2025 Hiring Snapshot Report Australia: current trends in recruitment 

In this report, we outline the findings of our latest research into the state of hiring across Australia. Our survey of over 1,000 Australian SME leaders paints a stark picture where small businesses are forced to tighten their belts, spending around $8,090 annually on hiring, while medium-sized businesses stretch budgets to an average of $18,371. 

It’s clear smaller businesses are struggling to compete, creating an unfair playing field in the battle for top talent. And if that applies to you – you’ll want to take a deep dive into the rest of our findings.

In our Hiring Snapshot Report, you’ll find these insights and more:

• Hiring budgets tighten for small businesses, while medium-sized businesses open their wallets
• Online job platforms are king, but community groups and referrals still reign
• Rethinking recruitment strategies
• Not all new hires are here to stay
• Short on staff, long on hours
• The recruitment wrap up
• Survey demographics and methodology

Disclaimer: The information in this report and its associated article is current as at 15 April 2025, and has been prepared by Employment Hero Pty Ltd (ABN 11 160 047 709) and its related bodies corporate (Employment Hero). The views expressed in this report and its associated article are general information only, are provided in good faith to assist employers and their employees, and should not be relied on as professional advice. The Information is based on data supplied by third parties. While such data is believed to be accurate, it has not been independently verified and no warranties are given that it is complete, accurate, up to date or fit for the purpose for which it is required. Employment Hero does not accept responsibility for any inaccuracy in such data and is not liable for any loss or damages arising either directly or indirectly as a result of reliance on, use of or inability to use any information provided in this article. You should undertake your own research and seek professional advice before making any decisions or relying on the information in this report and its associated article.

Discover the real cost of recruitment in 2025

Recruiting and retaining talent in Australia has never been more challenging. In a tightening labour market, small to medium-sized enterprises (SMEs) are under increasing pressure to stay competitive – not just in how they hire, but in how they invest in the process.

Our new 2025 Hiring Snapshot Report reveals the current state of SME recruitment across Australia, highlighting how hiring strategies, budgets and behaviours have shifted in response to economic and workforce changes.

From recruitment spend to staff turnover, and from digital hiring platforms to unconventional recruitment strategies – the findings paint a compelling picture of what hiring looks like in 2025. 

Download the report to uncover the complete data and insights.

Key questions answered in our report

• What are SMEs really spending on recruitment each year?
• Which hiring platforms are most commonly used, and which deliver the best ROI?
• What’s causing new hires to leave within their first month?
• How are businesses dealing with persistent staff shortages?

You’ll also discover how industry, business size and turnover influence hiring strategies, and how some employers are getting creative in a competitive job market.

Why it matters now

With operating costs rising and talent harder to find, the ability to hire well – and retain great people – is more important than ever. The 2025 Hiring Snapshot Report provides critical benchmarking data to help you assess how your hiring practices compare to others in your space.

Whether you’re adjusting your recruitment budget, exploring new hiring channels, or working to improve early employee retention, this report arms you with the insights needed to make informed decisions.

Download the 2025 Hiring Snapshot Report today to stay ahead of the hiring curve.

What is the latest recruitment strategy?

The most effective recruitment strategies in 2025 are those embracing skills based hiring, AI-powered screening, and improved candidate experience. Employers are shifting away from rigid qualifications and prioritising practical, transferable skills that align with their evolving business needs. Tools like SmartMatch are being adopted to match candidates using data driven insights, allowing recruiting teams to identify talent faster and more accurately.

What is the biggest challenge in recruitment?

The biggest hurdle facing hiring managers today is the persistent skills gap. Many industries are experiencing a mismatch between available roles and the capabilities of available job seekers. This is compounded by fierce competition and stretched recruitment budgets, particularly for SMEs. Employers are also reporting difficulties in building a diverse talent pool, creating inclusive job descriptions, and maintaining a consistent employer branding strategy to attract high-quality candidates.

What is skills based hiring?

Skills based hiring is an approach where candidates are evaluated based on their competencies rather than their degrees or job titles. This method opens up recruitment to a broader range of applicants, helping to create a more diverse talent pool. By implementing skills based hiring, businesses can better align new hires with actual job requirements, improve long-term retention, and reduce bias in the recruiting process.

For guidance on how to write effective job offers aligned with this approach, download our employment offer letter email template.

How can businesses improve the hiring process?

Businesses can improve the hiring process by streamlining their recruitment process through automation, clearer job descriptions, and better onboarding. Using tools like Employment Hero’s recruitment software and our recruitment process guide helps employers reduce admin time and enhance decision-making.

A strong candidate experience, transparent communication, and well-structured job postings also contribute to more successful hires and reduce early turnover.

How can businesses attract the best talent?

To attract top talent in a competitive market, employers need to focus on company culture, flexible work policies, and strong employer branding. Today’s job seekers are looking for workplaces that align with their values and offer more than just a salary. Highlighting benefits, career growth, and inclusive culture in job postings can significantly boost engagement.

How can AI tools help with recruitment?

AI tools can transform how businesses identify candidates, speed up screening, and improve accuracy in the recruiting process. They analyse large volumes of data to deliver data driven insights, assess qualifications and behaviours, and eliminate unconscious bias. This not only shortens time-to-hire but also enhances the candidate experience by delivering faster, more tailored communication.

For SMEs looking to embrace modern recruitment trends, AI solutions like SmartMatch are becoming indispensable.

Download the 2025 Hiring Snapshot Report

Whether you’re looking to reduce recruitment costs, keep up with hiring trends, or make smarter, faster hiring decisions, the 2025 Hiring Snapshot Report provides essential benchmarks and strategic insights to help your business thrive.