Two-thirds of Australian CFOs and financial directors plan to increase the wages of their employees over the next 12 months while more than half of Australian CIOs will increase IT salaries to secure and retain top talent, according to the 2016 Robert Half Salary Guide.
The ‘War for Talent’ continues into 2016, as business leaders are faced with the twin challenge of a specialist skills shortage and retaining top professionals. Almost nine in ten (89%) CFOs and financial directors find it challenging to source skilled finance professionals, while 93% of CIOs claim this is also the case in finding IT talent.
Top candidates, who possess much sought or hard-to-find skills, regularly receive multiple job offers and are in a strong position to negotiate starting salary. Companies therefore realise competitive remuneration packages are essential to bring in the necessary talent.
David Jones, Senior Managing Director Robert Half Asia Pacific added: “Organisations are increasingly making an offer within 48 hours of interviewing candidates to secure top talent. In order to not lose top professionals to competing organisations during the hiring process, companies with clear recruitment criteria and who can act quickly when they find a match, have a definite hiring advantage.”
"Companies are proactively adjusting their remuneration policies to ensure their offers match or exceed averages in their location and industry.”
In today’s employee driven market, 58% of Australian office workers are likely to look for a new job in the coming months with almost three quarters (73%) of Generation Y on the lookout for a new role.
David Jones added: “As more jobs are created, increasing employment opportunities could underpin a rise in voluntary staff turnover. Businesses need to develop effective staff retention policies, particularly for the Millennials, at every stage of their career to keep them on board.”
Across the generations, salary remains the key driver behind the decision to stay or leave, making it critical for companies to have competitive remuneration policies in place to optimise staff retention.
David Jones: “Although salary is not the only factor to consider, offering salary increases may well make the difference. The importance of well-developed retention strategy cannot be underestimated in an economy where the demand for specialised professionals exceeds supply.”
It’s not only about the money
Even though offering a competitive base salary is essential when it comes to attracting and retaining top professionals, non-cash benefits such as more flexible working conditions are also highly valued by candidates and employees. This opens up the playing field to businesses whose budgets don’t extend to top tier salaries in their industry.
"The idea of one fixed salary package for all employees is outdated. Companies are becoming more creative with their remuneration policy to align it with the needs that live among their employees,” said David Jones.
About the Robert Half Salary Guide
The 2016 Robert Half Salary Guide offers a comprehensive overview of the current salary ranges, non-financial benefits and specific job trends for finance and accounting professionals, finance professionals in the financial services sector, technology professionals and administrative professionals. The results and insights of the Robert Half Salary Guide 2016 are based on a comprehensive analysis, local expertise and independent research of executives and office workers.
About the research
The annual study is developed by Robert Half and was conducted in December 2015 by an independent research firm, surveying 160 Chief Financial Officers (CFO) and finance directors and 100 Chief Information Officers (CIO) in Australia. This survey is part of the international workplace survey, a questionnaire about job trends, talent management and trends in the workplace.
The additional study was also initiated by Robert Half and was conducted in September 2015 anonymously by an independent research firm, among 1,000 Australian office workers.
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