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Rising remuneration

  • October 19, 2021

Property pay packets are rising “well ahead” of the national average, indicating an industry that has escaped “relatively unscathed” from the pandemic and is “looking forward to reopening with confidence,” says Avdiev Group’s Debra Moloney.

 

  Three key takeaways:

  • 43% of property companies have resumed full pay increases, according to the latest issue of the Avdiev Property Industry Remuneration Report
  • States that endured the toughest lockdowns are confident, with 79% of NSW companies and 73% of Victoria companies doing ‘well or ‘very well’
  • 29% of WA property companies and 24% in Qld are doing better than they were before COVID-19.

 

The most recent round of property sector remuneration reviews resulted in pay increases of three per cent on average – well ahead of the 1.7 per cent seasonally adjusted increase to the Wage Price Index.

201021 - Story 5 - Debra MoloneyNearly one in five respondents to the survey (18%) offered higher-than-usual pay increases to make up for stalled pay in 2020. Of the companies surveyed, 43 per cent offered their usual full pay increases in the year to September 2021. However, wages remained frozen for 11 per cent of companies. Just three per cent noted cuts to wages.

Moloney says the property investment sector offered the largest increases, ranging from three to four per cent.

“In the next round of pay reviews, 63 per cent of companies expect to again pay the usual full increase and 30 per cent expect just a minimal increase,” she notes.

Property companies are also paying bonuses, with 63 per cent expecting to pay their usual short-term incentives in 2021 and six per cent expecting an increase.

Moloney says the survey results point to a tightening labour market. Three quarters (75%) of property companies are ‘strongly’ or ‘very strongly’ confident the economy will bounce back, and just under half (49%) are experiencing significant staff shortages.

Most staff in the property industry have shifted to working from home. Fifty four per cent of companies surveyed are planning a hybrid arrangement, while 33 per cent will return to the office full time. Moloney also notes that, while property companies aren’t planning to make vaccination compulsory, they will not hire unvaccinated staff.

“The property industry is well known for surviving peaks and troughs, which perhaps put it in good stead for dealing with the pandemic. The industry as a whole has continued on quite strongly, despite the lockdowns, and is well positioned as the economy begins to reopen,” Moloney concludes.