Professional skills shortages increase salary pressures

• Wages growth is the primary business concern over coming months
• 29% of employers believe the current level of wages growth is unsustainable
• 34% of companies are planning to increase staff numbers
• Employers continue to place a major focus on staff retention strategies

Employers in Australia are facing increasing salary pressures as competition to attract and retain top talent intensifies, according to the latest Michael Page Employment Index.

Of the companies surveyed for this report, 36% identified wages growth as the primary business challenge over coming months. For most companies, revenue generating roles in areas like sales and business development will demand the highest increases in salary levels.

“Wages growth is a key business concern for employers in Australia as the pressure to financially reward top talent increases. Many businesses are already feeling the impact of a professional skills shortage and are stretching their budgets in order to retain their best employees in a tightening labour market,” said Mr. Phillip Guest, Regional Managing Director for Michael Page, Australia & New Zealand.

Some 43% of the companies surveyed are placing a major focus on staff retention, in a trend that is consistent with last quarter results. Most employers will be offering performance based rewards to help retain their most valuable staff.

“Employers across the board are focusing on financial incentives in order to recruit and retain skilled professionals. However, in sectors of critical skills shortages like mining and resources, there are serious concerns about the ability of companies to manage these costs over the longer term,” said Mr. Guest.

Despite facing salary pressures, most of the employers surveyed are optimistic about the business environment over coming months. Some 34% of businesses are planning to increase their staff numbers in the next three months, with a further 24% expecting business conditions to improve.

 

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