Earn
Will you get a pay rise this financial year?
After years of sedated salary growth, fresh research shows employers are more cashed up and ready to address skills shortages.
Will you get a pay rise this financial year?
After years of sedated salary growth, fresh research shows employers are more cashed up and ready to address skills shortages.
Key trends
According to national recruiter Hays, 13 per cent of people across all industries were not given a pay rise in the 2018-19 financial year.
A further 57 per cent received a rise of less than 3 per cent, with 21 per cent receiving a pay increase of between 3 and 6 per cent.
The remaining 9 per cent received a pay increase of more than 6 per cent.
The outlook this year
More employees intend to ask for a rise during their next pay review in the upcoming financial year. About 65 per cent of employees are expected to ask for a pay rise, which is higher than the 57 per cent that received one last year.
In 2019-2020, it is expected that only 4 per cent of employees will ask for a pay rise of above 6 per cent.
Are workers optimistic?
The gap between what employees want and what they expect to receive is large, according to Hays.
Hays notes that 27 per cent do not expect to receive any pay rise at their next pay review while 41 per cent expect less than 3 per cent.
However, 14 per cent of employees think they will receive more than 6 per cent, with 6 per cent of those expecting 10 per cent or more.
“Evidently, the aggregate effect of several years of sedate salary increases is taking its toll and we’re now seeing a tug of war over salaries,” said Hays director David Cawley.
“On the one hand, we have professionals telling us they’ve prioritised a pay rise and are prepared to enter the job market to improve their earnings. On the other, employers tell us they want to add to their headcount and are being impacted by skill shortages, yet they plan to curtail salary increases,” said Mr Cawley.
Skills shortages
According to Hays, over the past year, Australia’s skill shortages has intensified. The gap between the skills jobseekers possess and those employers want is widening.
Employers are worried about the impact the skills shortage is having on the operations of the organisation, with 70 per cent believing that the shortage is having an impact on the organisation as a whole.
While the skill shortages is affecting businesses, so is the turnover rate as employees seek salary increases or career progress somewhere else.
Hays states the solution to this problem could be skilled migration. It is believed that 57 per cent of employers would consider employing or sponsoring a qualified overseas candidate that meets the skills required for the organisation.
One negative for employees with this skills shortage is a renewed focus on attraction at the expense of retention. Employers are increasingly aware of what they don’t have, leading to 54 per cent of companies restructuring.
Top benefits workers want
- Flexible work practices are the most common non-financial benefit offered – by 83 per cent of employers – ahead of ongoing learning and development (offered by 70 per cent) and career progression opportunities (62 per cent).
- 67 per cent of organisations offer flexible salary packaging. Of these, the most common benefit is salary sacrifice, offered by 55 per cent of employers to all employees. This is followed by above mandatory superannuation (offered by 37 per cent of employers to all their employees), parking (33 per cent), bonuses (27 per cent) and private health insurance (26 per cent).
- Of the benefits offered to a select few employees, private expenses tops the list, with 70 per cent of employers offering it to a hand-picked number of employees.
- 68 per cent of employers said business activity had increased over the past year, with 70 per cent expecting it to increase in the next 12 months.
- 32 per cent intend to increase permanent accountancy and finance staff levels over the coming year. This exceeds the 10 per cent who say they’ll decrease staff levels.
- 70 per cent say skill shortages will impact the effective operation of their business or department in either a significant (28 per cent) or minor (42 per cent) way, up from 67 per cent last year.
- 54 per cent of employers are restructuring to keep up with changing business needs – the key driver of these restructures is a change in the required skill sets.
- In skill short areas, 57 per cent of employers would consider employing or sponsoring a qualified overseas candidate.
The numbers game
It’s a good year to be an accountant, according to Hays, with 90 per cent of organisations looking to increase their current accounting stocks.
However, the value of these increases will fall eventually. Almost two-thirds intend to raise salaries of these employees at the lower end, with 41 per cent not planning to raise salaries at all.
This email address is being protected from spambots. You need JavaScript enabled to view it.
About the author
About the author
Salary
Qantas workers warned of stand-downs as unions rehash calls for ‘Aviation Keeper'
Workers at the national airline have been warned that the COVID-19 border closures could mean the airline will stand down employees again, as the unions call for government support. ...Read more
Salary
Struggling to find staff? Your inaction on social issues could be to blame
Australian employees are increasingly likely to call it quits with a company that has a poor record on social issues or mental health, new research has shown. ...Read more
Salary
Job losses rise as $155m in disaster payments is deposited into accounts
Australia’s decade-low unemployment rate is set to spike just as the country’s efforts were being celebrated, with key stakeholders questioning whether current government support goes far enough i...Read more
Salary
Time to get older Aussies back in the workforce: ANZ
A big four bank CEO is encouraging older Australians to return to the workforce, as the country continues to battle skill shortages led by the closure of international borders. ...Read more
Salary
Unemployment falls to decade low
Australia’s unemployment rate has fallen below 5 per cent for the first time in over a decade, official figures have revealed. ...Read more
Salary
Debunking the mystery: What counts as essential work or an essential item?
The NSW government has refused to define what essential work is or what it considers an essential good, despite placing Sydneysiders under strict stay-at-home orders which prohibit people leaving home...Read more
Salary
Australia’s top-paid CEO revealed
The COVID-19 pandemic has seen a change in investor sentiment when it comes to bonuses, leading to a new top 10, new research has revealed. ...Read more
Salary
Lockdowns see need for minimum income floor
The government has been urged to fix COVID income support for those affected by lockdowns, with measures including adding top-ups to the COVID-19 Disaster Payment and extending eligibility vital to e...Read more
Do lockdowns boost property prices? Are short-sellers levelling the playing field? Did you lodge your tax returns early?
Listen now
Will lockdowns halt the housing boom? Is the metaverse taking over? And the cons of lodging your tax returns early
Listen now
Are you being priced out of the market? Have you got the Tuesday blues? And are you ready for the upcoming super changes?
Listen now
Are property prices set to crash? Should you jump on board the fintok craze? And how to prepare for this tax time
Listen now
Salary
Qantas workers warned of stand-downs as unions rehash calls for ‘Aviation Keeper'
Workers at the national airline have been warned that the COVID-19 border closures could mean the airline will stand down employees again, as the unions call for government support. ...Read more
Salary
Struggling to find staff? Your inaction on social issues could be to blame
Australian employees are increasingly likely to call it quits with a company that has a poor record on social issues or mental health, new research has shown. ...Read more
Salary
Job losses rise as $155m in disaster payments is deposited into accounts
Australia’s decade-low unemployment rate is set to spike just as the country’s efforts were being celebrated, with key stakeholders questioning whether current government support goes far enough i...Read more
Salary
Time to get older Aussies back in the workforce: ANZ
A big four bank CEO is encouraging older Australians to return to the workforce, as the country continues to battle skill shortages led by the closure of international borders. ...Read more
Salary
Unemployment falls to decade low
Australia’s unemployment rate has fallen below 5 per cent for the first time in over a decade, official figures have revealed. ...Read more
Salary
Debunking the mystery: What counts as essential work or an essential item?
The NSW government has refused to define what essential work is or what it considers an essential good, despite placing Sydneysiders under strict stay-at-home orders which prohibit people leaving home...Read more
Salary
Australia’s top-paid CEO revealed
The COVID-19 pandemic has seen a change in investor sentiment when it comes to bonuses, leading to a new top 10, new research has revealed. ...Read more
Salary
Lockdowns see need for minimum income floor
The government has been urged to fix COVID income support for those affected by lockdowns, with measures including adding top-ups to the COVID-19 Disaster Payment and extending eligibility vital to e...Read more
More articles
Website Notifications
Get notifications in real-time for staying up to date with content that matters to you.
