Will your employees be expecting a pay rise soon?
Remuneration is one of the key concerns for both employees and employers, as getting it wrong could prove costly – literally.
A report from recruitment provider Hays found businesses across Australia and New Zealand have been increasing salaries over the past year – a trend which is likely to continue in the near future.
On top of this, business are also looking to increase their headcount, which should keep HR managers on their toes as the year progresses.
What other trends should employers look out for?
Hays warns that while it looks likely salaries will increase, these probably won’t be substantial raises. There are still some positives for employees however, with just under two thirds (65 per cent) of employers surveyed increasing their salary by up to 3 per cent.
This expectation is based on favourable outlooks for the future, with businesses sure there will be growth in their respective industries. This comes at a time where employers are looking to restrict temporary and contract jobs and focus on a permanent workforce.
“As a group these employers have a positive outlook, with 36 per cent expecting to increase permanent headcount and 68 per cent expecting business activity to rise,” says Managing Director of Hays in Australia and New Zealand Nick Deligiannis.
“The willingness of candidates to change jobs and of employers to expand permanent headcount helps to explain why 45 per cent will scale back their use of temporary and contract roles in the year ahead.”
However, employers may want to consider employee demands before settling on a plan for the rest of the year, as plenty of staff are expecting to be given a pay rise.
Hays found just under half (47 per cent) of all staff expect to receive anywhere up to a 3 per cent increase in their salary, while a quarter are hoping to be paid between 3 and 5 per cent more.