- 56 per cent of employers in Australia increased salaries by less than 3 per cent last year, while 22 per cent gave increases between 3 and 6 per cent;
- Looking ahead, 65 per cent of employers will increase salaries by less than 3 per cent in their next review;
- 68 per cent expect business activity to increase in the next 12 months.
Employers will transition away from higher levels of temporary and contract roles back to more permanent positions in the year ahead, but recruiting experts Hays Accountancy & Finance warns accountants not to expect big salary increases during this period.
According to the 2015 Hays Salary Guide, released today, 22 per cent of accountancy and finance professionals can expect a salary increase of three per cent or more in their next review. However the vast majority (65 per cent) will receive an increase of less than three per cent.
The Hays Salary Guide includes salary and recruiting trends for over 1,000 roles in 14 locations in Australia and New Zealand. It is based on a survey of 2,610 organisations, representing almost 2.9 million (2,891,747) employees.
“As a group these employers have a positive outlook, with 26 per cent expecting to increase permanent headcount in their accountancy and finance department and 68 per cent expecting business activity to rise,” says Lynne Roeder, Regional Director of Hays Accountancy & Finance.
“The accountancy and finance market returned to growth in the first half of 2015 with demand across most sectors and industries increasing year-on-year.
“The eastern seaboard has definitely led accountancy and finance job growth across the majority of industries, but this is yet to flow through to salaries. Most organisations trying to recruit in high demand areas are still doing so without changing their salary offering.
“27 per cent of employers also reported increased staff turnover. The willingness of candidates to change jobs and of employers to expand permanent headcount helps to explain why 45 per cent will scale back their use of temporary and contract roles in the year ahead. This is a significant shift from last year (when just 13 per cent said their use of temporary and contract staff would decline) and it reflects employer confidence.
“Salaries will remain stable during this transition period, although long-term we will start to see a broader pickup in salaries.
“The industries with the most growth in demand for accounting and finance talent have been IT, technology, financial services and banking. The construction and property sectors are booming too and the demand for accountants is definitely strong. We expect demand for talent in all these industries to continue to increase across the country,” she said.
Salaries
The Hays Salary Guide found that 17 per cent of employers did not increase salaries in their last review. Like the previous financial year (2013-14), those who did receive a salary increase in 2014-15 found that their wallet was not that much heavier. 56 per cent of employers increased salaries by less than 3 per cent, while 22 per cent gave increases between 3 and 6 per cent. Just 5 per cent of employers gave increases of 6 per cent or more.
Looking ahead, 65 per cent of employers intend to increase salaries in their next review by less than 3 per cent. A further 19 per cent will boost salaries between 3 and 6 per cent, while just 3 per cent will increase by 6 per cent or more.
Other key findings from the Hays Salary Guide:
- Candidates have higher hopes for their next salary increase (47 per cent expect a salary increase of less than 3 per cent, 25 per cent expect between 3 and 6 per cent and 8 per cent expect to receive 6 per cent or more);
- However the expectations of employees and employers are not that far apart that they can’t be bridged. One way to do this is through benefits. Of our total employer group, 77 per cent offer flexible salary packaging and of these the most common benefits offered are salary sacrifice, above mandatory superannuation, parking, private health insurance, bonuses and a car;
- Flexible work practices also help bridge the gap, and are offered by 84 per cent of our surveyed employers. The most common practices on offer are flexible working hours (offered by 79 per cent of employers), part time employment (74 per cent), flex-place (58 per cent), flexible leave options (36 per cent), job sharing (30 per cent), career breaks (20 per cent) and phased retirement (15 per cent);
- 68 per cent expect business activity to increase in the next 12 months, while 62 per cent have already seen an increase in business activity over the 12 months prior to the survey.
Get your copy of the 2015 Hays Salary Guide by visiting www.hays.com.au/salary-guide, contacting your local Hays office or downloading The Hays Salary Guide 2015 iPhone app from iTunes.
