White collar salaries in for modest increases



White collar workers can expect modest pay increases if they stay put over the next six months but up to 10 per cent if they move jobs according to recruitment giant Michael Page.

The Michael Page Salary and Employment Forecast surveyed 800 senior managers and found 40 per cent were planning to reward staff with pay rises in the next months.

Of those, about two thirds expect to award increases of only two to five per cent despite some white collar workers being known flight risks. Most of these reviews will take place in “back office” roles such as human resources, accounting, marketing and information technology.

Michael Page surveyed 12 sectors and found legal firms lead the pack when it comes to salary intentions with 56 per cent of legal firms planning pay raises for staff.

Regional managing director of Michael Page Australia and New Zealand Phillip Guest says while economic conditions have improved employers are still very focused on the bottom line and containing costs.

“While most employers are aware they risk losing top performers if salaries are not increased, they have to consider their capacity to absorb escalating payroll costs during the early stages of an upturn,” Guest says.

However, when asked what the current market range was for some of these roles Michael Page consultants report rates five to 10 per cent above existing salary levels.

The Michael Page Salary and Employment Forecast found that 70 per cent of retail employers surveyed plan to add staff in the coming six months while 51 per cent of  ITC sector employers plan to put on staff.

Not surprisingly, 47 per cent of mining companies plan to hire, 38 per cent of both marketing firms and banking and financial services firms plan to hire followed by 37 per cent of HR firms, 36 per cent of sales and 30 per cent of engineering & manufacturing.

Of the remaining sectors, 29 per cent of legal firms plan to add staff, 24 percent of supply chain, 21 per cent of procurement and only 20 per cent of accounting and finance.

CareerOne.com.au, July 29, 2010.