International comparison of remuneration levels

Remuneration levels for skilled employees in Australia are competitive with those of other major developed nations. Despite the strong recent appreciation of the Australian dollar, salary levels for a range of skilled occupations are below those in the United Kingdom, United States, Japan, Hong Kong and Korea.

The relatively lower cost of living in Australia also means that salaries for highly skilled employees help to retain and attract talented employees. The Watson-Wyatt 2007 Global 50 Remuneration Planning Report notes Australia's low inflationary environment over the last decade has meant that cost-of-living is less of a factor in determining salary levels than market trends and performance-based pay.

In 2008, Australia was ranked the fourth most competitive place to do business in the KPMG Competitive Alternatives study. Australia had the fourth lowest labour costs among the ten major industrialised nations, including the United States, United Kingdom, Japan, Italy, France, Germany and the Netherlands. The study rated Australia as the second most competitive location for total manufacturing costs and the third most competitive for transport costs.

International city comparisons of total remuneration: Gross Salary, 2007 (US$) (1)

 

Finance

Info technology

R&D

Manufacturing

Regional Headquarters

Funds Management

 

 

 

 

 

Country

Senior Accnt (2)

Computer Operations Manager (3)

Research Manager (4)

Manufacturing Manager (5)

Head of  Admin (6)

Business Unit Manager (7)

 

 

 

 

 

 

London

102,099

123,629

159,880

211,238

297,608

410,399

Frankfurt

136,219

155,794

177,745

211,557

263,275

356,670

Tokyo

103,868

122,940

145,897

168,672

213,605

294,137

San Francisco

87,079

102,878

136,363

183,614

208,520

262,755

New York

85,554

101,074

134,076

180,496

204,963

258,243

Sydney

103,590

117,714

130,675

166,455

199,753

252,364

Hong Kong

70,928

89,157

106,548

123,374

151,299

208,028

Shanghai

49,067

59,184

77,066

112,443

149,440

201,744

Seoul

70,309

79,656

111,111

131,276

168,397

197,897

Taipei

80,440

95,738

114,163

136,355

163,083

195,276

Auckland

70,095

74,803

86,811

118,350

131,374

172,283

Singapore

62,581

72,596

112,406

126,631

147,926

170,165

Kuala Lumpur

32,061

36,977

50,796

63,299

83,858

109,279

Manila

23,670

29,798

42,602

50,443

79,813

97,646

Bangkok

24,891

30,727

37,964

49,352

63,583

78,142

Mumbai

13,812

21,252

28,532

41,843

46,427

70,209


Footnotes:

1 Total remuneration data cover locally engaged employees, and refer to annual basic guaranteed salary (including typical cash and non-cash benefits, but excluding performance bonuses) and statutory employment payments (such as superannuation contributions, unemployment and health insurance)
2: Senior Accountant (five years) (Global Grade 13): Responsible for the preparation of income and balance sheet statements, consolidated and various other accounting statements and reports. Analyses financial reports, reviews and verifies the accuracy of journal vouchers, payroll records, sales and purchase ledgers, etc. May be specialised in :
• Financial accounting : including the preparation of statutory accounts and financial reporting; may also include payroll, tax and treasury.
• Management accounting : responsible for the budgetary control system and providing management with financial information for planning, forecasting and controlling costs.
• Cost accounting : responsible for analysing standards for manufacturing, subcontracting, labour costs, etc., including product costing and inventory control.
Is an experienced, qualified professional with strong problem solving and analytical skills and approximately 5 years experience, involved in processing accounting for control over transactions in the areas of Accounts Payable / Receivable. Works independently to a large extent. Will produce reports for local and corporate management and will typically have regional accounting responsibility and lead a team.
Responsible for staff in a ‘team leader’ type role.
3: Computer Operations Manager (Global Grade 14): Responsible for ensuring the availability and day-to-day operation, scheduling and technical support of the company’s computer systems (in either a framework or networked (LAN, WAN) environment). Consults with other functions’ employees on the proper integration and requirements for adequate and responsive data processing. Responsibilities will include the performance control of network operations, maintenance and technical support. Manages a team of technical specialists and operators.
4: Research Manager (Global Grade 15): Responsible for the theoretical development and technical adjustment of new or existing products. Formulates research programmes on the basis of products, the technological issues and the use of products and related matters. Transforms results of internal or external research activities into design and specifications of specific products. Deals with specific missions in scientific or engineering fields. Coordinates the various technical steps with the support of scientists and technicians. The complexity of the project and / or new product requires a high level of expertise in the relevant field and a broad experience.
5: Manufacturing Manager (Global Grade 16): Responsible for controlling a major single-site manufacturing operation, ensuring that production quality and cost targets are met. Duties include production and assembly, quality control, material handling, scheduling, etc. Monitors production processes and the effective use of manpower and equipment, and coordinates production operations with purchasing, sales, engineering, etc. Manages a large direct workforce or complex production process. Manufactured products require high scheduling efforts.
6: Head of Administration (Global Grade 17): Overall control of the general administration / corporate services function in a large multinational organisation with divisional and/or subsidiary companies. Responsible for the planning, development and implementation of policies, programmes and practices in support of the production, operating and marketing functions of the organisation. Provides counsel and assistance to other heads of function and to operating divisions, and develops the kind of support organisation needed to reach the company’s goals and objectives. May be responsible for premises, insurance and Administration. Would normally manage a team through a structured department dealing with public and stockholder relations, legal and office services. Directs the development programmes and methods for the establishment of standards of performance and the evaluation of performance against these standards.
7: Business Unit Manager (Global grade 18): General management role with profit & loss responsibility for a business, service or product line. Has line supervision over one or more profit centres or business within the continent. Has strategic responsibilities covering finance, marketing and sales and maybe some manufacturing activities or R&D. Has full management and technical expertise in several functions.
Is responsible for a large number of employees. Generally reports to the Group / Regional CEO or VP. Will typically work in a matrix management organisation with dotted line reporting to the heads of corporate functions.

Source: IBM-PLI calculations based on Watson Wyatt - Global 50, June 2008.