MANY property businesses are using higher pay increases to attract and retain staff amid “significant movement” of key talent, while two-thirds say they are doing “well” or “very well” in the current economic climate.
The latest Avdiev Property Remuneration Report shows remuneration in the property industry has grown by an average of 4% – ahead of the 3% increase the year before – with one-third of companies increasing pay by more than 6%, well ahead of the wage price index for the broader workforce of 2.6%.
Strong demand for talent and severe shortages has led to higher pay increases to both protect staff from leaving and attract new staff, according to Debra Moloney, principal of remuneration consultants Avdiev Report.
“With the pandemic in the rearview and the day-to-day returning to normal, property businesses face new concerns with tough economic conditions, the threat of recession, rising costs and significant staff shortages. They are using pay and other levers to hold on to their talent and maintain productivity,” she said.
More than two-in-five respondents (42%) offered higher-than-usual pay increases in the year to September to catch up with the fast-moving market with recruitment and retaining staff at top of mind. The usual full pay increases were offered by about a third (36%) of participants’ companies at the last pay review, while 17% of companies increased pay by a minimal amount and 5% didn’t increase pay at all.
Real estate valuers saw the smallest increase in pay, at 2.5%, while property funds managers of up to $1 billion in funds under management saw a 5.2% increase and retirement living and aged care village managers 5.0%. Senior property development managers bagged a 4.8% increase.
Seventy per cent of companies expect to return to the usual pattern of full increase in the next pay reviews, and 17% expect to pay a higher increase to retain and protect staff from approaches from recruiters – particularly to mid-level and junior staff.
“We are seeing significant movement of key talent, with resignations being driven by the hot market and the opportunity to move for more money with a promotion or to the same job with higher pay,” Moloney said.
“The challenge is to reward existing valued employees on a par with what is being offered to the new recruits.”
Property companies are also paying bonuses. Just over 80% are paying their usual short-term incentives in 2022 and 6% expecting an increased STI. Long-term incentives continued unchanged for 62% of senior staff, although 38% received a higher LTI.
Companies’ policies on pay transparency is overwhelmingly to keep employees’ remuneration confidential (81%). There are almost no instances where pay bands are disclosed to employees or included in job advertisements or recruitment (just 3% and 6% respectively). Pay transparency was viewed as potentially causing disharmony.
The majority of respondents said they are experiencing staff or skills shortages, with 50% describing them as “very severe” or “extremely severe”. Almost all respondents (81%) increased pay or made counter-offers (50%) to departing staff.
Of the respondents, 41% said they doing “well” and 22% “very well” in the current climate. One-third rated their performance as “neutral” and 8% said their business is doing “badly”.. There is cautious optimism in the industry, with 43% saying the outlook for the next 12 months is “better” and 52% expected business to be “much the same”, while 13% expect it to be “worse”.
Respondents said the highest impacts on businesses have been felt from increasing costs (66%), domestic economic conditions (58%), staff shortages (54%), and international economic conditions (36%).
Work from home is here to stay, according to the survey. One or two days at home seen as the new way of working.
Gender pay gap grows
Meanwhile, a survey of Australian university graduates has shown the gender pay gap between male and female graduates has more than doubled during COVID.
According to the Social Research Centre, male graduates are earning an average of $5,700 per year more than women in 2022, wider than the $2,400 gap in 2019.
Three years after graduating, there are major salary gaps in architecture ($12,600, or 15%), nursing ($6,300, or 7.6%) and engineering ($6,000, or 6.5%).
Women are paid better in a small number of professions by smaller margins, including in medicine and computing and IT.
The median full-time salary for medium-term graduates was $84,000 for men and $78,300 for women.
