Data shows employees 'taking the lead when it comes to negotiating their take-home income'
Individuals arrangements emerged as the most common method for setting pay in Australia, according to a new report, indicating that employees are "taking the lead" in negotiating their income.
The 2023 Survey of Employee Earnings and Hours report from the Australian Bureau of Statistics (ABS) revealed that individually negotiated salaries make up an average of 38.7% of contracts Australia-wide.
The is higher than collective agreements, which is at 34%, according to ABS data.
"[The] Employee Earnings and Hours data demonstrates employees are taking the lead when it comes to negotiating their take-home income," said Charles Ferguson, General Manager at Globalization Partners, in a statement.
"The figures illustrate a clear trend towards individual arrangements and away from collective agreements."
According to Ferguson, the findings align with their recent research which showed 28% of Australians ranking salary and benefits as the "most important factor" when considering a job opportunity at a global company.
Facilitating negotiation processes
As employees take charge on how much they want to get paid, Ferguson advised employers to prioritise the development of an attractive compensation strategy to standout from other businesses.
"Perks such as flexible benefits, bonuses, and company culture offerings, in addition to a base salary, can help facilitate the negotiation process and retain more workers in Australia and around the globe, ultimately paying dividends in the long term," Ferguson said.
Australia's labour market remains tight, according to the ABS, with unemployment at 3.9% and hiring intentions expected to get stronger in 2024.
