Australians working in the business, finance and real estate sector will likely score pay rises this year.
According to a survey of more than 3,000 employees and employers by recruitment firm Adecco Group, 82 per cent of bosses said they expected to increase salaries by some amount – but some workers will see higher pay rises than others.
Nearly half (45 per cent) of employers said they would raise pay packets by less than 3 per cent, while roughly a quarter (27 per cent) said they would raise salaries by 3-7 per cent.
Six per cent said they’d give raises of 7-10 per cent, and only 4 per cent of bosses said they’d give pay rises of more than 10 per cent.
Every single employer from the business services, finance, and real estate sector said they would be looking to increase salaries by some amount, whether it was less than 3 per cent, 3-7 per cent, or more.
The education and not-for-profit sector are also likely to score a pay rise this year.
Surprisingly, those in the retail sector are one of the groups up for the biggest pay rise, with more than 10 per cent of employers saying they expect to hike salaries by more a tenth.
Economic woes: Aussies want pay rises they aren’t likely to get
With the impact of the bushfires, coronavirus, and Australia’s GDP growth hitting GFC levels, workers shouldn’t hold their breath for major pay rises any time soon.
Australia’s wage growth has been stuck near 2.2 per cent in the last half decade, according to The Conversation.
A gap exists between Australian employees’ expectations of fair remuneration and the economy’s poor wage growth, Adecco Group CEO Rafael Moyano said.
“From an economic perspective, there are few signs that Australia’s poor wage growth will soon improve,” he said.
“In the current economic climate, open dialogue and transparency around salary increase expectations could be worth considering for many employers. Any entrenched mismatches in salary increase expectations over the next few years could lead to increasing dissatisfaction among workers and lead to raised attrition rates for companies.”
The wage growth slowdown is also bad news for attracting talent from overseas, he added.
“It is understandably difficult to attract the best talent if we are unable to offer them strong growth prospects in the short to medium term.”
Employees wanting to ask for a pay rise should have a strong understanding of how to build a case for it.
“In an environment where wage growth is continuing to head downward, those hoping to buck the trend on an individual level will need to put in the groundwork.
“It’s worth understanding all the ways you can shift things in favour of your next big pay rise.”
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