As we close out October and step into November, the energy across the job market feels… off. It’s not panic, not quite stagnation — just a strange in-between where uncertainty and apathy seem to hang in the air.

If you’ve been feeling like things are shifting under your feet — you’re not alone. Across industries, from IT to digital to corporate sectors, both employers and jobseekers are trying to make sense of a market that’s behaving in ways we haven’t quite seen before.

At Montagu Group, we’ve spent the last few months deep in conversation with candidates, clients, and other recruiters — and there’s a clear theme emerging: the market is weird right now.

So, let’s unpack what’s going on, what we’re seeing from both sides, and where things might be heading as we edge closer to the end of the year.

A Market Unlike Any Other

It’s not just one thing — it’s everything.

The past few months have seen another wave of redundancies hit Australian companies, many of which are tied to global buyouts and restructures. Large U.S. corporations are acquiring local businesses and, in turn, trimming teams or dissolving entire divisions.

In recruitment, we’re hearing stories daily of roles being paused, contracts pulled, or funding suddenly drying up on projects that were meant to run for years.

And while there’s still plenty of work available on paper, the sentiment in the market feels cautious — even hesitant. As one of our senior candidates put it, “Something’s happening, but I can’t quite put my finger on it.”

That’s the best way to describe it: apathy. Not from a lack of motivation, but from an industry trying to recalibrate after years of turbulence.

Unemployment Is Rising — But the Story’s More Complex

The numbers paint part of the picture.
In August, Australia’s unemployment rate was 4.3% — by September, it had risen to 4.5%.

At first glance, that might not seem huge, but within a single month, that shift reflects thousands of people entering unemployment. And from what we’re hearing, October hasn’t brought much relief.

But here’s the nuance: while there are more candidates in the market, that doesn’t mean it’s suddenly an employer’s market again.

Sure, we’re being flooded with applications — some roles are seeing upwards of 80 to 90 applicants — but that doesn’t mean those candidates are the right fit. In fact, more often than not, the majority of those applications are mismatched.

So while businesses may feel confident to “go it alone” because they assume there’s plenty of talent out there, what we’re actually seeing is a disconnect between volume and quality.

The Myth of the Employer’s Market

There’s been a lot of talk about the market swinging back to favour employers — but from our experience, that’s not entirely accurate.

Yes, there’s an influx of jobseekers right now. But the best candidates? They’re still working.

They’re either secure in strong roles or — if between jobs — they’re not in a rush. They can afford to be selective, to take a break, to spend time with family, or to wait for the right opportunity rather than the first one that comes along.

We recently spoke to a senior digital manager who summed it up perfectly:

“I’m not actively looking. I’m just taking some time off with my kids. If something great comes up, I’ll take a look — but I’m not applying for the sake of it.”

This kind of mindset is becoming more common, particularly among experienced professionals who’ve built a buffer and can afford to be patient.

So while the market might appear saturated, it’s not necessarily full of the right people — which means companies still need to headhunt, network, and engage strategically to secure top talent.

In short: it’s not an employer’s market; it’s a confusing one.

Recruiters Are Feeling the Pinch Too

It’s not just candidates and clients feeling the squeeze — recruiters are too.

We’ve noticed a growing trend of agency recruiters moving into internal roles, often as a sign of the broader market cooling off. When experienced consultants pivot to corporate positions, it’s usually because the external recruitment landscape has tightened.

That movement tells us that the slowdown is real — not catastrophic, but enough to create a ripple effect across the industry.

And that’s the thing: this isn’t just an IT or digital problem. We’re hearing the same stories from finance, healthcare, education, and beyond. It’s cross-industry, cross-discipline, and global.

Recruitment is cyclical, but this feels different. There’s momentum one week, silence the next, and a general sense that everyone’s holding their breath — waiting for clarity that hasn’t quite arrived.

Seasonal Slowdown — But Earlier Than Usual

Traditionally, things start to quiet down around Melbourne Cup week. Not because of the race itself, but because it marks the unofficial start of that “pre-Christmas slowdown”.

Usually, November is when clients start pausing hiring plans, teams shift focus to end-of-year targets, and candidates hold off on making big career moves until January.

But this year, that pattern started a month early. By early October, we were already feeling the lull that normally comes in late November.

So, does that mean January 2026 will be especially busy? Maybe — but that depends on how long this period of uncertainty lasts.

One thing’s for sure: the usual rhythm of the market has been disrupted, and everyone — from HR to hiring managers to jobseekers — is trying to find their new footing.

What Clients Need to Know Right Now

If you’re an employer or hiring manager, here’s the honest truth:

• Yes, there are more candidates available, but not necessarily more good ones.

• Relying solely on inbound applications may leave you sifting through dozens of unsuitable CVs.

• Headhunting and networking are still crucial — the best candidates often need to be approached directly.

• Recruitment agencies are still valuable, even in a “candidate-rich” market. Why? Because we filter, engage, and connect with talent that doesn’t apply through traditional channels.

The best recruitment strategies right now combine both reach and relevance — tapping into the volume that’s out there but still focusing on the human connection that makes hiring successful.

And in markets like this, speed matters. The few great candidates that are available move quickly. If you’re dragging your feet on interviews or decision-making, you’ll lose them.

What Candidates Should Keep in Mind

If you’re job hunting right now, you’re probably feeling the squeeze too. You might be sending out applications without hearing much back, or finding that roles get cancelled or delayed mid-process.

Our advice? Don’t lose hope — and don’t rush into something that doesn’t fit.

Here’s what we’re telling candidates:

• Stay visible. Update your LinkedIn, keep your network warm, and let recruiters know you’re open to opportunities.

• Be strategic. Don’t apply for everything — focus on roles that truly align with your experience and goals.

• Keep learning. Use this downtime to upskill, build certifications, or strengthen your digital presence.

• Communicate openly. If you’re represented by a recruiter, keep the dialogue honest. We’re your advocates, but we can only help if we understand your priorities.

It’s easy to get discouraged, but remember — markets move in cycles. The same slowdown that’s happening now will eventually make way for a surge in opportunity.

Looking Ahead to 2026

So, where are we headed?

The reality is, no one knows for sure. But if history’s any indication, periods of contraction are often followed by renewal.

As companies finalise budgets, stabilise after redundancies, and reframe their growth plans, we’re expecting a rebound in Q1 2026.

In the meantime, we’ll continue to see smaller, more cautious hiring decisions — roles that are business-critical rather than nice-to-have, with more emphasis on fit, culture, and impact than ever before.

The organisations that continue to invest in people — even during quieter times — will come out ahead when the market shifts again. Those that cut too deeply or pull back entirely may find themselves scrambling to rebuild later.

Final Thoughts

There’s no denying that the past few months have been challenging. Recruitment right now feels like a rollercoaster — one where we’re all strapped in together, riding through the dips, bumps, and unexpected turns.

But amid the uncertainty, there’s also opportunity. For employers, it’s a chance to rethink hiring strategies, nurture internal talent, and partner more strategically with agencies. For candidates, it’s a time to reflect, reset, and prepare for the next upswing.

We might not know exactly what’s coming — but we do know this: the market always finds its balance.

And as always, we’ll be here to navigate it with you.

Key Takeaways

• The Australian job market is experiencing unusual volatility across multiple sectors.
• Redundancies and funding pauses are contributing to a sense of instability.
• Despite higher unemployment, it’s not truly an employer’s market — top candidates remain employed or selective.
• Recruitment remains essential to bridge the gap between quantity and quality in applications.
• The seasonal slowdown has come earlier than usual, but a rebound in early 2026 is possible.
• Both employers and candidates should stay proactive and strategic through this period of uncertainty.

If you have a burning topic you’d like to discuss, don’t hesitate to reach out at hello@montagu.com.au.

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In today’s competitive talent market, many organisations fall into the trap of believing that more recruitment activity automatically equals better recruitment outcomes. At Montagu Group, we’re seeing a growing trend: clients engaging six, eight, or more agencies for a single role, piling up hundreds of candidate submissions, and yet still missing the quality hire. So, we asked ourselves: what’s really going on?

This article explores why quality trumps quantity when it comes to recruitment, what the risks are of the “spray-and-pray” approach, and how partnering with the right agency—one that acts as an extension of your talent team—can genuinely elevate your employer brand and candidate experience.

Why quantity feels like the safe bet

It’s easy to see why an organisation might go with a strategy of more agencies, more candidate outreach, more submissions. Some of the logic:

• “If we engage six agencies, we’ll cover more ground and get more candidates.”

• “We’ll boost our chances of filling the role faster.”

• “The more options we have, the better the outcome.”

From a process perspective, it looks logical. But when you dig deeper, things don’t always turn out that way.

The illusion of choice

When a role is sent out to six agencies simultaneously, each agency is racing not just the market, but each other. The pressure to deliver fast often means less time spent truly understanding the client, the role, the culture, and the candidate. What happens?

• Candidate screening is rushed.

• The role is framed generically.

• Candidate experience suffers.

• The client ends up with a lot of applications, but less conviction in the fit.

Candidate experience at risk

A candidate we spoke to on the Sunshine Coast described a situation where he was headhunted. He received an email that required him to sign an agreement saying he would only engage with one agency—and not other agencies working for the same client. He felt uneasy and disengaged before even meeting the hiring manager. That experience reflected poorly not only on the agency, but on the client too.

Because of this kind of approach, the market perception of recruitment agencies—and the clients who engage them—can suffer. The sentiment is: “If you’re rushing me or treating me as a commodity, I’m off.” Good candidates often have options. They don’t need to tolerate a poor process.

The cost of taking quantity over quality

It’s not just about bad vibes and damaged employer brand. There are real costs—financial, cultural and strategic.

Lost talent

When a candidate’s first experience of your recruitment process is negative, they may opt out. They may still be perfect for the role—but they withdraw, or don’t progress further with you. That means you miss out on talent that could deliver great value.

Brand damage

Word travels fast in professional networks. Candidates will share their recruitment experience with peers—sometimes publicly, sometimes within industry circles. If your process is perceived as disjointed, unprofessional or rushed, your employer brand suffers. That makes it harder to attract top talent in future.

Hidden costs

• Time wasted by hiring managers sifting through poor-quality applications.

• Internal reputation hit: stakeholders questioning the recruitment function’s value.

• Higher turnover: if the wrong hire is made because speed was prioritised, the long-term human-resources cost increases.

What high-quality recruitment really looks like

So, if we accept that quality is more beneficial than quantity, what does that look like in practice? At Montagu Group we believe high-quality recruitment is defined by:

1. Clear role definition and alignment

Before any agency partner goes to market, the role must be well defined: responsibilities, culture fit, key deliverables, motivations, success metrics, development pathways. When an agency has this clarity, they can represent the role authentically and attract the right candidates.

2. Fewer, but stronger agency partnerships

Rather than casting a wide net, pick two to three agencies with proven expertise in your sector, a strong candidate network, and who can act like an extension of your in-house talent team. This fosters accountability, stronger relationships and shared responsibility for outcomes.

3. Candidate experience as brand experience

Every touchpoint with a candidate—from first contact to offer—reflects on your organisation. Personalised communication, realistic job previews, transparent timelines, respectful negotiations, and timely feedback all signal professionalism and respect. That matters.

4. Quality pipeline over quantity submissions

Rather than hundreds of CVs, aim to receive a handful of highly-qualified, well-screened candidates who are a true fit. The smaller pool should have higher conviction. The time to hire may be marginally longer, but the quality of outcome will be significantly better.

5. Metrics that matter

Track and measure what matters: candidate drop-off rate, client satisfaction with the process, offer-acceptance rate, time-to-productivity, retention beyond 12 months. These metrics reflect true recruitment success, beyond just “number of candidates submitted”.

The client-recruiter partnership: a new paradigm

At Montagu Group, we’ve been on both sides of the table: as the agency partner and observing organisations who get this right—and those who don’t. We’ve found that the most successful engagements share a mindset: treat the recruiter as a strategic talent partner, not an order-taker.

The agency who “owns” your brand

When you engage an agency to act like your internal talent team, you’re saying: “We want you to represent us, to speak for us in the market, to build our brand, to understand our culture.” That leads to a different relationship: one of collaboration, not competition.

Transparent, respectful process

We recently heard of a scenario where a client told multiple agencies to approach a candidate simultaneously for the same role—and required exclusivity from the candidate. The result? Confusion, mistrust, candidate drift. The client lost a great candidate before the process even reached interview.

Contrast that with a process where the agency screens, builds rapport, introduces the candidate authentically, presents the role clearly, and negotiates on behalf of the brand. The experience is better, the outcomes stronger.

Long-term focus

When recruitment is treated as a tactical, one-off activity (“fill this role ASAP”) rather than a strategic investment (“build our talent pipeline and employer brand”), the approach often fails. Organisations that benefit most see recruitment as a long-term partnership, where the agency is part of the talent ecosystem.

When quantity may still be appropriate

Does this mean you should never go broad? Not necessarily. There are situations where multiple agency engagements may make sense:

• Large volume hiring (e.g., for retail or seasonal roles) where the pool is broad and the scale demands multiple channels.

• Urgent positions where speed is critical and a broader spread improves reach.

• Roles in very large geographies or less-defined skill sets, where multiple agencies cover different networks.

However, even in those scenarios, the focus must stay on quality control: clear role specs, one voice to market, consistent candidate experience, and the same brand message regardless of channel.

Practical checklist for recruitment success

Here’s a quick checklist you can adopt in your next hiring process:

Avoiding common pitfalls

Here are some of the recurring mistakes we observe at Montagu Group—and how you can avoid them:

Over-reliance on volume

“Let’s send it everywhere and see who bites.” The danger: you drown in applications, lose control of brand messaging, and the candidate becomes just another CV rather than a person.

Poor candidate communication

Delayed feedback, unclear timelines, multiple contact points—all contribute to frustration and discouragement. In the worst cases the candidate signs up with another brand whose process felt stronger.

Mixed messages in the market

Six agencies approach the same candidate for the same role with different terms, messages and brand narratives. Result: confusion, mixed perception, candidate disengagement.

Underestimating market perception

When a candidate perceives a client as “desperate” or “disorganised”, they may elect to not engage—even if the role is great. The first impression matters.

Why this matters to IT & digital recruitment

For an IT and digital recruitment audience (which is a core Montagu Group specialisation), the stakes are especially high:

• The candidate pool is smaller and often passive (not actively looking).

• Employer brand and culture matter significantly for tech talent.

• Time-to-hire delays cost in missed projects and lost innovation.

• Skill mismatches or cultural misfits in digital teams impact productivity and morale quickly.

By ensuring quality over quantity in your recruitment process, you position your organisation as a thoughtful, candidate-centric employer—with the structural agility and strategic foresight to win in the tech talent market.

Conclusion

If there’s one message to take away it’s this: more isn’t always better. Engaging multiple agencies, inundating the market with generic ads and submitting hundreds of CVs might look like action—but it often doesn’t deliver the outcome you’re after.

Instead, invest a little more time upfront to define the role clearly, choose the right partner agencies, focus on candidate experience and quality submissions. That investment pays dividends: better hires, stronger employer brand, happier hiring managers and candidates alike.

At Montagu Group, we stand by the philosophy of recruitment done right: not just filling a role, but finding the right person who enhances the team, aligns with culture and drives long-term value. Quality over quantity. It’s not just a tagline—it’s how the best organisations recruit in today’s market.

Ready to rethink your recruitment strategy? Drop us a line—let’s talk about how we can be your strategic partner in talent.

Key Takeaways

• More agencies don’t guarantee better results — engaging too many recruiters for one role often dilutes accountability, consistency, and candidate experience.

• Candidate experience equals brand experience — how candidates are treated during recruitment directly shapes how your organisation is perceived in the market.

• Quantity creates noise; quality builds trust — a handful of well-matched, well-screened candidates is more valuable than a flood of unqualified CVs.

• Rushed recruitment can cost great talent — overly competitive processes can alienate strong candidates and damage long-term employer reputation.

• Select fewer, stronger agency partners — working with two or three trusted agencies encourages collaboration, alignment, and better candidate representation.

• Recruitment should be relationship-driven — long-term partnerships allow recruiters to act as an extension of your internal talent team.

• Metrics that matter — measure outcomes like candidate drop-off, offer acceptance, and retention, not just “time to hire” or “number of submissions.”

• Respect and transparency build loyalty — open communication between client, recruiter, and candidate fosters trust and lasting professional relationships.

• In niche markets like IT and digital, where talent is scarce, quality-led recruitment ensures culture fit and sustainable business growth.

• Quality over quantity isn’t just a slogan — it’s the foundation of modern, ethical, and effective recruitment.

If you have a burning topic you’d like to discuss, don’t hesitate to reach out at hello@montagu.com.au.

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The Australian IT and digital landscape is a dynamic and often unpredictable environment. The first half of 2025 has been a rollercoaster, a story of stop-start momentum that has kept business leaders and professionals on their toes. Yet, beneath this fluctuating surface, a current of cautious optimism is gaining strength, promising an exciting and transformative period ahead.

So, what’s really happening in the tech job market? Are salaries rising? Which skills are in demand? And how can businesses attract and retain top talent in this competitive climate?

At Montagu Group, we’re about to launch our definitive 2025/2026 IT Salary Guide, packed with data-driven insights and expert analysis. But you don’t have to wait. In a recent episode of our Conversations That Connect podcast, our specialists, Suki and Tayla, provided a sneak peek into the key findings. This post unpacks their conversation, giving you a comprehensive overview of the trends, challenges, and opportunities shaping the future of work in Australia’s tech sector.

The Market’s Pulse: A Story of Cautious Optimism

If the first six months of 2025 had a theme, it would be “hurry up and wait.” As Suki noted, the market has been characterized by bursts of activity followed by periods of quiet contemplation. “We’ve had stop, start, stop, start, stop, start,” she explained, capturing the frustrating rhythm many have experienced.

However, this isn’t a sign of a struggling market. On the contrary, the underlying sentiment is significantly more positive than it was this time last year. This isn’t just a feeling; it’s backed by tangible evidence. A crucial indicator of business confidence is the renewal of contracts for contingent workers.

“We’ve just gone through a massive contract renewal, and I think all our contractors have been renewed,” Suki shared. “Even contractors that we were thinking would finish in July have been extended to the end of the year.”

This is a powerful signal. It shows that businesses are not only committed to their current projects but are also planning for the future. They are choosing to retain valuable knowledge and invest in their existing talent pool, suggesting a strategic shift towards stability and long-term growth. While the market may not be moving at the breakneck speed of previous boom years, the foundations are solid, and the momentum is building steadily.

By the Numbers: Key Statistics from the 2025/2026 IT Landscape

To truly understand the market, we need to look beyond sentiment and dive into the data. The upcoming 2025/2026 IT Salary Guide is built on the latest statistics, updated as of May 2025. This fresh data provides a clear and accurate picture of the current state of play.

A Stable Market with Rising Salaries

One of the most reassuring signs of a healthy market is stability in employment and growth in compensation. The data confirms both:

• Unemployment Rate: The unemployment rate has held steady at a low 4%, indicating a tight labour market where skilled professionals are highly valued.
• Employment-to-Population Ratio: This metric has seen a slight but positive increase, moving from 64.1% to 64.3%. More people are participating in the workforce, contributing to economic activity.
• Salary Growth: Most importantly for professionals, salaries are on the move. Tayla highlighted a significant increase, with average salary growth jumping from 4.5% to 5.2%. This demonstrates that companies are willing to pay a premium for the right skills.

A Surprising Shift in Tech Talent Demand

For years, the narrative has been dominated by a massive, ever-widening skills gap. However, new data from the Tech Council of Australia introduces a fascinating twist.

“Last year, they said that they needed 600,000 more workers by 2030,” Tayla reported. “This year, they’re saying we only need an additional 200,000.”

This is a staggering decrease of 400,000. Does this mean the skills shortage is over? Not quite. A more likely explanation is a re-evaluation of what constitutes an “IT role” or a shift in how technology is being implemented. Despite this revised forecast, the demand for tech talent remains incredibly strong. Job vacancies in the tech sector grew by 2.9% over the last year, with over 339,000 total openings in the past 12 months.

The market is maturing. The demand is still high, but it’s becoming more focused and specific as organisations refine their digital strategies.

The Rise of Contracting and the Internal Talent Shift

One of the most significant structural changes we’re observing is the bifurcation of recruitment strategy. As businesses ramp up for major digital transformation projects, the demand for flexible, specialised talent has soared, leading to a boom in the contracting market.

“I feel like we’ve definitely seen an increase in contracting the last six months, versus the permanent roles,” Tayla observed. “There’s a lot of companies who are stepping into large project work.”

In parallel, many organisations are strengthening their internal talent acquisition teams to handle permanent hires. This creates a dual strategy:

1. Internal Teams focus on building the core, long-term workforce and fostering company culture.
2. Specialist Agencies, like Montagu Group, are engaged to source high-calibre contractors for specific, time-bound projects where speed and specialised expertise are critical.

“More companies are taking the permanent employment internally… and then outsourcing the contracting side,” Suki confirmed. This is a smart, strategic approach that allows businesses to remain agile while building a stable foundation. For IT professionals, it means a wealth of opportunities in the contracting space, often with competitive daily rates and the chance to work on cutting-edge projects.

The New Entry-Level: Navigating Higher Barriers to Entry

While opportunities abound for experienced professionals, the path for those just starting their careers is becoming more challenging. The concept of an “entry-level” job has fundamentally changed, particularly in high-demand fields.

Tayla pointed out, “There’s higher entry barriers in software engineering, cybersecurity, and data science.”

Gone are the days when a university degree was the only prerequisite for a junior role. Today, employers are asking for more. “How am I supposed to get into an entry-level role when the entry-level roles aren’t actually entry-level?” Tayla asked, echoing the frustration of many graduates. “You still need one to two years’ experience, or even up to three years, for an entry-level role.”

This paradox—needing experience to get experience—is forcing a rethink of career pathways. Suki suggested a return to a more traditional model: “Years ago… the natural path was doing support work, and then you started getting the exposure.”

Aspiring developers, analysts, and cybersecurity experts may need to consider “sidestep” roles in IT support, testing, or administration to get their foot in the door. This practical experience can be invaluable, providing the real-world context that employers are desperately seeking and paving the way for a move into a specialised role down the line.

Emerging Tech Trends: Where is the Industry Heading?

The tech industry never stands still. Our 2025/2026 IT Salary Guide delves deep into the technologies that are defining the next wave of innovation. Here are the key trends to watch:

The Age of Merged Roles: Hello, DevSecOps

Silos are breaking down. To increase efficiency and improve outcomes, businesses are merging previously distinct functions. The rise of DevSecOps is a prime example, integrating security into every stage of the development lifecycle. This trend requires professionals with a hybrid skill set, who understand both development principles and security protocols.

The Next Frontier: XR, Spatial, and Quantum Computing

Prepare for a reality check—or rather, an extended one. Extended Reality (XR) and Spatial Computing are moving from niche concepts to practical business tools. Alongside them, Quantum Computing looms as a technology with the potential to be a “complete game changer,” as Tayla put it. While it’s still complex and “over my head,” its ability to solve problems impossible for classical computers will revolutionise everything from medicine to finance.

The Stalwarts: AI, Cyber, FinTech, and MedTech

While new trends emerge, the established powerhouses continue their reign. Artificial Intelligence (AI) is now a standard part of the business toolkit, and Cybersecurity remains a top priority amid growing threats. The specialised fields of FinTech and MedTech are also seeing explosive growth as they drive innovation in their respective industries.

Attracting Top Talent in 2025: It’s More Than the Paycheck

With a tight labour market and increasingly selective clients, how can your business stand out? The answer lies in moving beyond a transactional relationship with employees. While a competitive salary is essential, top talent today wants more.

“Nobody wants your standard benefits anymore,” Tayla stated emphatically. “You need to be creative.”

This means thinking outside the box. Flexible work arrangements, professional development budgets, wellness programs, and meaningful equity are becoming powerful differentiators. Furthermore, authenticity is paramount.

“Are you being honest with how your business is being perceived to what you actually do?” Tayla challenged. A glossy careers page is meaningless if the day-to-day reality doesn’t match. Top candidates do their due diligence, and a mismatch between perception and reality is a major red flag.

As clients become “extremely picky” about who they hire, businesses must present a compelling and authentic employee value proposition (EVP). For more on building a powerful EVP, resources from thought leaders like Gartner can provide an excellent starting point.

Get Ready for the Full 2025/2026 IT Salary Guide

This article is just the tip of the iceberg. The full Montagu Group 2025/2026 IT & Digital Salary Guide will be released soon, providing an unparalleled level of detail, including:

• Detailed salary breakdowns for dozens of roles across all major Australian states.
• Specific data for Brisbane and the Sunshine Coast, reflecting the unique dynamics of the Queensland market.
• Practical, “no-fluff” advice for businesses on how to attract, retain, and develop talent.
• Actionable insights for professionals on how to position themselves for career growth in the coming year.

The next six months promise to be a pivotal time for the IT & Digital sector. With cautious optimism in the air, rising salaries, and a wave of new technologies, the opportunities are immense.

Are you ready to navigate the market with confidence? Keep an eye on our website for the full guide, or contact Montagu Group today to have a conversation about how these trends impact your business or your career.

Key Takeaways

• Market Is Cautiously Optimistic: Despite a “stop-start” feel, the market is positive, with contract renewals signaling business confidence.

• Salaries Are Up: Average salary growth has increased from 4.5% to 5.2%.

• Contracting Is Booming: Project-based work is driving a surge in contracting opportunities. Many companies now outsource contract recruitment while handling perm roles internally.

• Entry-Level Is Harder: New graduates face high barriers, with “entry-level” roles often requiring 1-3 years of experience. A “sidestep” into a support role may be a viable strategy.

• Skills Gap Narrative Is Changing: The projected talent need by 2030 has dropped from 600,000 to 200,000, suggesting a more nuanced and focused demand.

• Merged Roles Are the Future: Be prepared for hybrid roles like DevSecOps that combine multiple disciplines.

• Benefits Matter: To attract top talent, companies must offer creative, meaningful benefits and ensure their company culture is authentic.

• The Full Guide Is Coming: The comprehensive 2025/2026 IT Salary Guide will offer detailed salary data for major states, plus specific insights for Brisbane and the Sunshine Coast.

If you have a burning topic you’d like to discuss, don’t hesitate to reach out at hello@montagu.com.au.

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Introduction

The world of work is in a state of flux. After years of remote and hybrid working arrangements, a growing number of companies are now calling employees back into the office. This trend, dubbed the “Cubicle Comeback,” is sparking conversations, concerns, and career changes across industries. But why is this happening now? What are the driving forces behind the shift, and how are employees responding? In this blog post, we decode the return to office trend, explore its implications, and share strategies for navigating this evolving landscape.

What Sparked the Cubicle Comeback?

The return to office (RTO) push is not a random occurrence. It is the result of several converging factors:

1. Productivity Concerns: While remote work proved successful for many, some employers feel that collaboration and innovation suffer without face-to-face interaction.
2. Company Culture: Business leaders worry that remote work is eroding company culture. They believe in-person interaction fosters stronger relationships and loyalty.
3. Commercial Real Estate Investments: Many companies are locked into long-term leases or own office spaces that remain underutilized. Bringing staff back helps justify these expenses.
4. Talent Management: Leadership may find it easier to mentor, manage, and assess performance when teams are physically present.
5. Changing Economic Conditions: As economic uncertainty rises, companies may be looking to reassert control and structure to stabilize performance.

How the RTO Trend is Unfolding

The return to office movement is not uniform. Some companies are mandating five days a week onsite, while others are phasing in hybrid models that allow one or two days of remote work. For instance, a Brisbane-based international company recently moved from a two-day office requirement to four days in-office per week. Another national firm announced a full return to five days in the office starting July 1st.

Even one day at home is technically still considered hybrid work. However, the trend is clear: hybrid is narrowing, and the emphasis on office presence is growing. The return to office trend is steadily gaining momentum in multiple industries.

Why Employees Are Pushing Back

Unsurprisingly, many employees are not thrilled. After proving they can perform well remotely, being asked to return full-time feels like a step backward. According to a 2025 Robert Hall study, onsite roles declined from 83% in early 2023 to 61% by the end of 2024, while hybrid roles rose from 9% to 23%, and remote roles increased from 10% to 15%.

Employees are now reevaluating their positions. Some are actively seeking new roles that offer better flexibility. Others are willing to accept a slight pay cut in exchange for the freedom to work remotely. For many, the time, cost, and mental load of commuting are no longer worth it—especially if the work can be done just as effectively from home. Therefore, the return to office has become a deciding factor in many career moves.

The Role of Flexibility in Talent Retention

Flexibility has become one of the most important factors for job seekers. Pre-COVID, candidates asked about salary first. Post-COVID, the top questions are:

• Can I work remotely?
• Is the role hybrid?
• How many days do I have to be in the office?

Seek’s current data reflects this shift. A recent search of IT roles in Brisbane revealed 870 hybrid listings, 294 onsite roles, and just 32 remote-only roles. While hybrid is still the dominant preference, we’re seeing movement toward more onsite expectations. This change reinforces the growing emphasis on the return to office.

Regional Variations: Brisbane vs. Sunshine Coast

Interestingly, location plays a significant role in this trend. In Brisbane, there are more hybrid roles than onsite. However, on the Sunshine Coast, onsite roles slightly outnumber hybrid ones, and there are no remote-only roles listed at all.

This suggests that return-to-office trends can vary greatly by region, industry, and business size. It also points to the importance of market awareness when making career decisions.

How Companies Can Approach the Transition Thoughtfully

For businesses, mandating a return to the office is a delicate balancing act. While some roles genuinely require onsite presence, others can be done just as well remotely. A one-size-fits-all approach can backfire, leading to talent loss and negative workplace sentiment.

Here are some strategies for companies:

1. Start with the Why: Employees want to know why a return is necessary. Simply saying “because we said so” is not enough. Leaders must articulate the purpose behind the change.
2. Offer Flexibility Where Possible: Even one day at home per week can make a difference. Flexible hours, compressed workweeks, or occasional remote days show trust and adaptability.
3. Communicate Clearly: Use a staggered approach if a full return is the goal. Give employees time to adjust and communicate the timeline well in advance.
4. Listen to Feedback: Involve employees in discussions. Use surveys or focus groups to understand their preferences and concerns.
5. Provide Incentives: If returning to the office is non-negotiable, consider offering perks like free parking, commuter stipends, or improved break areas. That way, employees may feel more valued despite the increased expectations.

Why Some People Are Choosing to Leave

The conversation isn’t just about location—it’s about lifestyle. Many professionals have discovered that working from home enhances their productivity, mental health, and family life. When faced with losing those benefits, some decide to move on.

It’s not always about money. Candidates are factoring in commute time, family commitments, and lifestyle balance. For example, someone might take a $5,000 pay cut to avoid spending two hours a day commuting. Clearly, the return to office is not just a workplace policy—it’s a quality of life issue.

The Bigger Picture: Work is Changing

The Cubicle Comeback may be underway, but the future of work is far from settled. Companies must recognize that work is no longer just about presence—it’s about performance, engagement, and wellbeing. And employees? They’re more empowered than ever to choose what works for them.

We’re in a transition period. While some companies tighten their grip, others are leveraging flexibility to attract top talent. In six months, the landscape could look very different.

The return to office trend is reshaping how companies think about productivity, collaboration, and long-term employee satisfaction. Whether companies succeed or fail in this transition may depend on how well they adapt to changing employee expectations. Consequently, flexibility and communication will be essential.

Final Thoughts: What’s Next?

As we move further into 2025, the return to office trend will continue to evolve. Employers must weigh the pros and cons of in-office mandates carefully. Employees, meanwhile, should take time to reflect on their needs, lifestyle preferences, and long-term goals.

Whether you’re a company leader trying to guide a successful transition or a job seeker navigating new expectations, one thing is clear: communication, transparency, and flexibility will be key to thriving in this next phase of the workplace.

What do you think? Is the Cubicle Comeback a necessary evolution or a regression? Let us know your thoughts in the comments.

Key Takeaways

• Flexibility is the new currency in recruitment.
• Mandating office returns without clear communication can lead to talent loss.
• Hybrid work is still alive—but the definition is tightening.
• Regional job markets are showing very different patterns.
• Employees are willing to trade salary for balance and wellbeing.

If you have a burning topic you’d like to discuss, don’t hesitate to reach out at hello@montagu.com.au.

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