Property companies froze salary increases in 2012

Just over a third of Australian property companies enforced pay freezes in 2012, while 6% cut remuneration rates in 2012, according to the Avdiev Property Industry Remuneration Report.

The report found 60% of property companies increased remuneration levels but at a median rate of 3% - above a 2.2% CPI rise but below the 3.5% figure for the general workforce found by the Australian Bureau of Statistics and below the median figure of 4% for the industry in 2011.

The report found staff retention through remuneration is a major concern for the property industry.

After four years of austerity in the property industry employers are looking for ways of retaining staff, says Rita Avdiev, managing director of the Avdiev Group.

“They have to balance this with managing business costs – how to determine the right remuneration increases while keeping salary expenditure under control,” she says.

The report found business conditions have remained on a plateau since 2011, with companies worried about tight margins, fierce competition to win projects, ongoing company bankruptcies and uncertainty about near term business conditions.

“However there is growing unrest among loyal employees whose pay has been left on hold for some time,” Avdiev says.

“They have been very patient for a long time, but their patience is running out. Clients who are commissioning in-depth reviews for key staff express concern about the team’s willingness to stay loyal without a serious uplift in salaries and incentives”.

And the report found women’s participation in industry dropped in 2012, down from 42% to 40%.

“The general sentiment in the industry is slowly lifting, but companies are determined to wait and see what happens next,” Avdiev says.

“The upcoming election is weighing heavily on any decisions that could be made in more certain times. Everyone is waiting for someone else to make the first move, but no one is taking that crucial first step.”

The Avdiev Report is for sale containing results from 120 companies who have contributed salary data for their 17,500 employees in 280 positions across NSW, Victoria and Queensland.

Photo by Paul Dunleavy, courtesy of Flickr.