Australian Bureau of Statistics (ABS) data reveals that 9.5% of employed people changed jobs over the year to February, the highest rate of annual job mobility since 2012.
Some 46% of firms surveyed by RMIT Online felt they had to ‘overpay’ new hires in the last 12 months, while 35% stated their most recently hired workers were paid the highest salaries for their roles. RMIT Online interim CEO Claire Hopkins said this was “creating tension with existing employees”.
Meanwhile, KPMG senior economist and partner Sarah Hunter notes data from the Melbourne Institute’s Household, Income and Labour Dynamics in Australia survey disclosed that between 2018 and 2020, the average annual rise in pay for someone changing employers was just under 6% – compared to just over 3% for someone who stayed put.
From The AFR:
Workers are paying a “loyalty tax” by sticking with their employers at a time when labour shortages are forcing companies to offer higher salaries to attract new staff.
Economic research shows that people who change employers tend to land bigger pay rises than those who stay put, just like consumers who switch banks or energy providers get better deals…
Treasury analysis of Australian Taxation Office payroll data released by former Treasurer Josh Frydenberg in February found that workers who moved jobs typically experienced pay increases of between 8 and 10 per cent…
KPMG senior economist and partner Sarah Hunter said… the HILDA data showed that between 2018 and 2020, the average annual increase in pay for someone changing employers was just under 6 per cent – compared to just over 3 per cent for someone who stayed put.
SEEK’s latest advertised salary index rose 3.8% in the year to August. This was well in excess of the 2.6% wage growth reported by the ABS over the June quarter, which captures total wages:
The key takeaway is that if you want a decent pay rise, you are more likely to get it by switching jobs.
