Wages and salaries are predicted to increase over the next year, in line with the demand for highly skilled and executive talent, according to the Supply Chain and Logistics Employment Market Survey (EMS) Report.
The 2011-12 EMS Report found that almost 41 per cent of respondents received pay increases of more than 10 per cent, compared to just over 22 per cent in the previous survey.
This was the fifth consecutive study conducted by global search and recruitment company, Logistics Executive, and received almost 4,000 respondents worldwide.
According to Logistics Executive chief executive officer Kim Winter, the EMS report highlighted key issues that have influenced the international supply chain and logistics industry during a period of significant economic uncertainty in the northern hemisphere and continued growth in key southern hemisphere markets.
Business growth trends continue; some slowdown expected
More than two-thirds (67 per cent) of this year’s survey respondents indicated there had been business growth during the previous year, the report found. This is a similar result to last year, indicating consistent growth across most markets surveyed.
Predictions for growth over the next 12 months are down slightly, with just over 75 per cent of respondents predicting growth compared to 80 per cent previously.
“Approximately 16.5 per cent of this year’s respondents said they expected business levels to remain static,” Winter said.
Continued upward pressure predicted for salary wage levels
Wages and salaries are expected to increase relative to demand for executive talent, as well as the expectation of continued economic growth, particularly in key markets across the APAC region, the survey found.
“Upward pressure on remuneration packages is particularly felt in the areas of highest economic growth such as North Asia, South East Asia, and the Indian subcontinent,” Winter noted.
“Australia continues to experience a ‘two speed’ economy with the continuing resources and energy boom driving double-digit growth in Western and North Eastern Australia, leading to significant executive talent shortages across the wider supply chain. While other areas of the country and sectors of the economy experience slower single-digit growth,” he said.
This year, almost 41 per cent of respondents received pay increases of more than 10 per cent – up almost 20 per cent on the previous survey’s findings.
In addition, almost 52 per cent of those surveyed are expecting salary increases of 10 per cent or more in the year ahead by comparison to just over 48 per cent previously. The results suggest continued upward pressure on salary and wages.
Career development drives relocation
While career development remains the highest driver of employment decisions in the 2011 results at almost 27 per cent, salary follows closely in second at almost 21 per cent.
Job security and company values follow, at 15.3 per cent and 15.2 per cent respectively. These four drivers outweigh all of the other results, and are the most important reasons as to why people join organisations, the report said.
Relocation for Career Development continues to rank highly, with almost 94 per cent of the total respondents indicating they would relocate for work and almost 54 per cent indicating they would relocate internationally if the opportunity arose.
About one third of respondents indicated career development was their sole reason for relocation, followed by 21 per cent who relocated for salary considerations.
These results reinforce previous year’s survey findings that employees continue to change roles more for personal development than salary considerations.
Corporate social responsibility (CSR) focus maintains momentum
“Our previous survey results have shown that respondents consider corporate social responsibility (CSR) is a key business consideration,” Winter said.
“This year’s results indicate CSR continues to be a priority, with about three quarters of those surveyed identifying this issue as a focus within their organisation, continuing the upward trend shown in each year since our first survey in 2006,” Mr Winter said.
Executive talent shortages seen as a major challenge
Chief executives and directors surveyed were asked to identify the key challenges to their businesses for the 12 months ahead, results showed that the rankings were:
- profitability,
- customer satisfaction,
- productivity,
- leadership management,
- sustainability,
- retaining talent,
- financial restraints, and finally,
- attracting talent.
When asked to identify external factors they expected to impact their business in the next 12 months, chief executives and directors predicted the most important factors would be:
- financial markets,
- executive talent shortages, and
- fuel prices, followed by
- the economic slowdown.
Image: from the Logistics Executive website