Recruitment specialist warns of 'perfect storm' for transport as amounts offered meet high expectations
June 1, 2011
Transport and logistics salaries are facing a “perfect storm” in the year ahead, according to recruitment firm Hays.
A swirling combination of high employment rates, short supply of skills, strong demand and robust remuneration expectations are likely to suck pay demands higher, the company says on releasing its 2011 Hays Salary Guide.
Yet employer expectations are yet to reflect the situation.
“The employment market over the past 12 months was dominated by low unemployment and increased job vacancies,” Hays Logistics Senior Regional Director Tim James says.
“At the same time, candidate confidence has continued to grow and skills shortages are now emerging.
“Looking ahead, 74 percent of organisations expect business activity to increase over the next 12 months, 45 percent of employers expect to increase permanent headcount over the coming year, and staff turnover has already increased in 31 percent of organisations.
“But we are yet to see employers offer widespread salary increases.
“Our survey data shows that 15 percent of transportation and distribution employers didn’t increase salaries at all over the past 12 months.
Fifty percent increased salaries by less than three percent and 33 percent increased salaries between three and six percent. The final two percent of transportation and distribution employers increased salaries between six and 10 percent.”
Hays says the guide shows increases were evident in Western Australia, due to the rapid growth and the demand for quality personnel, along with Victoria, New South Wales and Queensland.
“Looking ahead, our survey data shows that 46 percent of transportation and distribution employers intend to increase salaries in their next review by between three and six percent,” James adds.
“Fifty percent will increase salaries less than 3 percent, and 4 percent expect to offer no increases.
“Such low intentions are at odds with candidate expectations – particularly those of candidates in demand – and so we expect the gap between salary expectations to widen even further.”