June 12th 2024.
It seems that a large portion of Australians are looking to switch jobs in the next year, with nearly 80% of those surveyed expressing a desire to do so. The main driving force behind this trend is the desire to improve one's salary and ease the financial strain of the high cost of living. This comes as no surprise, given the years of high inflation and interest rates that have put a strain on people's wallets.
According to the latest salary guide from recruitment company Hays, 77% of workers have either already begun their job search or have plans to do so in the next 12 months. The top reason cited for wanting to make a change is the cost of living, closely followed by factors such as a lack of room for advancement, a negative workplace culture, poor management, and personal circumstances.
While many employers are planning to offer pay raises during upcoming performance reviews, it seems that these offers may not meet the expectations of their employees. Hays Asia-Pacific CEO Matthew Dickason explains that this may lead to dissatisfaction, with almost 40% of employees feeling that their salaries do not reflect their individual performance. This is a significant increase from just five years ago, when only 67% of employees expected a raise of less than three percent. Now, the majority of workers are hoping for a pay increase of more than three percent.
One factor that has influenced employers' decisions to offer raises is the new pay transparency laws. Under these laws, large organizations are required to publish their gender pay gap every year. This has caused employers to reevaluate the value of pay raises, taking into consideration factors such as individual performance, benchmarking for the role, responsibilities, expertise, and the organization's overall performance.
Dickason emphasizes that individual performance remains the top consideration for a pay increase, but other factors are now also being taken into account. This shift in perspective is a reflection of the current cost of living crisis and the new pay transparency laws. It will be interesting to see how this plays out in the next year and how employers and employees navigate these changes.
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