying close attention to over the next 12 months?

John Summers:
Yeah, look, salary pressure is creating a bit of a retention risk at the moment. It’s no secret that things are tough with inflation and everything at the moment...

Adrienne Biscontin:
Cost of living pressures...

John Summers:
... cost of living pressures, so I think within the salary guide salaries did go up but it was a modest increase, you know, 4 %. Half of all employees feel underpaid, 42% were satisfied so that’s more than half that actually feel underpaid. And wage growth is just failing to keep up with the cost of living increases at the moment.

Adrienne Biscontin:
So, it's clear that while salary remains important, employers are increasingly looking at career growth, flexibility, skills development, and opportunities to work with new technologies like AI, as we've discussed. For employers attracting and retaining talent now requires much more than a competitive pay packet. Thanks, John, for joining us today and for sharing your insights.

John Summers:
Thanks for having me.

Adrienne Biscontin:
And for accounting and finance professionals, the message is clear. Continue building your technical expertise, embrace new technologies, and develop the commercial and advisory skills that are increasingly in demand. If you'd like to explore the findings in more detail, you can access the Hays Salary Guide 2026 via the link in our show notes.

And if you enjoyed this episode, please subscribe and share it with your colleagues and friends in the business community. Until next time, thanks for listening.