INTOUCH : But pay expectations flat

Remuneration expectations for most professional and management roles remain subdued, according to new research in the contracting and permanent employment sectors.
A survey of more than 3600 contractors by contracting specialist Crackerjacks shows diminished pay expectations by respondents working in management, sales and marketing. In the next six months, management contractors expect hourly rate decreases of around two percent. In marketing, the decrease in contract hourly rates is expected to be around three percent, while sales contractors expect an 11 percent decline. However, accounting and IT contractors expect hourly rates that are between four and six percent higher than six months ago.
Crackerjacks managing director Tony Wai says accounting and IT contractors are experiencing an increase in project work. “In the current economic climate, many organisations require specialist financial and IT expertise to assist with cost-saving initiatives.”
In the permanent employment market, remuneration specialist Jarrod Moyle says that after several years of relatively high base salary increases, managers and professionals have seen the brakes applied to pay in 2009.
“Our remuneration data is continously updated through our online portal, Rem On-Demand,” says Moyle. “There has been no movement at all in median base salaries for management and professional roles over the past six months.”
However, the findings from the contractor research could well be an indicator of what will occur in the permanent sector next year. “There is greater mobility in the contracting market, and remuneration changes are felt in this sector first. It’s likely that permanent remuneration will follow these same trends over the next six months.”
Crackerjacks and Rem On-Demand are collaborating on new pay index that will track the link between permanent and contract remuneration. “The way people work is becoming more flexible, and that’s blurring the structure of roles and their remuneration,” says Wai. “Having relevant data about trends in both permanent and contract employment is essential to make the right decisions in recruitment and retention.”