Pay rise: Experts predict workers set for salary increase this year

Three recruitment experts reveal the workers most likely to get a significant pay rise in 2022. See if your job makes the list.

The Covid pandemic has given Aussie workers a shot of confidence, with new research revealing 55 per cent have become more comfortable asking for a pay rise since it began.

The exclusive figures from LinkedIn – released to support its Jobs Bootcamp webinar series running this week – show men (61 per cent) and workers younger than 45 (about 62 per cent) are feeling particularly confident.

LinkedIn news editor Cayla Dengate says Australians’ new-found comfort negotiating a higher salary is likely driven by two factors – the tighter labour market and stronger workplace relationships that have been nurtured during the pandemic.

“Australians are feeling confident looking for that next job,” she says.

“But people also feel more confident talking to their boss and asking for a promotion, which has to be one of the most nerve-racking things in a career and you need a good relationship with your boss to ask for that.”

LinkedIn’s Cayla Dengate says the pandemic has produced an unexpected silver lining. Picture: Supplied

SO, WHO IS GETTING A RAISE?

Indeed’s economist for the Asia Pacific region Callam Pickering says demand for talent is so high right now that wages can be expected to rise across almost every occupation in 2022.

“The current labour market is very favourable to jobseekers, providing greater bargaining power to ask for higher wages or better conditions,” he says.

Still, some occupational groups are better positioned than others:

CYBERSECURITY

As more businesses move operations online and adopt cloud-based software, Robert Walters NSW managing director Andrew Hanson, says the need for cyber experts has swelled significantly.

“This growing demand has coincided with a lack in new talent driven by 2021’s border closures, creating a perfect storm across the mid to senior levels of the technology market,” Hanson says.

Robert Walters 2022 Salary Survey predicts the median salary for ethical hackers and penetration testers will increase 23 per cent compared to last year (a $37,000 rise).

Other IT professionals on track for significant salary growth, according to Adecco Australia managing director Kevin Alexander, include UX/UI (user experience and user interface) designers, data analysts, data scientists and cloud computing experts.

“Software engineers and developers will always be in high demand and the overall sector has seen increases in most roles,” he says.

ACCOUNTING & FINANCE

Hanson says restricted migration has left the Australian market extremely candidate short, driving a rise in salaries as organisations compete for the same talent.

“Candidates with a blend of commercial and analytical experience will be in particular demand in 2022, as organisations increasingly seek to understand and utilise data and battle to secure finance experts with business intelligence skills,” he says.

The median salary for financial controllers and financial planning and analysis heads is forecast to rise 19 per cent ($30,000).

Indeed’s Callam Pickering says demand for talent is good news for wages. Picture: Supplied

PROPERTY, INFRASTRUCTURE & ENERGY

Demand for candidates with experience in planning and front-end investment decisions has increased as governments focus on infrastructure projects and skilled expats return to their country of origin.

“As organisations fast track shovel-ready projects and reach key business milestones, competition for engineers is expected to heat up,” Hanson says.

The median salary for project managers is predicted to jump 12 per cent ($30,000).

HUMAN RESOURCES & SAFETY

Hanson expects high demand for organisational design and development consultants that can future proof organisations.

“Restrictions on movement left candidates in control as they carefully considered multiple job opportunities in an already limited talent pool in 2021,” he says.

A median salary increase of 11 per cent is forecast for organisational development managers (up $17,000).

LEGAL

As businesses assess new opportunities for recovery and growth from the disruption of the pandemic, Hanson forecasts a thriving recruitment market for in-house commerce lawyers skilled in drafting, negotiating and reviewing commercial contracts.

In-house counsel with six years of post-qualification experience can expect a median salary increase of 6 per cent ($10,000).

Andrew Hanson, of Robert Walters NSW, predicts cyber security professionals will have the most leverage. Picture: Supplied

SALES & MARKETING

Alexander says these areas have not had significant pay increases for many years but this is turning around.

“Due to talent shortages, candidates are commanding higher salaries and they are getting them,” he says. “We will continue to see a rise in salaries for these roles throughout 2022.”

RETAIL & RESTAURANTS

Pickering predicts wage pressures will emerge as businesses have extreme difficulty sourcing staff.

“One of the main reasons is because the number of Australians under 35 has fallen sharply during the pandemic due to border closures,” he says.

“More generally, any occupation or industry that relies on young people may need to increase their wage offerings substantially to attract candidates.”

HEALTHCARE & AGED CARE

Again, demand for workers is greatly outstripping supply.

“These industries consistently experience higher-than-average wage growth and I’d expect that to be the case in 2022 as well,” Pickering says.

Alexander, however, says although these sectors are booming, many workers are covered by awards and EBAs (enterprise bargaining agreements) that stipulate pay levels.

“Transport and logistics is another booming sector however in some cases, truck drivers and other positions are also covered by awards,” he says.

“We foresee EBA negotiations will begin to occur in 2022.”

HOW TO ASK FOR MORE MONEY

SOURCE: Nada Wassef, HR business partner, Intuit QuickBooks Australia

*Prepare by framing your role, and what you love about it.

*Write clear points on how you have improved and gained new skills; and exceeded and delivered your core responsibilities – not just KPIs but your contribution to a positive and engaging culture.

*Have industry salaries on hand to justify what you are asking for.

*Gather feedback from stakeholders and suppliers to demonstrate the value you bring.

*Be transparent when requesting the meeting.

*Remain positive and focus on facts.

*Keep an open mind.

*Be patient when waiting for a response.

*Prepare for different outcomes – if you can’t get a pay rise at this time, this is an opportunity to learn where your competency gaps may be.

*Ask your manager for a growth plan and have ongoing discussions – e.g. a one-on-one each month covering how you are tracking against your current role versus any aspirational goals.

*Ask your manager about ongoing development and mentoring opportunities.

Originally published as Pay rise: Experts predict workers set for salary increase this year