Job candidates and existing employees are negotiating compensation packages more often this year compared to last, according to a study by professional staffing firm Robert Half.

Nearly half of Australian employers, 45%, report more shortlisted candidates have negotiated compensation packages this year compared to last. In addition, 40% said more existing employees have been doing the same.

“In an era defined by skills shortages, employers are witnessing a growing frequency of compensation negotiations, where the pursuit of talent meets the constraints of a squeezed marketplace,” Nicole Gorton, director at Robert Half, said in a press release. “As the demand for top talent continues to outgrow the available supply, organisations are finding themselves reconciling the requirements of their business with those of their employees too.”

Between monetary and non-monetary compensation measures, 44% of employers report having more salary discussions, 22% report having more no-monetary compensation talks and 34% report an increase in negotiations for both monetary and non-monetary perks, according to Robert Half.

Non-monetary compensation measures include increased time off, hybrid or remote work and professional development opportunities.

Data for the study comes from a survey of 300 hiring managers conducted online in June.