Australian employers’ top workforce priorities in 2026

More than half of the employers surveyed say focus will be on productivity and performance (58%) this year.

Australian employers’ top workforce priorities in 2026 are productivity and performance (58%), AI and digital upskilling (51%), attracting top talent (47%), and workforce planning (45%). Employee engagement (41%) and cost control (35%) also feature prominently.

This is from people2people Recruitment’s latest workforce research, which also found that over 72% of employers do have plans to recruit this year, signalling sustained hiring activity alongside a sharper focus on workforce strategy.

What's the driving the positive hiring sentiment? Primarily, it seems to be driven by replacement needs (35%), followed by support towards business growth (24%), and restructuring or seasonal demand (13%).

Meanwhile, just over a quarter (28%) do not plan to recruit, reflecting a more measured and selective hiring approach.

Suhini Wijayasinghe, Head of HR, people2people Recruitment, noted that Australian employers are entering 2026 with a clear hiring intent, but it is not about growth at any cost. She said: "Employers are recruiting, but they are also thinking much more carefully about how those hiring decisions support productivity, future skills, and workforce resilience."

To remain competitive, organisations are also evolving their value propositions. Around 44% plan to increase base pay, while 44% also plan to offer more learning and development opportunities, while others are enhancing recognition (40%), wellbeing support (33%), and introducing flexible work arrangements (30%).

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