In what represents an encouraging sign for Australia’s travel sector, 60 per cent of respondents participating in the 2010 TMS Asia-Pacific Australia Travel and Hospitality Salary Report indicated they received modest pay increases in the last 12 months.
TMS CEO Andrew Chan said the figure was a major improvement over the 2009 survey result which saw 46 per cent of respondents receiving an increase.
Adding to the positive, Mr Chan said employees not only received increases, a further 14 per cent of all respondents indicated they had seen their salaries rise by more than six per cent across the 12-month period.
“This is certainly indicative of an increase in business confidence within the sector over the last 12 months,” he said.
However, while employees’ hopes of salary increases appear to be improving, Mr Chan said career progression, as in previous years, remains a dominating factor for many.
“It is surprising to see that 61 per cent of respondents indicated that career progression was either ‘important’ or ‘very important’ this year with 58 per cent rating their career progression opportunities with their current employer as ‘fair’, ‘poor’ or ‘none’,“ he said.
“This is a marked difference from the just 27 per cent who indicated career progression as ‘very important” in 2009 and is in fact more reflective of the 2008 survey result,” he said.
“What this does say is that the majority of employees in a post-GFC climate seem to feel that they need to move companies in order to benefit from career progression seemingly unavailable with their current employers.”
Not surprisingly Gen Y respondents were once again identified as the keenest for career progression while older employees, with mortgages and families to feed, placed greater importance on salary.
“Dynamic Gen Y-ers are in high demand and they know it!” Mr Chan said.
“New marketing techniques such as mobile apps and social media are on the rise and the younger generation with these skill-sets is becoming increasingly sought-after.
“In order to retain this high-end talent, employers need to match the Gen Y-ers’ increasing salary expectations, as well as their career ambitions. Otherwise, they could be left behind.”
In conclusion Mr Chan said the signs point to 2010 as having seen an upturn in fortunes for employees in Australia’s tourism industry.
“Once again the salary report has provided a unique statistical view of the sector’s labour market while at the same time offering an invaluable insight into the mindset of industry personnel.
“The recovering economy and increase in job opportunities has undoubtedly led to a more positive outlook for candidates and employees in the country.
“But what has it meant for employers?
“A return to the pre-GFC ‘war for talent’ appears to be empowering many employees and particularly the younger generation, leading them to place a greater importance on salary while continuing their desire for career progression – whether it will be with their existing company or another.
“But once again we are seeing panic as employers once again find themselves in an environment where an over abundance of available jobs has again begun to outstrip the supply of appropriate candidates.
“The sector once again needs to address this renewed challenge and implement progressive HR strategies designed to both retain employees and attract candidates if employers are to overcome this issue.”
More than 800 industry personnel took part in the 2010 survey which was collated across November and December.
Respondents ranged from company CEOs, managing directors and general managers through to middle management and front line consultants
Source = TMS Asia Pacific