Mercer's Total Remuneration Survey reveals industries with highest year-on-year salary increases


 Australian companies are offering big pay rises to attract and retain professionals - such as data scientists, IT security, and digital marketers - that can help keep up with the demand for digital products and services.

‘The Great Resignation’ has been seen across the United States in recent months, where 4.3 million workers quit in August alone - the highest on records dating back to December 2000.

This movement to new career opportunities is believed to be a result of months in lockdown coupled with the uncertainty of the past two years.

Experts fear the same could be seen as Australia begins to reopen, but the annual Total Remuneration Survey (TRS) from workforce consulting firm Mercer indicates it may have already begun.

The report found 58 percent of Australian organizations reported having some turnover issues, while almost 18 percent had seen turnover rates increasing or becoming a problem.

Australian employers are working harder than ever to attract and retain key talent. File.
Australian employers are working harder than ever to attract and retain key talent. File. Credit: Getty Images

With Australia’s talent pool already affected by closed borders and a net fall in immigration, hiring and retaining top talent has become more competitive than ever - resulting in an increase in salaries.

The survey - of 1028 organizations and more than 5800 jobs - found more than 93 per cent of Australian organizations are planning salary increases for their workforce in 2022 of 3 per cent, up from 2.5 per cent in 2021.

Head of market insights and data at Mercer’s workforce consulting practice, Chi Tran, said the pandemic had spurred market conditions unlike any other.

“It’s generating higher-than-market pay, sign-on bonuses, and premiums to hire those with critical skills,” she said.

‘Digitalisation of interaction’

Tran said while the “digitalization of interaction” remained a market driver this year, the range of roles in demand multiplied.

“For example, while we are still seeing steady growth in the high-tech industry from last year, demand for roles in logistics and consumer goods has also skyrocketed over the last year due to a permanent shift in preferences for online shopping,” she said.

Some jobs with the highest year-on-year salary increases:

  • New Media User Experience Design (UXD) – Senior Manager, up 10.5 per cent
  • Digital/Internet Marketing – Entry Professional, up 9.5 per cent
  • Data Science/Big Data Mining – Experienced Professional, up 8 per cent
  • IT Applications Development – Entry Professional, up 8 per cent
  • IT Security – Entry Professional, up 8 per cent

Sectors expecting an increased salary forecast for 2022:

  • Consumer Goods - up 2.8 per cent (up 2.5 per cent in 2021)
  • Life Sciences - up 3 per cent (up 2.8 in 2021)
  • Non-manufacturing such as construction, utilities, and media - up 3 per cent (up 2.5 in 2021)
  • Services (non-financial), such as Business/Professional Services and Education - up 2.9 per cent (up 2.5 in 2021)

But Tran warns as the employment market shifts, sometimes salary increases aren’t enough to attract and retain key talent.

“Of course, it’s important to ensure pay structures are competitive to retain talent, but compensation alone won’t cut it,” she said.

“Employees are increasingly looking for a more personalized work experience – one that’s consistent with their personal values provides greater flexibility and work-life balance, presents career development opportunities, and offers inspiring work.

“Organisations need to take this into account and ensure their benefits offering resonates with the needs and preferences of their people.”

Post a Comment

Previous Post Next Post