Extra Proof You're Not Going To Get A Pay Rise

Getting a pay rise is never easy. Extra evidence it's not getting any easier: a recent survey of business owners suggests that one-quarter of Australian business owners deferred pay rises last year because they're concerned about the economy.

Picture by Alpha

Sage's Business Sentiment Index for 2012 surveyed 503 Australian businesses about their expectations for the coming year. The dominant theme was concern over rising business costs, and a dominant reaction was to clamp down on any potential pay increases. Asked which business decisions they had deferred, 27 per cent nominated pay rises. Conversely, when asked to name their priorities if more funding was available, absolutely none nominated improving existing staff salaries.

Those figures arguably conceal an even nastier truth. We know that a quarter of businesses deferred the option to increase pay, but we don't know what proportion never intended to do that in the first place. Notably, 60 per cent of businesses said that finding skilled staff was a struggle, a figure consistent with the 2012 results. I suspect paying a decent wage might make that easier.


Comments

    Kpmg just announced its deferring all pay and promotion cycles from July to October. 5000 Australian employees

      This sort of blanket approach is just a stupid thing to do. Talented staff, with other options, have an incentive to leave, and lousy staff with nowhere else to go will stay.

    or taking on staff and actually training them instead of desperately looking for the perfect candidate who will have 5+ years of experience in that ridiculously specific thing.

    What? no, no, not bitter at all about my unemployed status!

      Sometimes projects need to be completed now rather than in five years time.

        The problem is, if they had hired someone five years ago and trained them well they'd have people for that "project right now".

    As a business owner, when I was looking for staff, I never gave the job to the person that asked "How much will I get paid?', they are there for one thing money, and they will be the first to kick up a shit for not getting a "well deserved raise". I would rather take on keen staff let them prove themselves, and build up the pay from there, most of my good staff were pleasantly surprised when I gave them a raise for increasing their skill set, they didn't demand it.

    Keep this in mind guys, if you are working in a small company (or even a large company) with this current economic climate, would your rather keep the same pay and your job until things get better, or get paid better but only have a job for a few months because the owners can't keep the doors open.

      @Dennison - I would never want to work for you, ever. You want people to put in, be keen, prove themselves to line your pockets, but hang shit on them when they want the same. The best people I ever hired cared about money above all things in their job, because it's a job, and making money should be everyone's shared goal in the work place. Maybe this is why your business is small and worried about 'keeping the doors open' because you play games with money like its a reward instead of the product of a clearly defined agreement between two informed, empowered and consenting parties. When everyone has a sense that they work for themselves, everyone unites around the goal of profit. You want to make it a reward which you choose to hand out according to your views and opinions. You come on here like an expert thinking you're an authority on getting the best from the best, but your methods reward spineless lackies and arse-licking before ambition. You're not in business, you're running a club for the weak, where the aim is to make you happy instead of making money. If someone demands more money, you punish them. If someone asks what return they will receive for working for you, you punish them. I know you can't see how limiting and ultimately doomed your methods are, because you think because you own the business you also own the other people who profit from it, instead of partnering with them to the mutual benefit of the business and everyone who profits from it, you included. Do you want to be right, or do you want to be rich? I think you've answered that one already.

        Nicely said

        I was going to type something up, but this is way better than what I would have written...

        Mate I never punish my workers for having ambition and drive that what we work together on. I have a very good team that support me and have achieved every goal WE have set together, I have never treated my workers as lesser but more as team mates.

        It just shits me when lazy ass workers demand a raise when they are not entitled too, just because they have been there for while.

        Mate get to get it right, I'm rich and semi-retired at 33 and my workers are rich and well off because we work together, and anyone that doesn't pull their weight gets trimmed off.

        My team has never said to me "mate mate get $25/hr at blah blah blah, I think I should get the same because I have been here for X years", that all I can say.

          Also I realise I wasn't being clearer in the first comment, I wasn't directing this at hard workers which most people are, I was aiming it at workers that plod along and just rock up to work everyday with no ambition or drive and thank its a god given right to receive a raise every year.

        Great response

        (btw own a family business)

      If the company can't pay employees what they're worth or what they can receive elsewhere, then the company is in trouble. A company that genuinely can't afford to increase your pay may not be around in a years time, while a company that can afford it but refuses to may not be a great employer. Either way it's worth keeping your options open for new jobs.

      Of course it makes sense to pay employees within your means, and people will often work where the pay is worse if they love the job. If you can't pay them more, do your best to make the work environment more pleasant and rewarding .

        @Kendal - Bravo. 100% spot on, I actually print screened this comment it's so good.

      Wow. As the main income source for my family It is definitely important to know "How much will I get paid?". For many people on a very tight budget taking one job over another can be a difference in pay. But well said @Kendal. I agree with you whole heartedly.

    Wow do pay-rises still exist? I remember asking for one once.
    I got it with no fuss at all and life was great, however I got let go a few weeks later for no reason.
    I have also been promised pay-rises and company cars by actually doing a great job, but nothing
    ever came from it.

    To me, pay-rises are a fairytale in this new society. Just try to get a great job and stick with it.
    If you want to go higher up try and pitch for a better one. Waiting for a pay-rise is not going to get you
    anywhere, and it seems asking for one gets you in heaps more trouble or fired.

    Also, try to avoid becoming a graphic designer. You will be part of the easily expendable workforce.

    With most companies the only way to get a pay rise is to get a new job. This is how I have done it since I left my first job I had for 3 years since University. You leave, you can get a pay rise in the realm of 15-20% easy. If you're lucky enough to get an agreed, non-hostile pay rise in your current company it's going to be 4-10% max.

    I have no sympathy for employers because most of them - not all - treat their companies like their own personal serfdoms.

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