Hays tips salaries to rise in transport and logistics

Recruitment firm Hays predicts that logistics professionals can expect a moderate salary increase this year

June 1, 2012

Today’s rise in the minimum wage comes as recruitment firm Hays predicts that logistics professionals can expect a moderate salary increase this year.

The company’s Hays Salary Guide for this year says 38 percent of transport and distribution employers increased salaries last year between 3 percent and 6 percent.

It says only 2 percent of company gave an increase of 6 percent, compared with 53 percent which raised salaries by less than 3 percent. Hays says 7 percent of companies gave no increase at all.

Looking ahead, Hays says 37 per cent of employers intend to increase salaries between 3 percent and 6 percent. A further 3 percent will increase above 6 percent.

But 54 percent of employers intend to increase salaries less than three per cent and six per cent intend to offer no increases when they next review.

"Australia’s logistics industry started the 2011-12 financial year positively, with candidates across supply chain and the transport categories in high demand," Senior Regional Director Tim James says.

"This slowly declined by Christmas and our wet summer of 2012, which was reflected in salaries for most roles and locations.

"This trend is forecast to continue throughout the remainder of 2012, with increases predominantly in organisations associated with the resources sector.

"Perhaps it’s no surprise that the most noteworthy trends have occurred in our resources states."

Over the last 12 months, Western Australia saw an increase in demand for experienced candidates with heavy haulage and oversize experience.

This has been brought about by the increase in mid-size transport companies looking to support the resources sector.

"In the coming months, this demand is expected to increase because of the shortage of quality candidates, forcing companies to pay more competitive salaries," James says.

"Freight forwarding and international trade is also increasing in the state, with international and east-coast organisations expanding their operations into Western Australia.

"Specialists with out-of-gauge and project based experience are sought, with companies looking to have the right infrastructure in place to capitalise on major up and coming resources projects."

Candidates are aware of the demand for their skills and the salaries on offer by large resources organisations in Western Australia, James adds.

As a result, many companies are struggling to retain their staff and so have become more receptive to hiring suitably qualified international candidates on 457 visas.

"This trend is set to continue over the next 12 months in Western Australia and Queensland," James says.

"Looking ahead, for the remainder of 2012, growth in warehousing and distribution is expected for specialist third party providers across Australia.

"Outsourcing will continue to be a trend and the larger third-party logistics providers will take market share from their smaller competitors."

As such, James says demand will continue to increase for account managers with strong experience in operations and customer service.

"As companies become more dependent on 3PLs and third party manufactures, the rest of the year will be an interesting time for our logistics industry," he says

But he warns against expecting a dramatic, globally driven upswing to boost the domestic economy. James says existing trading conditions are here to stay for some time, likening the situation to the "new normal".

He says companies need to recognise this and adapt to suit current trading conditions instead of believing a dramatic reversal is on the horizon.

"That’s why forward-thinking employers and candidates are going ahead with their hiring or career plans. It’s also why employers are increasing salaries, albeit moderately," he says.

Bookmark and Share

Get daily updates on the industry by subscribing to the Fullyloaded newsletter, joining our LinkedIn group or liking us on Facebook