Sixty-five per cent of employers will give their procurement staff a pay rise of up to three per cent in their next review, but 11 per cent will not increase salaries at all, says recruiting experts Hays Procurement. The annual Hays Salary Guide, released Thursday 1st June, and now in its 39th year, shows that 19 per cent of employers intend to award a salary increase of between three and six per cent.
Just five per cent of employers will increase salaries at the higher level of more than six per cent.
IT & Telecommunications tops the list of most generous industries, with 20 per cent of employers intending to award salary increases of 6 per cent or more in their next review. Advertising & Media employers have also become more generous, with 16 per cent (up from 12 per cent) expected to increase salaries above 6 per cent.
The Hays Salary Guide is based on a survey of more than 2,950 organisations, representing 3,021,984 employees, as well as placements made by the recruiter. It shows that employers have a positive outlook yet remain cautious when it comes to salaries.
“Last year saw a very active procurement recruitment market across Australia in both the private and public sectors,” says Tim James, Director of Hays Procurement. “The 2017-18 year will be equally prosperous thanks to the focus and importance being placed on procurement processes and functions.
“Across all sectors, professionals capable of running the end-to-end procurement process are in demand. Technical expertise and relevant business qualifications are still key selection criteria but the point of difference for candidates is soft skills such as relationship building, communication and stakeholder management.
“Temporary and contract procurement opportunities continue to increase. This is very much the case in the public sector due to a large number of projects taking place across NSW, Victoria and the ACT.
“In Western Australia, the public sector is also showing positive signs, led by recommended changes following the review of its procurement and contract processes.
“In the ACT, external consulting firms are expanding their procurement teams as the federal government outsources services to meet key project deliverables.
“Salaries have increased within large corporate organisations within the professional services, property, defence and technology sectors.
“Encouragingly, we are still seeing consistent demand for entry-level talent, which is a strong indication that the industry is growing. So too is the demand for skilled procurement and contracts candidates in Queensland and Western Australia once more,” he said.
Other findings from the Hays Salary Guide include – across industries:
- Business activity increased for 70 per cent of employers in the past 12 months, while three-quarters (75 per cent) expect it to increase in the next 12 months;
- 36 per cent foresee a strengthening economy in the coming six to 12 months;
- 45 per cent of employers expect to increase permanent staff levels, far exceeding the 11 per cent who say they’ll decrease;
- Meanwhile 23 per cent expect to increase their use of temporary and contract staff, also exceeding the 9 per cent who anticipate decreasing in this area;
- 23 per cent of organisations now employ temporary and contract staff on a regular ongoing basis and another 44 per cent employ them for special projects or workloads;
- In the last 12 months, 15 per cent of Australians asked for a pay rise but were declined – a further 17 per cent asked for a pay rise and were successful;
- The success of the latter perhaps explains why 45 per cent say they intend to ask for a pay rise in their next review. A further 24 per cent are as yet unsure;
- 32 per cent of employers say staff turnover has increased in their organisation;
- 65 per cent of employers, compared to 60 per cent last year, are worried that skill shortages will impact the effective operation of their organisation or department in a significant (23 per cent) or minor (42 per cent) way;
- 38 per cent of employers say they ‘sometimes’ counter-offer staff when they resign and 2 per cent say they always counter-offer resigning staff;
- Yet of those counter-offered, 48 per cent left anyway, 22 per cent accepted but stayed 12 months or less, and just 30 per cent accepted and stayed over 12 months;
- 71 per cent of employers offer flexible salary packaging. Of these, the most common benefits offered to all employees are salary sacrifice (offered to all employees by 57 per cent of employers), above mandatory superannuation (41 per cent), parking (32 per cent) private health insurance (30 per cent) and bonuses (28 per cent);
- 70 per cent of employees have access to flexible work practices, 58 per cent receive ongoing learning & development, 43 per cent career progression opportunities, 37 per cent health and wellness programs, and 29 per cent over 20 days’ annual leave and financial support for study.
Get your copy of the 2017 Hays Salary Guide by visiting www.hays.com.au/salary, contacting your local Hays office or downloading The Hays Salary Guide 2017 iPhone app from iTunes.
Hays, the world’s leading recruiting experts in qualified, professional and skilled people.
Hays is the leading global specialist recruiting group. We are the expert at recruiting qualified, professional and skilled people worldwide, being the market leader in Asia Pacific and the UK and one of the market leaders in Continental Europe and Latin America. We operate across the private and public sectors, dealing in permanent positions, contract roles and temporary assignments.
As at 31 December 2016 the Group employed 9,600 staff operating from 251 offices in 33 countries across 20 specialisms. For the year ended 30 June 2016 Hays reported net fees of £810.3 million and operating profit (pre-exceptional items) of £181 million. Hays placed around 67,000 candidates into permanent jobs and around 220,000 people into temporary assignments. 22% of Group net fees were generated in Asia Pacific.
For the 2015-16 financial year Hays in Australia & New Zealand placed 12,200 people into permanent jobs, or 47 per day. We also filled nearly 62,000 temporary jobs, or 240 per day.
Hays operates in the following countries: Australia, Austria, Belgium, Brazil, Canada, Colombia, Chile, China, the Czech Republic, Denmark, France, Germany, Hong Kong, Hungary, India, Ireland, Italy, Japan, Luxembourg, Malaysia, Mexico, the Netherlands, New Zealand, Poland, Portugal, Russia, Singapore, Spain, Sweden, Switzerland, UAE, the UK and the USA.