Last in, first out phobia
WHY CASH-STRAPPED WORKERS ARE STAYING PUT AND FORGOING PAYRISES
Economic uncertainty is making Aussie workers hesitant to move to higher-paying jobs despite many struggling to afford to put food on the table.
Exclusive data from people2people Recruitment shows not even a pay rise is reducing the pain of increased living costs, with four in five Australians reporting the extra money does not cover the higher price of food and fuel.
Despite the hardship, workers are reluctant to look for better opportunities elsewhere, with less than half prepared to quit their current job to find a higher-paying role, the research shows.
“People are feeling the pain (of increased living costs) but they’re wearing it, for now,” people2people group managing director Mark Smith says.
“The uncertainty, first with Covid and now the economy, means that people are a little more sticky (prone to staying in their current job).
“They turn on the TV and see there’s possibly a recession ahead, there’s the war in Ukraine and there’s the fourth prime minister in as many months in the UK – with all that uncertainty, they don’t want to take the risk of being the last (employee) in (hired) and the first out (fired if a company needs to make layoffs).’’
MONEY ELSEWHERE
Smith believes that most workers will be financially better off switching jobs and says it’s often easier to negotiate a starting salary with a new employer than a pay rise with an existing boss.
But he warns workers not to delay. “If your primary objective is to secure more money then you are more likely to get it if you go out to the market because when you go to market, employers have to pay more to attract people in,” he says.
“There’s a lot of jobs out there and you’re not going to get a better time to be looking than right now.
“But don’t expect the market to remain like this – the whole point of increasing the interest rate is to slow the market. And the market will slow, although when that happens is like asking how long is a piece of string.’’
LOOK FOR SAVINGS
Employment Hero chief people officer Alex Hattingh suggests struggling workers should look to increase the time spent working from home, with remote workers able to save up to $200 a day in fuel or public transport costs, out-of-school hours care for children and other expenses.
She says finding a second income stream, particularly one that can be done from home, outside normal business hours, can be beneficial.
“Something in admin or data entry is perfect because it’s not eating up a lot of your brain power so you’re not exhausting yourself and it’s something that’s easy to do in front of the TV and in your own hours,” she says.
Hattingh recommends workers take advantage of concessions and discounts wherever possible.
She says many NSW drivers are eligible to receive a discount on their motor vehicle registration if they use toll roads on their commute to and from work but very few claim it.
In Victoria, trade apprentices may get a 50 per cent discount on their motor registration if the vehicle is regularly driven between 8.30pm and 5.30am to get to or from work.
WORKING LONGER
Qualtrics employee experience solutions strategist Crissa Sumner says four in five workers are now looking to work overtime or take on extra shifts to make ends meet.
Almost half have revised their shopping habits and made a switch to cheaper brands, she says.
“As budgets tighten, people across Australia are searching for ways to meet the rising cost of living, from finding ways to increase their income by seeking higher-paying jobs and extra shifts, through to cutting their spending on non-essential items,” she says. “And with inflationary challenges set to continue through 2023, it’s likely we’ll see many of these behaviours continue.’’