Hays says salary expectation gap affecting T&L

Certain warehousing roles see pay increase as many other professionals consider job change

Hays says salary expectation gap affecting T&L
Tim James


While more transport and logistics professionals will receive a pay rise this year than last, the value of these increases will fall, according to recruitment firm Hays.

The 2019/20 Hays Salary Guide says up to 92 per cent T&L employers will increase their staff salaries in their next review, up from 83 per cent employers in the last financial year.

However, up to 71 per cent employers intend to raise salaries at the lower level of three per cent or less, up from 63 per cent, who did so in their last review.

Meanwhile, just three per cent of employers intend to grant pay increases of over six per cent.

On the other hand, up to 26 per cent of T&L employees Hays spoke to in their survey said they did not expect any increase in their salaries this year.

Forty-eight per cent expected a pay increase of three per cent or less.

At the same time, over half (57 per cent) of those surveyed told Hays that a salary increase is going to be their number one career priority this year.

Forty-six per cent said they intend to achieve this by asking for a pay rise, while others said they are looking for a new job, with up to 41 per cent of jobseekers admitting their current uncompetitive salary provoked their job search. 

Read about the confidence Hays has in the human factor, here

"Evidently, the aggregate effect of several years of sedate salary increases is taking its toll and we’re now seeing a tug of war over salaries," Hays Logistics MD Tim James says.

"On the one hand, we have professionals telling us they’ve prioritised a pay rise and are prepared to enter the job market to improve their earnings.

"On the other, employers tell us they want to add to their headcount and are being impacted by skill shortages, yet they want to curtail salary increases.

"There are only a few exceptions.

"The recovery of the senior supply chain market led to demand for supply chain managers and, in turn, mid-tier demand and supply planners.

"In some states, salaries have increased in response to this demand.  

"Tasmania’s positive economic climate led to a surge in interstate and international exports.

"Looking ahead, salaries are expected to increase in the state for multi combination drivers and warehouse supervisors, who remain in short supply."

Salaries for warehousing staff remain steady in smaller companies but bigger firms offer over $90,000 for highly skilled and experienced candidates, particularly those with safety qualifications and experience, Hays found.

"In addition, in New South Wales and Victoria, higher vacancy activity has significantly drained the available pool of candidates and created a war for talent," James says.

"As a result, employers in these states have begun to offer higher salaries for senior warehouse supervisors, operations managers, transport managers and fleet managers and controllers."

Other findings from the 2019/20 Hays Salary Guide found:

  • 67 per cent of organisations offer flexible salary packaging. Of these, the most common benefit is salary sacrifice, offered by 55 per cent of employers to all employees. This is followed by above mandatory superannuation (offered by 37 per cent of employers to all their employees), parking (33 per cent), bonuses (27 per cent) and private health insurance (26 per cent)
  • of the benefits offered to a select few employees, private expenses tops the list, with 70 per cent of employers offering it to a hand-picked number of employees
  • 68 per cent of employers said business activity had increased over the past year, with 70 per cent expecting it to increase in the next 12 months
  • 57 per cent intend to increase permanent distribution staff levels over the coming year
  • 70 per cent say skill shortages will impact the effective operation of their business or department in either a significant (28 per cent) or minor (42 per cent) way, up from 67 per cent last year
  • 54 per cent of employers are restructuring to keep up with changing business needs – the key driver of these restructures is a change in the required skill sets
  • in skill-short areas, 57 per cent of employers would consider employing or sponsoring a qualified overseas candidate.

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