Australia – More employees set to receive pay increases, but the value will fall, finds Hays

More professionals in Australia are set to receive an increase in salary in their next review, however the value of those increases will fall, according to data from Hays.

The data, which is based on a survey of more than 3,000 organisations, showed that 65% of employers will give skilled professionals a pay rise of less than 3% in their next review and 11% will not increase salaries at all.

Meanwhile, 18% of employers will give staff an increase of 3 to 6%, and 6% of employers will increase salaries by 6% or more. This is compared to the last review which showed that 14% of employers gave no increases and 8% increased salaries by 6% or more.

Hays also found that employees however have higher expectations than employers for a salary increase as 17% expect a salary increase of 6% or more. A further 19% expect an increase of between 3 to 6% and 25% do not expect any increase. Meanwhile 39% expect an increase of less than 3%.

Most employees (67%) across Australia say a salary increase is their number one career priority this year. If their employer doesn’t offer a pay rise, 48% of employees will request one.

“According to our survey data, more employers are willing to offer a pay rise this year compared to last. But the value of those increases is falling, which is a glaring impediment for widespread wage growth and is at odds with the expectations of professionals, who are inclined to think the value of their pay rise will be higher,” Nick Deligiannis, Managing Director of Hays in Australia & New Zealand, said.

“Despite a year of consistently strong vacancy activity growth, widening skill shortages and positive forward hiring intentions employers are, for the most part, keeping salary increases restrained,” Deligiannis said.

Source: http://www2.staffingindustry.com/row/Editorial/Daily-News/Australia-More-employees-set-to-receive-pay-increases-but-the-value-will-fall-finds-Hays-46077