SALARIES ARE expected to rise on average by 4.5 per cent in the financial year to June 2006 – well above the expected 2.6 per cent inflation rate forecast for the same period, according to HR outsourcing and recruitment company Chandler Macleod
SALARIES ARE expected to rise on average by 4.5 per cent in the financial year to June 2006 – well above the expected 2.6 per cent inflation rate forecast for the same period, according to HR outsourcing and recruitment company Chandler Macleod.
Salaries in the general management sector are likely to be best performing, with an expected rise of 5.25 per cent, while those in the administration and supply sectors expect a more modest increase of 4 per cent.
The continued strong economy and low unemployment rate would continue to provide conditions for a buoyant job market, according to Chandler Macleod managing director Stephen Cartwright.
“As a result of increased competition for top talent, coupled with an increasing skills shortage affecting corporate Australia, the market will continue to be highly candidate-driven. These factors provide fertile ground for strong salary increases across the board,” he said.
Employers will continue to compete for top talent over the next financial year, and they need to be prepared for this by implementing proactive attraction and retention strategies, he said.
“Although market pricing is an essential tool in attracting and retaining high performing employees, this alone will not provide the sole impetus for the best employees to join an organisation,”he said.
“Factors such as work/life balance, leadership, empowerment, succession planning, employer stability, employer brand image and corporate philanthropy are all essential components of retention strategies.
“In this regard, employers will need to spend more on marketing themselves as employers of choice to both attract and retain talent.”
Despite a highly competitive job market, he said employers still need to be mindful they need to attract the right staff. “Only with the right staff can employees truly be a company’s greatest asset.”
Commenting on Chandler Macleod’s predictions for the 2006 financial year, Steven Milch, head of economic research at St.George Bank, said that with economic growth set to improve over the next 12 months and unemployment near 30 year lows, upward pressure on wages will continue.
At the same time, the professional sector of the economy is expected to outperform the national average in terms of growth, both in production and wages.
