Nearly 80 percent of Australians are considering changing jobs within the next year to boost their salaries and combat rising cost-of-living pressures.
According to the latest salary guide from recruitment giant Hays, 77 percent of workers have either started looking for new roles or plan to do so in the next 12 months.
After years of high inflation and interest rates, it is unsurprising that the primary reason for this trend is the cost of living.
Other factors contributing to the desire for job changes include a lack of promotional opportunities, poor workplace culture, bad management, and personal circumstances.
While most employers (86 percent) plan to offer pay raises in upcoming reviews, the report indicates that these raises will likely fall short of employees’ expectations.
Matthew Dickason, CEO of Hays Asia-Pacific, said: “The mismatch between what employees want and what employers are willing to offer will play out over the next year, with almost 40 percent of employees being dissatisfied with their salaries and 73 percent saying it doesn’t reflect their individual performance.”
The report highlights a growing trend of employees expecting higher salary increases.
In 2019, 67 percent of employees expected a pay rise of less than three percent.
“The mismatch between what employees want and what employers are willing to offer will play out over the next year”
This has shifted significantly, with 61 percent of employees expecting a pay increase of more than three percent.
Need Career Advice? Get employment skills advice at all levels of your career
One key consideration for employers planning to offer raises is the new pay transparency laws, which require large organizations to publish their gender pay gap annually.
Dickason said: “When determining the value of a pay rise, employers’ considerations have changed dramatically over the past 12 months, reflecting the current cost-of-living crisis and the new pay transparency laws.”
Despite the changing landscape, individual performance remains the top consideration for a pay increase, with 84 percent of employers citing it as the main factor.
Other considerations include benchmarking for the role and responsibilities (74 percent), expertise (53 percent), and the organization’s performance (50 percent).
