The Latest Update In Salaries

Posted On 21 Apr 2021

The Latest Update In Salaries

21 Apr 2021
The Latest Update In Salaries

Candidate Resource, Employer Resource, News & Events, On The Job

The Latest Update In Salaries

Job vacancies are on the rise and so are…salaries.

In case you miss this week’s ‘Salary’ Masterclass, I thought it useful to provide a recap for you!

If you are a Manager or Hiring Manager, brace yourself… as salaries have increased as much as 25%. Our candidates are experiencing strong counteroffers and the introduction of retention and sign-on bonuses.

It is all about supply and demand – the increase in job flow and a decrease of available talent.

For clarity – I am referring to the private sector, i.e., non-public and government sector. However, based on top Australian economist opinion, despite the increase, wages are expected to fall in ‘real terms’- due to inflation also being on the rise.

The cause of the shortage

What is causing the shortage in the office support space?

  • Candidates are loyal to employers who looked after them during COVID and thus are less likely to leave their jobs.
  • Candidates are wary of changing jobs due to their experience of increased uncertainty during COVID.
  • With changing priorities, candidates are more selective in choosing where to work (see our latest EST10 survey). When discussing job opportunities, we are often asked by candidates how the potential new workplace handled COVID and whether there were any redundancies.
  • Some candidates have opted out of full-time hours, preferring the balance of time with family.
  • For some time now, including before COVID, roles are becoming more specialised, i.e., drilling down on core skills and competencies i.e., you as the employer have become more refined and selective with your requirements.
  • Administrator roles are no longer ‘easy’ for most job seekers to throw their hat to. The office support space has come into its own as a well-regarded and needed profession.

I estimate we have seen a contraction of talent in the office support space, which was already tight pre-COVID, by at least 30%.

What about temps?

If you are looking to hire a temp, the constrictions are even more so. Working Holiday Visa (WHV) candidates are returning home, and no new WHV candidates are entering the country. For the time being, we are relying more upon our available residents to fill these positions.

The most significant gap for temporaries is at the intermediate level, i.e., where the WHV skilled candidates were in demand. This means relying on the more skilled and senior-level Australian candidates to fill these roles but at a price. It is highly competitive.

Salary increases at C-Suite

Salaries at the top end, MD and C-Suite level are enjoying an increase due to the heavy reliance being placed on these employees. For a long time, we have been advocating the skills and attributes of these senior-level Executive Assistants and Business Assistant candidates. It’s so good to see these opportunities open up!

The increase in responsibilities and duties are largely due to the talent shortage in other job categories, such as marketing, HR, and finance. This means business leaders rely on their trusted executives, including their EAs, to take on additional duties, thus expanding their skill set.

Your unique opportunity

Employees who are flexible, adaptable, and quick to learn will excel in this job market. Opportunities, advancements, and career trajectory will be at your doorstep – if you make yourself available for this. My experience says this is a unique event – one that will not present itself forever.

You have seen how quickly the market shifts, moves and morphs. Do not wait too long to take up the opportunities your Manager might be putting your way. Otherwise, another solution or option will quickly present itself in solving their problem. While most changes we undertake are usually based on necessity, it is much better and nicer to choose and take deliberate action at the right time.

Seize the moment, enjoy it, and make it count.

Think bigger picture

If you have not received a salary increase for the additional duties and responsibilities, that is ok, for the moment. When providing career advice, I always take the bigger picture perspective. One needs to always keep an eye on what is at the end of the rainbow.

For example, learning and development – will be your key to far greater salary opportunities in the future. What you take away from the learning you receive now will provide far greater leverage and ensure your employability. The time will come for you to discuss a salary increase. If you are fortunate enough to be in this position, do not make a bigger salary to be your focus just yet.

Consider retention

My recommendation to businesses in this current market is, most importantly, to consider your retention strategies. Review your current offerings. Is it comparable to what the market is offering? Some salaries may need adjusting. Do not be in a position where you are counteroffering because of a resignation. The counteroffer will likely cost you more than the adjustment to the salary in the first place.

Plus – the messaging is different. The counteroffer is never a long-term strategy – my experience says it is a holding pattern.

Conducting a skills assessment and audit will also show who has the potential for advancement, secondment, and promotion.

This is a great way to show and demonstrate how much the people in your team and organisation are valued.

Best practice for hiring

If hiring, here are some tips:

  • Are your approvals in place and signed off?
  • Pencil in interviews in advance and with ALL parties. Or, at least have times available in the diaries to interview at a days’ notice. Leaving candidates waiting days for an interview will see you playing catch up from the get-go.
  • There is no such thing as a shortlist of 3 candidates. Please do not wait for three candidates to be ready. If you have one candidate – start the process, and interview.
  • Benchmarking – why do you need this? Know and understand what it is that you need before going to market. Conducting benchmarking to satisfy a process will cause you grief.
  • If multiple interviews – have them all conducted within 3 days. Any longer and you will run the risk of your candidate accepting other offers.
  • When offering, go in strong, i.e., if you can, at the higher salary range. This is not the market to offer low and negotiate. It will send the wrong message, especially if another job offer has come in stronger than yours. From the candidate’s perspective, they will be viewing this as how you see and value them. From the beginning, it is paramount to set the right tone.
  • If struggling to fill a role, consider a highly skilled contractor to get you through the ‘hurt’ and provide some relief and reduce the pressure.

I hope this provides you with some helpful information on salaries right now! For more information or a copy of our EST10 – salary guide, please email info@est10.com.au or call us 02 900 20 222 or of course, the link is here!

“Your profession is not what brings home your weekly paycheck, your profession is what you’re put here on earth to do, with such passion and such intensity that it becomes spiritual in calling.” – Vincent Van Gogh

About the Author

Roxanne Calder

As Founder and Managing Director at EST10, Roxanne has an all-encompassing role that includes building and growing the business, as well as actively recruiting and consulting.

After completing a Bachelor’s Degree at Monash University, Roxanne began her recruitment career with renowned recruiter Julia Ross. From there, Roxanne worked in HR and recruitment with a number of global players and boutique businesses throughout Australia, the UK, Singapore and Hong Kong for over 20 years. She has been responsible for managing large teams and projects, implementing RPO models, managing and assisting businesses to an IPO and assisting companies in setting up their recruitment teams and processes.

Following completion of her MBA at the Australian Graduate School of Management, Roxanne launched EST10 in July 2010. In doing so, she hoped to combine the flexibility and high touch service levels of boutique agencies with the structure and strategy afforded to larger firms. Roxanne believes in high-touch, high-care consulting and is always on the lookout for consultants that share this vision of recruitment.

About the author
Roxanne Calder
Managing Director

As Founder and Managing Director at EST10, Roxanne has an all-encompassing role that includes building and growing the business, as well as actively recruiting and consulting.

After completing a Bachelor’s Degree at Monash University, Roxanne began her recruitment career with renowned recruiter Julia Ross. From there, Roxanne worked in HR and recruitment with a number of global players and boutique businesses throughout Australia, the UK, Singapore and Hong Kong for over 20 years. She has been responsible for managing large teams and projects, implementing RPO models, managing and assisting businesses to an IPO and assisting companies in setting up their recruitment teams and processes.

Following completion of her MBA at the Australian Graduate School of Management, Roxanne launched EST10 in July 2010. In doing so, she hoped to combine the flexibility and high touch service levels of boutique agencies with the structure and strategy afforded to larger firms. Roxanne believes in high-touch, high-care consulting and is always on the lookout for consultants that share this vision of recruitment.