Powered by MOMENTUM MEDIA

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.

Your boss could be eyeing different salary packages in 2020

The Executive Connection

Despite the RBA aggressively pursuing real wage growth to kick start the economy, new research suggests businesses are looking for non-financial ways to attract talent.

The Executive Connection CEO quarterly survey has revealed mixed news for Australia, with suggestions workers won’t get a pay bump despite an improving Australian economy. 

Bad news for workers

Times of low wage growth look set to continue as the survey of Australian CEOs showed that just 14 per cent of employers are planning on giving workers a 4 per cent increase in wages. 

Advertisement
Advertisement

More than 37 per cent plan to keep wages steady or adopt a minimal increase of 0 to 2 per cent and a third are expecting to pay wage rises of 2 to 3 per cent. Overall, two-thirds of CEOs are expecting wage increases of less than 3 per cent. 

To attract key personnel, 66 per cent of CEOs are planning to offer flexible working conditions and 58 percent are improving company culture. In addition, professional development programs, reward programs, enhancing employee benefits and career path planning will be utilised by Australian CEOs. 

Positive news for the economy

Business leaders’ confidence in the economy has rebounded strongly, as the confidence index rose by 16 points in the September quarter to 113, rising back above the positive/negative 100 point level. Expectations of the economy for the year have jumped 27 points to 107.

According to TEC economic advisor Warren Hogan, there is mounting evidence that Australia’s economy has turned the corner through the middle of 2019. At the very least, it appears that the deterioration of economic activity witnessed in middle 2018 has been arrested. 

Australia is less likely to drift into a recession due to political certainty, lower interest rates and the buoyancy of financial markets. 

The stabilisation of house prices is critical to shoring up consumer confidence and boosting their willingness to spend as lower wage growth and falling house prices has spooked Australians in the past 12 months. 

In contrast to survey results Governor Lowe has suggested this low interest environment will improve wage growth in Australia.

This email address is being protected from spambots. You need JavaScript enabled to view it.

Your boss could be eyeing different salary packages in 2020
The Executive Connection
nestegg logo

Cameron Micallef

Cameron Micallef is a journalist at Nest Egg, writing primarily about personal wealth and economic markets. 

Prior to this, Cameron worked for Australian Associated Press. He graduated from the University of Wollongong with a double degree in communications and commerce.

You can contact him on: This email address is being protected from spambots. You need JavaScript enabled to view it.

subscribe to our newsletter sign up
FROM THE WEB
Recommended by Spike Native Network
confused - are these pre or post tax being deducted? It talks about take-home pay so just want to clarify....
Anonymous - The problem is massive over-metroplitanisation. Income tax and GST bias businesses to locate where they can get customers and workers for less effort.......
Skeptic - Having money squirrelled away in superannuation is comforting in some ways, but I am concerned that Australians have nearly three trillion dollars in.......
Dr Livingston - Not so long ago, 5% unemployment was the sought after quantification by the RBA that the economy was doing well. This chase to zero sends unnecessary.......