setting a competitive salary and benefits package
Competitive salary and benefits is the top reason to choose an employer in Australia, according to respondents across all demographic subgroups, who took part in the ‘Randstad Employer Brand Research 2018’.
Two basic factors govern how much salary a role attracts: what skills are needed, which helps establish likely salary costs; and how that salary links to existing pay grades and/or negotiated agreements.
If an organisation grades its jobs, the job band will be the starting point for establishing the salary (see chapter 15). You should also check whether the employee is award or agreement-free and consider any trade union agreements.
Figures from the Australian Bureau of Statistics (ABS) in 2016 show the Australian Wage Price Index rose by only 1.9%, far below the rate of inflation and the lowest growth since at least the 1990s. Employers must not ignore the impact on employees. Rapidly increasing expenses and sluggish increases to wages put the pressure on employees. It makes it more effective than before to attract employees by offering higher than normal wages. Information about salary rates can be found through the ABS and PayScale, or by conducting pay surveys with comparable organisations. Randstad consultants can also advise of rates for specific roles at different levels of experience in your area and sector, please contact us here for further information.
People expect their salary and benefits to be fair and competitive: the Fair Work Act covers the minimum requirements that must be adhered to by employers. Under the Act, whatever way the employer approaches pay, staff must be paid at the same rate for similar work or work of equal value regardless of gender or any other personal differences.
more articles about: finding candidates
- how do I find the people I need in a challenging marketplace?
- building a resourcing strategy
- setting a competitive salary and benefits package
- flexible work is high on the agenda
- deciding on the right recruitment channel
- creating a balanced and diverse workforce
- challenging times
- the passive candidate
- employee value propositions
- candidate resourcing strategy
- preparing for recruitment
- job and person specifications
- salary and benefit determination
- competency frameworks
- recruitment channels
- creating a job advertisement
- working with recruitment agencies
- methods of recruitment
- managing applications: CVs or application forms?
- the Privacy Act