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ABS data shows professional services faring better than most, but pay increases are now the focus, says Robert Half.
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Workers put money first with wage rises trailing CPI
18 August 2022
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Professional services sector pay grew 2.9 per cent over the year to the end of June, putting accountants slightly ahead of the average worker but well behind after allowing for 6.1 per cent inflation, according to the latest ABS data.
The ABS wage figures, released on Wednesday (17 August), came as a survey revealed that rising inflation meant most office workers now ranked money above workplace flexibility as their prime concern.
With the average wage rise of 2.6 per cent for the year, professional services emerged as one of the winning sectors, behind only construction, manufacturing, and rental and real estate service.
Employment Minister Tony Burke said he was pleased to see wage growth picking up, but "there is no sugar‑coating the fact that real wages for Australians have gone backwards".
He said the Jobs and Skills summit next month in Canberra would address the topic with an issues paper for the event released yesterday that says, "Secure, well-paid jobs are a fundamental part of Australia’s social and economic fabric."
A survey of workers by recruitment agency Robert Half shows economic conditions have pushed remuneration ahead of hybrid working as the factor most valued by staff.
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“While we know that flexibility has been a significant driver of employees and candidates’ decision-making in the wake of the pandemic, remuneration is now becoming a primary concern as it’s expected to increasingly impact work-life [balance],” Robert Half senior managing director David Jones said.
A separate survey found that among employers, eight out of 10 now expect more employees to push for a pay rise by the end of the year, and 96 per cent are prepared to grant increases.
Of those, 63 per cent would increase pay only to staff who requested a rise, while 33 per cent were willing regardless.
The employee survey found 44 per cent would ask for a rise before the end of the year but almost double that number said they would look for a new role if they did not receive one.
Mr Jones said that while remuneration was a crucial topic for both employee and employer, clear communication was paramount.
“Our research highlights that while salary is an important factor to workers, fewer employees are intending to raise salary issues with their employer than there are employers who are willing to give a raise,” he said.
“This reinforces the importance of communication for both parties: employers should frequently address salary expectations with their valued team members, and workers should be upfront about their work-life news – remuneration or otherwise – to ensure a transparent and satisfactory working relationship.”
The increased importance of pay and the shortage of skilled workers had forced most businesses to increase their salary budgets, the recruiter found.
Almost all businesses surveyed by Robert Half, 96 per cent, said they would increase their salary budget although the size of the business significantly influenced the scope of the increase.
Medium and large firm were increasing their wage budgets by an average of 21 per cent and 29 per cent respectively, but the figure for small businesses was just 10 per cent.
The survey also reflected the importance of technology teams, which were the focus of the largest average salary budget increase of 26 per cent, greater than the 22 per cent average increase that CFOs determined for employees across finance functions.
The survey was a part of Robert Half’s 2022 salary guide, which surveyed over 300 business leaders, including 100 CFOs and 100 CIOs.
The Australian worker study was developed by Robert Half and surveyed 1,019 office workers from across Australia.
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