A pay rise is coming but it won't be as good as expected

Chris Pash
By Chris Pash | 27 May 2021
 
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  • 58% of marketing and digital employers will increase salaries in the next review, according to the latest Hays Salary Guide. Half (49%) will get up to 3%. And only 9% will get 3% or more. 
  • However, 70% of marketing and digital professionals say an increase of 3% or more would better reflect their individual performance.

More marketing and digital professionals will receive a pay rise this year than last but it will be a lot less significant than they hoped for.

According to the 2021-22 Hays Salary Guide for Australia, based on a survey of close to 3,500 organisations, 58% of marketing and  digital employers will increase salaries in their next review, up from 31% who did so in their last review.

But just 9% will get 3% or more. Instead, almost half (49%) intend to raise salaries at the lower level of 3% or below.

Professionals say they deserve more -- 70% of the marketing and digital professionals Hays spoke to say a raise of 3% or more would better reflect their individual performance.

More (81%) marketing and digital professionals are currently looking for a new job, plan to look or are open to new opportunities in the next 12 months.

A poor management style or workplace culture, an uncompetitive salary and a lack of promotional opportunities are the main drivers.

“The value of salary increases is driving a wedge between employers and employees,” says Eliza Kirkby, regional director of Hays Marketing and Digital.

“On the one hand, we have over half of marketing and digital employers intending to increase salaries in the year ahead, which is a remarkable sign of the confidence employers exhibit today. On the other, professionals say the value of these increases is far less than they deserve.

“This is creating a gap between what employers will offer and employees say they are worth.

“This divide must be managed sensitively if employers are to retain staff and attract new talent in short supply.”

There are several ways to help overcome this gap, but Kirkby says one strategy stands out above the rest: investing in the training, development and career progression of staff.

“After a year in which many skilled professionals put career plans on hold, they are focusing once more on their long-term goals,” she says.

“A lack of promotional opportunities is one factor driving professionals into the jobs market today, behind only a poor management style or workplace culture and an uncompetitive salary.

“This makes re-investing in career progression pathways and staff development a sensible strategy for the year ahead.”

Several indicators in the Hays Salary Guide suggest Australia’s recruitment market has almost recovered to pre-2020 pandemic levels.

Almost three-quarters of employers say permanent staffing levels are either above or equal to their pre-COVID-19 point.

Half (47%) intend to increase their permanent headcount in the year ahead, while 15% will increase their use of temporaries or contractors.

The 2021/22 Hays Salary Guide also found:

Employers are aware of a talent shortage: In the next 12 months, 64% of employers say skills shortages will impact the effective operation of their organisation or department, either in a significant or minor way.

Upskilling is important: When thinking of their career, learning and developing new skills is the most important priority for 65% of skilled professionals, ahead of a pay rise (58%).

Skilled professionals have become stronger job candidates: Many skilled professionals elected to remain shielded in their existing job during the pandemic, putting their career progression plans on hold. However, they were not idle. Many developed their soft skills (46%), technical skills (45%) or undertook higher or additional qualifications (21%) to improve their job prospects should they need to look externally for career progression.

Hybrid working is here to stay: Of those skilled professionals who worked remotely during the pandemic, only 7% wish to return to the workplace fulltime. For their part, in 12 months’ time, 63% of employers would like their staff to be working one, two or three days remotely, with the remainder in the office.

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