Why Employees Are Making the Jump
The years of wage stagnation may be all but over, with businesses saying that more employees are on the move.
According to the 2017 Hays Salary Guide, around a third of organisations surveyed reported staff turnover is on the rise. Just 15 per cent of the nearly 3,000 organisations surveyed reported a decrease in staff taking a job elsewhere, but for more than half of the businesses who responded to the survey, staff turnover had remained the same.
Nick Deligiannis, Managing Director of Hays in Australia & New Zealand, said the increase in the number of people willing to resign in favour of another role elsewhere shows the job market is providing career-advancing opportunities.
“Job seekers are aware that employers are adding to their permanent headcount now and are using temporary or contract resources to support their team. As a result, they know that demand is rising for highly-skilled professionals.”
Wage stagnation has been raised as an issue of economic concern by the Reserve Bank of Australia and leading economists, yet despite increasing business activity, wage rises are predominantly sub-three per cent if they are being offered at all.
Findings from the Guide suggest that business activity increased for 70 per cent of employers in the past 12 months, while three-quarters (75 per cent) of respondents expect activity to increase in the next 12 months. Staff levels are set to rise too, with 45 per cent of employers expecting to increase permanent staff levels, far exceeding the 11 per cent who say they’ll decrease.
Despite this, 65% of employers said they will give their staff a sub-three per cent pay rise in their next review, while 11% will not increase salaries at all.
“With sedate salary increases on offer for many skilled professionals, loyalty is being tested and turnover is rising as employees leave for a role offering better career advancement, salary, benefits or work-life balance,” Nick said.
What do people want in the year ahead? When thinking about their career in the year ahead:
- 60%of employees surveyed said being able to work flexibly was most important
- 60% also said a pay rise is important
- 54% want more challenging or exciting work
- 53% want support from their boss
- 47% want to learn additional digital skills
“Clearly career progression, ongoing learning and development – particularly in digital skills – and challenging or exciting work are key to successful staff retention in the year ahead,” says Nick. “While not every workplace or role suits flexible working, for those that do it’s also an important retention tool.”
Want to see the numbers? 2017 Hays Salary Guide