Salary expectations ‘driving a wedge’ between employers and employees

According to the financial report 2021-22 Hays Salary Guide, more employees will receive a pay rise this year than last, but it will be significantly less then they hoped for.

The report – based on a survey of close to 3,500 organisations and representing over 8.8 million employees – found that 67 per cent of employers will award pay rises, but only 12 per cent will hand out increases of 3 per cent and above.

“The value of salary increases is driving a wedge between employers and employees,” managing director of Hays in Australia and New Zealand, Nick Deligiannis, said.

“On the one hand, we have almost seven in 10 employers intending to increase salaries in the year ahead, which is a remarkable sign of the confidence employers exhibit today.

“On the other, professionals say the value of these increases is far less than they deserve.

“This is creating a gap between what employers will offer and employees say they are worth. This divide must be managed sensitively if employers are to retain staff and attract new talent in short supply.”

Mr Deligiannis believes the best way to bridge the gap is to invest in the training and development of staff.

“After a year in which many skilled professionals put career plans on hold, they are focusing once more on their long-term goals,” he said.

“As our data shows, learning and developing new skills is now more important than a pay rise.

“A lack of promotional opportunities is also the primary factor driving professionals into the jobs market today. This makes re-investing in career progression pathways and staff development a sensible strategy for the year ahead.”

Neil Griffiths

Neil is the Deputy Editor of the wealth titles, including ifa and InvestorDaily.

Neil is also the host of the ifa show podcast.