Fifty per cent of Australia’s resources and mining – including oil and gas – employers will give their staff a pay rise of up to three per cent in their next review, but 35 per cent will not increase salaries at all, says recruiting experts Hays Oil & Gas.
The annual Hays Salary Guide, released today (Thursday 1st June) and now in its 39th year, shows that 12 per cent of employers intend to award a salary increase of between three and six per cent.
Just three per cent of employers will increase salaries at the higher level of more than six per cent.
The Hays Salary Guide is based on a survey of more than 2,950 organisations, representing 3,021,984 employees, as well as placements made by the recruiter.
“Despite the lack of new projects in Western Australia and an abundance of available candidates, the outlook for the oil & gas industry is mainly positive due to the increased price of oil over the last 12 months,” says Austin Blackburne, Regional Director of Hays Oil & Gas.
“Base salaries have remained the same or increased slightly in anticipation of growth and a period of increased production. In saying that, employers have been cutting back on bonus structures and incentives.
“In Queensland, the market remains tough although there are some modest signs of improvement with the demand for domestic gas likely to aid the industry’s rebound. Salaries remain flat in Queensland.
“Over in South Australia, and following another tough 2016, headcount levels and salaries have promisingly remained steady so far in 2017.
“Meanwhile Victoria’s oil and gas sector remains relatively stagnant, which in global terms could be considered somewhat of an achievement. We have seen levels of redundancies decrease and a much more positive outlook from candidates and employers alike.
“Across these states, we are also seeing certain skills becoming in demand once more,” he said.
Other findings from the Hays Salary Guide include – across all industries:
- Business activity increased for 70 per cent of employers in the past 12 months, while three-quarters (75 per cent) expect it to increase in the next 12 months;
- 36 per cent foresee a strengthening economy in the coming six to 12 months;
- 45 per cent expect to increase permanent staff levels, far exceeding the 11 per cent who say they’ll decrease;
- Meanwhile 23 per cent expect to increase their use of temporary and contract staff, also exceeding the 9 per cent who anticipate decreasing in this area;
- 23 per cent now employ temporary and contract staff on a regular ongoing basis and another 44 per cent employ them for special projects or workloads;
- In the last 12 months, 15 per cent of Australians asked for a pay rise but were declined – a further 17 per cent asked for a pay rise and were successful;
- The success of the latter perhaps explains why 45 per cent say they intend to ask for a pay rise in their next review. A further 24 per cent are as yet unsure.