Transport and logistics employers are seeking more skilled staff – and Hays predicts payrises are on the agenda
Transport and logistics sector employers might need to consider increasing employee wages if the findings of the latest Hays Salary Guide are anything to go by.
The 2018-19 guide was based on the recruitment company’s survey of more than 3,000 organisations representing over 2.3 million employees.
It found that 81 per cent of transport and distribution employers surveyed planned to increase staff salaries by less than 3 per cent when they next reviewed them, while 4 per cent planned no increase and another 4 per cent planned a 10 per cent rise.
However, when surveying candidates, 19 per cent of transport and distribution employees expected a pay increase of more than 10 per cent when salaries were next reviewed – the highest of any division and one per cent higher than those working in professional services.
In all, 23 per cent expect an increase in pay of 6 per cent or more, while 33 per cent of the workers surveyed expected an increase of less than 3 per cent and another third expected no increase at all.
The Hays report says 2018-19 could be the year when employers increase salaries as transport and distribution managers and planners realise the opportunities presented by industry growth.
Logistics companies are targeting multi-skilled employees who have a strong knowledge of systems and processes and a track record of reducing costs, the report says.
“Add the requirement for a wider technical skill set and the ability to meet compliance and occupational health and safety regulations for those in management roles, and it is surprising that salaries have not increased in line with rising employer expectations. How long this can continue remains to be seen,” the report says.
A similar state of affairs exists in warehousing and distribution, with employers now preferring to hire degree qualified candidates with a supporting technical background, and small and medium enterprises hiring staff to develop procedures to improve inventory accuracy and transparency.
“Despite growing demand for such professionals, employers continue to keep a tight rein on salaries – this has led to attraction and retention challenges for employers,” the report says.
Higher wages have already been passed on to transport allocators and fleet managers, the report says, noting that it was these workers who brought business to their employers.
Strained infrastructure in Victoria and New South Wales was also fuelling demand for transport professionals and transport allocators.
“Salaries have increased in response to demand, reaching up to $85,000 plus superannuation,” the report says, referring to the typical salary in NSW and WA.
“Lateral thinking transport coordinators and managers who can cope with pressure are also in demand – companies have likened the transport room to that of a Wall Street trading floor, where one wrong decision can cost a company potentially millions of dollars.”
The Hays report says operations managers working in the transport sector are able to command salaries of up to $150,000 exclusive of superannuation in NSW, though the typical salary is $130,000 exclusive of superannuation both there and in WA. South Australia has the lowest typical operations manager’s salary of $80,000.
Typical salary for drivers, with heavy rigid, medium rigid, heavy combination and multi-combination licences is between $50,000 and $55,000 in most jurisdictions, with the exception of WA and South Australia, where the typical salary for HC/MC drivers is $65,000, and the Northern Territory, where it is $58,000.
A warehouse manager in Sydney typically commands a salary of $95,000 while one in Adelaide is typically paid $70,000, while distribution centre managers are typically paid $120,000 in Sydney and Melbourne.