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.
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.
