While 5% of employers will offer pay rises of more than 6%, this has fallen from last year.
Deligiannis says sedate salary rises across most industries are at odds with other trends.
“For instance, employees are responding to rapid technological change by investing in their own skills development,” he says.
“They’re also more productive thanks to technology. Add the number of employers who say business activity has and will continue to rise, and such small salary increases will test the loyalty of employees.”
In all but rare instances, supply and demand has failed to influence salaries, he says.
“But Australia’s strengthening economy, rising business activity, growing headcounts and skill shortages cannot be overlooked for too long.
“The piercing question, then, is how high will turnover reach before typical salary increases climb above 3%.