Soaring Inflation rates have continued into 2023 as countries around the globe deal with economic uncertainties caused by the rising cost of living, the Covid-19 aftermath, and a gruelling war in Ukraine.
However, Mercer Australia has determined that some sectors are poised to receive ‘significant’ salary increases, such as IT marketing, engineering and manufacturing.
Life sciences, Mining, and technology employers are forecasting a 3.5 per cent salary increase, while retail and logistics organisations are planning for a 3.3 per cent lift.
According to Mercer’s Australia Total Remuneration Survey (TRS), Australian employees around the nation are budgeting for a 3 per cent median salary increase this year, while others live comfortably on inflated wages used to keep them at bay.
The TRS states that potential wage increases are for hard-to-fill roles, with a huge 22 per cent higher average base salary for new manager hires in project engineering as opposed to those already working in the role.
While most salaries remain stagnant, inflation rates are rising to their highest rate in 30 years, placing emphasis on competition between employers.
More than one million Australians walked from their jobs in the last year to February 4,
the highest number in a decade.
Meanwhile, just 22 per cent of employers plan to factor inflation into their 2023 budgets.
Attracting and attaining employees will become the main priority of organisations this year, as more than a third reported increased staff turnover.
As Australians face a 6 per cent increase in the cost of living, many will need to take a more cautious approach to their savings to make ends meet.
Voluntary attrition has risen to its highest point in five years, while two-thirds of executives are enduring a crisis from labour shortages.
While workers often won’t raise the issue with their boss and will walk for higher-paying jobs, 38 per cent of Human Resource leaders say their priority is improving their total rewards package.
From flexibility and leave to well-being programs and corporate discounts, communicating non-financial benefits to staff has become an increasingly critical part of retaining employees.
37 per cent, up from 30 per cent last year, plan to increase the size of their workforce
over the next 12 months.
For companies included in this estimate, the question remains, as to how they will achieve more numbers with limited salary budgets in such a competitive talent market.