How to get the biggest pay increase in expanding jobs market

Most Aussie bosses are planning to grow their workforces, new research shows, providing opportunities for those wanting to progress their career and salary.

Increasing economic turbulence is having little impact on the jobs market, with three-quarters of Aussie businesses still looking to expand their workforce.

Fears of mass job cuts have plagued workers since late last year, as inflation forces business costs up and profits down.

But the latest industry benchmark report from HR software company ELMO reveals jobs are safer than most workers think, with just 7 per cent of bosses expecting to downsize this year.

Encouragingly, 76 per cent are planning to grow their workforce, the report finds.

Of the businesses intending to hire, almost half anticipate their workforce to grow between 11 and 25 per cent, while a third of companies hope for an even larger increase.

Optimistic

The level of optimism from business is surprising, given talk of a recession and ongoing labour shortages, ELMO chief executive officer Danny Lessem says.

“While job cuts in tech companies and professional service firms are in the spotlight right now, the overall surge in optimism when it comes to adding headcount is a good reminder than not all organisations will be impacted by economic uncertainty in the same way,’’ he says.

“While some sectors may be forced to downsize in 2023, either due to a potential recession, rising material prices and interest rates, others will outperform.

“It’s definitely not doom and gloom.”

A new report shows 76 per cent of bosses are planning to grow their workforce.

No more ‘bums on seats’

Lessem expects workers looking for entry-level roles to be in especially high demand in coming months, as the hospitality and retail sectors seek to return to pre-pandemic staff numbers.

Transitional workers, such as fruit pickers, are also desperately needed, he says.

But roles in the construction and tech sectors may not be as secure, Lessem says, citing the collapse of local builders and mass global firings in tech.

Regardless of industry, he says companies are taking a more considered approach to hiring. They are determined to secure the “right’’ person for the role rather than continue with the “bums on seats’’ mentality of the last few years.

“Given potential budget constraints this year and the need for high productivity as the economy slows, it makes commercial sense to hire well, rather than waste money churning through new staff,’’ he says.

“We anticipate that hiring throughout the rest of the year will be much more deliberate.’’

Opportunities available

The employment market still has plenty of opportunity for those wanting to progress their career and earn a higher wage, says Matthew Thompson, founder of recruitment service Talent Butler.

He believes switching companies will result in the biggest pay increase, with employers more likely to pay extra to recruit new workers than promote existing ones.

“I would say (new hires) could probably expect their salary to be somewhere between 10 and 20 per cent (higher than they are currently paid),” Thompson says.

“So if you’ve stayed in your job a while – anything more than five years – you’re probably missing out.”

Employers cautious

Despite the uncertain economy, Thompson says employers are wary of repeating mistakes made at the start of the pandemic, when they were quick to let workers go. Many have struggled to make up the shortfall of staff ever since.

“This time, people are reading into the headlines of an economic downturn and taking it with a pinch of salt,” he says.

“We’re not seeing the mass redundancies that we saw then, or even (during the Global Financial Crisis) in 2008, when it was massive.

“(Employers) don’t want to get caught in a situation where they have overlooked hiring key staff or let staff go that they still need.”

Sally-Anne Blanshard thinks job hunters should create their opportunities.

Be strategic

Sally-Anne Blanshard recently started working for culture and leadership specialists Henry Reed, in a client partner role that was designed specifically for her, based on her skill set. This is proof, she says, that hiring is still strong.

“There are absolutely still roles out there for everybody,” says Blanshard, who was asked to interview with two other companies while she was job hunting.

But she believes the market is changing and that job seekers cannot rest on their laurels and wait for roles to be advertised.

Instead, they must be proactive and create their own opportunities.

“You’ve got to be strategic and put yourself out there to your network – tell them you’re looking (for roles) and ask them for help,” she says.

Blanshard says her “call for help” was made in two LinkedIn posts that outlined her skill set and what she was seeking in her next role. The posts received a combined 8500 views and led to the offers of interview.

Positions vacant

The expected change in company workforces across Australia in 2023:

• Vic 26%

• Qld 24%

• NSW 21%

• WA 20%

• Tas 18%

• SA 16%

• NT -5%

Source: ELMO

Originally published as How to get the biggest pay increase in expanding jobs market