Salary

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As workplace managers face a swiftly evolving employment market that’s increasingly favouring the demands of white-collar employees and jobseekers, bosses are falling under mounting pressure to preserve their workforce or else risk a brain drain.

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The relatively new post-pandemic trend of employees upending their jobs and seeking employment refuge with better perks elsewhere, often dubbed as the “Great Resignation”, has become a growing headache for employers within the finance, technology, and business support sectors. They now face the challenge of having to compete with more attractive offers regarding salary and flexible work-life balance.

That’s the finding of a new independent research run by global talent solutions provider Robert Half, which highlighted that 86 per cent of employers are “concerned” about valued team members leaving in favour of new opportunities.

The numbers published in Robert Half’s latest Salary Guide for 2022, illustrate a difficult path for employers feeling the pressure to create conditions that will retain employees, with 75 per cent predicting turnover will increase this year compared to the pre-pandemic period. The research found that 80 per cent of employers are planning award salary increases this year as a means to retain existing employees. 

But while nearly half (46 per cent) of business leaders said they are planning to increase salaries for all employees in finance, tech, and business support, just over one-third (34 per cent) said they are only planning to increase salaries for their top performers.

And those salary increases may come at a great cost to the employers, but with potentially high gains for valued employees, as the research from Robert Half found that specialised professionals with highly demanded skills may find themselves in a better bargaining position that could net them an average pay rise of 11.4 per cent.

Robert Half cited the Australian Bureau of Statistics (ABS), noting that is more than 9 per cent above the forecast national annual wage growth of 2.3 per cent.

The research said it’s crucial for employers to offer competitive salaries to minimise the risks of high turnover in 2022, but warned that boosting compensation is “only part of a swathe of new tactics taking aim at retaining top talent in the year ahead”.

“With flexibility being cited as the number one reason for the rising turnover, work-life balance benefits have become a must-have for most employees in today’s market and most companies are actively taking steps to meet those demands,” the research said.

And employees may find relief in the numbers reflecting employers’ more welcoming attitudes towards remote working, with 55 per cent of employers new focused on offering flexibility and work-life balance through remote work arrangements, and 48 per cent allowing employees to autonomously set their own work hours.

Robert Half senior managing director, David Jones, said employers in 2022 have reason to be concerned about losing employees this year.

“In stark contrast to the past few years of stagnancy, skilled talent are actively being poached by competing organisations and have multiple job offers with generous salary packages from businesses who are undertaking exciting growth initiatives,” Mr Jones said.

He said that it is one of the most “fruitful” times to be a jobseeker in recent years, and employees are aware of their bargaining power, so that will translate into a higher rate of job switching.

“Employers looking to retain their top talent will be under pressure to financially incentivise loyalty or risk an exodus of tenured knowledge. Remuneration will be a key driver behind whether an employee chooses to remain with an employer – perhaps more so this year than pre-pandemic because inflation is high, yet national wage growth is low, so employees who remain with a company without a pay increase are ultimately going backwards,” Mr Jones added.

He called on businesses to approach this new employment trend with a “dynamic ‘always on’ approach” to employee retention, working on the basis that their top performers are the most likely to be poached by competitors.

He also feels that alongside salaries, businesses will also need to bolster retention efforts through clear career development pathways, offering competitive bonuses, and heeding demands for flexible working arrangements.

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As workplace managers face a swiftly evolving employment market that’s increasingly favouring the demands of white-collar employees and jobseekers, bosses are falling under mounting pressure to preserve their workforce or else risk a brain drain.

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An electoral promise from Labor to make gender pay equity an objective of the Fair Work Act has been hailed as a “watershed moment” from industry peak bodies who have traditionally advocated for stronger female representation in the workforce.

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The announcement came from Opposition Leader Anthony Albanese at Labor’s election campaign launch in Perth, where he outlined the fundamentals of the party’s Secure Australian Jobs Plan, which aims to overhaul existing industrial relations policies to create more secure working conditions for women, carers or ‘gig economy’ workers.

The big promise meant that a potential Labor government would “strengthen the ability and capacity of the Fair Work Commission to order pay increases for workers in low-paid, female-dominated industries”.

Mr Albanese’s announcement was warmly welcomed by the Australian Services Union, which has pushed heavily for federal government intervention on closing the gender pay gap for decades.
Assistant National Secretary of the union, Emeline Gaske said women simply want equal pay, and making it easier to make equal pay applications in the Fair Work Act will go a long way to achieving that outcome.

“Our union represents workers in some of the most women-dominated professions, such as aged care, disability and mental health workers who support our most vulnerable,” Ms Gaske said.

“We won a critical pay equity decision in the Fair Work Commission over a decade ago which recognised the need to increase pay for social and community services workers, but it is still the only such decision that has been made by the Fair Work Commission ever.”

“Women know that doesn’t make sense – we experience the inequity of pay every day and know that it is real and unfair,” Ms Gaske said.

She said the announcement from the Opposition Leader will have a “huge impact” on those who rely on the community and social services system.

In the lead-up to a federal election where decisions of this magnitude are critical to ensuring Australia’s workforce can sustain the resources necessary to deliver essential services to vulnerable people in highly sensitive circumstances, the Australian Services Union feels it’s crucial to ensure female-dominated professions feature better remuneration to ensure staff can be retained.

In a bleak assessment of the present circumstances, Ms Gaske warned Australia was looking at a future where there are simply not enough workers in areas like aged care, disability, domestic violence support and other social services.

“There is already a huge shortage of workers in these sectors. We must recognise that low pay is a disincentive for people to work in these jobs and that has to change,” Ms Gaske said.
She also hailed the addition of expert panels to advise the Fair Work Commission as providing necessary expertise and support.

“The Care and Community Sector Panel will play a critical role in ensuring that workers in community and disability services are able to get fair pay and conditions,” she said.

The gender pay gap is a big problem that’s persisted in Australia due to discrimination and bias in hiring and pay decisions, women and men working in different industries and different jobs, with female-dominated industries and jobs attracting lower wages, according to the Workplace Gender Equality Agency (WGEA).

Other reasons according to WGEA include women’s disproportionate share of unpaid caring and domestic work, the lack of workplace flexibility to accommodate caring and other responsibilities - especially in senior roles - and women’s greater time out of the workforce impacting career progression and opportunities.

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An electoral promise from Labor to make gender pay equity an objective of the Fair Work Act has been hailed as a “watershed moment” from industry peak bodies who have traditionally advocated for stronger female representation in the workforce.

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One of Australia’s biggest supermarkets faces allegations that it underpaid more than 7,500 employees a total of $115 million.

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The Fair Work Ombudsman (FWO) is taking Coles to the Federal Court following allegations of wage theft.

An assessment of the wages and entitlements of Coles employees by the FWO alleged that the company underpaid 7,812 employees by a total of $115.2 million between January 2017 and the end of March 2020.

The FWO alleged that many of these underpayments were the result of Coles paying employees salaries that were insufficient to cover minimum lawful entitlements, given the prevalence of overtime work.

Allegedly underpaid employees were said to be located in both regional and metropolitan areas across every state and territory.

Forty-five of those said to be affected were underpaid a sum greater than $100,000.

The FWO also alleged that Coles’ existing remediation program for other instances of wage theft had “significantly underestimated amounts owed to employees” and that the company breached record-keeping laws by failing to keep proper records relating to overtime hours worked.

In a statement, Coles acknowledged the proceedings and said that it would be reviewing “issues relating to the interpretation and application of various provisions” of the General Retail Industry Award (GRIA).

The move comes following Woolworths’ own settlement of a class action lawsuit by former employees, who claimed the company had underpaid them by more than $300 million, for an undisclosed amount.

Fair Work Ombudsman Sandra Parker said that patterns of underpayment had become a persistent issue across all industries.

“Businesses paying annual salaries cannot take a ‘set-and-forget’ approach to paying their workers,” she said.

“Employers must ensure wages being paid are sufficient to cover all minimum lawful entitlements for the hours their employees are actually working and the work they are actually doing.”

Citing multiple alleged breaches of workplace laws, the FWO said that it is seeking penalties in addition to a court order requiring the company to rectify outstanding underpayments with both interest and superannuation.

The FWO also argued that the reverse onus provisions of the Protecting Vulnerable Workers amendments to the Fair Work Act should apply in this instance.

If that argument is accepted by the court, the burden will be on Coles to disprove the allegations.

“This court action against Coles should serve as a warning to all employers that they can face serious consequences if they do not prioritise workplace law compliance,” Ms Parker said.

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One of Australia’s biggest supermarkets faces allegations that it underpaid more than 7,500 employees a total of $115 million.

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Women under 25 may emerge from the pandemic in a worse financial position than when it began, new research has shown.

" ["fulltext"]=> string(2879) "

The Financy Women’s Index (FWX) rose 2 per cent in the September quarter to 73.6 points and was up 6 per cent on its September 2019 result, indicating that women’s financial outcomes have improved nearly two years into the pandemic. 

Moreover, the number of women on ASX 200 boards rose to a fresh high of 34 per cent in September before dipping slightly in more recent figures.

Despite perceivably better outcomes for women, helped by a closing of key gender gaps in women on boards, employment, and the underemployment rate, experts warn that it’s a cautionary tale of women’s economic progress.

In fact, during the September quarter, women suffered a 2.8 per cent drop in the number of monthly hours worked, but men saw a bigger 3.2 per cent fall as they bore the brunt of lockdown-related job cuts in the September quarter. This produced a 0.3 per cent improvement in the FWX Employment Sub-Index.

Additionally, fresh data from the Australian Bureau of Statistics (ABS) showed that of the 19 key industries, female employment declined in only five sectors, but male employment fell across all of them.

“Women’s progress must come from genuine improvements in equality against a backdrop of greater well-being for both men and women,” said Nicki Hutley, independent social impact economist.

“Policymakers must look to restore prosperity for all while embedding policies that genuinely address gender equity.”

But it is the Gen Z findings that are most troubling, with full-time employment numbers among women under 25 years old down 9 per cent in the September quarter and 10 per cent lower on September 2019 figures.

“The biggest risk moving forward is that women, particularly those aged under 25 years, emerge from the pandemic in a far worst financial position than when it began,” said Financy founder Bianca Hartge-Hazelman.

“As it stands, there are increased structural barriers that prevent many women from participating in paid work to their desired capacity, and these affect the immediacy at which a person can take advantage of opportunities.”

Overall, according to Financy, it will now take 29.5 years for equality in employment, down from 29.8 years, 13.7 years for equality in underemployment, down from 16.1 years, and 6.7 years of sustained progress at current rates to reach 50/50 gender diversity on ASX 200 boards. 

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Women under 25 may emerge from the pandemic in a worse financial position than when it began, new research has shown.

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int(1) ["group_state"]=> int(1) ["group_note"]=> string(0) "" ["value"]=> string(0) "" ["rawvalue"]=> string(0) "" } } ["link"]=> string(67) "/earn-money/salary/gen-z-left-behind-in-progress-to-gender-equality" ["image"]=> string(42) "images/article-826x550/gen-z-people-ne.jpg" ["image_alt"]=> string(48) "Gen Z left behind in progress to gender equality" } [4]=> object(stdClass)#10035 (57) { ["id"]=> int(17645) ["title"]=> string(71) "Show me the money: I deserve a COVID recognition payment, and so do you" ["alias"]=> string(64) "show-me-the-money-why-we-all-deserve-a-covid-recognition-payment" ["introtext"]=> string(120) "

Staff are currently in high demand. But they’re also mostly overworked, overtired, underplayed and underpaid.

" ["fulltext"]=> string(2875) "

So instead of a pair of festive socks that will likely be regifted this Christmas or a bottle of wine and a boozy lunch that will just add to a burgeoning post-lockdown waistline, why not follow Sydney Uni’s lead and declare a “COVID recognition payment” for all?

Earlier this week, the University of Sydney declared a one-off payment to thank its staff for their “enormous” contribution during the last year.

“In recognition of the remarkable and sustained service our staff have delivered during this most testing of years, particularly the prolonged lockdown, we have chosen to invest in our people with a one-off ‘COVID recognition payment’ of $2,000 for all our permanent and fixed-term staff and also casual staff members who have worked three or more pay periods in semester 2,” said Professor Mark Scott, vice-chancellor and principal.

And this got me thinking.

A lot of companies are ending the year in a more positive financial position than expected, some even racking up hefty profits, and why?

Because their staff persevered in the face of what could arguably be referred to as an existential threat, many juggling children, elderly parents, partners and full-time work-from-home jobs, while trying to tame a mild case of coronaphobia. Many struggling with their mental health as they watched their lives shrink to fit the confines of their four white walls, all the while successfully executing their nine-to-five jobs as they increasingly spilled over into the evening.

Does this not warrant a $2,000 thank you?

Let’s be honest; the painful Zoom-meetings alone warrant a sizable pat on the back (COVID-safe, of course). 

And don’t get me wrong, I am not praising Sydney Uni – I’m aware of ongoing claims of overwork and underpay –  instead, I’m choosing to take the $2,000 at face value. And for many, $2,000 smells like a family reunion, a much-needed seaside gateway, a brand-new post-lockdown outfit (minus the elasticated waistband).

And it’s not all bad for the business either.

Employees are increasingly leaving their jobs to look for better ones, ones that afford them more value. So why not show your staff you care? Why not thank them for sticking by you, for executing their jobs without falter while a pandemic enveloped the world, potentially changing their lives forever? 

Think of it as an investment in talent that will deliver more value for the business.

Think of the value you’re creating by keeping the right people with the right skills in the business.

And don’t forget, you’ll also be powering the economy. By gifting your employees $2,000, you’ll inevitably be supporting the local economy and helping propel Australia towards a better tomorrow (cheesy, cliched, but true).

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• Yes

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Staff are currently in high demand. But they’re also mostly overworked, overtired, underplayed and underpaid.

Write comment (0 Comments) " ["jcfields"]=> array(9) { [1]=> object(stdClass)#10592 (33) { ["id"]=> int(1) ["title"]=> string(17) "Automatic tagging" ["name"]=> string(17) "automatic-tagging" ["checked_out"]=> NULL ["checked_out_time"]=> NULL ["note"]=> string(0) "" ["state"]=> int(1) ["access"]=> int(1) ["created_time"]=> string(19) "2018-08-29 05:26:30" ["created_user_id"]=> int(2355) ["ordering"]=> int(-1) ["language"]=> string(1) "*" ["fieldparams"]=> object(Joomla\Registry\Registry)#10248 (3) { ["data":protected]=> object(stdClass)#10012 (1) { ["options"]=> object(stdClass)#9999 (2) { ["options0"]=> object(stdClass)#9992 (2) { ["name"]=> string(3) "Yes" ["value"]=> string(1) "1" } ["options1"]=> object(stdClass)#10013 (2) { ["name"]=> string(2) "No" ["value"]=> string(1) "0" } } } ["initialized":protected]=> bool(true) ["separator":protected]=> string(1) "." } ["params"]=> object(Joomla\Registry\Registry)#10247 (3) { ["data":protected]=> object(stdClass)#9994 (6) { ["hint"]=> 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A wave of resignations from Australian workers is expected in the next six months.

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Australian employers have been put on notice after a recent survey found that 40 per cent of workers are planning to look for a new role in the next six months.

The survey of 1,000 Australian workers by Employment Hero also found that 15 per cent were already searching for a new job and 48 per cent were planning to begin the hunt for a new job within the next year.

“If businesses are looking to grow quickly following the pandemic, they need to start getting prepared now, as we have six months before Australia’s projected ‘Great Resignation’ ushers in the ‘Great Recruitment Rush’,” said Employment Hero co-founder and CEO Ben Thompson.

A lack of career opportunities was the major factor for 31 per cent of those seeking a new role in a different organisation.

No pay rise was the main driving force for 30 per cent and 26 per cent identified underappreciation as their top gripe.

“Handing out pay rises is not always feasible for businesses against the backdrop of the pandemic, but if businesses can afford to give their workers a salary increase, now is the time for them to take action,” said Alex Hattingh, chief people officer at Employment Hero.

“Similarly, if a business doesn’t have the means or structure available to offer promotions at this time, they can set up a career development pathway for their staff.”

Forty-seven per cent of workers said a salary increase would encourage them to keep their current role while 25 per cent said they would remain on board if offered a promotion.

“Businesses need to turn their attention back to growth, but with a people-centric perspective,” Mr Thompson said.

“If people fuel a business, how can businesses keep and find the best people who will be invested in seeing their business scale? It takes time, effort and consideration, but the more businesses invest in their employees, the more they invest in their business.”

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• Yes

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A wave of resignations from Australian workers is expected in the next six months.

Write comment (0 Comments) " ["jcfields"]=> array(9) { [1]=> object(stdClass)#10603 (33) { ["id"]=> int(1) ["title"]=> string(17) "Automatic tagging" ["name"]=> string(17) "automatic-tagging" ["checked_out"]=> NULL ["checked_out_time"]=> NULL ["note"]=> string(0) "" ["state"]=> int(1) ["access"]=> int(1) ["created_time"]=> string(19) "2018-08-29 05:26:30" ["created_user_id"]=> int(2355) ["ordering"]=> int(-1) ["language"]=> string(1) "*" ["fieldparams"]=> object(Joomla\Registry\Registry)#10248 (3) { ["data":protected]=> object(stdClass)#10012 (1) { ["options"]=> object(stdClass)#9999 (2) { ["options0"]=> object(stdClass)#9992 (2) { ["name"]=> string(3) "Yes" ["value"]=> string(1) "1" } ["options1"]=> object(stdClass)#10013 (2) { ["name"]=> string(2) "No" ["value"]=> string(1) "0" } } } ["initialized":protected]=> bool(true) ["separator":protected]=> string(1) "." } ["params"]=> object(Joomla\Registry\Registry)#10247 (3) { ["data":protected]=> object(stdClass)#9994 (6) { ["hint"]=> 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"" ["rawvalue"]=> string(0) "" } [4]=> object(stdClass)#10602 (33) { ["id"]=> int(4) ["title"]=> string(9) "Video URL" ["name"]=> string(9) "video-url" ["checked_out"]=> NULL ["checked_out_time"]=> NULL ["note"]=> string(0) "" ["state"]=> int(1) ["access"]=> int(1) ["created_time"]=> string(19) "2020-06-19 05:54:21" ["created_user_id"]=> int(2351) ["ordering"]=> int(1) ["language"]=> string(1) "*" ["fieldparams"]=> object(Joomla\Registry\Registry)#10223 (3) { ["data":protected]=> object(stdClass)#10221 (2) { ["filter"]=> string(0) "" ["maxlength"]=> string(0) "" } ["initialized":protected]=> bool(true) ["separator":protected]=> string(1) "." } ["params"]=> object(Joomla\Registry\Registry)#10222 (3) { ["data":protected]=> object(stdClass)#10258 (10) { ["hint"]=> string(0) "" ["class"]=> string(0) "" ["label_class"]=> string(0) "" ["show_on"]=> string(1) "2" ["render_class"]=> string(0) "" ["showlabel"]=> string(1) "1" ["label_render_class"]=> string(0) "" ["display"]=> string(1) "2" 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NULL ["editor"]=> NULL ["access_level"]=> string(6) "Public" ["author_name"]=> string(18) "Jeremiah Sebastian" ["group_title"]=> string(22) "Summary points + video" ["group_access"]=> int(1) ["group_state"]=> int(1) ["group_note"]=> string(0) "" ["value"]=> string(0) "" ["rawvalue"]=> string(0) "" } [2]=> object(stdClass)#10610 (33) { ["id"]=> int(2) ["title"]=> string(14) "Embedded Video" ["name"]=> string(14) "embedded-video" ["checked_out"]=> NULL ["checked_out_time"]=> NULL ["note"]=> string(0) "" ["state"]=> int(1) ["access"]=> int(1) ["created_time"]=> string(19) "2020-06-20 01:43:32" ["created_user_id"]=> int(2351) ["ordering"]=> int(5) ["language"]=> string(1) "*" ["fieldparams"]=> object(Joomla\Registry\Registry)#10270 (3) { ["data":protected]=> object(stdClass)#10275 (4) { ["buttons"]=> string(0) "" ["width"]=> string(0) "" ["height"]=> string(0) "" ["filter"]=> string(0) "" } ["initialized":protected]=> bool(true) ["separator":protected]=> string(1) "." } ["params"]=> object(Joomla\Registry\Registry)#10272 (3) { ["data":protected]=> object(stdClass)#10277 (10) { ["hint"]=> string(29) "Paste your embedded code here" ["class"]=> string(0) "" ["label_class"]=> string(0) "" ["show_on"]=> string(1) "2" ["render_class"]=> string(0) "" ["showlabel"]=> string(1) "1" ["label_render_class"]=> string(0) "" ["display"]=> string(1) "2" ["layout"]=> string(0) "" ["display_readonly"]=> string(1) "2" } ["initialized":protected]=> bool(true) ["separator":protected]=> string(1) "." } ["type"]=> string(6) "editor" ["default_value"]=> string(0) "" ["context"]=> string(19) "com_content.article" ["group_id"]=> int(2) ["label"]=> string(14) "Embedded Video" ["description"]=> string(0) "" ["required"]=> int(0) ["only_use_in_subform"]=> int(0) ["language_title"]=> NULL ["language_image"]=> NULL ["editor"]=> NULL ["access_level"]=> string(6) "Public" ["author_name"]=> string(18) "Jeremiah Sebastian" ["group_title"]=> string(22) "Summary points + video" ["group_access"]=> int(1) ["group_state"]=> int(1) ["group_note"]=> string(0) "" ["value"]=> string(0) "" ["rawvalue"]=> string(0) "" } } ["link"]=> string(64) "/earn-money/salary/is-australia-headed-for-the-great-resignation" ["image"]=> string(48) "images/article-826x550/resignation-letter-ne.jpg" ["image_alt"]=> string(17) "Great Resignation" } }