10 July 2013:
Mine workers expecting to receive a high pay increase in the new financial year could be disappointed according to a nation-wide survey of pay movements released today by global management consulting firm, Hay Group.
The 2013 Australian Salary Movement Index (ASMI) report has predicted the average pay increase for the coming 12 months across all sectors will be 3.5 per cent. This is the slowest growth rate seen since the GFC, showing a sign of cautiousness within the Australian market.
During the past 12-month period, Hay Group observed that pay increases to fixed wages were fairly steady at 4.8 per cent for the Resources sector, 4.3 per cent for the Industrial and Service sector and 3.6 per cent for the Financial industry.
Hay Group Senior Consultants and co-authors of the ASMI report, Steven Paola and Trevor Warden, believe the volatility impacting the Australian business environment has led to more austere pay increases. “The prevailing weaker business confidence has resulted in a more conservative approach to salary movements. Workers expecting increases to be similar or even higher than in recent years may be disappointed, and employers now need to think outside the ‘pay square’ when it comes to attracting, energising and retaining talent,” said Paola.
The most visible impact of this volatility has been the pay movements in the Resources sector. For the previous 12 months, Resource industries saw comparatively modest increases of 4.8 per cent, a rate that is closer to the rest of the market. This slowing trajectory mirrors the weakening conditions in the Resources sector, impacted by the high Australian dollar, global uncertainty and the sharp fall in commodity prices.
Just 12 months ago, the forecasted pay increase for the Resources sector was for 6.25 per cent growth, illustrating just how quickly this sharp adjustment for the industry has occurred. For the coming year, Hay Group forecasts a salary growth of just 4.3 per cent for the Resources sector.
Yet due to dramatic pay rises over recent years, many roles in mining, oil and gas will continue to sit well above average in terms of actual pay levels for some time. This means that jobs in the Resources sector, particularly specialist technical roles and those in remote locations, continue to attract considerable pay premiums. Jobs in Mining Operations, Exploration and Petroleum Engineering currently command Total Annual Reward premiums 30 per cent above the market average.
As a result, the ‘hottest jobs’ in terms of pay growth can be found in Western Australia. When compared to the national average salary, jobs in regional Western Australia earn 21.9 per cent higher (compared with 16.8 per cent the previous year).
Meanwhile, jobs in regional Queensland earn a premium of just 3.4 per cent in Total Annual Reward. This contrast with Western Australia may be attributed to the fact that Queensland mining jobs are located close to regional centres, rather than in remote parts of the State. For this reason, workers do not require such high wages as enticement to overcome geographic and social isolation.
Add Comment