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Are you in line for a salary increase this financial year?
Skill shortages and a rapid response to the COVID-19 downturn is raising employees’ expectations of a salary bump, but employers have other ideas, new research has revealed.
Are you in line for a salary increase this financial year?
Skill shortages and a rapid response to the COVID-19 downturn is raising employees’ expectations of a salary bump, but employers have other ideas, new research has revealed.
Despite employees believing this is an ideal market to test their worth, employers are unlikely to reward their staff through higher remuneration.
According to the latest Hays salary guide, worker shortages are unlikely to see firms cough up bigger salaries. In fact, employers intend to offer minimal pay increases, which are likely not live up to the expectations of workers who sacrificed during the past year.
This lack of a pay boost comes at a time when both the RBA and the government try desperately to lift wages in order to hit inflation targets.
One of the key findings from Hays' guide is that only a slim 12 per cent of employers are looking to award salary boosts of 3 per cent or more to their employees, while in contrast to this, 67 per cent of employees say an increase of 3 per cent or more would better reflect their performance.
Hays stressed that this mismatch between employers and employees has to be managed carefully.
The report also showed that employees who deem themselves underpaid are likely to enter the jobs market in search of career progression and salaries that reflect their skills.
“Thirty-eight per cent of skilled professionals are looking or planning to look for a new job this financial year, with another 39 per cent open to opportunities,” Hays report said.
While pointing to a mismatch in salary expectations, Hays highlighted the importance of offering other benefits such as training opportunities to allow staff to develop a sense of progression. Also key is flexibility in the workplace.
“A lack of promotional opportunities is the number one reason driving skilled professionals into the jobs market today,” the report said.
“Almost one-quarter blame the COVID-19 pandemic for decreased career progression within their organisation.”
The report also warned management to keep closer tabs of what their staff are worth, with many skilled professionals emerging from the COVID-19 shutdowns as strong candidates.
“Many skilled professionals elected to remain shielded in their existing jobs during the pandemic, putting their career progression on hold.
“However, they were not idle, many developed software skills, technical skills or undertook higher or additional qualifications to improve their job prospects should they need to look externally for career progression,” the report concluded.
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