This article is from the Australian Property Journal archive
THE vast majority of property industry employers plan to increase salaries in their next review, though workers and employers are still not seeing completely eye-to-eye.
According to the latest Hays Salary Guide, 98% of property industry employers will lift salaries in their next review, with 71% to make increases of 3% or more.
“We’re calling this the year of the raise, where the promise of higher salaries reflects the intensity of the skills shortage in today’s jobs market,” said Austin Blackburne, senior regional director at Hays.
“Despite the increased salary boost, employer and employee expectations in Australia’s property industry still fail to align. Many employees feel undervalued and underpaid. They feel their current salary doesn’t reflect their individual performance.”
Employer intentions vs employee expectations
| Value of salary increase | Salary increase employers intend to pay | The increase employees say would reflect their individual performance and demand for their skills |
| 0% | 2% | 7% |
| < 3% | 27% | 27% |
| 3-6% | 65% | 59% |
| 7-10% | 4% | 5% |
| >10% | 2% | 2% |
The survey found that many employers have offered higher salaries to attract talent in the midst of the skills shortage, with 18% offering salaries “substantially higher” than planned and 50% offering “nominally higher” salaries.
“Many employers find that the pipeline of skilled property professionals doesn’t meet their needs. As candidate supply continues to tighten, employers face increased pressure to proactively attract and retain talented employees,” said Blackburne.
73% of both employers and workers combined said it was reasonable to expect pay increases to keep up with inflation.
“Employers are sensitive to the hidden cost of falling real wages on employee engagement, mental health and wellbeing, morale and job satisfaction. While few employers can match inflationary pressures, they are stretching their salary increase budget as far as they can to support their staff,” added Blackburne.
19% of employers responded saying they are transparent with all employees about salaries levels and increases, with 31% saying they are transparent with select employees.
“We expect these figures to rise in the months ahead, with the abolition of pay secrecy in Australia prompting more employers to audit salaries, scrutinise disparities and make adjustments when required to ensure fair and equal pay,” said Blackburne.
The survey also found that 32% of employers plan to increase their permanent property headcount over the next 12 months.
While 46% of workers say they unsure if they will say with their current employer after FY23/24.
Unsurprisingly an uncompetitive salary was named the top factor among those workers planning to or considering changing jobs. A lack of new challenges and a lack of promotional opportunities followed.
While benefits didn’t make the top three factors, the top three employers plan on offering this year are training, mental and physical health and wellbeing programs and career progression opportunities.
Property professionals instead prioritise getting a pay rise, being able to work flexibly and gaining a promotion in the next 12 months.
