Recruitment firm Hays says 2023 will be the “year of the raise,” with a poll of over 14,000 employers and professionals revealing 66% of insurance industry bosses are planning to up salaries by more than 3% at review time, and almost all intend to offer some increase. 

Regional Director Kathryn Carson says both the number and value of salary raises will be higher this year. 

“We’re calling this the year of the raise. The promise of higher salaries reflects the intensity of the skills shortage in today’s jobs market,” she said. 

“With skills in demand you still have bargaining power, but it’s important to temper it to avoid pricing yourself out of consideration,” she said. "Margins remain tight. The commercial reality dictates that salary increases can only stretch so far.” 

Hays found only 11% of insurance employers said they would give a salary increase above 7%, while a little over half flagged 3-6%. Another 34% said the change would be just 0-3%. 

Meanwhile, two thirds of employees in insurance said a pay rise of greater than 7% was required to reflect their individual performance and demand for their skills and just 7% thought a salary change of 0-3% was reflective of their value. 

Motivating employers to increase salaries was competition for talent, falling real wages, greater pay transparency and more insurance staff asking. 

“Employees still feel they have bargaining power and are more confident to negotiate for better pay,” Ms Carson said. 

“Many employers find that the pipeline of skilled insurance professionals doesn’t meet their needs. As candidate supply continues to tighten, employers face increased pressure to proactively attract and retain talented employees.” 

Hays says benefits can bridge a financial expectation gap, and to stand out employers should consider opportunities for growth, wellbeing days, additional annual leave, improved recognition, work-life balance and a more positive work environment.  

Ms Carson also says an “abolition of pay secrecy in Australia” is prompting more employers to audit salaries, scrutinise disparities and make adjustments when required to ensure fair and equal pay.