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"Unmatched" skills shortage inflating candidates' pay expectations

Almost nine in 10 employers are set to increase salaries in the coming financial year, with skills shortages forcing many to offer "substantially" higher pay than planned, new research shows.

According to the Hays 2022-23 salary guide, 88% of employers will increase salaries in FY23, up from 67% last year, with 37% to offer increases of 3% or more, up from 12% in FY22 (but 51% plan increases of less than 3%).

And 77% of the more than 4,400 employers surveyed say skills shortages are forcing them to pay more than they planned, with 34% saying they've had to offer "substantially" higher salaries.

The skills shortage is at a level "unmatched" in Hays' 46 years in recruitment, sparking "deliberate salary increases" from employers, says Hays Australia and New Zealand managing director Nick Deligiannis...