The 2011 Hays Salary Guide reveals that the main ingredients in this “perfect storm” are the increased demand for skilled labour, employers’ declared intentions to escalate recruiting and the growing gap between the candidate and employer’s salary expectations.
The shrinking talent pool has resulted in a candidate driven market where the power has shifted from the employer to the skilled candidate.
“There is no doubt that the resources boom will fuel a continued and highly competitive talent race which will reshape our labour market,” forecast Simon Winfield, the regional director of Hays Resources & Mining. “Salary pressure will remain a constant companion in the year ahead.”
A large per centage of organisations expect business activity to increase over the next 12 months. Explaining the drive by 45 per cent of employers in the industry to expand their workforce over the coming year, the Hays survey has already identified a spike in staff turnover in some segments of the industry.
“While salaries have started to increase, candidate expectations also continue to rise fast, particularly by those sought after candidates who can choose between offers,” the survey reported. It also found that the shrinking talent pool of skilled workers are demanding bigger salaries from prospective employers.
“Looking ahead, our survey data shows that 64 per cent of mining and resources employers intend to increase salaries in their next review by between three and six per cent, while 11 per cent will offer increases above six per cent. But 22 per cent intend to increase salaries by less than three per cent. Three per cent of mining and resources employers do not intend to offer any increase,” Simon Winfield explained.
The outcome of the “perfect storm” will shape recruitment initiatives and strategies for the future.
The Hays Salary Guide is available to order at www.hays.com.au/salary