The 2026 recruitment landscape will remain polarised. Application volumes have increased significantly, yet persistent skills shortages remain in key disciplines, sectors and regions. Meanwhile, candidate expectations continue to evolve in ways that don’t necessarily align with employers. This includes how AI is being used to streamline recruitment processes.
The result? Frustration and often poor outcomes for candidates and employers alike. So, what are the trends shaping hiring? And how will this impact on your approach to recruitment?
Key Points
- Employers will face a range of recruitment challenges in 2026 that may require them to rethink their approach.
- Key considerations include being clear and specific about your needs and focusing on candidate care.
- As AI is used more widely, it’s essential to balance it with a human approach to avoid potential biases - under Australian law, discriminatory intent is not required.
- Engaging with contingent labour may still be a viable option, as this is often an effective entry pathway for top talent.
Last year saw the acceleration of emerging recruitment trends. The use of AI throughout the recruitment process became widespread, applicant ghosting increased, candidate withdrawals prior to offer became more prevalent and more roles were put on hold by employers. Yet this did not happen in isolation – often applicant behaviour resulted in employer hesitancy, increasing timeframes or even halting the process altogether.
However, this was just one of many factors challenging employers. In a year defined by global instability, economic uncertainty and continued high inflation rates, while AI simultaneously yielded real efficiencies across most industries, it is not surprising the job market was impacted.
Job seekers want employers to move faster, provide more information and offer higher wages to manage the rising cost of living. Employers on the other hand, are managing costs and productivity concerns, while also working through how AI can best enhance their business and help meet market demands.
To reduce frustration and improve outcomes, we look at simple ways you can rethink your approach to recruitment in 2026.
1. Be clear and specific about the skills and attributes you need
In a market that’s got too many or too few candidates depending on the role, it is essential that you are clear and focused about what you need, and what might be nice to have. Understanding the market is also key - it’s common for employers or hiring managers to provide a wish list of skills and attributes at a low salary, and then not be willing to compromise. This not only slows down the recruitment process but creates a negative experience for applicants.
Taking time to think about the position in the context of the role, the team and the organisation’s direction, prior to advertising or approaching candidates, can streamline the process.
- The Role. Understanding the role requirements is critical. And if you’re replacing someone, take the time to review the existing job description. Use the ‘Start, Stop, Continue’ framework to refine the role and consider avenues for efficiency that may optimise current tasks and capabilities. Are there any tasks that can be redirected or outsourced for better outcomes?
- The Team. When prioritising what you need, it’s essential to consider the strengths, weaknesses, gaps and skill sets that comprise the team. What are the skill gaps in the team (not just the role)? Are there ways to restructure team responsibilities for progression, performance or efficiency? Does your current team demonstrate diverse perspectives, knowledge and ways of thinking?
- Future Requirements. Recruiting without considering future needs may lead to turnover, skill gaps or learning and development challenges. Consider what types of soft and technical skills this role may require in the future, and whether they can be learned on the job. For many roles, this will include an individual’s ability to adopt new technologies.
It is also essential to keep the gender confidence gap in mind, as more than one quarter of women are unlikely to apply if they don’t meet all the criteria. List ‘non-negotiable’ versus ‘nice to have’ skills, attributes and capabilities. To avoid homogenous hiring, also consider including diversity in your profile. What flexibility or adaptations are you able to accommodate if any?
All of this is so important, because it keeps hiring managers focused, and improves the experience for candidates who often get frustrated when the criteria changes throughout the process.
2. Balance AI with a human approach
As AI functionality becomes more integrated in job application platforms and recruitment software, organisations need to think about ways they can balance efficiencies with real interactions. While AI can have benefits for potential candidates and hiring managers, it is also essential to speak directly with as many candidates as possible to actively understand what they can bring to a role.
There are three reasons this is important for hiring managers:
1. You risk missing out on top talent. Without having a deeper understanding of the candidate, you may be rejecting top talent without even realising it. Furthermore, a recent survey found that 44% of Australians would reject an offer if a recruitment process relied too heavily on AI.
2. You risk hiring the wrong talent. AI is not just being used by organisations. More candidates than ever are using AI to help write resumes, application letters and prepare for interviews. As AI assists applicants in promoting themselves, resumes are becoming less detailed, which is widening the gap between claimed abilities and real skills.
3. System discrimination. AI is only as good as the data provided and is not necessarily designed for the complex nuances of unbiased recruitment. Employers cannot discriminate in Australia on the basis of protected attributes - characteristics or traits protected by law to ensure equal treatment and opportunities for all individuals. Research released by lawyer and on Algorithm-facilitated discrimination from Dr Natalie Sheard has found AI hiring systems may in fact "enable, reinforce and amplify discrimination against historically marginalised groups". There is a significant risk of reinforcing historical data for one.
Under Australian law, discriminatory intent is not required. If an algorithm excludes applicants based on a protected attribute, an employer may be exposed on both reputational and legal grounds. If the algorithm considers skills listed or experience alone, those who have previously been given opportunities will continue to receive offers. This perpetuates systemic inequality and does not take diversity of thought into consideration.
Organisations need to be aware and conscious of the impact, so they can personalise their recruitment activities to avoid potential liability. Australian Unions are continuing to pursue regulatory guardrails to steer the future roll-out of Artificial Intelligence in workplaces.
3. Prioritise candidate care
Candidate care is a term often thrown about in recruitment circles that aligns with customer experience principles. Unfortunately, many organisations don’t view potential employees in terms of a customer group, therefore not applying their customer experience processes.
Switching this mindset is critical because potential employees can be advocates or detractors of your organisation, and may in fact be existing or potential customers too. A negative experience can cost you much more than missing out on one talented candidate.
Both active and targeted candidates will have options to compare you with (either their existing company or other potential employers), so being clear on candidate care processes is essential. If your organisation doesn’t have the resources for this, then discussing expectations with your recruitment partner is recommended.
Simple ways to prioritise candidate care include:
- Be clear about the recruitment process and stick to timeframes
- Communicate regularly and as promised
- Provide relevant information relating to the job and employment
- Be prepared and help the candidate feel comfortable during the interview
- Allow space for candidates to tell you about their skills, experience, motivations and attributes
- Streamline the onboarding process with a focus on productivity and engagement
4. Don’t discount flexible and contingent arrangements
Significant changes in Fair Work legislation in recent years have meant Australian businesses are employing fewer casuals, despite economic uncertainty. This has had consequences for employers looking to engage and identify talent.
There are many benefits that contingent employees can provide employers:
- Flexibility – whether casual in the new definition, or maximum-term contracts, contingent employees allow organisations to scale up and down to meet seasonal or project related demand, as well as unprecedented growth.
- Reduced skill gaps – this allows you to bring in people with specific skill sets that may be needed if you don’t have the depth within the team. Skilled individuals can also play a fundamental role in upskilling teams.
- Higher wages – engaging people for part rather than the whole project or during a season as a casual enables you to pay higher hour rates with casual loading. This may enable you to secure better quality talent, who can improve business outcomes.
- Trial period – allows both the employee and employer to assess fit and contribution. Often, contingent workers are offered permanent positions when they perform well, with job descriptions tailored to their contributions.
- Increased productivity – by resourcing correctly, organisations can increase productivity and improve morale. In the last 12 months, many organisations have opted not to engage casuals, placing a greater burden on existing staff and reducing their focus. This can have consequences for organisational outcomes, morale and retention.
There are currently many talented candidates looking for work who would take contingent roles, yet there is a reluctance for organisations to select this option. If compliance is the concern, our Workplace Relations experts can assist you to engage and monitor contingent workers to ensure compliance. While it depends on the job and the market, contingent work is a viable option in many instances that should not be automatically dismissed.
5. Enhance your recruitment partnership
As an organisation, we’re celebrating our 50th anniversary this year. Our most successful partnerships are those where we have worked more closely with the client. This looks different in every scenario, but there are a few commonalities.
A partnership is more successful when recruiters:
- Understand your operations and strategic direction.
- Have relationships with supervisors and understand their frustrations.
- Are encouraged to have conversations about problems and potential solutions regularly.
- Can discuss barriers to success with decision makers who are open to improvement.
- Tailor processes to align with your organisation.
- Provide compliance support.
If you’re rethinking how you approach recruitment in 2026 and would like support, tell us what you’re looking for, or get in touch today.


