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Episode 157 - How do you entice a candidate to a new job in this uncertain economy?
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This week we unpack a resilient but fragile labour market as unemployment holds at 4.3% with a shift back to full-time jobs while economists warn the real impact of global shocks is still to come. We dive into mixed results from major recruiters like Hays, PageGroup and Robert Walters, revealing ongoing pressure across the sector despite pockets of growth. We also look ahead to the industry’s big night out at the RCSA Rec Gala, question the loss of independence as Sourcr is absorbed into SEEK, and examine a serious legal case brought by the Fair Work Ombudsman over alleged exploitation of a migrant worker a stark reminder of the compliance risks facing employers today.
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Transcript
Wingman Recruitment and Offshore Hiring
00:00:08
Speaker
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Australia's Employment Trends
00:00:29
Speaker
This is the news for the 21st of April, 2026. I'm Adele Last. And I'm Ross Klenert. Australia's unemployment rate remained at 4.3% in March on the back of rising employment and falling unemployment according to the latest ABS labour market update.
00:00:47
Speaker
Employment increased by 17,900 people and unemployment decreased people. Positive news, Adele, was that the employment growth in March was driven by full-time jobs up by 53,000, partly offset by a fall in part-time employment of 35,000.
Impact of Global Events on Australia
00:01:06
Speaker
However, the Labor Force survey was conducted in the first half of March before any economic impact from the conflict in Iran and higher fuel prices.
00:01:17
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I note that Callum Pickering, the AIPAC economist at Indeed, said the employment data was rather uneventful in March. compared to the overall geopolitical environment. But he said Australia's labour market would probably come under increased pressure in coming months as the Middle East conflict drags on.
00:01:34
Speaker
Westpac economist Ryan Wells says it may take several months for global price shocks to show up in Australia's employment data as the impact flows through spending, business margins and hiring decisions. However, he noted that while companies may pause new hiring quickly, They're slow cut staff, making the labour market a lagging indicator. He expects conditions to soften in the second half of 2026, with a forecast of unemployment rising to around 4.9% by Christmas and remaining at that level throughout
Corporate Performance in Recruitment
00:02:10
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2027. Turning to the latest public company results, Adele, for the March quarter, it's been a mixed bag. Not a lot to enthuse about.
00:02:17
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Page Group reported a gross profit decline of 9.2% to £187 million pounds on a constant currency basis. I did note that Page Group Australia reported its second consecutive quarter of growth at 4%, with net fees in the Asia-Pacific region up by 9.3%. Globally, their fee earner headcount, though dropped by half a percent, down to 4,994 people.
00:02:42
Speaker
Turning to Robert Walters, they reported 2% year-on-year decline in net fees for the March quarter, although the month of March saw a 5% year-on-year rise. Asia-Pacific net fee income was up 4%, helped by a 12% rise in New Zealand. However, Australia was down 7%. Better news for Robert Walters Australia was that temp volumes were at their highest level since the first half of 2024.
00:03:09
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Hayes is still in a world of pain with their global net fee income for the March quarter declining by 8% on a like-for-like basis with temp and contracting down 6% and perm fees down a worrying 12%.
00:03:22
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However, ANZ was the best performing region for Hayes reporting only a 2% decline overall with temp and contracting down 1% while perm dropped 6%.
00:03:32
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Germany was down 11% and the UK and Ireland saw a 10% decrease. Digging into the detail within the ANZ region, private sector net fees decreased by 1% while the public sector saw a 6% fall. Queensland was up 10%, WA was up 6%.
00:03:51
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These gains weren't enough to offset declines in New South Wales down 7%, Victoria down 4% and the ACT plummeted 26%.
00:04:02
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By specialism in Hayes ANZ, construction and property, their largest increased by 6%. Off support was up 7%. Accountancy and finance rose by 5%.
00:04:15
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Unfortunately, technology, their second largest division, declined by 11%. Yeah, the investors seem to have given up on Hayes. As I say, their share price was halved in the last 12 months. It is currently trading at 33 pence.
Recruitment Industry Awards
00:04:29
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On Thursday, the 21st of May, Melbourne Town Hall will play host to the Rec Gala, which is being touted as Recruitment's big night out. It's the first year the ah RCSA Awards have been opened to all agencies, not just members. So here we go. Drum roll, please. The 2026 Recruitment Industry Awards finalists for Australia.
00:04:52
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Business Innovation, Drake International, Fused Recruitment, Sirius. Candidate Care, Beaumont People, Mayday Recruitment, AusStaff and People2People. Client Service, Mayday, People2People, wow.
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Diversity, Equity, Inclusion and Belonging, RS Zinc Group, Programmed, Vertical Scope Group. Safety and Wellbeing Culture, Launch, NW People Group, Programmed.
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Social Purpose, Impact, Advising, Launch Recruitment and Talent Web. Boutique Agency, Fraser Tremble, Vertical Scope. And Woodford Group.
00:05:28
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In the Medium Agency category, Horizon One, Mayday, Recruitment and Technical Resources. Large Agency, People to People, TruCoup, You and You.
00:05:39
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Rising Star includes Alma Rahim from Beaumont People, Evie Shepard from Mayday, Georgia Sheehan from Talent Path, and Thomas O'Connor from HSS Recruitment. Recruitment Professional, Laura Fraser from Fraser Tremble, Michael Jones, Michael Jones Recruitment Training, Shane O'Neill, Civitas Talent.
00:05:59
Speaker
And the very coveted Recruitment Leader nominees are David Jam, Vertical Scope Group, Mike Ottey from Synergy, and Peter Bateson from Charterhouse. Wishing all the finalists the best of luck. We look forward to seeing you all there on the night. Tickets are still available from the RCSA website. And if you want to make a full day of learning, networking and connection, then TalentX tickets are also still available.
00:06:24
Speaker
This high value event will have all of the latest tech and tools on show to ensure you are at the cutting edge. There are also some great speakers and sessions for agency owners and teams. I'll be hosting a panel on the future of recruitment featuring Six Degrees CEO Susie McInerney and Clara Fallon, MD for Drake ANZ.
00:06:44
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TalentX is the event for the whole recruitment industry. Make it a big day out with your team.
Rebranding and Independence Concerns
00:06:50
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Adele, as had been flagged earlier in the year, as of last week, Sourcer has been absorbed and rebranded as Seek Recruiter Profile. For those unaware, Sourcer is a platform that collects and publishes verified reviews and ratings of recruiters based on feedback from placed candidates and clients.
00:07:12
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And yes, while SEEK says all recruiter profiles, reviews and ratings will carry across unchanged, the real question is whether the perception of independence changes now it sits under a major job board. It's also built its reputation on transparency and third-party credibility.
00:07:29
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Under SEEK, some recruiters might wonder how neutral that feedback ecosystem really is. Exactly. Functionality, nothing changes. But strategically, it's a shift from an independent voice to a platform-owned one. The Saras and Sourcer Awards will still run separately, although the Sourcer Awards will now move to a calendar year.
00:07:52
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So on paper, it looks seamless. In reality, it's one less independent voice in the local recruitment market. Independence is important to maintain trust and credibility.
Legal Challenges in Employment Practices
00:08:02
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Ross, the Fair Work Ombudsman has launched legal action against a Brisbane-based vocational education provider, Warwick Institute, over allegations involving a migrant worker.
00:08:13
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Yes, so Brazilian National Working in Brisbane is alleged to have been forced to repay more than $23,000 through what's being described as a cashback arrangement. The worker was originally employed in a marketing role and later sponsored on a subclass 482 temporary skills shortage visa, which came with a minimum mandated salary of $65,000.
00:08:34
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The allegations are that shortly after sponsorship, the worker was asked to repay over $6,000 in expenses the employer claimed they had incurred for her visa application. An additional $16,000 was paid to her employer across her tenure in subsequent payments.
00:08:51
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The Fair Work Ombudsman is now seeking penalties which can be as high as $66,600 per breach for the company and per breach for each director.
00:09:02
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The court order could also require them to repay the money to the worker plus interest. This sends a clear message to any employer sponsoring workers that you cannot push the cost of that sponsorship onto the worker. This is yet another case of a vulnerable migrant worker being exploited by a, frankly, greedy and unethical employer in Australia.
Recruitment in Uncertain Times
00:09:31
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Question of the week, how do you entice a candidate to change jobs in an uncertain economy? It's a very topical discussion for us, Ross. I've been speaking to recruitment agencies recently who clearly have no issue with volume of candidates at present in a lot of sectors. However, they are struggling with more direct approaches where they're approaching people on a LinkedIn or from their database and really enticing the candidate to consider other options is becoming more and more difficult in the current market. So why is this happening?
00:10:09
Speaker
Well, it's natural. Candidates perceive greater uncertainty. And they'll always, almost always perceive that internally they're more secure than maybe reality would suggest. But that's the only reality that counts, the candidate's reality. So they think, oh no too much uncertainty. They generalize about things that they don't really know about. They simply get consumed by negative headlines. Because let's face it, that's what the media leads with.
00:10:39
Speaker
Gloom sells. So whether it's the TV news or whether it's a stream in Facebook or whatever, that becomes what influences a candidate to sit tight. You know, there's a war between the US and Iran, rising fuel pass prices, and people just go, right, better better to so to sit tight and wait for better times.
00:11:00
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But those kind of things are, for a lot of people, out of reach. you know I mean, yes, there are a few prices they feel the impact of, but you know we've had interest rate rises. you know There's real people losing their jobs around them. It's not just headlines. So the sentiment, like you said, their reality is everything, right? That's what they perceive. to be the current situation and that's what's making them scared to move. Sure. And and that's not in any way to minimise that they know someone who's lost a job or lost their job or they've experienced an increase in their mortgage payments.
00:11:32
Speaker
But those things aren't directly related to the quality of jobs that are available. And you as as a recruiter, you want to um change the context because what a candidate is thinking about or tends to be focused on is uncertainty.
00:11:53
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And that's understandable. It's highly unlikely you can convince, and neither should you, that there's um not uncertainty in the market because the candidate will think you're an idiot.
00:12:07
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What you should be doing, in fact, really this is in any market, but particularly in this market, is move the conversation away from a new or better job to where are you in your career?
00:12:20
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Like, what are your aspirations? And how satisfied are you that your current employer is providing the opportunity for those aspirations to be fulfilled? And that doesn't necessarily mean someone needs to be ambitious in terms of a promotion. It could be ambitions for a more flexible job or higher wage or something like that. And I think...
00:12:45
Speaker
The major mistake most recruiters make in outreach with candidates is focusing on the job the recruiter is trying to fill rather than a conversation with a candidate about what their aspirations are and how well they're set up now and are likely to be in the coming years for those aspirations to be fulfilled.
00:13:06
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I think that is a really good point to make. And you're right, probably most recruiters approach it in the context of their own world. You know, I'm trying to fill this job. I need to find candidates for this client. I've got to get some people in front of them. And so they're approaching people with a much more pointed view of, hey, I've got a fantastic opportunity. I mean, I get those ah messages myself, you know. I've got a fantastic opportunity. Are you interested? And it's not enough if you're uncertain in the market to entice you to even respond, to to have a look at it. So you're right. I think the conversation has to be broadened out by the recruiter and have that more holistic career conversation. So, you're not just focused on, I want a quick win now, you're focused on the candidate and what might be best for them in the long run.
00:13:52
Speaker
Completely. And the whole thing about candidate outreach is, yes, of course, you want to find candidates that are suitable for the jobs that you're currently trying to fill. But realistically, what you're doing is building an ongoing candidate pipeline. Because the candidate who may not be ready to move now may be ready in three months' time. Maybe they were really happy with their current boss. Their boss resigns, goes to another job, and they get a new boss, and they're not happy at all with the new boss. And suddenly, the security of life is fine is not that anymore. And who was the recruiter that reached out to them most recently? I remember such and such, and I'll contact them because I'm now ready to move, you know? Things change so quickly. Companies make decisions about retrenchment.
00:14:40
Speaker
Bosses make decisions about new jobs. Opinions change about the value of an employee in terms of future opportunities in a company. I mean, these things happen all the time everywhere. And so as a recruiter, you should be thinking, yes.
00:14:56
Speaker
I want the candidate to be active now, but if it's not right for them, so be it. And who knows how quickly things could change for that candidate and they may become active in three, six, nine, 12 months.
00:15:08
Speaker
you're saying this is a long game, right? We're playingre running a marathon here, not a sprint. Precisely. And we're building trust. The focus about what I'm hearing you say there is that you're approaching candidates to start a relationship which is built on trust. That's right. You're not trying to poach them every time.
00:15:25
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Correct. And one of the most um ah significant ways to build trust is have a conversation with the candidate about their career. And if you believe that they're best served by staying put, tell them that.
00:15:39
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Say, actually, this job I've got that you actually are very suitable for, on balance, i actually don't think it's a better opportunity than where you are at the moment. And as much as it pains me to say this, I recommend you stay where you are.
00:15:51
Speaker
If things change, give me a call in six months or whatever. Like, if you honestly believe that, then say that to the candidate because I promise you that builds trust very quickly because the recruiter acting in or not in their commercial best interest is one way to have a candidate remember you.
00:16:10
Speaker
What if the candidate just doesn't really even want to entertain the conversation? What if they're not really even open to discussing Korea? You've got them on the phone. You want to be able to start something there, as you said, that might be a longer-term relationship. But should you be telling them a bit more about what is happening in the market, providing some you know real information and data as opposed to those news headlines? How can you keep that conversation going?
00:16:37
Speaker
Well, certainly never force anything down a candidate's throat. Never continue a conversation that a candidate clearly receives does not want to have, but hone in on what I would see as the most critical information. So, asking a simple question of a candidate, what's the single most important thing for you in your career in the next three years?
00:17:05
Speaker
Now, if they say security, then you have one type of conversation. If they say pay rises, it's another type of conversation. If they say getting this particular skill or acquiring these particular skills, or I want this particular position title in my next role, narrowing the focus to understand that when you ask the candidate to select one thing, what do they select? And even if they don't want to have a conversation with you now about that, then that's the sort of thing you should take note on the candidate's file and circle back to them in three or six or nine months and reference what they said in that um future discussion.
00:17:48
Speaker
This is where you could actually be upstepping your candidate marketing, in fact, right? Like we do a lot of this sort of work where we'll ring a client, they might not be ready right now. And so we might follow up by sending an email with some updated information about their market, their industry or what's going on so that We're positioning ourselves as an expert. But the same could apply on the candidate side. And there probably are some agencies out there doing it, but I'm not aware of any myself, where they are treating the candidate like they would a client. You're not ready right now. And so what could I provide you that would give you some information about my expertise for when you are ready?
00:18:22
Speaker
Correct. Because the currency we trade in that candidates are willing to invest some of their time in, they're two things, jobs and information.
00:18:32
Speaker
And if they're not interested in a new job or a new job right now, then they're most likely interested in some sort of information about the market. And even if it's not a lot, you can be sure in three or six or nine months, they're probably interested in the same sort of information again.
00:18:50
Speaker
And certainly if something's happened at work, where they're less satisfied with their job, less satisfied with their boss, less satisfied with their employer, then they're more likely to want to have that conversation.
00:19:03
Speaker
So what I'm hearing overarchingly, Ross, is maybe the answer to the question of how do you entice a candidate to change jobs is we don't. We don't entice them. We have honest and ah trustworthy conversations with candidates about their career and build a candidate pool for the long run.
00:19:20
Speaker
Yes. And... I mean, it might sound very simple to say, but this is the core of strong candidate relationships. Think about them first and what they're interested in rather than what you as the recruiter have right now, which is a job. It's like having that candidate trust you to at least engage in a conversation. And yes, they might put themselves on the market. And of course, you can always say to a candidate,
00:19:50
Speaker
um you don't have a decision until an offer gets submitted. So it costs nothing to look. Yes, you've got to invest some time, but no one's forcing you. And I will certainly never force you to or suggest that you should change jobs if it's something you don't want to do. So it's like window shopping. It's like, well, it doesn't cost anything to look. um And you want to give the candidate a sense that it's in their interest to acquire more information about the value that they offer in the market. And as much as you as a recruiter can give them information, there's nothing like getting out there and meeting a client or a potential employer face-to-face to really ascertain um the position that they're in in terms of marketability.
00:20:36
Speaker
Well, you say it's pretty basic. I agree, but it's a great reminder. What we've discussed today, I think, is a good refresh for anybody out there who's headhunting, who's targeting candidates. or is even you know sorting through those candidates that have first appear to be interested and then make risk you know a risk adverse through the process.
00:20:56
Speaker
Hi, this is Ross with a special request.
Personal Stories and Fundraising Efforts
00:21:00
Speaker
Breast cancer is the second most commonly diagnosed cancer in Australia after prostate cancer and the most common cancer among women.
00:21:08
Speaker
Every year, over 20,000 Australians are diagnosed with breast cancer and every day, nine people die from the disease. My sister Mary died of breast cancer at the age of 44. Her son Ned was three months short of his sixth birthday and her daughter Lola had turned four the month before.
00:21:29
Speaker
The tragedy of my sister's death motivated me to make a difference. Over 15 years I've raised $163,000 for breast cancer research through my participation in the Mother's Day Classic.
00:21:42
Speaker
Last year, 122 generous donors tipped total $24,637, making me second highest individual fundraiser nationally. aiming to exceed $25,000 this year.
00:21:48
Speaker
making me the second highest individual fundraiser nationally i'm aiming to exceed twenty five thousand dollars this year If you enjoy your weekly dose of ah RNA, then a donation to my 2026 MDC fundraising campaign would be a great way to show your appreciation.
00:22:05
Speaker
Visit mothersdayclassic.com.au and type Ross Klennett in the search function to find my MDC fundraising page where you can donate with any major credit card.
00:22:17
Speaker
Thank you.