The top 3 strategies for pay reviews
As a leader in the property industry, you understand just how important it is to attract and retain the best in the field. Although the pandemic emergency has been officially declared over, the impacts are still being felt across the industry – add to that the rising cost of living, a skills shortage and the desire for a better work life balance, remuneration reviews are more important than ever.
Providing up to date and in-depth data on the property sector for over 35 years, the Avdiev Report team gives valuable insight into the top 3 things businesses need to consider when heading into your 2023 remuneration reviews.
1. Understand how you stack up in the current job market
There’s a reason benchmarking is a standard practice amongst the business savvy, knowing where your business sits in the market means you understand how you compare to others in the industry and how you are seen by current and potential employees.
In 2022 the broader economy raised its wages by 3.6% compared with the property industry which climbed by an average 5%. With the latest Avdiev survey forecasting a continued 5% median growth across all property sectors throughout 2023, understanding the numbers puts you at an advantage in being seen as an employer of choice.
If businesses are offering employees the standard wage increase of 3.7% (WPI for March 2023) when their competitors are offering the industry standard of 5% they could be left scrambling to replace their valuable team members. With the March CPI increase at 7%, many employees are keeping a closer eye on numbers.
2. Know the current landscape you’re operating in
With the Secure Jobs, Better Pay Act 2022 introducing changes in stages up until December this year, it’s important to understand the current climate in employment. With Australia’s unemployment rate at 3.6% in April of this year, businesses are feeling the impacts of vacancies being harder to fill.
Low unemployment rates coupled with legislation changes, mean that wage expectations are being pushed higher and higher. Under the Act, changes to fixed term contracts will be introduced and pay secrecy policies will be abolished, giving employees greater negotiating power.
3. Balance the business needs with what’s important to your staff
As important as retaining staff is, ensuring the books are balanced is equally important. The current economic climate hit the property industry hard, with 29% of companies reporting that 2022 was worse for business than 2021 – and almost 1 in 7 expecting the decline to continue during 2023. With mandated increases to 11% superannuation contributions, the pressure to control overheads is significant.
Although money talks, there are other factors employees will be weighing up when it comes to where they choose to work. The Secure Jobs, Better Pay Act 2022 will have companies with over 100 employees reporting their gender pay gap by 2024. Paid parental leave is set to increase to 26 weeks over the coming years and will see parents encouraged to break up the parental leave in a way that suits their families best. The Act also mandates proactive action against sexual harassment in the workplace with a focus on creating safer workplaces for all employees. With these changes on the horizon, employees will be closely watching companies attitudes towards the changes, and voting with their feet if they feel their values don’t align.
Where to from here?
With so many changes to consider, what can property businesses do to remain competitive and retain their most valuable asset? While there are many approaches, our research tells us there are 3 key strategies the property industry are investing in.
- Offering non-monetary benefits
With many factors to consider in terms of balancing the books, our survey respondents have taken to offering appealing non-monetary benefits with the below being some of the most highly rated.
- Flexible work arrangements
- Building a strong team culture
- Becoming an industry recognised employer of choice
- Professional development opportunities
- Clear career progression pathways
- Additional super benefits
- Additional parental leave schemes
- Wellness programmes such as Fitness Passport
- Know what’s important to the team
Understanding the workforce is important for a variety of reasons, but in an industry feeling the impact of staff shortages, its crucial to understand what’s most important to the team. Knowing what staff value will help craft your communication regarding how the company plans to adopt upcoming changes.
- Keep up to date to become an employer of choice
The best companies are informed ones. Positioning yourself as an employer of choice requires intentional strategy and up to date data on what’s happening across the sector. Businesses that keep their finger on the pulse with changes in the industry and remain up to date are seen as current and appealing by employees. Being ahead of the game means being proactive instead of reactive which is reassuring for employees.
Conclusion
The best property businesses have an informed and up to date retention strategy. When balancing the books, it’s important to weigh up the cost of recruiting and training new staff with what can be offered to existing staff. Attracting and retaining talented employees requires a multifaceted approach that goes beyond monetary compensation. By offering a workplace environment that promotes flexibility, fairness, and safety, and considering the diverse needs and aspirations of employees, businesses can position themselves as a preferred employer in a sector navigating a significant skills shortage.
