More than 90 per cent of facilities management employers plan to increase salaries in their next review, according to recruitment and workforce solutions firm, Hays.   

The FY23-24 Hays Salary Guide, which is based on a survey of more than 14,000 employers and professionals, found 51 per cent of FM employers plan to increase salaries above 3 per cent.   

“The year of the raise”  

“We’re calling this the year of the raise, where the promise of higher salaries reflects the intensity of the skills shortage in today’s jobs market,” says Austin Blackburne, senior regional director of Hays.

“This year, both the number and value of increases will rise, continuing the upwards trajectory we first noted in last year’s Hays Salary Guide. 

“Despite the increased salary boost, employer and employee expectations in facilities management still fail to align. Many FM professionals feel undervalued and underpaid. They feel their current salary doesn’t reflect their individual performance.” 

The salary increase landscape: Employer intentions vs employee expectations  

Value of salary increase	Salary increase employers intend to pay	The increase employees say would reflect their individual performance and demand for their skills
0%	9%	5%
< 3%	40%	6%
3-6%	38%	32%
7-10%	9%	35%
>10%	4%	22%

Why are salaries increasing? 

According to Hays, there are four key factors motivating employers to increase salaries in their next review: 

1.Competition amid a growing skills gap crisis: Over two thirds of employers have offered higher salaries than planned to attract candidates in response to the skills shortage – 17 per cent ‘substantially higher’ and 50 per cent ‘nominally higher’. 

“Many employers find that the pipeline of skilled FM professionals doesn’t meet their needs,” says Blackburne.

“As candidate supply continues to tighten, employers face increased pressure to proactively attract and retain talented employees.” 

2. The ripple effect of falling real wages: 79 per cent of employers and employees combined say it’s reasonable to expect pay rises to keep up with inflation.  

“Employers are sensitive to the hidden cost of falling real wages on employee engagement, mental health and wellbeing, morale and job satisfaction,” he said.

“While few employers can match inflationary pressures, they are stretching their salary increase budget as far as they can to support their staff.”   

3. The impact of pay transparency: Many employers are transparent with employees about how salary levels and increases are set to improve fairness and build trust – 38 per cent are transparent with all employees and 33 per cent with select employees. 

“We expect these figures to rise in the months ahead, with the abolition of pay secrecy in Australia prompting more employers to audit salaries, scrutinise disparities and make adjustments when required to ensure fair and equal pay,” says Blackburne.

4. ‘The great ask’: This year, 63 per cent of professionals plan to ask for a pay rise, up from 58 per cent last year and 45 per cent the year before.

“FM professionals still feel they have bargaining power and are more confident to negotiate for better pay,” he said.  

Advice for employers  

“The recruitment and salary intentions of employers are notable this financial year,” says Blackburne.  

“The overall trend suggests that many believe investing in their workforce, such as through salary increases, headcount expansions (see below) and upskilling, is key to success. 

“To stand out in the race for talent, also review the benefits you offer. Consider what else you can offer to attract and retain talent, such as opportunities for growth, wellbeing days, additional annual leave, improved recognition, work-life balance or a more positive work environment.” 

Advice for FM professionals  

“With skills in demand you still have bargaining power, but it’s important to temper it to avoid pricing yourself out of consideration,” notes Austin.

“Yes, employers are investing in salary increases, but margins remain tight. The commercial reality dictates that salary increases can only stretch so far.   

“Consider the whole package when you negotiate a new job or your next pay rise. Benefits can go a long way to bridging a possible financial expectation gap, so think about what you’d really value and what could make a difference to your life and career long-term.” 

Other key findings 

• Employers invest in their FM headcount: Employers intend to increase their permanent (41 per cent) and temporary or contract (27 per cent) FM headcount in the next 12 months.  

• Staff loyalty yet to return: Just 28 per cent of FM professionals unquestionably intend to remain with their current employer beyond FY23/24, with another 48 per cent unsure whether they will remain.   

• Top factors driving turnover: Of those intending to or considering changing jobs, the rising cost of living is the top reason, followed by a lack of promotional opportunities and a poor management style or workplace culture.

• The impact of benefits: Salary is undoubtedly the most critical factor in attracting, rewarding and retaining FM employees today, but employers recognise that benefits also play a significant role. The top three benefits employers are offering this year are training, mental and physical health and wellbeing programs and financial support for professional study.

• Employees’ top career priorities: FM professionals will prioritise being able to work flexibly, a pay rise and gaining a promotion in the next 12 months. 

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