Top talent flight risk

Key Survey Findings

• 40% of white collar employers will be raising salaries in the next six months
• The majority of salary increases will be between 2% and 4%
• Most increases are planned for back office support roles in areas such as accounting, marketing, human resources and technology

Despite improving business conditions most salary increases over the next six months are likely to be moderate, according to a survey conducted by global recruitment firm Michael Page International.

The Michael Page Salary and Employment Forecast, which incorporates the responses of over 800 senior managers from Australia’s corporate sector, reveals that 40 per cent of the white collar employers surveyed will be increasing salaries in the second half of 2010. However, nearly two-thirds of the planned salary increases will be between 2 per cent and 4 per cent.

“Managing talent during an economic recovery is a delicate balancing act. While most employers are aware they risk losing top performers if salaries are not increased, they have to consider their capacity to absorb escalating payroll costs during the early stages of an upturn,” said Phillip Guest, Regional Managing Director of Michael Page Australia and New Zealand.

Over the next six months, the majority of salary reviews will occur in support functions such as accounting, human resources, marketing and technology.

“Staff retention will become more of an issue as employment opportunities increase over the next 12 months. Forward thinking companies will take the time to identify and reward people with the skills needed to drive their business forward,” Mr Guest said.

“Some employees will not be satisfied with the pay rises on offer over coming months. Others are already considering new career opportunities in an improving labour market. Employers need to respond to these issues with targeted investment in the skills that align most closely with their business strategy,” Mr Guest said.

• Click here to view the 2010 Michael Page Salary & Employment Forecast

 

Further Information

• Visit the News and Research Centre
• Visit the News and Research Archive
• Find out more about our Recruitment Services
• Visit the Career Centre
• Visit the Salary Centre