More than one in 10 employers say they will not increase salaries for skilled professionals in their next review and just under two-thirds say they will give staff a pay rise of less than 3 per cent, a new survey shows.

But employees are far less optimistic about the future. More than a quarter say they expect no salary rise and 42 per cent expect an increase of less than 3 per cent. About 17 per cent are expecting an increase of 3 to 6 per cent.

Nick Deligiannis, managing director of Hays in Australia and New Zealand, said despite rising headcounts, business activity and sentiment, a cautious approach to salary increases prevails.

"We're seeing sedate salary rises across most industries and sectors, which is also at odds with other trends," he said.

The survey of more than 2950 organisations, representing 3,021,984 employees and placements by the recruitment company Hays, shows 65 per cent of employers said they would give their staff a pay rise of less than 3 per cent in their next review. But 11 per cent will not increase salaries at all.

And 19 per cent of employers surveyed said they planned to increase salaries by 3 and 6 per cent.

Figures from the Australian Bureau of Statistics show real wage growth has stalled at an all-time low as workers receive pay rises that have failed to keep up with inflation.

The ABS reported in May that the seasonally adjusted Wage Price Index rose 0.5 per cent in the March quarter and 1.9 per cent over the year. This put wage growth below the rise in the cost of living, at 2.1 per cent.

The 2017 Hays Salary Guide, to be released on Thursday, says that with small salary growth ahead, many Australian and New Zealand skilled professionals "are in for a shock".

"For some it will be a good surprise though, with 27 per cent not expecting any salary increase in their next review – far above the 11 per cent of employers who say they will not offer salary increases. But a significant portion of the 14 per cent who expect to receive an increase above 6 per cent will be disappointed," the report says.

"This disappointment will no doubt be similar to that experienced by the 15 per cent of people who asked for a pay rise last year but were declined."

IT and telecommunications tops the list of the most generous industries, with 20 per cent of employers in the field saying they will award salary increases of 6 per cent or more in their next review.

Advertising and media employers have also signalled that they have become more generous, with 16 per cent – up from 12 per cent last year – expected to increase salaries above 6 per cent.

Mr Deligiannis said employees were responding to rapid technological change by investing in their own skills development and were more productive, thanks to technology.

"Add the number of employers who say business activity has and will continue to rise, and such small salary increases will test the loyalty of employees," he said.

"Even the time-honoured supply and demand principle has failed to impact salaries in all bar a few instances.

"But Australia's strengthening economy, rising business activity, growing headcounts and skill shortages cannot be overlooked for too long."

The survey also found that 23 per cent of employers expected to increase their use of temporary and contract staff, compared to 9 per cent who anticipate a decrease. Just under a quarter also said they now employ temporary and contract staff on a regular ongoing basis.

"Temporary and contract staff are certainly becoming the 'new normal' in workplaces," the report said.

When asked if choosing to work flexibly had a negative impact on their career, 18 per cent of people surveyed said yes and 61 per cent said no, while 21 per cent were unsure.

Other findings from the Hays Salary Guide include:

• Business activity increased for 70 per cent of employers in the past 12 months and 75 per cent expect it to increase in the next 12 months;
• 36 per cent foresee a strengthening economy in the coming six to 12 months;
• 45 per cent of employers expect to increase permanent staff levels, exceeding the 11 per cent who say they'll decrease;
• In the last 12 months, 15 per cent of Australians asked for a pay rise but were declined – a further 17 per cent asked for a pay rise and were successful;
• 32 per cent of employers say staff turnover has increased in their organisation;
• 65 per cent of employers, compared to 60 per cent last year, are worried that skill shortages will impact the effective operation of their organisation or department in a significant (23 per cent) or minor (42 per cent) way;
• 38 per cent of employers say they 'sometimes' counter-offer staff when they resign and 2 per cent say they always counter-offer resigning staff;
• Yet of those counter-offered, 48 per cent left anyway, 22 per cent accepted but stayed 12 months or less, and just 30 per cent accepted and stayed over 12 months.