Research commissioned by Robert Half has revealed the majority (94 per cent) of Australian general hiring managers still plan to attribute salary increases to an average of 25 per cent of their staff in the next 12 months, with the average salary increase for those Australian office workers expected to be 7.9 per cent - which is significantly higher than the national wage growth average.
The country’s average wage growth is currently stands at 1.9 per cent between June 2016 to June 2017. Andrew Morris, director of Robert Half Australia said: “Even though national wage growth is at an all-time low in Australia, many employers realise that attributing a pay increase to their top performers is an efficient retention measure. Professionals in today’s market know their market value and top talent whose skills are highly sought-after are more receptive to leaving the organisation if they are offered a more attractive remuneration package elsewhere.”
Of those Australian managers who are not planning to award salary increases, 52 per cent say the main reason is their staff’s salaries are already at market rate, 45 per cent refer to a lack of financial resources or cost reduction and 24 per cent cite previous salary increases were attributed too recently as the main reason.
“It is important that both employers and employees recognise there are other ways to give rewards outside of salary increases. While pay is still the most important element of a remuneration package, employees are increasingly realising the added value of additional workplace incentives. Perks, such as flexible work hours, additional leave and professional development opportunities are in demand by employees and are an efficient way for companies to reward staff whilst not increasing pay.”
Hiring managers across the globe understand the importance of attributing salary increases to top performers, as according to the survey of more than 3,000 general hiring managers across the globe, nine in 10 (90 per cent) are planning to award salary increases to an average of 24 per cent of their staff over the next 12 months, with the average salary increase expected to be 8.7 per cent.
While Australian managers are on par with leaders around the world in relation to attributing salary increases to a part of the workforce, they are ranking 10th in terms of the average expected salary growth. Only Singapore (6.8 per cent) and Switzerland (5.5 per cent) have lower expected salary increases.
The UK, Belgium and the UAE are well ahead of the global average of 8.7 per cent with an expected average wage growth rate of respectively 10.6 per cent, 10.1 per cent and UAE 10 per cent.