According to Hay Group’s 2012 annual salary movement index, while many Australians could expect a pay rise over the next year, the notable finding was that those working in the resources sector in regional areas would reap the best financial gains.
The report, released today, also shows that the boom in the west for mining, oil and gas is expanding the pay gap variance with the rest of the market.
Hay Group senior consultant Steven Paola said salary movements over the past 12 months pointed to the increasing gap between those who were employed in the resources sector and those who were not.
“The pay gap between the resources sector and the rest of the market has widened dramatically, mirroring the trends in the patchwork economy which is currently seeing some sectors struggling while others enjoy boom times,” he said.
While the resources sector was far outweighing others when it came to providing financial rewards, the financial services sector has remained resilient, with the industry experiencing a 5.7% increase in total annual reward over the past 12 months.
Meanwhile, salaries in the insurance, building materials and retail sectors were 3-10% below the national average, which Paola said created a challenge for the sectors to retain talent and drive productivity.
On a global scale, however, Australia is faring the best.
“The global view is very positive, with Australian salaries sitting higher compared with other advanced economies and also against emerging economies which are experiencing the fastest rate of growth,” Paola said.
Factors driving an increase in Australian salaries include the rising cost of living pressures due to the relatively strong Australian dollar, gradual tightening of the employment market and significant growth in the resources sector.
“The ASMI report shows that Australian salaries are one of the highest worldwide across all job levels, however, we have to take into consideration that the cost of living in Australia is much higher than cities in emerging economies,” Paola added.
This article first appeared in ILN's sister publication MiningNews.net.
