More experience less financially rewarded: CA ANZ

Chartered Accountants Australia and New Zealand’s (CA ANZ’s) latest Remuneration Survey Report found early-career-stage members were more likely to receive a pay rise than their more experienced counterparts.

Of the 60 per cent of 5,905 CA ANZ members who participated in the survey and received a pay rise in 2023, 45 per cent of those with five years or less experience saw their salaries lifted by 7.6 per cent or more – the highest result out of cohorts sorted by experience.

This is compared to 15 per cent of those with 30 years or more experience seeing an increase of 7.6 per cent or more. Lower results were also seen in the 21-to-25-years-experience cohort (23 per cent) and 26-to-30-years-experience cohort (17 per cent).

The survey also revealed that of the members who received a pay rise in 2023, 41 per cent of those with five years or less experience expected an increase; this is compared to only 20 per cent of those with over 30 years of experience.

“There’s huge competition for young talent and this latest survey shows that the profession is willing to compete on pay for top young talent, which is a great sign for those starting out,” CA ANZ CEO, Ainslie van Onselen, said.

“The survey results suggest that early-career respondents are aware of the tight job market and are expecting larger pay rises. That presents a challenge for employers.

“The survey’s insights into additional benefits will be valuable for employers looking at recruitment strategies beyond simply increasing base salary.”

The survey also showed that the median remuneration growth rate for full time workers slowed to three per cent in Australia and New Zealand in 2023, compared to 11 per cent in 2022.

“After a big increase in 2022, remuneration growth across Australia and New Zealand has slowed. However, continued low unemployment and competition for talent is reflected in strong pay increases for junior and intermediate entrants to the profession – pay rises that also help assist them through the cost-of-living crisis,” van Onselen said.

The research also used median hourly pay rates to analyse the gender pay gap across Australia and New Zealand in the past calendar year. Australia’s gap lessened by six percentage points to 13 per cent, while New Zealand’s only closed by one percentage point to 22 per cent.

“The gap appears to be closing in Australia, which may be for a number of reasons, including the passing of the Closing the Gender Pay Gap Bill, which was introduced in March 2023,” van Onselen said.

“The pressure to close this gap will intensify in 2024 when private sector employers with 100 or more workers in Australia will be required to publish their gender pay gaps.

“Good data is the sunlight that drives change, so we are encouraging New Zealand’s parliament to continue moving towards mandatory pay gap reporting.”