More energy professionals can anticipate a pay rise this year, however it’s being projected the increase will be far less significant than they hoped for, according to the FY 2021-22 Hays Salary Guide.
Released in May and based on a survey of close to 3500 organisations, the guide reveals 65 per cent of energy employers will increase salaries in their next review, up from the 37 per cent who did so in their last review.
However, just 11 per cent are expected to award increases of three per cent and above. Instead, more than half—54 per cent—intend to raise salaries at the lower level of three per cent or below.
Of the energy professionals Hays spoke to, 76 per cent say a raise of three per cent or more would better reflect their individual performance. Further, 81 per cent said they are currently looking for a new job, plan to look or are open to new opportunities in the next 12 months, with a lack of promotional opportunities, poor management style or workplace culture and an uncompetitive salary cited as being the main drivers.
Hays Energy regional director Austin Blackburne said the value of salary increases is driving a wedge between employers and employees.
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“On the one hand, we have almost two-thirds of energy employers intending to increase salaries in the year ahead, which is a remarkable sign of the confidence employers exhibit today,” he said.
“On the other, professionals say the value of these increases is far less than they deserve. This is creating a gap between what employers will offer and employees say they are worth.”
“This divide must be managed sensitively if employers are to retain staff and attract new talent in short supply.”
Mr Blackburne said there are several ways in which to overcome this gap, however one strategy stands out above the rest.
“After a year in which many skilled professionals put career plans on hold, they are focusing once more on their long-term goals,” he said.
“Our data shows learning and developing new skills is now more important that a pay rise.
“A lack of promotional opportunities is also the primary factor driving professional into the jobs market today. This makes reinvesting in career progression pathways and staff development a sensible strategy for the year ahead.”
