Despite 40 per cent of businesses expressing confidence in the economy over the next year, and 68 per cent predicting increased business activity, employees shouldn’t expect to see a little extra something in their pay packets according to international recruitment specialists Hays.

In a survey of over 1,600 employers, the Hays Salary Guide found that most employers are planning salary increases of less than 3 per cent over the coming 6-12 months.

In our 2012 survey only 27% of employers believed the economic outlook was strengthening but we have seen that group grow to 40% in our 2013 survey against a backdrop of continuing low interest rates and the recently falling Australian dollar,” says Nick Deligiannis, Managing Director of Hays in Australia and New Zealand. 

“And 68% expect business activity to increase for their particular organisation over the coming months,” adds Mr Deligiannis.

“Only 8% of the employers surveyed for the Hays Salary Guide plan to keep salaries on hold compared to 11% in 2012 but looking ahead salary growth will be modest despite the expected growth in confidence in the economy,” he says.

Released earlier this week, the guide outlines salary and recruiting trends for more than one thousand roles across 14 locations in Australia and New Zealand.

Of the employers surveyed, 57% plan to increase salaries by less than 3% in the next salary review period. A further 32% of employers will increase salaries by 3% to 6%, 2% plan increases of 6% to 10% and only 1% plan pay increases of more than 10%. 

“Employers will need to manage employee expectations around salary increases carefully and ensure that their top performers feel rewarded if they want to retain their best staff,” Mr Deligiannis said.

The full salary guide can be found here