For many years DWS has produced the Queensland club industry employment and salary report, which amongst other DWS reports like the industry benchmark report, the annual DWS salary report has become a key industry reference for senior management employment in the Queensland club industry.
Regrettably the last report I published was the 2020 report published early in 2021, due to COVID over the last two years and the dramatic shortage of staff in the last 12 months it was somewhat difficult to get a real feel as to where salaries were going in the club industry.
However, over the last few months I have received numerous requests for guidance on senior management salaries as our industry starts to get back to some degree of normality, also over the last six months DWS has conducted many senior recruitment assignments which has given us a clear insight into candidate’s expectations and what clubs are prepared to pay to get the right people.
So rather than produce an annual employment and salary report, I’ve elected to update the salary metrics and include in this article. It’s the same metrics that are always included in our reports but with our latest salary guide. The figures in the guide include superannuation and any other benefits which may be applicable particularly in the case of CEOs and GM’s.
I wrote an article in DWS newsletter back in November 2021 where I projected the rapid inflation that we are starting to experience may impact on our costs and salaries. Click here to read ‘The Inflation Genie is out of the Bottle’.
At the moment the current indications are that senior executive positions in the club industry have risen in the order of $10,000-$30,000 per annum in the last six months; I believe we will see continuing increases in this order over the next 12 months. It’s simply a question of supply and demand which is manifesting itself to a greater level in frontline staff, where working conditions and to a lesser extent salaries, are also having an impact with a smaller pool of applicants.
The increase in remuneration expectations of senior club executives means that greater care and time should be taking in ensuring the selection of the best possible person. I’ve said before in the present environment it’s an employee’s market and if you are looking for qualified senior executives then you will need to be prepared to meet the market remuneration, One complication this is creating is that paying greater levels of remuneration to new executives can upset the club’s existing salaries rationale. However, it would be prudent for GM’s and Board’s to review all of their senior management remunerations to ensure that they are not lost to competitors.
A word of caution when using the salary metrics, clubs should take more than just EGMs and membership into consideration, experience and stability are two key attributes that should be considered when assessing new candidates, and certainly the club’s growth and financial performance should be considered when reviewing existing staff.
Before finalising and publishing this senior management remuneration metrics I circulated it to several key industry managers and received 18 responses which allowed me to somewhat reconcile my figures with current actuals being paid or expected to be paid in the industry.
Let me know if you have any thoughts on the subject.