July 2023 – Remuneration Trends 2023

With the new financial year now upon us and last year’s group certificates starting to make their way out to employees, now is often the time that requests for a remuneration increase are made. For some businesses, they will take ownership of this common occurrence and conduct their own reviews of the market trends, and then compare against their current remuneration packages, as well as the employee’s performance. The following summarises trends in annual remuneration packages being offered. These figures are based on our observations, discussions with employers, candidates and assignments undertaken over the last 12 months. These figures are expressed more so in terms of averages. There can be a dramatic difference in base retainer for the same role in Melbourne, versus Brisbane, as well as rural versus metropolitan, so for a more precise guide, attention would need to be paid to location, brand(s), volume and more.

Factors influencing employment and wages

Before considering the following information, please keep in mind that there are multiple issues that are having an impact on both the movement of staff, as well as the remuneration we are seeing.

Whilst we made more placements this last financial year than the previous four years, requests for assistance in sourcing candidates has risen by almost 250% since Covid first appeared in early 2020. In some regions, like Victoria for example, we’ve seen a 300% increase!

What we have seen is a shift in the type of roles we are recruiting. Traditionally we would see around a 60/40 split between non-management vs management positions. This, depending on the way you look at it, has blown out to 75/25 as an average over the last 3 years. With a substantial increase in demand for non-management level candidates, this has resulted in salary growth for this segment, with these candidates being much more reactive to immediate monetary increases, rather than considering loyalty and career factors.

Management roles on the other hand have seen a dramatic decline, again with some areas seeing a larger retraction. Salary growth in this area has not been as strong as what we’ve seen for non-management roles, though some roles have seen a noticeable increase, where they are located in areas that have proven tough to recruit for.

Enquiries from management level applicants has been very strong, so there are a lot of people looking for opportunities, but the opportunities are yet to materialise.

Front-end roles such as Sales Consultants, Business Managers, Aftermarket Consultants etc. are continuing to be incredibly difficult to source applicants for. With large order banks and limited stock, these candidates are, for the most part, simply not looking. Even proactive measures to try and combat this are having limited impact.

The next 12 to 24 months are going to be interesting to watch, as stock becomes more readily available, used car prices head back toward pre-Covid levels, gross softens, we’ll likely see a swing back to increased movement in the management space.

With substantially less roles appearing at this level, remuneration has held reasonably steady. Salaries tend to continue to fall between $100,000 to $150,000 + superannuation and one or two vehicles. Depending on the size of the operation, an earning capacity of around $200,000 to $350,000 is common. Incentives often consist of multiple, mixed targets. Higher examples have been seen, though they are not as common and tend to more so changes in base due to inter-state, or inter-city reasons.

Salaries tend to fall between $100,000 to $150,000 + superannuation and a vehicle. Depending on the size of the operation, an earning capacity of around $120,000 to $200,000 is common. Incentives often consist of multiple, mixed targets, centered around net performance. Some dealerships may employ a Financial Controller, however, their size and administrative requirements may be more reflective of a Dealership Accountant position. Some Financial Controller positions might be more “group” orientated. In those roles, a higher level of earning can be expected and could attract up to an additional 33% of base or OTE.

Salaries tend to fall between $80,000 to $130,000 + superannuation and a vehicle. Depending on the size of the operation, an earning capacity of around $150,000 + is common. Incentives often consist of multiple, mixed targets, centered around net profit, efficiency, sales volume and growth. Some dealerships may employ a Fixed Operations Manager, however, their size and aftersales requirements may be more reflective of a Service Manager, who also happens to “oversee” the parts department. Higher bases have been seen in roles situated in NSW and Victoria.

Salaries tend to fall between $90,000 to $120,000 + superannuation and a vehicle, for a true GSM position. Depending on the size of the operation, an earning capacity of around $150,000 to $250,000 is common, though we have spoken to candidates who are on higher, simply due to the Covid environment. Incentives often consist of multiple targets, centered around volume, growth, CSI / CE, overall profit and average unit profit. Some may also have incentives reflective of performance in finance, insurance and aftermarket. A common role in multi-franchise, high-volume sites, the GFC prompted the removal of a number of these roles in medium-sized dealerships. They are slowly making a comeback, but more so as a Sales Manager of the dealerships “primary” franchise, with oversight of the other brands and used vehicles.

Salaries tend to fall between $60,000 to $90,000 + superannuation and a vehicle. Depending on the size of the operation, an earning capacity of up to $150,000 is common, though we have spoken to candidates who receive up to around $250,000 where volume or luxury brands are concerned. Incentives often consist of targets centered around volume, growth, CSI / CE, overall profit and average unit profit. Some may also have incentives reflective of performance in finance, insurance and aftermarket. Base retainers in the $70,000 to $90,000 range have been seen in NSW and Victoria.

This is an area where we have seen tremendous difficulty in securing applications. Salaries tend to fall between $50,000 to $70,000 + superannuation and either a car or car allowance, though some dealerships offer neither. Depending on the size of the operation, an earning capacity of up to $150,000 and better used to be the norm, though this seems to have come back to closer to the $130,000 to $140,000 mark. Candidates in these roles are appearing more focused on retainer than they previously have been. Clients often see this as meaning that they are not backing themselves and in some cases that might be true, but most of the time it is more of an excuse for their retainer being subpar. With increasing interest rates, this is an area that will probably undergo a slight to moderate restructure between the ratio of the fixed vs incentive components.

Not a dramatic amount of movement in this space like there has been in others. Salaries tend to fall between $60,000 to $90,000 + superannuation and a vehicle. Depending on the size of the operation, an earning capacity of $80,000 to $140,000 is normally what we see. Incentives often consist of targets centered around volume, growth, shrinkage and overall profit.

A slight increase in base salaries is being seen, in order to attract a better range of candidates. Salaries tend to fall between $65,000 to $90,000 + superannuation and a vehicle. Depending on the size of the operation, an earning capacity of up to $150,000 is normally what we see, with the lower range reflective of a smaller dealership. Incentives often consist of targets centered around labour sales, efficiency and profit. We have seen the odd Service Manager who is very well remunerated and is sitting in the $150,000 to $230,000 earning range, but this has mostly been for Melbourne and Sydney candidates, in either luxury or volume brands.

Salaries appear steady when compared to last year. A greater emphasis is being placed on candidates with CPA or CA qualifications, though dealerships tend to not want to pay more for these qualifications when compared to other industries. Salaries tend to fall between $80,000 to $120,000 + superannuation and a car or car allowance, though some dealerships offer neither, or do so after a qualifying period. Depending on the size of the operation, an earning capacity of around $90,000 to maybe $110,000 can be expected for the majority of these roles. Incentives are not often paid, but when they are, they generally consist of targets focused on processing time and occasionally net profit improvement.

Not a lot of change in the remuneration of these roles. Salaries tend to fall between $50,000 to $60,000 + superannuation and incentives. Depending on the size of the operation, an earning capacity of around $65,000 to maybe $80,000 can be expected, with incentives focused on sales performance. These roles are increasing in difficulty to source suitable candidates for.

We are starting to see an increase in changes to the rewards offered in these roles, not necessarily in terms of monetary increases, but more so in terms of flexible working arrangements and reduced days. Which at the end of the day really does mean the same thing, in that staff are being paid in some cases the same base salary and OTE, but are working less hours. Salaries tend to fall between $55,000 to $70,000 + superannuation and incentives. Depending on the size of the operation, an earning capacity of around $70,000 to $90,000 can be expected, with incentives focused on CSI and upsell. We have seen Service Advisors in luxury brands having a higher level of earnings of $100,000+ and also receiving a car.

Not a great deal of change in the pay scales for these roles in terms of averages, but we have seen the occasional Administrator who through longevity, has grown to be on quite a considerable package. Salaries tend to fall between $60,000 to $80,000 + superannuation and possibly some small incentives, though it is rare. Premiums tend to be paid for supervisory roles and also if a volume or prestige brand is in the mix, or very specific IT requirements are part of the role.

Continued high-demand exists to find suitably trained Technicians who are not looking for a mining hourly rate. Hourly rates tend to fall between $32 to $45 + superannuation, but to source a suitable mixture of applicants you really need to be better than $35, or offer something that others do not, such as reduced hours, flexible hours, higher annual leave etc. Some incentives are offered based on productive hours and other metrics.

OTE means On Target Earnings, being salary and incentives together, excluding value of car and superannuation.

Sales Managers:
$60,000 + super + car + incentives (c$150,000 OTE) – Brisbane
$95,000 + superannuation + car + incentives (c$200,000 OTE) – Melbourne
$66,000 + superannuation + car + incentives (c$140,000 OTE) – Qld regional
$75,000 + superannuation + car + incentives (c$170,000 OTE) – Sydney
$120,000 + superannuation + car + incentives (c$180,000 OTE) – Qld regional (GSM)

Business Managers:
$70,000 + superannuation + car + incentives (c$140,000 OTE) – Qld regional
$70,000 + superannuation + car + incentives (c$180,000 OTE) – Melbourne
$55,000 + superannuation + car + incentives (c$140,000 OTE) – Melbourne
$100,000 + superannuation + car + incentives (c$200,000 OTE) – NSW regional (Group)
$70,000 + superannuation + car + incentives (c$160,000 OTE) – Sydney

Parts Managers:
$95,000 + superannuation + car + incentives (c$130,000 OTE) – Melbourne
$85,000 + superannuation + car + incentives (c$150,000 OTE) – Qld regional
$220,000 + superannuation + car + incentives (c$250,000 OTE) – South Pacific
$95,000 + superannuation + car + incentives (c$140,000 OTE) – NSW regional
$80,000 + superannuation + car + incentives (c$130,000 OTE) – Adelaide

Parts Interpreters:
$56,000 + superannuation + incentives (c$67,500 OTE) – Brisbane
$55,000 + superannuation + incentives (c$70,000 OTE) – Melbourne
$65,000 + superannuation + incentives (c$80,000 OTE) – Perth
$70,000 + superannuation + incentives (c$80,000 OTE) – Sydney

Service Managers:
$83,000 + superannuation + car + incentives (c$140,000 OTE) – Qld regional
$130,000 + superannuation + car + incentives (c$170,000 OTE) – South Pacific
$80,000 + superannuation + car + incentives (c$140,000 OTE) – Sydney
$80,000 + superannuation + car + incentives (c$140,000 OTE) – WA regional
$70,000 + superannuation + car + incentives (c$120,000 OTE) – Adelaide

Service Advisors:
$67,000 + superannuation + incentives (c$85,000 OTE) – Brisbane
$67,000 + superannuation + incentives (c$90,000 OTE) – Melbourne
$70,000 + superannuation + incentives (c$90,000 OTE) – Melbourne
$75,000 + superannuation + incentives (c$95,000 OTE) – Sydney
$70,000 + superannuation + incentives + car (c$120,000 OTE) – Gold Coast

Administration Clerks:
Admin Support Clerk – $70,000 + Superannuation – Melbourne
Rego Clerk – $63,000 + Superannuation – Brisbane
Admin Manager – $80,000 + Superannuation – Brisbane
Stock Controller – $65,000 + Superannuation – Qld regional
HR Officer – $82,000 + Superannuation – Vic regional
Marketing Manager – $120,000 + Superannuation – Melbourne
Costing Clerk – $65,000 + Superannuation – Melbourne
Receptionist – $65,000 + Superannuation – Sydney
Purchasing Clerk – $65,000 + Superannuation – NSW regional
Delivery Coordinator – $70,000 + Superannuation – Brisbane
Warranty Specialist – $75,000 + Superannuation – Qld regional
2IC Financial Controller – $80,000 + Superannuation – Brisbane
PD Clerk – $65,000 + Superannuation – Melbourne
Delivery Coordinator – $75,000 + Superannuation – Perth