Hoping to avoid giving your workers a pay rise in their performance review this year? Think again.
A survey from CareerOne.com.au has found that just over two thirds of employees expect to get a pay rise this year, with one third claiming they will start looking for another job if they don’t get one.
The survey also gives employers an insight into the size of the pay increase workers are looking for, with 47% of respondents reporting they will need a rise of at least 5% to stay ahead of inflation.
Kate Southam, editor, CareerOne.com.au, says the survey result highlights the way the Australian economy is being squeezed. “On the one hand we have the Reserve Bank calling for wage restraint as a way of coping with inflation, and on the other we have employees looking for wage increases – again, to cope with inflation and the rising cost of living.”
The survey also reveals that many employees are failing to take advantage of tax breaks that could help slash their tax bill. Almost 60% of respondents said they don’t salary package, despite two thirds saying their companies offer this option; of those that don’t salary sacrifice, 46% don’t actually know what salary sacrificing is. Over half of all respondents aren’t aware of what items are tax deductible and of these, 60% aren’t aware of what is claimable.
Perhaps bringing in a tax adviser to conduct a workshop with your staff might be an even better reward than a pay rise this year.
Will you be giving pay rises this year? Take of SmartCompany poll here.