Supply chain specialist recruitment firm, Bastian Consulting, has recently released its annual salary survey report, Bastian Salary Survey 2022/23, which explores salary trends across Australia and New Zealand.
Completed by over 1,300 respondents, the survey sheds light on the highest-paying industries and positions across Supply Chain, Manufacturing, IT, Consulting and Procurement. It also reveals how companies are differentiating themselves by offering non-financial benefits.
The survey features responses from over 1,000 respondents, from entry-level to C-suite positions, and includes interviews with key personnel. The report emphasises the importance of a winning employee value proposition that goes beyond just dollars and diversity comparing earnings based on seniority, location, sector and industry, featuring entry-level candidates earning more than $70,000 and consultants earning up to $400,000.
Staff sentiments on salary, shares and benefits, as well as other factors like autonomy, professional development, culture and sustainability were also uncovered in the report. However, some of the key findings of the report are alarming. For instance, 78% of respondents reported a higher turnover rate in the previous twelve months and 61% expect this to continue or get worse in the coming year. Also, 60% of employees are dissatisfied with their salary despite enjoying their roles.
40% of respondents aren’t convinced they’ll stay with their employer for the next 12 months. 75% of the respondents reported feeling stressed or anxious as a result of work in the last twelve months. Moreover, 40% of those in management positions plan to hire more expensive temporary or contract staff just to deliver on project pipelines.
The report also explores the sentiment around ‘The Great Resignation’. Employers predict that the higher number of resignations predicted is mainly due to the growing trend of rate shopping: where employees resign simply to receive a counter-offer from their existing company. The report shows what salary increase employees expect to receive, compared to the salary increase employers expect to pay, revealing a sizable gap.
84% of respondents have been contacted recently by a recruiter, even when they’re not actively job searching. Over 60% admitted they would reply to an unsolicited message from a recruiter, even when they’re not actively job searching. Over 25% said they would switch employers for as little as a 5%-10% pay rise, while 45% said they would switch employers for a pay rise of 10%-20%.
It was also revealed that standard inclusions like private health insurance, vehicles and superannuation contributions continue to feature in salary packages from employers, but they continue to fall short in the eyes of employees.
In contrast, non-financial benefits like support with professional development, schemes to support mental and physical wellbeing are more likely to shift the dial to help retain staff.
Tony Richter, Partner at Bastian Consulting, said that given the challenges of the skills shortage, it is no surprise that salary remains a strong retention driver. However, mandatory counter-offers are declining compared to 12 months ago: today, resignation does not automatically produce a matched offer.
“As explained in the report, employers are now more selective with counter-offers, looking at specific factors when deciding whether to offer one or not. In this year’s survey, we have also explored the way employers are using non-financial benefits, culture, and development opportunities to retain their top performers,” he said.