RIDING THE crest of a resources boom, large companies in Queensland and Western Australia have led the nation’s salary hike, with annual salary increases of 5.1 and 5.0 per cent respectively, substantially trumping the national average of 4.4 per cent
RIDING THE crest of a resources boom, large companies in Queensland and Western Australia have led the nation’s salary hike, with annual salary increases of 5.1 and 5.0 per cent respectively, substantially trumping the national average of 4.4 per cent.
A national survey of 901 companies also revealed that despite across-the-board pay rises, employers are losing the staff retention battle, with voluntary turnover up again to 11.5 per cent (0.4 per cent above last year).
More worrying still, 71.2 per cent of organisations estimate it costs up to $20,000 to replace the average employee.
“Employers just aren’t heeding the message that losing staff costs money. Getting pay right is essential, but not enough on its own,” said Jennifer Alexander, NSW/ACT chief executive of the Australian Institute of Management, which conducted the survey.
“Other factors such as training and development are also critical, particularly for the growing pool of Generation Y workers, who tend to ask, ‘What can my employer do for me?’ And in the context of a growing skills shortage, they hold the trump card.”
Based on responses from 583 large and 318 small companies, the survey also found the skills shortage is making employers think twice about from where they recruit: two thirds of companies would consider employing or sponsoring overseas candidates to cover a skills shortfall.
“Demand for staff is constantly growing. More than half of organisations [53.4 per cent] are expecting an increase in permanent staff numbers in the next 12 months, while only 10.7 per cent are expecting a decrease,” Alexander said.
“However, there may not be enough staff available to cover this growth, and with working visa and migrant numbers capped, companies need to look ahead and ensure they get in early.”
Investment in training appeared to be a growing concern. Of the 51.3 per cent of large companies that report having a training budget, 46.5 per cent expect it to increase in the next 12 months while only 6.4 per cent envisage a reduction.
