Keeping hopes up: Australians expect salary increase in 2023
A recent survey conducted by the ADP Research Institute has unveiled a significant surge in payrise expectations among Australian workers, with over half of respondents anticipating an increase in their salaries this year.
According to the People at Work 2023: A Global Workforce View survey, nearly half (49%) of Australian workers expect a pay bump of up to 6%, while 13% are optimistic about receiving a pay increase of 10% or more.
However, almost half of the participants (49%) expressed dismay over their current salaries, believing they were being underpaid in their respective roles.
Meanwhile, among different age groups, Millennials were seen to have the highest expectation of an increase. Two in three people aged 25 to 34 (66%) purportedly anticipated a raise within the next 12 months.
READ MORE | Can taking on more responsibilities at work lead to a pay rise and promotion?
Kylie Baullo, Managing Director of ADP ANZ, acknowledged the challenge faced by employers in meeting the expectations for higher wages while dealing with rising costs and narrowing profit margins.
Baullo stressed the significant impact on talent acquisition and retention, highlighting the belief among workers that they could secure a pay rise by switching jobs if necessary, Yahoo! Finance reported.
In light of this situation, Baullo suggested that employers unable to offer substantial pay rises should consider adopting creative strategies to retain their staff.
READ MORE | Australian employers offer higher pay to attract top talent amid rising competition
"With workers and working families experiencing the highest increases in the cost of living over the past two decades, it's no surprise that employees expect their pay to keep pace with the ongoing crisis," Baullo stated, emphasising that lower and middle-income workers have faced severe hits to their disposable incomes.
Many are found struggling with rising rents, increasing interest rates, and escalating bills for essentials such as food and energy. Baullo noted that even though inflation may have peaked, it would take time for it to return to more manageable levels.
The survey findings highlight the growing importance of salary expectations and the need for employers to address employees' concerns to foster a satisfied and motivated workforce amidst challenging economic conditions.