Survey: 3/4 of employers won’t give decent pay rises

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By Leith van Onselen

Australians hoping for a significant wage increase may be left disappointed, according to a survey of more than 3000 workplaces by recruitment firm Hays:

Two-thirds (65 per cent) of employers will give skilled professionals a pay rise of less than 3 per cent in their next review and 11 per cent will not increase salaries at all, according to the 2018-19 Hays Salary Guide.

…based on a survey of more than 3,000 organisations representing over 2.3 million employees, the 2018-19 Hays Salary Guide shows a further 18 per cent will give staff an increase of 3 to 6 per cent. Just 6 per cent will increase by 6 per cent or more…

Employees however have higher expectations than employers for a salary increase. 17 per cent expect an increase of 6 per cent or more. A further 19 per cent expect an increase of between 3 to 6 per cent. At the other end of the scale, 25 per cent do not expect any increase and 39 per cent expect less than 3 per cent.

Employees have also prioritised a pay rise. Two-thirds (67 per cent) say a salary increase is their number one career priority this year. If their employer doesn’t offer a pay rise, almost half (48 per cent, up from 45 per cent last year) will request one.

More evidence suggesting Australian wages growth will remain anaemic.

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About the author
Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness. Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.