Pay increases in the property industry remain steady, with median annual pay rises to September 2014 at 3 per cent overall, according to the latest Avdiev Property Industry Remuneration Report.
“A year after the election, business and consumer confidence is sliding,” said Rita Avdiev, managing director of The Avdiev Group. “However, there is good news in the property markets. Fifty per cent of companies responding to the Avdiev Survey report doing better than a year ago.”
The Australia-wide survey of property, investment and construction employers and built environment-related consulting companies showed generally stable business conditions but divergence between market sectors. The survey revealed senior staff are bearing the brunt of pay freezes, pay reductions and lagging catch-up pay.
Among companies that carried out a restructure of products and services, 41 per cent reported a high impact on business activity. The introduction of a high-performance culture was beneficial, but old-school executives are said to be suffering.
Meanwhile, Avdiev said the push for higher pay seems to have abated, with employers reporting that employment security and regular salary are more valued by staff than uncertain bonuses. Short-term incentives are considered a reward for outstanding contribution, not a guaranteed bonus. In 84 per cent of companies long-term incentive programs have not changed.
“Improvement in business is sure to bring a renewed push for pay rises and employers have to be ready to respond,” Avdiev said. “They are focusing on succession planning to ensure they hire and develop staff who will earn their pay, contributing value to the organisation.”