More employees in the resources sector will receive a pay rise this year compared to last, but it will be much less than they hoped for.
A total of 88 per cent of, or seven per cent more mining, resources, energy, oil and gas industry employers will increase salaries in their next review, according to the 2019/2020 financial year Hays salary guide.
The value of these salary increases however, will fall, with the majority raising it at a lower level of three per cent or less.
Only five per cent of employers intend to give pay increases of more than six per cent, despite 68 per cent of employers saying business activity had increased over the past year.
“The aggregate effect of several years of sedate salary increases is taking its toll and we’re now seeing a tug of war over salaries,” Hays Resources and Mining regional director Chris Kent said.
“On the one hand, we have professionals telling us they’ve prioritised a pay rise and are prepared to enter the job market to improve their earnings.
“On the other, employers tell us they want to add to their headcount and are being impacted by skill shortages, yet they plan to curtail salary increases for now because they don’t want to pay the soaring salaries that we saw during the last boom.”
Despite the salary outlook, staffing demand and salaries will continue to rise in Western Australia where the mining industry is at the centre of skill shortages.
Mining and resources employers who compete with other industries for talent will also attract candidates with pay, particularly for the roles of quarry workers in Victoria, and boilermakers and dump truck operators in Queensland.
A high demand for exploration geologists and field assistants will drive a salary hike for those with underground experience.