Maxumise/HRmonise – Australian Salary Curves 2018 – 2019
By Max Underhill from Maxumise Consulting Pty Ltd – August 2018
Well Scott Morrison tried hard to talk up salaries and wages while he was treasurer, with little success, so what will he try now he is PM. These predictions were the most difficult we have every experienced despite a mid-term review earlier in 2018.
While the politicians and Reserve Bank of Australia (RBA) talking up the need for increased base salaries and wages, generally the 2017-18 salaries did not grow at the “budget forecast” rates. The exceptions were the top-end positions in sectors where remuneration is in, or above the top quartile. Contrasting with this the lower quartile total salary curves remained static or in cases drifted backwards, an unusual phenomenon in normal times. Clearly these are not normal times and we feel there are still more surprises to come for salary predictors.
Maxumise/HRmonise develops the position size and value based on its contribution to the organisation i.e. ideal position design. The HRmonise system can also assess the capacity of the incumbent to ensure equity is maintained and bias is removed. Maxumise has been advocating for a greater focus on performance pay and a clear distinction between the base (contribution) value and other components of the package, especially performance reward. This was part of the outcome of the Australia Productivity Commission Review of Executive and Board Remuneration – submission and hearing 2009/2010. APC Commissioner stated that; “Maxumise put science into human resources management” referring to remuneration practices and methodology.
The 2017 budget was based on the Official Wage Price Index to increase from 1.9% to 3.75% in 4 years. The Maxumise/HRmonise curves for 2017/18 predicted some significant increases for the [...]