Yahoo Finance Aussies to get a pay rise, but it won’t be what you want
Almost every Aussie is expecting to get a pay rise in the next 12 months.
Aussies are looking forward to getting a pay rise this year, and their bosses have agreed one is likely on the way, according to new research.
And while that’s great news for many, the Hays Salary Guide has revealed the size of the pay rise will likely disappoint.
Around 95 per cent of Aussie bosses reported they would be handing out pay raises to staff over the next 12 months.
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How much will my pay rise be?
A shocking 26 per cent of Aussie workers believed they should get a pay rise of more than 10 per cent, reporting they felt an increase of that size would reflect their performance and skills.
While 10 per cent is a bit of a stretch for some, 53 per cent of employers said they would be handing out pay rises of between 3 and 6 per cent.
Around 30 per cent of employers said they would be handing out raises of less than 3 per cent. A further 10 per cent said they intended to raise employee pays by 7 to 10 per cent.
The ‘year of the raise’
“We’re calling this the year of the raise, where the promise of higher salaries reflects the intensity of the skills shortage in today’s jobs market,” Hays Asia Pacific CEO Matthey Dickason said.
“Despite the increased salary boost, employer and employee expectations still fail to align. Many employees feel undervalued and underpaid. Only 28 per cent are satisfied with their current salary, with most (71 per cent) believing it doesn’t reflect their individual performance.”
Workers have increased bargaining power
The report also found most employers were willing to pay up to attract staff as they struggle to find workers in the skills shortage.
“With skills in demand you still have bargaining power, but it’s important to temper it to avoid pricing yourself out of consideration,” Dickason said.
“Yes, employers are investing in salary increases, but margins remain tight. The commercial reality dictates that salary increases can only stretch so far.
“Consider the whole package when you negotiate a new job or your next pay rise. Your emotional salary can go a long way to bridging a possible financial-expectation gap, so think about what you’d really value and what could make a difference to your life and career long-term.”
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