The Hays Salary Guide, released today and in its 45th year, is based on a survey of more than 15,000 employers and professionals, covering more than 1,270 roles across 26 different industries.
The report found 49 per cent of technology employers planned to increase salaries above three per cent, while 84 per cent of employees expect a pay rise of above three per cent.
Cost of living was the top reason that employees were looking to leave their current employers and has driven a 750 per cent increase in employers’ considerations in determining the value of a pay rise, while 77 per cent of employees are either looking or planning to look for a new job in the next 12 months.
“The mismatch between what employees want and what employers are willing to offer will play out over the next year, with 35 per cent of employees being dissatisfied with their salaries and 77 per cent saying it doesn’t reflect their individual performance,” Hays CEO APAC, Matthew Dickason said.
“We are seeing a trend of employees expecting higher salary increases over the past three reports with 58 per cent of employees indicating they believed they would benefit financially from changing jobs in the next 12 months.
“In 2019, 67 per cent of employees expected a pay rise of less than three per cent. In just five years the pendulum has swung to 84 per cent of employees expecting a pay increase of more than 3 per cent.”
The salary increase landscape: Employer intentions vs employee expectations
| Value of salary increase | Salary increase employers intend to pay | Salary increase employees expect |
| 0% | 15% | 16% |
| < 3% | 35% | 22% |
| 3-6% | 35% | 29% |
| 6-10% | 8% | 20% |
| >10% | 6% | 27% |
“However, we are also seeing a stabilisation in the number of technology professionals asking for a pay rise (58 per cent) down from 70 per cent last year and 58 per cent the year before,” Mr Dickason said.
“Individual performance remains the number one consideration for a pay increase (86 per cent). Other factors employers will consider include responsibilities (75 per cent), expertise (57 per cent), skills shortages (31 per cent) and the organisation’s performance (50 per cent).”
“Businesses are also positive about the year ahead with 70 per cent of employers expecting business activity to increase, while 57 per cent expect an increase in overall productivity over the next 12 months.
“We also saw a small rise in employers being forced to offer higher salaries than planned due to the skills shortage from 64 per cent last year to 72 per cent this year, with 65 per cent of organisations expecting the skills shortages to impact their organisation in the year ahead.”
The report found that technology businesses were optimistic about hiring new staff with 54 per cent of employers expecting to increase permanent headcount over the next 12 months, with 57 per cent of those employers looking to increase staff levels by more than six per cent.
Thirty-seven per cent of technology employers were also looking to increase temporary staff with 56 per cent of those employers increasing temporary staff by more than 6 per cent.
However, 31 per cent of businesses reported that overtime had increased with 62 per cent of employers reporting overtime of up to five hours and 22 per cent between five and ten hours.
Advice for employers
“Salary is undoubtedly the most critical factor in attracting, rewarding and retaining technology professionals today with 61 per cent of employers being prepared to offer above the standard package to secure a candidate,” Mr Dickason said.
But additional benefits that employers are offering this year to retain valuable employees include flexibility (50 per cent), professional development (42 per cent), mentorships programs (24 per cent) and performance bonuses (32 per cent).
“Your employer’s brand and reputation is also a strong motivator for staff to stay. Positive changes to a company’s approach to ESG as well as diversity, equity and inclusion as well as career progression are some of the ways that employers can hold on to valued staff.”
Advice for professionals
“With skills in demand you still have bargaining power, but it’s important to avoid pricing yourself out of consideration. Yes, employers are investing in salary increases, but the commercial reality dictates that salary increases can only stretch so far,” Mr Dickason said.
“Consider the whole package when you negotiate a new job or your next pay rise. Think about what you’d really value and what could make a difference to your life and career long-term.”
Download your copy of the Hays Salary Guide.
