Professionals poised to receive pay boost in 2023: Morgan McKinley

Employers across Australia are bracing for challenging labour conditions in 2023, with 63% expecting to lose staff to salary competition with other firms.

The research, undertaken by global talent services company Morgan McKinley as part of its 2023 Salary Guide, revealed 59% of employees in Australia were looking to secure new jobs over the first half of the year.

Of those searching for greener pastures, 39% said they were motivated by the potential for a ‘higher salary’, while 15% cited ‘better career growth and development opportunities’.

To prevent staff turnover, employers were offering higher wages, with 67% breaking the bank to attract new employees over the past 12 months.

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Moreover, 77% of employers in Australia expected salaries to increase across their sector of operation in 2023. Some 36% planned to increase base salaries across all teams. 

The Morgan McKinley research also found 68% of businesses planned to hire new permanent, contract or temporary workers in the next six months.

Meanwhile, less than half (48%) of Australian employees said they expect a salary boost this year, with 33% also expecting some form of bonus payout.

Reflecting on the research, Dominic Bareham, managing director of Morgan McKinley Australia, said the labour market in Australia remained “buoyant” against the backdrop of a strong economy.

“The appetite to hire top talent shows limited signs of weakening in the future, and professionals are showing a propensity to change roles,” he said.

“All businesses in every sector are moving towards setting up processes within a legislative environment that is changing, and requires talent to make it happen smoothly.

“With demand largely outweighing the supply of permanent talent, the hiring of contractors will remain prevalent, particularly for roles across technology, transformation, risk, and projects.”

Bareham said companies know current market conditions provide current and future employees with extra bargaining power.

“Most companies are acutely aware of it being a candidate driven market in which salary packages can easily become inflated, however they have tried to be firm on not hiking salaries and getting out of step with existing bandings,” he said.

“In many markets where a skills shortage remains, candidate attraction and retention will be key, as will a focus of stability and offering benefits outside of high salaries.”