Working Australians expecting more cash in their pockets are in for disappointment.
Pay increases across Australian industries are set to experience smaller increases than was hoped, a nation-wide study from Hay Group has revealed.
Hay Group predicts the next 12 months will bear witness to the slowest percentage growth in pay since the GFC, with an average of 3.5% across all industries.
Although the resource sector will see a rise of 4.3%, this is in contrast with the 6.25% increase forecasted a year ago.
Steve Paola, senior consultant and co-author of the Australian Salary Movement Index (ASMI) at Hay Group, stated the conservative salary movements have come about due to a decrease in overall business confidence in Australia.
The changes in salary expectations are reflective of the need of organisations to understand the current trends at all times. “The pay packet is perhaps the most tangible way organisations can communicate what is valued … it is vital not simply to set the bar correctly, but to continually monitor and adjust pay on an ongoing basis,” Paola said.
The smaller increases bring to light the issue of employee engagement and retention. With remuneration still a high priority for many Australian workers, employers will need to get creative to keep their top talent on board.
“Organisations needs to move beyond pay and focus on creating the right atmosphere with the right balance of monetary and non-monetary rewards to drive productivity, performance, engagement and loyalty,” Trevor Warden, senior consultant and co-author of ASMI at Hay Group, said.
Warden and Paola outlined where organisations need to focus: