Insurance professionals expect their pay to increase by 3.8% over the next year, matching the average change predicted in a Hays survey of 7000 Australians and New Zealanders across all industries.

The “rising tide isn’t lifting all boats” when it comes to pay rises, recruiter Hays says.

“The story is nuanced by industry, with higher than average salary increases expected among those in legal, consulting and strategy, and accounting.”

The 3.8% rise expected in insurance is also below forecasts for professional services, farming, conservation, recruitment, engineering, sales, supply chain and logistics, technology, trades, construction and manufacturing.

But it is above banking and financial services, defence, IT, mining, real estate, pharmaceuticals/biotech, auto, transportation, energy and renewables, healthcare and medical, non-profit, retail/hospitality/ tourism, education and the public sector.

Hays Asia-Pacific CEO Matthew Dickason says the survey indicates retention could remain a challenge for employers.

“The headline pay number looks healthy, with an expected average increase of 3.8% over the next 12 months. But 42% of employees report a decrease, no change or an increase below 2.4% – leaving many below inflation and creating a clear churn risk,” he said.

Hays says salary satisfaction in Australia and New Zealand “remains fragile”, with almost one-third of employees dissatisfied; 36% are looking for new jobs and a further 34% are open to opportunities.

“People are leaving for progression almost as much as pay,” Hays said, adding that investing in, developing and progressing people is now key to attraction and retention.

“Most employees can’t see a pathway. Only about 10% say promotions are frequent and based on clear criteria; 33% say there’s no clear structure.

“Lack of future opportunities sits near the top reasons people want to leave, closely behind salary/benefits.”

More than 80% of organisations report skills shortages, making talent gaps “a systemic issue that is actively constraining growth and productivity”, Hays says.

See the survey results here.