‘Financial stress’: Shock number of Aussies who feel underpaid

A staggering number of Australians consider themselves unfairly paid compared with other people. See how your wages stack up.

A third of Australians consider themselves unfairly paid when asked how their wages compare with other people.

The Employment Hero Wellness At Work 2022 report found while58 per cent of Australian workers feel fairly remunerated, 31 per cent do not and 11 per cent are unsure.

When asked how their pay compared with the average Australian worker’s pay, 42 per cent say their pay is within average standards, 29 per cent say above average and 30 per cent say below average.

Alex Hattingh, chief people officer at Employment Hero, says wages in Australia are not keeping pace with inflation and it’s creating both angst and opportunities for workers.

Alex Hattingh, chief people officer for Employment Hero.

“As we are living in a candidate-driven talent market, we are also seeing employees being proactively reached out to by recruiters and companies offering them larger salaries for similar roles,” Hattingh says. “This happens when there is a misalignment between supply and demand, the flow-on effect being that Australians are feeling underpaid in their current roles.”

The findings also show women are 10 per cent more likely to disagree they are fairly paid and 14 per cent more likely to say their pay is below average, while workers aged 25-34 are 28 per cent more likely to disagree they are fairly paid, while 35-44 year olds are 25 per cent more likely to say their pay is above average.

RIGHT TIME FOR A RAISE

Hattingh says many employees will be seeking higher wages in 2022 and warns businesses they could lose quality talent if they hold firm.

“A pay increase will be a key priority for employees moving into 2022 but based on what we’ve observed in market, many will seek a pay increase elsewhere before they ask their current employer. As turnover is one of the greatest costs to a business, employers need to think about how they can get ahead of this trend,” she says.

“A lot of employers aren’t being proactive about pay rise conversations and are experiencing high levels of resignation as a result.”

“The cost of turnover is high for businesses, so it’s better for them to shuffle funds now to stay in line with industry standards than to cop the costs later.”

She says bosses who create systems to recognise quality work are likely to retain staff.

“A key reason for employee resignation is a lack of appreciation and recognition, which can be such an easy fix for managers. Recognition can cost you nothing,” she says. “The cost of hiring an employee has skyrocketed and the time it takes to recruit has also increased. Employers can’t afford to be on the backfoot when it comes to talent management right now.”

FINANCIAL SUPPORT

The survey of more than 1000 people also found 56 per cent of Aussies are stressed about money, with 5 per cent looking for a better paid job, 15 per cent looking for a second job and 15 per cent stating they find it hard to focus and make decisions due to financial concerns.

Miguel Nitorreda, a marketer/behavioural data analyst, values benefits such as work-life balance.

“Financial stress is top of mind. The good news is that there is a wide array of areas that employers can tackle this from, with employees stating things like bonuses, subsidised health insurance and perhaps most importantly, educational resources would help support their financial wellbeing, leading to lessened stress and … increased productivity,” Hattingh says.

“If businesses can afford to give their workers a salary increase or bonus, now is the time for them to take action.”

YOUNG AND BRAVE

The findings show younger workers are better at asking for value-add benefits such as financial education, investing in stocks, subsidising childcare, health memberships or seeking overtime bonuses, while 94 per cent of workers aged 65 and over are more likely to say nothing.

Hattingh says younger workers have been raised to believe their relationships with their employers must be mutually beneficial.

Brisbane’s Miguel Nitorreda is a behavioural data analyst at fintech firm WLTH and received a pay rise on arrival plus two since. He believes he is fairly paid and values benefits such as work-life balance, access to mentors, and a company that considers his health and happiness.

He says while “there is definitely room for my pay to grow within the company”, he needs more experience before seeking a further pay rise.

“I’m lucky to have great mentors who are generous with their knowledge, teaching me the ins and outs of business. So I think my pay is at market standard for now because I need more experience, but it’s only a matter of time,” he says.

HOW TO ASK FOR A PAY RISE

• Research your role and find the industry standard salaries that match your responsibilities. Google salary surveys.

• If you’re being headhunted by recruiters, save the LinkedIn offer as an example to show your manager. If you want to stay, have a candid chat and ask if your manager would put forward a case for a pay increase for you.

• Note specific points aorund your performance including biggest achievements in the past 12 months, relevant metrics, KPIs met and the impact of your work.

• Approach the conversation as a respectful negotiation rather than a demanding expectation.

• Be proactive — are there more responsibilities you can take on or could you step into a higher role if you get an increase in pay?

• Script your conversation and request. You may follow-up by emailing a copy of this to your manager, which will help them in making a business case for the increase.

SOURCE: Alex Hattingh of Employment Hero.

Originally published as ‘Financial stress’: Shock number of Aussies who feel underpaid