Property industry remuneration grew at strong pace: Avdiev

Property industry remuneration grew at strong pace: Avdiev
Property industry remuneration grew at strong pace: Avdiev

Remuneration in the property industry has grown better than the general workforce, according to a recent report by remuneration consultant Avdiev.

The latest Avdiev Remuneration Report 2017 is a product of a formal Australia-wide survey of property, investment, development and construction employers and design and building consulting companies, finds that junior staff have been the winners in the pay stakes again.

It also reflects improving business conditions. There has been a significant expansion of pay rise ranges, with salary rises in the Property Investment and Funds Management market sector ranging from 1.8% to 12% and 1.5% to 16% in Property Development. Even the Retail sector, enduring challenging times, had to give rises to its productive and successful staff, especially in leasing.

This is in contrast with the 1.8% increase for the year to May 2017 (ABS) for the general workforce and a CPI uplift of 1.9% to June 2017.

“You can’t keep a busy property industry down” said Rita Avdiev, managing director of The Avdiev Group, remuneration consultants.  

“It’s getting better all the time, but good times bring with them talent shortages, headhunter attacks on desirable recruits with outrageous offers to move. Both old and young are targets. Loyalty flies out the window when you’ve been left behind and a 20% pay rise is on offer with a rival.”

The benign business conditions are industry wide. Only 3% of subscribers reveal doing very badly, and only 5% worse than last year. 

The others report ongoing stable business conditions doing well.

The median annual pay rises have varied since last year by seniority of staff. 

Juniors are ahead, being tech savvy, energetic, open to new ideas, systems and processes.

Following the push for gender equity in the industry women are at last being recognized as valuable employees with contributions and skills to match and complement their team members. There is a shortage of women recruits, and companies are going to great lengths to get them on board. But gender pay equity and early promotion are still scarce.

“What comes next?” asks Rita Avdiev. Every year the forecast for the next pay review remains modest and subdued.

But reality bites with the prospect of team dislocation and continuity disruption. NSW building and construction staff are prime targets. “Sourcing young talent from competitors has become a blood sport” she says. 

“When you are faced with making counter offers to staff being lured away by headhunters with promises of mega rises in salaries and ready or not promotions, the threat loosens purse strings and the pay goes up.” 

All sectors are targeted. Companies with foresight have already raised salaries and bonded their staff into competent and productive teams where the sense of achievement is a significant part of the reward.

Tags: 
Wages Growth Real Estate Market

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