Employers will transition away from higher levels of temporary and contract roles back to more permanent positions in the year ahead, but Canberrans should not expect big salary increases during this period.
According to our 2015 Hays Salary Guide, released early June, 22 per cent of employees can expect a salary increase of three per cent or more in their next review. However the vast majority of workers (65 per cent) will receive an increase of less than three per cent.
Our Hays Salary Guide includes salary and recruiting trends for over 1,000 roles in 14 locations in Australia and New Zealand. It is based on a survey of 2,610 organisations, representing almost 2.9 million (2,891,747) employees.
As a group these employers have a positive outlook, with 36 per cent expecting to increase permanent headcount and 68 per cent expecting business activity to rise.
27 per cent also reported increased staff turnover. The willingness of candidates to change jobs and of employers to expand permanent headcount helps to explain why 45 per cent will scale back their use of temporary and contract roles in the year ahead. This is a significant shift from last year (when just 13 per cent said their use of temporary and contract staff would decline) and it reflects employer confidence.
Salaries will remain stable during this transition period, although long-term we will start to see a broader pickup in salaries.
Unsurprisingly then, the Hays Salary Guide found that 17 per cent of employers did not increase salaries in their last review. Like the previous financial year (2013-14), those who did receive a salary increase in 2014-15 found that their wallet was not that much heavier. 56 per cent of employers increased salaries by less than 3 per cent, while 22 per cent gave increases between 3 and 6 per cent. Just 5 per cent of employers gave increases of 6 per cent or more.
Looking ahead, 65 per cent of employers intend to increase salaries in their next review by less than 3 per cent. A further 19 per cent will boost salaries between 3 and 6 per cent, while just 3 per cent will increase by 6 per cent or more. Employers in the professional services, advertising & media, financial services and IT & telecommunications industries are at the front of the small pack offering these increases.
However of the total employer group, 13 per cent have no plans to raise salaries when they next review.
68 per cent expect business activity to increase in the next 12 months, while 62 per cent have already seen an increase in business activity over the 12 months prior to the survey.
Get your copy of the 2015 Hays Salary Guide by visiting www.hays.com.au/salary-guide, contacting your local Hays office or downloading The Hays Salary Guide 2015 iPhone app from iTunes.
Hays, the world’s leading recruiting experts in qualified, professional and skilled people.
Jim Roy, Regional Director 5th Floor, 54 Marcus Clarke Street,
Canberra T 02 6112 7663 | F 02 6257 6377