WORKOUT Low pay loses staff
ONLY 55 per cent of professional workers have received a pay increase in the past 12 months despite an acute shortage of labour, a study by recruitment firm Chandler Macleod has shown.
About 40 per cent of the increases were prompted by the employees, the study of 350 professionals says.
The employer reluctance to reward staff shows poor retention strategies in place, even though more than 90 per cent of employees claim salary increases are a crucial factor in any job change decision.
At this rate, many employers risk losing their staff, says Chandler Macleod executive general manager Luke Henningsen.
‘‘ It is pretty clear that for Australian professionals money still talks, and employers who are not prepared to regularly adjust financial compensation in line with the general market will face unwanted loss of staff,’’ he says.
‘‘ Employers who sit back and wait for employees to come with salary requests are simply being complacent. Increasingly in this market, employees are testing their value with other potential employers and showing a willingness to walk from their current employer if their requests are not considered seriously,’’ Henningsen says.
‘‘ To retain their best staff in this market, employers will need to be more proactive in managing salary expectations and their reward systems.’’
Learning a winner
LIFELONG learning is the answer to combating future shortages in the labour market, a discussion paper prepared by Recruitment & Consulting Services Association Ltd (RCSA) says.
The shortage is being aggravated by various factors such as demographic change, government under-investment in education, student perception that university degrees are better than vocational trades, and workers not engaging in formal learning after leaving educational institutions to find work.
The paper says publicly funded training programs are targeting only the section of the potentially employable workforce deemed to be ‘‘ desperate’’ - the long-term unemployed.
Says Paul Veith of IPA Personnel, ‘‘ Recruiters are faced with lots of people, such as parents, coming into the workforce who need training to be employed, and yet they aren’t eligible to receive it for free because they are not classified as ‘ disadvantaged’. Our industry needs funding to train these people.’’