New report finds many Australians pessimistic about living comfortably in the future
Employers are being urged to consider pay transparency policies and provide upskilling opportunities as a new report found financial woes among Australians.
Findings from ADP's latest research revealed that 44% of Australians do not believe they will ever reach a level of income that will enable them to live comfortably.
The figure rises for respondents living in Victoria (47%) and New South Wales (46%), according to the report.
"Employers can respond by considering a transparent pay policy and investing in career development and financial literacy, so people can plan with more certainty," said Kylie Baullo, General Manager for Australia, New Zealand and Japan at ADP, in a statement.
"Additionally, employers can provide upskilling through mentoring, stretch assignments, secondments, and consider offering study leave or leave loading."
Financial confidence drops with age
Baullo noted that financial confidence is high among younger employees, but declines with the older generations.
Just 29% of Boomers and respondents from the Silent Generation believe they will earn enough income to live comfortably. This is lower than the 38% of Gen X respondents who agreed with the sentiment.
On the other hand, optimism is high among younger workers, with many Millennials (45%) and Gen Zs (53%) believing they will eventually earn enough to live comfortably in their lifetime.
"Concerns about whether work will ever deliver long-term financial comfort are clearly weighing on the minds of many Australian workers, particularly those later in their careers," Baullo said.
Employers in Australia have been taking steps to address financial anxiety in the workforce. A recent report from Robert Half revealed that 99% of employers are now open to going above their initial salary offers during the recruitment process.
Among them, 40% of employers are open to offering a salary increase between six and 10%, according to the report.
