More mining and resources professionals to receive a pay rise – but the value will be
Over half (57 per cent) of mining, resources, energy and oil & gas employers will give their staff a pay rise of less than 3 per cent in their next review, while 21 per cent will not increase salaries at all. That’s according to the 2018-19 Hays Salary Guide.
Released today (Wednesday 16th May) and based on a survey of more than 3,000 organisations, the Hays Salary Guide shows a further 15 per cent will increase salaries between 3 to 6 per cent while 7 per cent will raise them by 6 per cent or more.
Compared to their last review, when 30 per cent of mining, resources, energy and oil & gas employers gave no increases, the findings show that more mining professionals will receive an increase this year.
Mining workers however have slightly higher expectations for a salary increase, with 17 per cent expecting to receive 6 per cent or more. Employees have also prioritised a pay rise. Two-thirds (67 per cent) say a salary increase is their number one career priority this year. If their employer doesn’t offer a pay rise, almost half (48 per cent, up from 45 per cent last year) will request one.
“Increasing job vacancies throughout 2017-18 have brought an end to wage erosion for loyal workers who remained in the industry over recent years,” says Chris Kent, Senior Regional Director of Hays Resources & Mining.
“In fact, by early 2018 many jurisdictions began to increase wages in an attempt to lure back those blue collar workers who secured jobs in alternative industries closer to home. This is particularly evident in North Queensland where drive-in, drive-out roles were common,” he said.
“With employers keen to continue trialling blue collar workers in contract roles and a dwindling pool of experienced people, hourly rates will increase in the year ahead.”
The Hays Salary Guide also found:
- Business activity increased for 74 per cent of employers in the past 12 months, while 77 per cent expect it to increase in the next 12 months;
- 40 per cent foresee a strengthening economy in the coming six to 12 months;
- 47 per cent of employers expect to increase permanent staff levels in the next 12 months, far exceeding the 10 per cent who say they’ll decrease;
- Meanwhile 22 per cent expect to increase their use of temporary and contract staff, also exceeding the 11 per cent who anticipate decreasing in this area;
- 24 per cent of organisations now employ temporary and contract staff on a regular ongoing basis and another 42 per cent employ them for special projects or workloads;
- In the last 12 months, 16 per cent of Australians asked for a pay rise but were declined – a further 18 per cent asked for a pay rise and were successful;
- The success of the latter perhaps explains why 48 per cent say they intend to ask for a pay rise in their next review. A further 24 per cent are as yet unsure;
- 32 per cent of employers say staff turnover has increased in their organisation over the last 12 months;
- 67 per cent of employers, compared to 65 per cent last year, are worried that skill shortages will impact the effective operation of their organisation or department in a significant (26 per cent) or minor (41 per cent) way;
- 67 per cent of employers offer flexible salary packaging. Of these, the most common benefits offered to all employees are salary sacrifice (offered to all employees by 57 per cent of employers), above mandatory superannuation (41 per cent), parking (33 per cent), private health insurance (29 per cent) and bonuses (27 per cent);
- 70 per cent of employees have access to flexible work practices, 56 per cent receive ongoing learning & development, 45 per cent career progression opportunities, 36 per cent health and wellness programs, 32 per cent over 20 days’ annual leave and 30 per cent financial support for study.
The annual Hays Salary Guide is now in its 40th year.
Get your copy of the 2018-19 Hays Salary Guide by visiting www.hays.com.au/salary, contacting your local Hays office or downloading The Hays Salary Guide 2018 iPhone app from iTunes.