Australian employers plan to give pay rises to employees this year
34% of Australian employers will increase salaries in 2024 by a flat percentage rate to all staff compared to 28% of employers who intend to base pay rises on employee performance
27% of business leaders say their organisation must choose between stability for the business and helping staff with the cost of living when awarding pay increases
58% of Australian workers will reject a job offer if the salary doesn’t suit them
Baby Boomers (64%) are most likely to judge a job by its salary when fielding multiple offers
Up-to-date national average salary ranges for in-demand positions in five sectors revealed
Sydney, 11 March 2024 – With businesses striving to retain their staff by helping them battle the high cost of living, the newly released 2024 Robert Half Salary Guide reveals 96% of employers plan to give pay rises to their employees this year, following a year of high annual wage growth.
The 2024 Salary Guide also provides insights into the main reasons why candidates reject job offers with many going beyond salary and prioritising career development and flexibility.
How employers plan to remunerate staff this year
When it comes to current staff, employers plan on giving pay rises to their workforce as a whole based on the following criteria:
34% intend to provide a salary increase based on a pre-determined flat rate
28% will link a pay increase to individual employee performance
15% plan to boost each worker’s salary by the same flat amount, in a way that is similar to receiving a bonus
14% plan to increase salaries matching with inflation
5% say they intend to provide tenure-based increases
Only 3% of Australian employers say their organisation will not increase salaries in 2024.
“2023 was a turbulent year for employment in Australia - business confidence dropped, which led to companies restructuring en masse. At the same time, 2023 saw the highest annual increase in wages since 2009. This optimism is set to continue in 2024 with the majority of employers willing to offer salary increases, driven by annual inflation being more than twice the average of the previous decade and companies’ focus on retaining their talent,” says Nicole Gorton, Director at Robert Half.
Reasons for employer salary decisions
Even though salary premiums are firmly back on the business agenda, many companies have expressed concerns as to how their business – and its customers - will be impacted.
27% of employers say their organisation must balance business stability and helping staff with the cost of living
20% say increasing salaries is affecting business revenue and profits
19% say they will have to cut overheads to provide salary increases
18% cite their organisation will sacrifice profitability to support staff with the cost of living
17% of employers will pass on the cost of increased salaries to customers via price increases
“Pay-related decisions have become a balancing act. Businesses still need to ensure they are keeping pace with market rates for both new recruits and existing staff, while considering the potential impact of pay increases on their operations or company financials. Yet, it’s not without its challenges. Reevaluating and regularly benchmarking their remuneration policy against market changes without cutting too deep into the bottom line is essential to remain competitive and successfully meet the demands of the current job market.”
How candidates are reacting
Candidates are aware that many Australian employers are paying premium salaries to secure skilled talent, with the Wage Price Index1 experiencing its highest recorded annual growth since 2009, growing 4.2% in 2023.
Even though job candidates continue to prioritise salary when assessing job offers, only 58% of workers will reject an offer with a salary that does not suit them, highlighting the added value of a company’s benefits program. Baby Boomers are more inclined to reject an offer based on salary, with almost two-thirds (64%) prepared to do so, whereas Millennial (56%), Gen X (57%) and Gen Z (58%) candidates are similarly aligned.
For the majority of candidates, salary may be their prime motivator but they will consider other factors for declining a job, including:
a lack of career development opportunities (43%)
the corporate culture doesn’t match their expectations (33%)
if they had a bad experience with a future direct manager during the hiring process (29%)
a company’s bad reputation on social media or in the news media (29%).
“At a time when salary and remuneration are of the utmost importance to workers, many leaders have again put salary increases higher on the business agenda and learned the importance of taking a consistent approach to attributing salary rises where they can.
“Even though salary continues to be king, the days when pay was the sole motivator are over. Many professionals look beyond salary and consider the overall offering when evaluating salary packages. Businesses that cannot match the salary offered by competitors can therefore still get creative with non-monetary methods to gain an advantage with candidates and employees,” says Gorton.
The top in-demand roles for 2024
Robert Half’s 2024 Salary Guide reveals the permanent roles that are in highest demand in finance, technology, business support, financial services and human resources this year, along with national average starting salaries.
Finance
| | | | |
Role
| 25th percentile
| 50th percentile
| 75th percentile
|
Financial Accountant
| $93,500
| $103,000
| $112,500
|
Finance Manager
| $127,000
| $143,000
| $160,500
|
Assistant Accountant
| $70,500
| $78,500
| $86,500
|
Management Accountant
| $100,000
| $111,000
| $120,000
|
Financial Controller
| $160,500
| $173,000
| $197,500
|
Technology
Role
| 25th percentile
| 50th percentile
| 75th percentile
|
Developer
| $84,000
| $99,000
| $120,000
|
Business Analyst
| $112,500
| $127,500
| $141,000
|
Cyber-Security Specialist
| $133,000
| $152,000
| $181,000
|
Cloud Engineer
| $126,000
| $154,500
| $170,000
|
Systems Engineer
| $110,500
| $133,000
| $145,000
|
Business support
Role
| 25th percentile
| 50th percentile
| 75th percentile
|
Receptionist
| $56,500
| $62,000
| $66,000
|
Customer Service Officer
| $56,500
| $62,000
| $67,000
|
Administrative Assistant
| $61,000
| $66,000
| $70,000
|
Events Coordinator
| $65,000
| $68,000
| $73,500
|
Executive Assistant
| $89,000
| $100,000
| $117,000
|
Financial services
Role
| 25th percentile
| 50th percentile
| 75th percentile
|
Compliance Officer
| $83,000
| $107,000
| $127,000
|
Compliance Manager
| $136,000
| $146,500
| $161,000
|
Finance Manager
| $141,500
| $157,000
| $176,500
|
Legal Counsel
| $105,000
| $129,000
| $164,500
|
Head of Legal
| $238,500
| $290,500
| $333,500
|
Human resources
Role
| 25th percentile
| 50th percentile
| 75th percentile
|
HR Coordinator
| $71,500
| $77,000
| $82,500
|
HR Manager
| $127,500
| $145,500
| $159,500
|
HR Business Partner
| $102,500
| $117,000
| $139,500
|
Talent Acquisition Specialist
| $89,000
| $100,000
| $108,500
|
“With future growth at stake, businesses need to think strategically about who they want to bring on board. For candidates in in-demand areas, they have better bargaining power to strike the best deal in terms of salary, perks and benefits. Competition for talent is no longer at a fever pitch, but lengthy hiring timelines and vacant roles are a resource-intensive drain on business productivity, so drawn-out salary negotiations with candidates can negate potential cost savings for the employer,” concludes Gorton.
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Notes to editors
About the Robert Half Salary Guide
The Robert Half Salary Guide is the most comprehensive and authoritative resource on starting salaries and recruitment trends in finance and accounting, risk and compliance, technology, and business support. The results and insights of the Robert Half Salary Guide are based on comprehensive analyses, local job placements, local expertise, and independent research of industry executives.
Starting salaries are not a one-size-fits-all, which is they are separated into three percentiles. The percentiles account for differences in experience, skills, professional certifications, demand for the role, and the size/complexity of the company that’s hiring.
25th percentile
The candidate is new to the role, with little or no experience, and requires more than casual instruction or supervision to perform day-to-day duties.
50th percentile
The candidate has the experience to consistently perform core responsibilities without direct supervision and is very comfortable with processes and subject matter associated with the role.
75th percentile
The candidate’s value to the organisation goes far beyond the ability to perform normal job duties; the candidate has rare qualifications that enable consistent contribution in unique ways and is ready for the next career level when the opportunity becomes available.
Note: The 25th percentile is not the lowest end of the salary range, and the 75th percentile is not the highest or a cap. Robert Half provides these percentiles because they are the ones most commonly used. Salaries outside of this range occur far less frequently and, as a result, are not included in the Robert Half Salary Guide.
About the research
The study is developed by Robert Half and was conducted online in November 2023 by an independent research company, surveying 500 hiring managers (including 100 CFOs and 100 CIOs) and 1,000 office workers from companies across Australia. This survey is part of the international workplace survey, a questionnaire about job trends, talent management and trends in the workplace.
About Robert Half
Robert Half is the global, specialised talent solutions provider that helps employers find their next great hire and jobseekers uncover their next opportunity. Robert Half offers both contract and permanent placement services, and is the parent company of Protiviti, a global consulting firm. Robert Half Australia has offices in Brisbane, Melbourne, Mount Waverley, Perth and Sydney. More information on roberthalf.com/au.
