But on the other hand, the value of your pay increase in 2021 is likely to be minimal. This year, employer expectations show just 12% of Australian organisations will award pay increases of 3% or more. Instead, 55% say they will raise salaries by up to 3%.
Yet employee expectations differ, with 26% expecting a raise at this level. Furthermore, a significant 67% believe a pay increase of 3% or more would reflect their individual performance. That’s a significant salary expectation gap. So, while we will see an uptick in salaries, the value of those increases will be far less significant than many professionals hoped for.
To see if your skills should be in line for a salary increase this year, take a look at our online Salary Checker to view the highest, typical and lowest salaries for your job.
Many employees went above and beyond to help their organisation through the pandemic crisis and back to growth. After a year of salary stagnation, it’s understandable that they now want to be rewarded for their efforts.
However, budgets remain tight. So, if your salary increase fails to live up to expectations, consider what you could ask for instead. Perhaps upskilling, a promotional pathway or additional flexibility, for instance, could bridge the divide? You may also be interested in our advice on how to ask for a pay rise.
Of the skilled professionals we spoke to, a significant percentage (38%) are looking or planning to look for a new job this financial year. Another 39% are open to opportunities. For a significant percentage, an uncompetitive salary has motivated their job search.
These professionals have also taken steps to make themselves strong candidates to improve their job search prospects. Over the past year, almost half (46%) developed their soft skills, while 45% advanced their technical skills. Meanwhile, 21% undertook higher or additional qualifications.
If you do plan to advance your skills before exploring your options in the jobs market, don’t forget to also develop your digital proficiency. Most jobs now require a high level of digital literacy. Employers value candidates who can leverage new technology to work more effectively and efficiently. Data analysis skills are also increasingly valued across job functions. As a result, advancing your digital skills can provide a competitive advantage in the jobs market today.
Australia has weathered the COVID-19 storm better than anticipated, with 63% of employers telling us they’ve already returned to growth or rapid growth. 72% say business activity will increase over the next 12 months.
Job opportunities will continue to be offered, too. Almost one-half (47%) of employers say they intend to increase permanent staff levels in the next 12 months.
In some instances and industries, demand for skills to fuel growth has never been higher. Therefore, for some professionals, the time may be just right to consider an external move to hyper-drive your progression and salary increase.
The best place to start is to share or update your CV, so we can bring these opportunities to you directly.
Our annual Hays Salary Guide FY21/22 is based on a survey of close to 3,500 organisations and more than 3,800 skilled professionals. Download your copy to access typical salaries and insights relevant to your job and career path.
Nick Deligiannis, Managing Director, began working at Hays in 1993 and since then he has held a variety of consulting and management roles across the business. In 2004 he was appointed to the Hays Board of Directors. He was made Managing Director of Australia and New Zealand in 2012.
Prior to joining Hays, he had a background in human resource management and marketing, and has formal qualifications in Psychology.
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