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Don’t bank on a pay rise in 2016 new report warns

Announcement posted by Adecco 17 Mar 2016

Sydney, 17 March 2016: Despite consumer and business confidence trending up, most employers (79 per cent) do not plan to offer wage increases in 2016 and of the 21 per cent who will, the majority (57 per cent) will offer modest increases between 2 and 5 per cent, the 2016 Adecco Employment and Talent Report has found.
 
Performance, local economic conditions and competition for talent (86 per cent) are the major influencers for employers considering wage rises while aligning wage rises with the Consumer Price Index (CPI) has lost favour with just (14 per cent) using it as a reason for increases.
 
Nor is it surprising that employee disengagement is costing the national economy $54.8 billion annually with the report showing 76 per cent of Australian workers are in two minds about their jobs or worse still, are completely disengaged.
 
“It is well documented that disengaged workers are less profitable, less loyal, less safe, less innovative and less likely to stay,” Lindsey Monroe Ruth, Head of Marketing at the Adecco Group Australia & New Zealand said.
 
“This report clearly shows that employers need to address common pitfalls like lack of direction, relying too heavily on pay as a motivator, not recognising achievements or ignoring career progression and consider ways to enhance employee engagement.  These could include articulating the organisation’s values, fostering behaviours that align with these values, showing gratitude, emphasising the positives and understanding what inspires their employees,” she added.
 
The report also found that better opportunity (46 per cent) is the major reason employees leave an organisation, followed by salary (20 per cent) and lack of career (progression) 14 per cent.
 
Flexible hours (43 per cent), and education and training (34 per cent) continue to be the key benefits while bonuses remain popular (20 per cent).
 
And if you are young and unemployed you probably need to lower your salary expectations as 21 per cent of employers attribute youth unemployment to high salary expectations and 15 per cent to lack of experience.
 
Moreover, with new generation, come new expectations. Work life balance (65 per cent), salary (54 per cent) and the opportunity to grow (51 per cent) seem to be the key motivators for candidates seeking a new role.
 
“Tomorrow’s workplace will be very different to the workplace today. It will evolve into a mixed environment where workers can relax and play.  We are already seeing the seeds of this change. Organisations such as KPMG and IBM have adopted activity-based workplaces that are  designed to heightened transparency and creativity. Employers are turning their minds as to how best manage a multigenerational workforce and employees will continue to strive for better work/live balance,” Lindsey Monroe Ruth concluded.
 
 
Ends/
 
 
More information on Adecco Group:
www.adecco.com  
For further information, please contact:
Lindsey Monroe Ruth, Head of Marketing Adecco Group Australia & New Zealand
LindseyMonroe.Ruth@adecco.com.au or +61 425 203 033
OR
Louise Nealon, Callidus PR
louise@calliduspr.com or + 61 2 9283 4114
About the Adecco Group
The Adecco Group, based in Zurich, Switzerland, is the world’s leading provider of HR solutions. With more than 32,000 FTE employees and around 5,100 branches in over 60 countries and territories around the world, Adecco Group offers a wide variety of services, connecting around 700,000 associates with our clients every day. The services offered fall into the broad categories of temporary staffing, permanent placement, career transition and talent development, as well as outsourcing and consulting. The Adecco Group is a Fortune Global 500 company. Adecco S.A. is registered in Switzerland (ISIN: CH0012138605) and listed on the SIX Swiss Exchange (ADEN).