Nov 2022

Why a $50,000 pay rise probably won’t secure you an accounting resource

By: Odyssey Uncategorised
Tags: Australian Accountant, Australian compliance, labour shortage, offshore, Outsourcing, skilled migration

More recently there has been news articles of the high salary increases demanded and received by accountants and IT workers who are in short supply in the economy. There was an article mentioning that $50,000 was the starting point to attract a resource, but it might not be enough to seal the deal.

There have been rumblings in the area of labour shortage as Australia’s unemployment rate sits at lows not seen for a long time of 3.9%

The RBA has been mentioning the overheated labour market might lead to increases in rates, and there seems general agreement inflation is the key focus of the government. There must be continued pressure on wages, since not only are there labour shortages, but also there are general price rises in the market such as a recent note that residential rents jumping 12 percent last year.

The RBA continues to be concerned at the increases in wages and impact on the economy. The US, Canada and NZ are all seeing inflationary forces, and their reserve banks are increasing rates to slow the effects of inflation.

And there doesn’t seem a solution to resolve the shortage of workers in key industries. The government has considered a request for immediate action to turbocharge skilled migration and speed up the entry of highly demanded workers, but this seems unlikely to be anything other than a bandaid solution to a longer term problem.

So in the meantime, there will continue to be an ongoing shortage of key workers in those areas on the skills needed list for visa workers, and that includes IT and accounting staff. And given high levels of inflation and accompanying interest rate rises, the costs of hiring these staff can only get higher.

If you’d like to chat about how Odyssey can assist with some ad-hoc resource shortage, then drop us a line.

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