The 5 Key Trends Shaping Executive Employment in 2025
The executive employment landscape in Australia experienced significant transformation in 2024, and this evolution is set to continue into 2025. Driven by a combination of economic, technological, and cultural shifts, these trends are reshaping how executive leaders are hired, managed, and retained. In this article, we explore the five key trends driving these changes and how organisations and executive recruitment professionals can navigate this evolving market.
1. Economic Conditions and the Cost of Living: A Surprising Upturn
Recent data from the Executive Leadership (EL) Index reveals an unexpected surge in executive recruitment for two consecutive months, as of October 2024. This uptick raises the question: Is the Australian economy performing better than anticipated? The growth in senior-level hiring suggests that market confidence could be on the rise, although broader economic indicators, such as interest rates, may be impacted by this shift.
Key economic factors to watch in 2025 include:
- Improved executive hiring, signalling a potential economic recovery.
- Pressure on interest rates, which may rise due to increasing employment across all levels.
- An overall boost in market confidence, potentially leading to more widespread job creation.
As economic conditions evolve, the broader Australian job market also faces shifts, with skills shortages continuing to impact many sectors. For a broader look at how economic trends are influencing employment at all levels, see our article on future recruitment trends in 2025 here.
2. Business and Consumer Confidence: A Tale of Two Metrics
Confidence levels in both business and consumer sectors are critical indicators of the broader economic health. They provide insight into the future demand for executive leaders and help shape strategic decision-making in executive search.
Business Confidence
Business confidence is tracked through various indicators such as:
- Production orders
- Stock levels of finished goods
- Sector health assessments
These metrics forecast future demand for goods and services, directly influencing hiring needs at the executive level.
Consumer Confidence
The Australian Consumer Confidence Index, based on surveys of over 1,200 households, includes key metrics such as:
- Financial evaluations (past year vs. future outlook)
- Anticipated economic conditions for the next year and beyond
- Sentiment on major household purchases
While both business and consumer confidence remain somewhat volatile, positive movement in these indices often signals increased executive hiring as businesses seek leadership to capitalise on optimism.
3. Job Mobility: A Return to Pre-Pandemic Patterns
Job mobility in Australia is now reverting to pre-pandemic levels. According to the Australian Bureau of Statistics, around 8% of employed individuals (approximately 1.1 million people) changed employers or businesses in the 12 months to February 2024. This marks a 1.5 percentage point decrease from 9.6% in 2023, and mirrors mobility rates from the five years before the pandemic.
This shift suggests that many executives are choosing longer tenure in their roles, potentially due to increased job market uncertainty or a more cautious approach to career moves post-pandemic.
Key Points:
- 8% job mobility in the 12 months to February 2024, reflecting pre-pandemic patterns.
- Executives appear less likely to change jobs, indicating a stabilisation in the workforce.
- Organisations may need to focus on retaining existing talent rather than seeking new hires.
4. Artificial Intelligence: Transforming the Executive Talent Market
Artificial Intelligence (AI) is significantly reshaping job markets across Australia. According to PwC’s 2024 Jobs Barometer, sectors with higher exposure to AI are seeing up to 5x higher growth in labour productivity. AI skills are also commanding up to a 25% wage premium in certain markets, particularly in tech-heavy industries.
Key Insights:
- AI exposure boosts productivity in executive roles and drives demand for leaders with technical expertise.
- AI-skilled executives are in high demand, especially those with experience in driving AI-led innovation.
- The wage premiums for AI talent continue to rise, creating competitive compensation dynamics in executive recruitment.
In Australia, the demand for AI-skilled executives is growing, although it’s not yet at the same pace seen in global markets such as the US, UK, and Canada. However, the trend signals an increasing need for executive leaders who can leverage AI to drive business growth.
Key Takeaways:
- AI-driven productivity is reshaping executive roles, particularly in tech-focused industries.
- Executives with AI expertise will have competitive advantages, including premium salaries.
The demand for AI skills is increasing, with Australian demand rising more slowly than other major global markets.
5. Culture and Ways of Working: The Remote Work Revolution
The shift towards remote and hybrid work continues to redefine workplace cultures. Post-COVID, organisations are refining their policies around flexible working arrangements for senior leadership. Research by KPMG indicates that hybrid work models are not just a temporary response to the pandemic but are becoming a long-term business strategy.
Key Insights:
- HR and recruiting roles are among the top 10 industries for remote workers in 2024 (Forbes Advisor).
- Flexible work models, including hybrid and remote options, are gaining traction across the executive sector.
- Remote work is now integral to attracting and retaining executive talent.
Key Takeaways:
- Hybrid and remote work models are becoming a permanent feature in the executive landscape.
- Flexibility in work arrangements is now a critical factor in executive recruitment.
- Organisations that embrace flexible work options are better positioned to attract and retain top talent.
Hybrid work models aren’t just shaping executive roles; they’re also changing the broader job market. Discover how businesses are leveraging hybrid work to attract talent across all sectors here.
Looking Ahead: A Diverse Landscape of Executive Employment Trends
As we look forward into 2025, the executive employment landscape continues to evolve rapidly. While some organisations return to traditional models, others are embracing new ways of working, creating a diverse landscape of executive employment opportunities. Understanding and adapting to these trends will be crucial for both organisations and executive leaders navigating this ever-changing market.
The EL Index reported in October 2024 that, for the second month in a row, executive search has seen a surge in demand. This raises the question: Is the Australian economy performing better than anticipated? This boom in senior-level employment suggests a broader upswing in job creation, but could also put pressure on interest rates.
This boom in senior roles could indicate:
- A general rise in employment, with the potential for broader economic recovery.
- Possible increased pressure on interest rates, due to rising demand for senior talent.
The surge in executive hiring may also signal a rising business confidence, setting the stage for an economic recovery.
Shifting Economic Landscape and Growing Demand for Executive Talent
As the market continues to evolve in 2025, business leaders are looking at not only the economic data but also the broader shifts in the workforce. The surge in executive recruitment can be interpreted as a signal of growing confidence among businesses. This increase in demand for executive leaders is not just due to economic recovery but also reflects broader changes in leadership requirements, particularly in tech-driven sectors and industries undergoing rapid transformation.
With executive roles becoming increasingly specialised—particularly in areas such as AI, technology integration, and hybrid work management—organisations are actively seeking innovative leaders who can drive change in these complex environments. Therefore, the demand for executive leaders with niche skills and the ability to lead during times of transformation is expected to remain strong throughout 2025.
This trend will continue to challenge companies to adapt their executive search and recruitment strategies and to build a dedicated executive search team that can attract and retain top-tier talent in an increasingly competitive market.
Need Expert Guidance? Connect with Ampersand Today
At Ampersand, we specialise in helping organisations stay ahead of executive employment trends, providing tailored recruitment strategies for senior leadership roles. Whether you’re looking to fill a crucial executive position, build a future-ready leadership team, or adapt your hiring processes to match the latest trends, our team is here to help.
Contact us today to discuss how we can support your recruitment efforts and help you find the right leadership talent for 2025 and beyond.
References:
- Australian Bureau of Statistics (ABS) – Job Mobility Drops Back to Pre-COVID Levels
Read the full report here - PwC’s 2024 AI Jobs Barometer – AI Jobs Surge and Wage Premiums
Read the full report here - KPMG International – Current Trends in Remote Working
Read the full report here - Forbes Advisor – Remote Work Statistics for 2024
Read the full article here
