Australia markets closed
  • ALL ORDS

    7,503.50
    -50.50 (-0.67%)
     
  • ASX 200

    7,301.50
    -52.90 (-0.72%)
     
  • AUD/USD

    0.6766
    -0.0050 (-0.74%)
     
  • OIL

    80.81
    -0.41 (-0.50%)
     
  • GOLD

    1,796.70
    -18.50 (-1.02%)
     
  • BTC-AUD

    24,964.86
    -426.74 (-1.68%)
     
  • CMC Crypto 200

    400.84
    -5.32 (-1.31%)
     
  • AUD/EUR

    0.6460
    -0.0009 (-0.13%)
     
  • AUD/NZD

    1.0656
    -0.0032 (-0.30%)
     
  • NZX 50

    11,641.85
    -12.71 (-0.11%)
     
  • NASDAQ

    12,041.89
    +11.83 (+0.10%)
     
  • FTSE

    7,532.46
    -26.03 (-0.34%)
     
  • Dow Jones

    34,395.01
    -194.76 (-0.56%)
     
  • DAX

    14,557.45
    +67.15 (+0.46%)
     
  • Hang Seng

    18,675.35
    -61.09 (-0.33%)
     
  • NIKKEI 225

    27,777.90
    -448.18 (-1.59%)
     

Almost half of Aussie bosses think you’re overpaid

A composite image of a crowd of people walking and Australian currency to represent workers pay.
Some Aussie bosses believe they are paying you too much. (Source: Getty)

Around a third of Aussies have changed roles in the past year and it's not surprising, given you often get a pay rise for moving and the cost of living is rising.

But almost half (46 per cent) of managers feel they have had to overpay new hires, according to new research.

The RMIT Salary Trap report also found 40 per cent of new hires’ colleagues also believed they didn’t have the skills or experience to be in their new role.

The report found that managers should focus on retaining team members instead of having to replace them with people who may not be up to the same standards.

So, why are Aussies leaving in droves?

Salary was the main driver for those in higher positions, while those in non-manager positions said they left for better career prospects - with just over a third saying they left for less than a $5,000 pay increase.

And when it comes to whether people who switched roles felt as if they were qualified - surprisingly many said they didn't think they were.

“When asked about their own roles, a third of managers who have changed roles in the past 12 months agree that they don’t feel qualified and may not be able to maintain their current role,” the report said.

“A clear skills gap is being identified and companies may need to act to address this.”

The report suggested there appeared to be a need for employers to consider a ‘skills audit’ for new hires.

RMIT interim CEO Claire Hopkins said the combination of overpaying new hires who were underqualified had created a “salary trap”.

“This is a situation where many companies are overpaying a proportion of their new hires in order to attract talent, and employees realise they might not have all of the necessary skills to succeed in their new positions,” Hopkins said.

“Our data reveals managers are more likely to feel trapped by recent moves and promotions, with 37 per cent of those who have moved jobs recently, already actively looking for a new opportunity.”

Follow Yahoo Finance on Facebook, LinkedIn, Instagram and Twitter, and subscribe to the free Fully Briefed daily newsletter.