In-demand sectors like Engineering and IT are paying premiums of up to 22 per cent for top talent, according to Mercer’s 2022 Total Remuneration Survey 

Australia, 16 November, 2022

Mercer’s annual remuneration survey, Total Remuneration Survey (TRS) released today, revealed the current job market is ripe for candidates and new hires looking to boost their remuneration packages.

TRS is the world’s largest and most comprehensive source of compensation and benefits market data, representing a broad range of industries from more than 1,000 employers across the country.

This year’s findings reveal that jobs within information technology (IT), sales and marketing and engineering are offering premium compensation packages for hard-to-fill roles.

For example, new manager hires in project engineering are being offered a staggering 22 per cent higher average starting salary than those already in the role. In IT, new hires in senior applications development roles are receiving between 13-16 per cent more in base salary on average, highlighting the significant premium organisations are willing to pay for top talent.

Chi Tran, Head of Market Insights and Data for Mercer Pacific’s workforce consulting practice said that the increasingly competitive talent market means it is more important than ever employers review their approach to remuneration and benefits.

“Voluntary attrition is rising to its highest point in five years,” Ms Tran said.

“When you consider the fact that sectors such as IT and engineering are offering higher-than-average base salaries for new hires, it is easy to understand why we’re experiencing such movement in the market,” she said.

However, according to Ms Tran, what people are expecting from their employer goes beyond salary.

“We know that for most employees, it’s never been all about the money. Even today, notwithstanding the current economic climate and war for talent, employers must continue to take a holistic approach to the employee experience that understands and responds to their employees’ appetite for different rewards and benefits,” Ms Tran said.

Mercer’s recent Salary Movement Snapshot Survey (which sits aside TRS) also found that despite the current cost of living pressures facing employees, just one in five (22 per cent) organisations are planning to factor inflation into their 2023 salary budgets, and half are yet to determine whether the rising cost of living should play a role in setting remuneration. In light of these findings, Ms Tran urged employers not to discount the value of non-financial rewards and benefits as a differentiator.

“Rising inflation is causing businesses to assess operating costs across the board, including the costs of delivering benefits programs. But these programs shouldn’t be on the chopping block. Employers should be flexible in exploring valuable tools that drive productivity and support their people”, she said.

“From financial guidance counselling to caregiver benefits, parental leave policies to corporate discount programs, there are many ways to attract and retain high-performing talent without blowing out remuneration budgets.”

Key findings from the Total Remuneration Survey include:

• Australian employers are planning for a median salary increase of 3 per cent in 2023 across a range of industries, unchanged from 2022.
• Sectors forecasting the biggest salary growth in 2023 were technology (3.4 per cent to 3.5 per cent from 2022 to 2023) as well as life sciences and mining and metals (3.0 per cent to 3.5 per cent from 2022 to 2023). In addition, the retail and wholesale sectors saw growth of 3.0 per cent to 3.3 per cent from 2022 to 2023, while jobs in the manufacturing and chemicals sectors continued to display 0.2 per cent salary increases year to year.
• More than 36 per cent of Australian organisations reported increased employee turnover as an issue this year, compared to 16 per cent in 2021.
• 64 per cent of organisations reported having difficulty hiring or retaining employees in certain roles, compared to 43 per cent in 2021. 

The Total Remuneration Survey (TRS) is the world’s largest and most comprehensive sources of compensation and benefits market data. Representing a broad range of industries, the 2022 Australia Total Remuneration Survey delivers current insights on pay for employees across all skill levels and career streams.

With more than 1,000 organisations participating in the survey, there is a clear indication that organisations continue to rely on the value of relevant salary market data to make informed and strategic decisions.