Employers rethink work, total rewards and redefine careers to win talent war
AUSTRALIA, February 15, 2024 — A remuneration survey by WTW (NASDAQ: WTW), a leading global advisory, broking and solutions company, reports that employees in Australia working in industries, such as Technology, Media and Gaming, and Financial Services, received a more competitive annual base salary increase in 2023 compared to those in Biopharma and Life Sciences, and Retail and Manufacturing.
This is based on a market competitiveness index where the annual base salaries of jobs across industries were ranked against the base salary of jobs from the General Industry. When benchmarked against the General Industry, companies in Tech, Media & Gaming, and Financial Services have exceeded expectations, offering annual base salaries that surpass the General Industry overall median.
For 2024, companies in Australia continue to project an overall salary increase of 4.0%, with the backdrop of a high inflation rate of 5.7%. Historically, 3% salary increase is a common practice with an inflation rate of below 2%. Executives are observed to take the hit as this employee group’s salary increase is 3.6% on average, compared to the middle management and professionals at 4% and support staff at 4.1%.
Across various industries in the country, similar trend in salary increase is observed at 4%. Inflationary pressures and concerns over a tight labour market continue to influence factors behind the salary increase budgets.
| Industry in Australia | 2023 Actual Salary Increases | 2024 Projected Salary Increases |
|---|---|---|
| General Industry | 4.0 | 4.0 |
| Banking financial Institutions | 4.2 | 4.2 |
| Insurance | 4.4 | 4.2 |
| Real Estate, Construction & Engineering | 4.2 | 4.0 |
| Energy & Natural Resources | 4.2 | 3.8 |
| BioPharma and Life Sciences | 4.5 | 3.9 |
| High Tech | 3.6 | 3.7 |
| Retail and Manufacturing | 3.9 | 4.2 |
Source: WTW 2023 Salary Budget Planning Survey Report – Asia Pacific (December 2023 edition)
“Last year was tough for most companies in Australia as the country steered through soaring inflation rates and high cost of living. At the backdrop is the HR programme to encourage the workforce back into the office, not long after having firmly established a work-from-home culture. We have interestingly noted for the first time in many years, an uptick in the number of companies that have started getting creative in their pay design. More companies are introducing a transportation allowance, to help ease the cost of commuting as companies slowly mandate in-person work. There is also a renewed interest in salary packaging to help employees cope with soaring costs.
“It is important for employers to look at ensuring a holistic view of the entire package of rewards they offer to remain competitive”
Evangeline Daquilanea | Head of Work & Rewards, Australia and New Zealand WTW
“Largely, employers will continue to face significant challenges in the attraction and retention of key talents. The voluntary attrition rate last year was 14.3%, expected to normalise at around 10 to 11% levels in the next couple of years. It is important that companies look at ensuring a holistic view of the entire package of rewards they offer, both monetary and non-monetary to be able to remain competitive,” said Evangeline Daquilanea, Head of Work & Rewards, Australia and New Zealand, WTW.
WTW survey data also reveals a trend in what can be considered hot jobs in Australia. Looking at those with the highest increase in base salary and corresponding increase in the number of new employees doing the role, top jobs include strategic planning; digital marketing and digital content management; audit and financial/business controls roles leading the list of these hot jobs.
| Employee Level | Function / Job Family | 2022 – 2023 increase % | |
| Base Salary | Employees | ||
| Group / Senior Manager | Strategic Planning | 33% | 125% |
| Digital Marketing | 28% | 100% | |
| Manager / Supervisor | Digital Content Management | 26% | 67% |
| Data Science Analysis | 25% | 125% | |
| Senior Professionals | Digital Content Management | 43% | 225% |
| Cloud Computing Engineering | 23% | 400% | |
| Entry Level Professionals | Audit and Financial/Business Controls | 21% | 129% |
| Business Systems Analysis | 42% | 46% | |
Source: WTW 2021-2023 General Industry Compensation Survey – Australia
“Navigating the dynamics of an evolving digital talent space is yet another slew of challenges for HR executives – for both talent attraction and retention. In Australia, digital talents are industry-agnostic, being in very high demand in both tech and non tech companies. Winning the talent war for digital talent means to listen and align with employees’ needs and wants.
“Aside from the usual cash remuneration, there are other factors at play in retaining and attracting digital talent, such as ‘great place to work’ and to have the ‘ability to have a real impact on the organisation’s performance’ are among the biggest considerations for them to join or stay with an organisation,” added Evangeline.
A total of over 700 companies participated in the Australia Salary Budget Planning Survey conducted in December 2023. These included organisations in: Financial Services; Tech, Media & Gaming; Real Estate, Construction & Engineering; BioPharma & Life Sciences; Energy & Natural Resources; Retail and Manufacturing and others.
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