Salaries rise despite economic slowdown
Salaries have risen by 4.7 per cent so far this financial year despite a slowing economy, according to an Australian Institute of Management (AIM) National Salary Survey 2008.
This year’s survey also found the increase — up from a rate of 4.6 per cent last year and 4.0 per cent in 2003-04 — is being accompanied by increased staff turnover as a result of an enduring skills shortage.
Large companies in the resource rich states of Western Australia and Queensland have been hardest hit this year, with salary increases substantially outpacing the national average at 6.4 per cent and 5.7 per cent respectively.
Based on the responses of 723 large and small companies, this year’s survey also revealed voluntary staff turnover rates increased to 13.3 per cent for 2007-08 from 12.6 per cent last year and 9.9 per cent rate in 2003/2004.
The survey found nearly one-third (31.4 per cent) of large companies estimate that the average cost of replacing an employee is more than $20,000.
Together the growing wage bill and the staff turnover are putting Australia’s companies under “increasing pressure”, according to Jennifer Alexander, chief executive of AIM (NSW/ACT).
“While pay is important, clearly there is a need for employers to ensure that employees have the right skills to take on more challenging roles,” she said.
On an industry-specific front, this year’s survey recorded the highest salary increases for the business and professional services industry at 6.5 per cent, continuing from last year’s comparatively high pay movements.
It also forecast that pay rises in this industry will record 6.0 per cent next year, “signalling ongoing optimism for growth in the sector”, according to Alexander.
Recommended for you
AFCA has confirmed United Global Capital’s membership of the body will not be extended to accept further complaints, avoiding a repeat of the Dixon Advisory scenario.
Three of Australia’s largest financial advice groups have shared their thoughts with Money Management on whether they would include crypto on their approved product lists.
Shadow treasurer Angus Taylor has vowed to introduce a bill to legislate a raft of financial services reforms if the Coalition is elected.
Money Management examines the share price of financial advice licensees over one year to 31 March, with M&A actions in the final quarter having a positive effect for two licensees.
