Salaries rising faster at small companies
By Chris Zappone | theage.com.au | 10 June
In another sign of inflation creeping into the economy, companies surveyed by the Australian Institute of Management report that salary growth is picking up this year.
The national average salary movement for large companies edged up 4.7% from 4.6% last year, the institute reported. Combined with a 5.2% increase for small companies, the total figure for all companies rose 4.9%, up from 4.8% last year.
"What is surprising out of the survey is the response among small to media enterprises" said Susan Heron, chief executive of AIM Victoria Tasmania. "Salary increases in SMEs has been quite significant."
The Reserve Bank is watching for signs of inflation feeding into higher wages with the economy operating at low levels of unemployment not seen in more than 30 years. The underlying inflation rate of 4.2% at the end of the March quarter was the highest in 16 years.
Ms Heron said many people in larger companies had been leaving for better opportunities. The survey showed the annual rate of staff turnover in large companies rose to 13.3% from 12.6%.
The survey is based on responses from 723 companies conducted annual by the industry group.
Nearly 39% of large companies employ staff from overseas, the survey found. Underscoring tightness in the labour market, more than 70% said they would be willing to employ overseas workers if needed.
Among the 15 sectors surveyed in the AIM 2008 National Salary Survey, business and professional services industry grew the most by far, with a 6.5% jump over last year.
Wholesale machinery and automotive salaries increased 5.2%, followed by a 5.1% increase in earnings for employees in financial sector industries.
Top earners in senior executive and senior management positions had the biggest increase, 4.9%, 0.8% higher than salaried staff.
The commodities boom continued to pump states with mining and construction industries.
Figures from the survey showed Queensland employees received the biggest year-on-year improvement in salaries, which rose 5.7% from 5.1%.
In addition to Queensland, employees in the other state enjoying the benefits of higher commodities prices, Western Australia, gained 6.4% from last year, the biggest increase in any state.
First published by TheAge.com.au on June 10 2008
Visit theage.com.au for the latest news updated throughout the day
