IN A SIGN that the scarcity of labour has yet to have a significant impact on HR, a recent survey found salary increases for HR professionals have been restrained over the past 12 months
IN A SIGN that the scarcity of labour has yet to have a significant impact on HR, a recent survey found salary increases for HR professionals have been restrained over the past 12 months.
Conducted by Hays, the survey found 60 per cent of employers increased HR salaries by 3-6 per cent and 27 per cent increased by up to 3 per cent. A further 11 per cent of employers raised salaries by 6-10 per cent and just 2 per cent lifted salaries by more than 10 per cent.
“Certainly employers are, for the most part, becoming more realistic about the skills shortages, however, their focus up to this point has been on benefits or career progression to attract and retain the right person rather than dramatic salary increases,”said Gail Fairbairn, manager from Hays Human Resources.
While the market overall was restrained, the survey found there were individual exceptions. Geographically, a strong demand over the past year emerged in Adelaide and Perth and this was reflected in the salary increases that emerged in these locations.
Overall, the past 12 months have been a buoyant time for recruitment with an increased number of permanent and temporary vacancies across the board compared to the previous year.
Within larger organisations, this vacancy increase has dictated the need for the creation or expansion of their own in-house recruitment functions to handle the volume of vacancy activity across the business. In the process, this produced an optimistic time for HR professionals in terms of job opportunities available.
Strong OHS candidates continued to be in high demand, although qualified HR generalists and L&D professionals at the $70,000–$120,000 level were also sought after, Fairbairn said.
“Remuneration and benefits candidates are also in demand and we expect the impact of superannuation choice to further fuel this,” she said.
“Recruitment specialists, particularly those returning from working overseas, are securing positions quickly as companies are under pressure to attract the best employees in a competitive market.”
While the senior level ($100,000 plus) is still at a relatively low level in terms of recruitment activity, the market has continued to expand over the past year and the survey predicted the steady increase in recruitment activity to continue.
A low investment in HR and L&D programs over the past three to five years saw fewer companies develop their entry-level L&D roles and consequently there is a limited number of candidates progressing their career in this area today.
“This skill shortage is reaching a critical level, with some employers planning overseas recruitment campaigns, particularly for senior roles, in order to fill current personnel needs,” Fairbairn said.
The survey pointed to future salary increases, with 61 per cent of HR employers looking to increase salaries in their next review by 3 to 6 per cent.
“We can only caution that pressure on salaries is still likely to occur, but with a longer lead time and possibly to a more restrained extent than in previous cycles,” said Fairbairn.
The 2005 Hays Human Resources Salary Survey took in more than 1,700 respondents from SME to large multinational organisations across Australia and New Zealand.
