- 59% of procurement employers will increase salaries in their next review;
- 55% will award an increase of up to 3%;
- A further 4% will award increases of 3% or more;
- Yet 69% of procurement professionals say an increase of 3% or more would better reflect their individual performance.
More procurement professionals will receive a pay rise this year than last, but it will be a far less significant increase than they hoped for.
According to the FY 2021-22 Hays Salary Guide, released today and based on a survey of close to 3,500 organisations, 59% of procurement employers will increase salaries in their next review, up from 40% who did so in their last review.
But just 4% will award increases of 3% and above. Instead, over half (55%) intend to raise salaries at the lower level of 3% or below.
Professionals say they deserve more
For their part, 69% of the procurement professionals Hays also spoke to say a raise of 3% or more would better reflect their individual performance.
Meanwhile, 84% of procurement professionals are currently looking for a new job, plan to look or are open to new opportunities in the next 12 months. Concerns about job security, a lack of promotional opportunities and a lack of new challenges are the main drivers.
Salary expectation divide
“The value of salary increases is driving a wedge between employers and employees,” says Tim James, Managing Director of Hays Procurement.
“On the one hand, we have more than half of procurement employers intending to increase salaries in the year ahead, which is a remarkable sign of the confidence employers exhibit today. On the other, professionals say the value of these increases is far less than they deserve.
“This is creating a gap between what employers will offer and employees say they are worth.
“This divide must be managed sensitively if employers are to retain staff and attract new talent in short supply.”
There are several ways to help overcome this gap, but Tim says one strategy stands out above the rest: investing in the training, development and career progression of staff. “After a year in which many skilled professionals put career plans on hold, they are focusing once more on their long-term goals,” he says.
“A lack of promotional opportunities is one factor driving professionals into the jobs market today, behind only concerns about job security. This makes re-investing in career progression pathways and staff development a sensible strategy for the year ahead.”
Following a year like no other, several indicators in the Hays Salary Guide suggest Australia’s recruitment market has almost recovered to pre-pandemic levels.
Almost three-quarters of employers say permanent staffing levels are either above or equal to their pre-COVID-19 point. Almost one-half (47%) intend to increase their permanent headcount in the year ahead, while 15% will increase their use of temporaries or contractors.
Other key findings
In other key findings, the 2021/22 Hays Salary Guide found:
- Employers are aware of a talent shortage: In the next 12 months, 64% of employers say skills shortages will impact the effective operation of their organisation or department, either in a significant or minor way.
- Upskilling is important: When thinking of their career, learning and developing new skills is the most important priority for 65% of skilled professionals, ahead of a pay rise (58%).
- Skilled professionals have become stronger job candidates: Many skilled professionals elected to remain shielded in their existing job during the pandemic, putting their career progression plans on hold. However, they were not idle. Many developed their soft skills (46%), technical skills (45%) or undertook higher or additional qualifications (21%) to improve their job prospects should they need to look externally for career progression.
- Hybrid working is here to stay: Of those skilled professionals who worked remotely during the pandemic, only 7% wish to return to the workplace fulltime. For their part, in 12 months’ time, 63% of employers would like their staff to be working one, two or three days remotely, with the remainder in the office.
Download your copy of the Hays Salary Guide by visiting www.hays.com.au/salary-guide.