A new survey by the Australian Institute of Management has provided further confirmation that Western Australia's massive wage growth has come off the boil, with companies reporting a solid decline in average salary growth.
The AIM National Salary Survey of large companies reveals average salary growth in WA has fallen from 5.2 per cent in 2012-13 to 4.2 per cent in 2013-14, a figure which still outstrips all other states and territories.
Average salary forecasts for the next 12 months in WA are also lower than in the previous period, down from 4.5 per cent to 3.9 per cent.
Victoria, Tasmania, New South Wales and the ACT recorded an average salary rise of 3.5 per cent for 2013-14.
AIM NSW & ACT head of research Matt Drinan said a growing number of large companies were investing further in staff training and development.
"Slowing wage growth, which in part reflects the effects of slower economic growth and the current low interest rate environment, isn't necessarily a bad thing as it helps to keep downward pressure on inflation," he said.
"In a challenging and uncertain business environment, training is the key to ensuring employees have the necessary skills to drive the organisation forward."
The proportion of respondents who reported facing difficulty recruiting staff due to skills shortages fell from 49.2 per cent to 42.9 per cent in 2013-14, while the proportion of companies that employ or expect to employ migrant workers to fill skills shortages has also decreased.
However resignations increased from last year, up from 11.7 per cent to 12.2 per cent.
"This is proof that salary is still a major motivator for employees to change roles," Mr Drinan said.
"Getting pay and financial incentives market competitive plays an important part in attracting or retaining good staff.
"Where this isn't possible, companies need to think more creatively when it comes to pay."
The survey is based on the responses of 458 companies throughout Australia, covering more than 300 job roles.
