Less than half of Australian HRDs predict pay rises in 2015

by Elizabeth Barnard27 Apr 2015
According to Robert Half’s 2015 Salary Guide, less than half of HR directors across Australia and New Zealand are anticipating pay rises for their workforces in 2015.
 
Only New South Wales is bucking this trend, with 72% of NSW-based HR executives expecting to deliver pay rises over the next year.
 
The report also showed that during the first half of this year, hiring intentions will generally remain robust – 55% of HR directors in Australia said that during this period, they only intended to fill vacated roles as opposed to adding new positions.
 
Why are people leaving jobs?

The report found that people were leaving their jobs over the past year for the following reasons:
 
  • Better work-life balance (30%)
  • Higher remuneration (25%)
  • Further career advancement (23%)
  • Better location (17%)
  • Better corporate culture (5%)
 
Poor recruitment choices
 
Sixty-five per cent of Australian HR executives said that they have previously hired an employee whose performance did not meet expectations, with the report finding that 10% of employee turnover is attributed to a poor hiring decision.
 
The key issues resulting from poor recruitment choices were:
 
  • Lost productivity (55%)
  • Lower staff morale (23%)
  • Monetary cost (19%)

Flexibility and autonomy
 
While 38% of small businesses are increasing flexible working opportunities nationwide, there was a predicted decrease in flexible working arrangements offered by large companies.
 
In the survey, HR leaders revealed the benefits of offering employees greater autonomy through flexible working hours, working remotely, or even working under less direct supervision.
 
The most common benefits cited were:
 
  • Increased productivity (64%)
  • Better creativity (49%)
  • Improved communication (43%)
  • More collaboration (34%)
 
Pay rises
 
Although more than half of HR Directors said that pay would be frozen this year, there was a general consensus that the best time to discuss pay was during second or subsequent job interviews.
 
Just 14% of Australian HR Directors said that such discussions should always be initiated by the company. 
The factors leading to a pay rise among Australian employees were:
 

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