Australian firms make cost optimisation a core focus

Australian companies are treating cost optimisation as a permanent strategic focus rather than a short-term response to external shocks, according to new research from recruiter Robert Half.

The study of 500 hiring managers across finance, technology and human resources found that 82% of organisations now place greater strategic priority on cost optimisation than they did five years ago. A further 18% said it holds the same level of importance.

Respondents came from small and medium-sized enterprises, large private businesses, listed companies and public sector organisations across Australia.

Robert Half’s findings indicate that cost strategies have shifted from cyclical belt-tightening to longer-term restructuring of operations and workforces.

“Cost optimisation is no longer a reactive, short-term measure, it has fundamentally evolved into a core strategic mandate,” said Nicole Gorton, Director, Robert Half. “With inflation and rising operational costs being the dominant drivers, this is less about simple cost-cutting and more about structural recalibration. Organisations that embed efficiency into their operating model and workforce structure, rather than just wait for economic uncertainty to pass, will be the most resilient moving forward.”

The survey points to a broad set of economic and commercial pressures behind the intensified focus on cost. Rising operational expenses were the most frequently cited factor, nominated by 49% of respondents.

Inflation followed at 40%. Market competitiveness was cited by 37% of companies, while 35% pointed to wage pressure. Economic uncertainty or market volatility was cited by 34%.

Interest rates influenced 31% of organisations. Declining or unpredictable revenue and investor or board pressure each influenced 23%.

The data suggest firms are responding both to macroeconomic conditions and to changing revenue dynamics and competitive intensity in their sectors.

Companies are directing many of their cost efforts towards technology and related functions. Technology and IT infrastructure were nominated by 40% of respondents as primary targets for cost optimisation.

Professional services followed at 32%. Supply chain and procurement, and capital expenditure, were each cited by 29% of respondents.

Compensation and benefits emerged as a focus area for 28% of companies. Marketing and sales were nominated by 26%, while 23% cited travel and entertainment. Real estate and facilities were a primary target for 18%.

“Technology is both a significant cost centre and one of the greatest enablers of long-term efficiency. The savviest organisations aren't slashing IT budgets but are strategically leveraging automation and AI platforms to drive digital transformation, ensuring the right skills exist across departments. They are cutting friction, not capability,” Gorton said.

The figures underline how organisations are reviewing both direct operating costs and discretionary spend, while also scrutinising investments in systems and infrastructure.

The research links sustained cost outcomes with targeted hiring in finance and technology teams. It shows that employers are looking for specific technical and analytical skills rather than broad headcount expansion.

Finance and accounting leaders placed greatest emphasis on technology and systems expertise. Some 44% of finance respondents selected this as their top hiring focus for improving efficiency or reducing long-term costs.

Automation and process improvement skills followed at 39%. Project and operations management, and data and analytics, were each cited by 34% of finance and accounting teams.

Technology leaders reported a similar pattern, but with a stronger emphasis on transformation and integration. Digital transformation skills and automation and AI integration were each cited by 41% of tech respondents as priority areas for investment.

Data management and analytics skills followed at 37%. Software development and engineering were nominated by 34%.

The survey indicates that companies are reassessing workforce composition as part of their cost agendas. They are aiming to bring in staff who can design and run more efficient processes, deploy automation tools and extract better insights from data.

“The ability to generate lasting cost savings often hinges directly on specialised talent. True workforce optimisation is not always achieved through headcount cuts, it's achieved by leveraging experts in areas like digital transformation, automation, and a solid workforce strategy,” Gorton concludes.