A new survey, covering 14 employment sectors, reflects moderate salary growth in Western Australia, with the human resources sector achieving the biggest increase in earnings, and also highlights the state's ongoing strong job's market.
A new survey, covering 14 employment sectors, reflects moderate salary growth in Western Australia, with the human resources sector achieving the biggest increase in earnings, and also highlights the state's ongoing strong job's market.
The 2006 Hays Salary Survey, which is due to be released tomorrow, details typical salaries for a range of sectors and hundreds of job roles across Perth.
On average, the survey reveals 58 per cent of employers increased salaries by 3-6 per cent and 25 per cent increased by less than 3 per cent. Some 13 per cent of employers raised salaries by 6-10 per cent and 4 per cent lifted salaries by more than 10 per cent.
At the same time the survey also highlighted that the state was still continuing to enjoy a period of jobs growth.
Hays regional director of Perth Jane McNeill said that the last 12 months were characterised by one of the most sustained periods of low unemployment and jobs growth in modern times, the well publicised joining of Generation Y candidates to the workforce and the fierce global resources boom.
"So it is no surprise it was a year with an unprecedented focus on the candidate," she said.
Notable industry trends:
Higher increases from resources & mining employers: Compared to last year's Salary Survey, the number of higher-end salary increases more than doubled. Last year, 16 per cent increased salaries by more than 6 per cent; this year 36 per cent increased salaries above 6 per cent.
Higher salary increases from IT/telecommunications employers: Last year 50 per cent offered increases under 3 per cent. This year 19 per cent offered increases at this lower level and instead 53 per cent offered increases between 3-6 per cent (versus 42 per cent last year), while 28 per cent offered increases over 6 per cent (compared to 8 per cent last year).
Higher salary increases from manufacturing employers: 22 per cent this year offered increases between 6 and 10 per cent (compared to 2 per cent last year).
Smaller salary increases from hospitality, travel and entertainment employers. 46 per cent increased salaries between 3-6 per cent, down from 66 per cent last year. Instead, more employers are offering increases below 3 per cent (36 per cent versus 29 per cent last year).
Salaries in advertising, media, construction, property, engineering, financial services, professional services, public sector, retail, transport and distribution industries remained relatively stable.
The Hays Salary Survey is based on a survey of more than 1,700 respondents from SME to large multinational organisations across Australia and New Zealand and on Hays' specialist placements made over the last 12 months.
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Salary survey released: Perth job growth strong - salaries stay moderate
The 2006 Hays Salary Survey, detailing typical salaries for a range of sectors across Perth, will be released tomorrow.
The survey, which covers 14 employment sectors and hundreds of job roles, reports moderate salary increases, with Western Australia and human resources professionals the biggest salary winners.
On average, the survey reveals 58 per cent of employers increased salaries by 3-6 per cent and 25 per cent increased by less than 3 per cent. Some 13 per cent of employers raised salaries by 6-10 per cent and 4 per cent lifted salaries by more than 10 per cent.
"The last 12 months was characterised by one of the most sustained periods of low unemployment and jobs growth in modern times, the well publicised joining of Generation Y candidates to the workforce and the fierce global resources boom," said Jane McNeill, Regional Director of Hays Perth. "So it is no surprise it was a year with an unprecedented focus on the candidate.
"The most graphic illustration of this is the salary increases in Western Australia which, in some cases, take them above Sydney salaries and clearly demonstrates the direct and indirect impact of sustained growth in the state.
"In Human Resources, there has been a similar but more muted effect as the focus on recruitment and retention for many organisations has driven demand. Specific focus has been on individuals with a background in recruitment and talent management, as well as in learning and development - with training emerging as a key differentiator for employers wanting to attract and retain good candidates.
"While the focus is on the candidate, nobody is guaranteed an instant job offer with a large increase in salary - in fact the impact on salaries in most locations and disciplines is still notably restrained. A candidate in demand still needs to have the necessary skills or experience, the right attitude or potential, still needs to have done their research and show that they want the job, and still need to perform well at interview and/or assessment," said Jane.
Notable industry trends:
Higher increases from resources & mining employers: Compared to last year's Salary Survey, the number of higher-end salary increases more than doubled. Last year, 16 per cent increased salaries by more than 6 per cent; this year 36 per cent increased salaries above 6 per cent.
Higher salary increases from IT/telecommunications employers: Last year 50 per cent offered increases under 3 per cent. This year 19 per cent offered increases at this lower level and instead 53 per cent offered increases between 3-6 per cent (versus 42 per cent last year), while 28 per cent offered increases over 6 per cent (compared to 8 per cent last year).
Higher salary increases from manufacturing employers: 22 per cent this year offered increases between 6 and 10 per cent (compared to 2 per cent last year).
Smaller salary increases from hospitality, travel and entertainment employers. 46 per cent increased salaries between 3-6 per cent, down from 66 per cent last year. Instead, more employers are offering increases below 3 per cent (36 per cent versus 29 per cent last year).
Salaries in advertising, media, construction, property, engineering, financial services, professional services, public sector, retail, transport and distribution industries remained relatively stable.
Sector trends:
Accountancy & Finance:
Severe demand for audit, risk management, IT/systems skills, assistant accountants, payroll and credit controllers. Professional practice demand for business managers and newly qualified up to five years experience level.
o Geographically, the largest salary increases are evident in Western Australia. Accountants at the two to five year level can now receive salaries that are, in some cases, in excess of those offered in Sydney, which is a staggering change. With a critical shortage of accountants, Perth candidates are more likely to receive a salary equal to, or close to, the salary on offer for their Sydney colleagues.
o For example, a management accountant with turnover up to $150m in Sydney typically earns $100,000, compared to $95,000 in Melbourne and $95,000 in Perth. The typical salary for a credit controller in Sydney, Melbourne and Perth is $45,000. In accounting firms, an external audit graduate with three years experience typically earns $52,000 in Sydney and Melbourne and $53,000 in Perth while a management consulting manager with up to two years experience typically earns $100,000 in Sydney, $97,000 in Melbourne and $95,000 in Perth.
Construction & Property:
While the principal construction & property vocations were in demand, civil engineers, planners and project managers were in particular demand.
Considering the skills shortage and international demand for our talent, salary increases were paradoxically subdued. A focus on retention and career management also kept salary movements low.
Market flexibility is a critical feature; those employers that emphasised cultural fit and offered training in required skill sets found recruitment far easier.
Banking, Finance, Insurance:
Demand for business bankers and commercial mobile lending. Retail banking was strong and there was a revival in investment banking.
Wealth management buoyant; demand for qualified financial planners, para-planners and advisers.
Significant salary increases for relationship managers, business development, sales, financial planners, advisers and para-planners.
Pronounced salary increases for middle and senior level insurance skills. Shortage of underwriters increased salaries, peaking at up to 10 per cent.
Human Resources:
Upswing in demand for human resources specialists and HR's standing within the business.
In-house recruitment consultants and managers received one of the biggest salary increases of all skills surveyed - 26 and 20 per cent respectively.
Salary increases for learning & development consultants/officers and managers also high; 21 and 15 per cent on average respectively.
Information Technology:
Project managers, business analysts, solid ERP functional candidates and ITIL knowledge in demand.
Salaries increased steadily, but not to the extent of 1999 - 2001.
In general, high achievers were awarded through bonuses and performance related pay rather than salary increases.
Contact Centres:
WA and SA experienced largest base salary increases.
Increases also evident through broader salary ranges for senior and specialist positions.
Legal:
Tighter candidate market - continuing movement of lawyers overseas and general high demand.
Salary increases reserved. The traditional belief that Sydney and Melbourne offer higher salaries is being eroded, particularly in Perth.
Office Support:
Demand high for senior administration, legal secretary, experienced reception and multi-skilled candidates.
Emphasis on cultural fit over technical ability. Focus on traditional values of confidentiality, commitment and a view to longevity.
Strong salary increases in financial services.
Suburban salaries increased to attract and retain talent.
Resources & Mining:
Activity in the local minerals and energy sectors shows little sign of abating.
Biggest salary increases in the design, engineering and construction sectors.
Despite the ongoing boom, salaries in operational mining stabilised with the focus instead on increased benefits and lifestyle choices.
Rather than compete on salary, many companies are introducing strategies to cope with a shortage of skills.
To view the Hays Salary Survey, visit www.hays.com.au/salary or request a copy from your local Hays office.
The Hays Salary Survey is based on a survey of more than 1,700 respondents from SME to large multinational organisations across Australia and New Zealand and on Hays' specialist placements made over the last 12 months.
