Many of us are in line for a bit of extra cash – although some more so than others. Picture: iStock
Many of us are in line for a bit of extra cash – although some more so than others. Picture: iStock

Should you be in line for a pay rise?

AUSTRALIAN salary growth is on the up for the first time in six years, but not all workers are reaping equal rewards.

The National Salary Survey released by Institute of Managers and Leaders (IML) revealed the average salary increased 2.9 per cent in 2017-18, up from 2.8 per cent the year before.

IML general manager of corporate services and research Sam Bell said the increasing growth bucked a five-year downward trend.

"This reversal was well illustrated in last week's Federal Budget, where the strengthening Australian economy is causing a tightening labour market, and applying upward pressure to salary growth," he said.

But the IML report found senior executives and senior management experienced the largest salary increase, averaging 3 per cent, while salaried staff experienced the smallest, averaging 2.6 per cent.

Executives and senior managers enjoy the biggest pay rises. Picture: iStock
Executives and senior managers enjoy the biggest pay rises. Picture: iStock

Not all industries were effected equally, either.

Business and professional services salaries averaged a 3.99 per cent increase at the top end of the spectrum.

At the other end, metal and auto manufacturing averaged 2.44 per cent.

** SEE BELOW FOR INDUSTRY-BY-INDUSTRY BREAK DOWN**

"Business and professional services continues to go really well and it's a reflection of the demand for those services," Mr Bell said.

"Organisations more readily use consulting and outsourcing services for business purposes, with private and public sector demand increasing.

"Manufacturing salaries, on the other hand, have been fairly stagnant for many years as a reflection that demand for manufacturing services is declining, and that is no surprise."

The 2018-19 Hays Salary Guide projected more professionals would receive a pay rise in the coming financial year than last, but it would be a less significant jump.

According to the report, just 11 per cent of employers did not plan to increase their workers' salaries at all in their next review, down from 14 per cent who did not give one last review.

Most professionals (65 per cent) could expect a pay increase of less than 3 per cent.

Just 6 per cent of employers said they would reward staff with a pay rise of 6 per cent or more, down from 8 per cent a year earlier.

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Hays ANZ managing director Nick Deligiannis said most employers were keeping salary increases restrained despite a year of consistently strong vacancy activity growth, widening skill shortages and positive forward hiring intentions.

Nick Deligiannis, of Hays, says employees expect pay rises. Picture: Supplied
Nick Deligiannis, of Hays, says employees expect pay rises. Picture: Supplied

 

"More employers are willing to offer a pay rise this year compared to last but the value of those increases is falling, which is a glaring impediment for widespread wage growth and is at odds with the expectations of professionals, who are inclined to think the value of their pay rise will be higher," he said.

"Of the 46 per cent of professionals who intend to look for a new job in the next 12 months, 48 per cent cite an uncompetitive salary as a motivating factor.

"If their employer doesn't offer a pay rise, they're prepared to ask for one or start looking elsewhere."

 

Salary movement by industry 2017/18

Construction and engineering: 2.49%

Manufacturing - food, beverage, tobacco: 2.93%

Manufacturing - petrol/chemical: 3.12%

Manufacturing - metal/auto: 2.44%

Manufacturing - other: 2.46%

Wholesale - machinery/auto: 3.6%

Wholesale - other: 3.24%

Banks/finance/insurance: 3.1%

Business and professional services: 3.99%

Government, institutions and social services: 2.75%

Retail: 2.61%

Other: 2.76%

Source: IML National Salary Survey 2018

 

READ MORE EMPLOYMENT NEWS IN THE CAREERS SECTION OF SATURDAY'S THE COURIER-MAIL, THE ADVERTISER, THE HERALD SUN AND THE DAILY TELEGRAPH.



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