Retail workers set for sedate pay rise

paid,invoice, cheque, wageMost retail workers are set for sedate pay rises of sub-three per cent, according to recruiting firm Hays Retail.

In its annual salary guide, the company said sixty-four per cent of Australia’s retail employers will give their staff a pay rise of up to three per cent in their next review, but eight per cent will not increase salaries at all.

The report shows that 20 per cent of retail employers intend to award a salary increase of between three and six per cent.

Approximately eight per cent of employers will increase salaries at the higher level of more than six per cent.

Hays surveyed 2,950 organisations, representing 3,021,984 employees, as well as placements made by the recruiter.

“Continued growth in retail and the ongoing entry of international brands into the Australia market ensures candidates are consistently in high demand across all levels,” says David Cawley, regional diirector of Hays Retail.

“The best jobseekers are now able to negotiate higher salaries and we expect counter offers to increase as a result in the year ahead.

“Salaries for buyers have remained stable, but the high demand for planners and merchandise allocators will see the best candidates able to command competitive salaries.

“In fashion, more retailers are implementing competitive commission structures for their staff to attract the best candidates. Overall, we expect an increasing emphasis to be placed on commission and product allowances to attract and retain retail talent.

“This coming financial year will also see retailers rethinking their strategies to stay ahead of international competitors entering the Australian market. They will need to work on retention of their top talent ensuring they aren’t lost to innovative, digitally advanced competitors,” he said.

Other findings from the Hays Salary Guide include – across all industries:

  • Business activity increased for 70 per cent of employers in the past 12 months, while three-quarters (75 per cent) expect it to increase in the next 12 months;
  • 36 per cent foresee a strengthening economy in the coming six to 12 months;
  • 45 per cent expect to increase permanent staff levels, far exceeding the 11 per cent who say they’ll decrease;
  • Meanwhile 23 per cent expect to increase their use of temporary and contract staff, also exceeding the 9 per cent who anticipate decreasing in this area;
  • 23 per cent now employ temporary and contract staff on a regular ongoing basis and another 44 per cent employ them for special projects or workloads;
  • In the last 12 months, 15 per cent of Australians asked for a pay rise but were declined – a further 17 per cent asked for a pay rise and were successful;
  • The success of the latter perhaps explains why 45 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;
  • 65 per cent of employers, compared to 60 per cent last year, are worried that skill shortages will impact the effective operation of their organisation or department in a significant (23 per cent) or minor (42 per cent) way.

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