An overwhelming 93 per cent of employers plan to increase marketing salaries in their next review, according to recruitment and workforce solutions specialists Hays.
The FY23-24 Hays Salary Guide, released today and based on a survey of over 14,000 employers and professionals, found 62 per cent of employers plan to increase salaries above three per cent.
“The year of the raise”
“We’re calling this the year of the raise, where the promise of higher salaries reflects the intensity of the skills shortage in today’s jobs market,” says Kian Myers, business director of Hays.
“This year, both the number and value of increases will rise, continuing the upwards trajectory we first noted in last year’s Hays Salary Guide.
“Despite the increased salary boost, employer and employee expectations in marketing still fail to align. Many marketing professionals feel undervalued and underpaid. They feel their current salary doesn’t reflect their individual performance.”
According to Hays, there are four key factors motivating employers to increase salaries in their next review:
1. Competition amid a growing skills gap crisis: Many employers have offered higher salaries than planned to attract marketing professionals in response to the skills shortage – 26 per cent ‘substantially higher’ and 42 per cent ‘nominally higher’.
“Many employers find that the pipeline of skilled marketing professionals doesn’t meet their needs,” says Kian. “As candidate supply continues to tighten, employers face increased pressure to proactively attract and retain talented employees.”
2. The ripple effect of falling real wages: 76 per cent of employers and employees combined say it’s reasonable to expect pay rises to keep up with inflation.
“Employers are sensitive to the hidden cost of falling real wages on employee engagement, mental health and wellbeing, morale and job satisfaction,” he said. “While few employers can match inflationary pressures, they are stretching their salary increase budget as far as they can to support their staff.”
3. The impact of pay transparency: Many employers are transparent with employees about how salary levels and increases are set to improve fairness and build trust – 20 per cent are transparent with all employees and 23 per cent with select employees.
“We expect these figures to rise in the months ahead, with the abolition of pay secrecy in Australia prompting more employers to audit salaries, scrutinise disparities and make adjustments when required to ensure fair and equal pay,” said Myers.
4. ‘The great ask’: This year, 55 per cent of professionals plan to ask for a pay rise.
“Employees still feel they have bargaining power and are more confident to negotiate for better pay,” he said.
Advice for employers
“The recruitment and salary intentions of employers are notable this financial year,” said Myers. “The overall trend suggests that many believe investing in their workforce, such as through salary increases, headcount expansions (see below) and up-skilling, is key to success.
“To stand out in the race for talent, also review the benefits you offer. Consider what else you can offer to attract and retain talent, such as opportunities for growth, wellbeing days, additional annual leave, improved recognition, work-life balance or a more positive work environment.”
Advice for professionals
“With skills in demand you still have bargaining power, but it’s important to temper it to avoid pricing yourself out of consideration,” noted Myers. “Yes, employers are investing in salary increases, but margins remain tight. The commercial reality dictates that salary increases can only stretch so far.
“Consider the whole package when you negotiate a new job or your next pay rise. Benefits can go a long way to bridging a possible financial expectation gap, so think about what you’d really value and what could make a difference to your life and career long-term.”
Other key findings
· Employers invest in their marketing headcount: Employers intend to increase their permanent (40%) and temporary or contract (27 per cent) marketing headcount in the next 12 months.
· Staff loyalty yet to return: Just 42 per cent of marketing professionals unquestionably intend to remain with their current employer beyond FY23/24, with another 34 per cent unsure whether they will remain.
· Top factors driving turnover: Of those intending to or considering changing jobs, an uncompetitive salary is the top reason, followed by a lack of promotional opportunities and the rising cost of living.
· The impact of benefits: Salary is undoubtedly the most critical factor in attracting, rewarding and retaining marketing professionals today, but employers recognise that benefits also play a significant role. The top three benefits employers are offering this year are training, ongoing learning and development and career progression opportunities.
· Employees’ top career priorities: Marketing professionals will prioritise a pay rise, being able to work flexibly and learning or developing digital skills in the next 12 months.
