Retail may be struggling, but the money has been flowing freely into employee's pockets over the past year, according to a recent salary survey.
The National Salary Survey 2011report by Australian Institute of Management (AIM) revealed that workers in large retail companies recorded average salary movements higher than those in the previous year.
Now in its 47th year, the AIM National Salary Survey 2011 (Large Companies edition) is based on the responses of 506 companies throughout Australia, covering over 250 job roles.
In regards to the retail sector, the survey noted that retail staff received an average pay increase of 4.53 per cent, higher than the sector’s 4.18 per cent average increase recorded in 2009/10, and well above the Australian average of 4.0 per cent.
However, AIM said this figure forecast to decrease to 3.82 per cent in 2011/12, which will make it the middle of the pack compared to all industry sectors.
AIM NSW/ACT chief executive David Wakeley also revealed that the tables are turning on employers, with the market moving in favour of employees, but said that savvy employers will find a way to retain top talent without excessive wage increases.
“A tightening labour market, skills shortages and the likelihood of a rate rise all point to a wages blow out if employers can’t find ways to keep good people without big wage hikes,” he said.
“For the past few years, it has really been an employer’s market but that is changing. Many staff who stayed put during the down turn are now on the hunt for new opportunities and bigger pay packets. And yes, many employers will have big cost pressures, so savvier employers are seeking creative ways to motivate people,” he said.
One of these incentives which can aid in staff retention is investing in training and development for existing employees. According to the AIM report, some companies have already caught on to this strategy.
AIM figures indicate that the majority (63.2 per cent) of large companies report having a formal training policy - up from 58.2 per cent in the 2010 Survey.
In addition, over one-half (59.9 per cent) of large companies report having a set training budget, with 42.9 per cent of these companies anticipating that the value of their budgets will increase over the next 12 months - up significantly from 33.8 per cent in the 2010 Survey. Only 6.3 per cent of large companies (with set training budgets) expect the value of their training budget will decrease over the next 12 months.
The report stated that large companies are also becoming increasingly flexible, in an effort to help attract and retain employees.
Compared to the previous year’s (2010) survey, a greater proportion of large companies in the 2011 Survey reported offering flexible work arrangements across all job levels.
According to Wakeley said this is a smart move for businesses, and retail in particular, which is facing a tough time ahead, may benefit from AIM's advice.
“Although pay will always remain an important factor, developing and implementing effective training, career development and succession plans at all levels across the organisation is key to attracting and retaining good people,” he said.