More firms getting 'creative' in their pay design, WTW says in report
The overall salary increase in Australia is projected to reach four per cent in 2024, according to the latest remuneration survey by WTW.
This is equal to the actual salary increase recorded in 2023, and comes amid an inflation rate of 5.7%, the WTW said.
"Executives are observed to take the hit as this employee group's salary increase is 3.6% on average, compared to the middle management and professionals at four per cent and support staff at 4.1%," the WTW release said.
By industry, banking financial institutions, insurance, as well retail and manufacturing saw above-average projected salary increases with 4.2%. Other industries recorded:
- Real Estate, Construction, and Engineering (4%)
- Energy & Natural Resources (3.8%)
- BioPharma and Life Sciences (3.9%)
- High Tech (3.7%)
Getting creative in pay design
Evangeline Daquilanea, Head of Work & Rewards, Australia and New Zealand, WTW, said they are also picking up on a growing number of employers that are "getting creative in their pay design."
"More companies are introducing a transportation allowance, to help ease the cost of commuting as companies slowly mandate in-person work. There is also a renewed interest in salary packaging to help employees cope with soaring costs," Daquilanea said in a statement.
This comes as employers are expected to continue facing challenges in attracting and retaining key talents, as last year's voluntary attrition rate hit 14.3%.
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"It is important that companies look at ensuring a holistic view of the entire package of rewards they offer, both monetary and non-monetary to be able to remain competitive," Daquilanea said.
Offering more than pay
Meanwhile, the report also identified that digital and strategic roles are considered "hot jobs" in Australia, particularly roles on:
- Strategic planning
- Digital Content Management
- Audit and Financial/Business Controls
Navigating the dynamics of the digital talent space will be another challenge for HR executives, according to Daquilanea, who suggested listening to employees' needs and wants.
"Aside from the usual cash remuneration, there are other factors at play in retaining and attracting digital talent, such as 'great place to work' and to have the 'ability to have a real impact on the organisation's performance' are among the biggest considerations for them to join or stay with an organisation," she said.