There’s finally some good news for hardworking Aussies as the country’s cost of living crisis worsens – but you’ll have to get in quick.
New research has revealed Aussie bosses are quietly beefing up their salary budgets, meaning significant pay rises are up for grabs for workers.
That’s according to recruitment firm Robert Half, which has found that a staggering 96 per cent of companies have increased their salary budget for the 2022-23 financial year by an average of 20 per cent.
However, while 81 per cent of employers are expecting more employees to ask for a pay rise in 2022, only 44 per cent of workers are planning to ask for one, meaning that if you do put your hand up, you’re likely in with a good chance of a pay bump.
The company’s 2022 Salary Guide also revealed that 78 per cent of employees are prepared to walk if their pay rise request is denied.
Staff are citing cost of living pressures as their chief concern, given soaring inflation means those who have not received a pay rise are in real terms now earning less than they did just a year ago.
Now’s the time to ask for that raise. Picture: iStock
And it seems bosses are wising up to the problem, with 31 per cent saying their biggest challenge this year will be hanging on to top performers.
Almost half of employees, 48 per cent, agree that a low salary was the top reason to quit, followed by lack of career progression and unhappiness with the role.
Industries with soaring wages
The research also found which careers were set to score the biggest salary budget boost.
The tech industry came out on top, followed by the information and finance sectors.
Meantime, Callam Pickering, an economist at global job site Indeed, said that soaring wage growth was already being seen in a range of other sectors.
“Wage growth is highest in the construction sector at 3.4 per cent. That won’t come as a surprise to anyone trying to get a construction job completed, with staff shortages and building supply shortages combining to make it difficult to complete jobs on time and budget,” he said.
“Only two other industries – manufacturing and real estate – had annual wage growth of over 3 per cent.
“Thankfully though there isn’t a single industry with wage growth south of 2 per cent. Wage growth remains surprisingly low across a range of industries that would be considered to suffer from acute recruitment difficulties.”
Power to the people
Robert Half Asia Pacific’s senior managing director David Jones said workers had never been in a better position to demand more.
“The sudden rise in inflation that we have recently seen means that employees who have not received a pay rise from their employer are now on a lower income compared to a few months ago. Unsurprisingly, rising inflation and cost of living pressures have put salaries in the spotlight for Australian workers as they seek to mitigate any financial challenges,” Mr Jones said.
“Our research highlights that while salary is an important factor to workers, fewer employees are intending to raise salary issues with their employer than there are employers who are willing to give a raise.
“In the current changeable economic climate, there’s no doubt that companies are under pressure to regularly evaluate and benchmark their remuneration structure against the market.
“This reinforces the importance of communication for both parties: employers should frequently address salary expectations with their valued team members and workers should be upfront about their work-life needs – remuneration or otherwise – to ensure a transparent and satisfactory working relationship.”
Only 44 per cent of workers are planning to ask for a raise this year. Picture: iStock
The news comes after the Australian Bureau of Statistics revealed on Wednesday that the seasonally adjusted Wage Price Index had risen by 0.7 per cent in the June quarter for the third consecutive quarter.
Driven mostly by wage rises across the private sector, the annual rate of growth was 2.6 per cent, marking the highest annual rate of wages growth since September 2014.
Kris Grant, the CEO of management consultancy ASPL Group, said that wages would continue to grow in the months ahead.
“With the labour market the tightest it has been in almost 50 years, and labour shortages being experienced across all sectors, employers are having to pay larger salaries to attract and retain staff. In many cases, we are seeing salaries rise in the private sector by 15 per cent to 20 per cent, such as in the finance and technology sectors, where candidate shortages are acute,” she said.
“Employers who aren’t meeting wage demands, at least in part, could lose their most valuable resource – their staff – to other organisations that better recognise their value.
“That will put more pressure on wages costs over the remainder of the year and we can expect to see the Wage Price Index climb towards 6 per cent p.a.
“Nationally, job advertisements remain extremely high compared to pre-pandemic levels, which is creating opportunities for employees to move on to greener pastures if they aren’t satisfied with their existing employment or if their requests for higher wages are being rejected.”
https://www.news.com.au/finance/work/at-work/new-research-reveals-aussie-bosses-are-quietly-boosting-salary-budgets/news-story/5e20517dc24d6ed762117a22367154c5
