Home Property Australia Property renumeration increases by 4pc

Property renumeration increases by 4pc

  • October 18, 2022
  • by Property Australia

Pay increases across the property industry hit 4 per cent, according to Avdiev Property Industry Remuneration Report 2022, with 17 per cent of respondents expecting to hike salaries to keep staff.

The most recent round of remuneration reviews resulted in overall average pay increases of 4 per cent, significantly higher than the 3 per cent increase the year before and well ahead of the Wage Price Index for the broader workforce, which was 2.6 per cent.

This is according to the October Update Survey to the Avdiev Property Industry Remuneration Report 2022, a survey of pay rates and trends in the property sector.

Over 40 percent of respondents said they will provide higher-than-normal pay increases in the year leading up to September 2022 to keep up with the rapidly changing market, with worker retention and recruiting as their top priorities.

At the most recent pay review, 36 per cent of participants’ employers provided the customary full pay raises. However, 17 per cent of employers boosted pay by a “minimum” amount, and 5 per cent did not increase pay at all.

Most respondents reported having a scarcity of employees or expertise, with 50 per cent rating it as “very severe” or “very severe.” Because of this, virtually all respondents (81 per cent) either boosted salary for departing employees or made counteroffers (50 per cent) to them.

In the upcoming cycle of pay evaluations, 70 per cent of businesses anticipate returning to their typical pattern of a full rise, while 17 per cent anticipate paying a bigger increase to keep employees on board and shield them from recruiters’ approaches, particularly to their mid-level and junior workers.

In 2022, 82 per cent of property businesses will pay their customary short-term incentives, while 6 per cent anticipate higher STIs. Just over 60 per cent of senior workers continued to earn the same long-term incentives, whereas 38 per cent received greater LTIs.

Companies’ pay transparency policies are overwhelmingly designed to keep employee compensation private (81 per cent). Rarely are pay bands revealed to workers or included in job postings or recruitment efforts. Pay transparency was seen as potentially provoking discord among employees rather than fostering trust.

“We are seeing significant movement of key talent, with resignations being driven by the hot market and the opportunity to move for more money with a promotion or to the same job with higher pay,” Debra Moloney, Principal of remuneration consultants Avdiev Report said.

“The challenge is to reward existing valued employees on a par with what is being offered to the new recruits.

“With the pandemic in the rear view and the day-to-day returning to normal, property businesses face new concerns with tough economic conditions, the threat of recession, rising costs and significant staff shortages. They are using pay and other levers to hold on to their talent and maintain productivity.”

In the most recent October Update poll, over two-thirds of the firms responded that business conditions are either “good” (41 per cent) or “very well” (22 per cent) for them. However, 33 per cent of respondents claimed their performance was “neutral,” while 8 per cent said their company was doing “badly.”

The firms questioned were cautiously optimistic, with 43 per cent stating that the prognosis is “better” for the next 12 months, 52 per cent anticipating “largely the same,” and only 13 per cent anticipating “worse.”

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