Now in its 50th year, the AIM 2014 National Salary Survey showed a decrease in the average pay rise across all states, a downward trend forecast to continue across all states and territories, and an increase in the number of resignations from 11.7 per cent last year to 12.2 per cent this year.
Head of research for the Australian Institute of Management NSW & ACT Matt Drinan said that more than half the employees who resigned had left their jobs to seek a higher salary.
“This is proof that salary is still a major motivator for employees to change roles,” says Mr Drinan.
“Getting pay and financial incentives market competitive plays an important part in attracting or retaining good staff. Where this isn’t possible, companies need to think more creatively when it comes to pay. One option could be to introduce well-designed variable reward schemes. These can provide organisations with cost-effective win-win pay solutions.”
On a more positive note, the report showed a decrease in the number of large companies who reported difficulty in recruiting staff due to skills shortages, down from 46.4 per cent in 2013 to 42.9 per cent in 2014.“
In a challenging and uncertain business environment – training is the key to ensuring employees have the necessary skills to drive the organisation forward,” says Mr Drinan.
Check out our infographic for a summary of some of the survey’s highlights: