Majority of Aussie workers say they’re underpaid, calling for pay rises of up to 20 per cent

More than half of Aussie workers say they’re underpaid for the skills and workload they bring — with many calling for a raise. Here’s how to boost your salary by thousands.

Most Aussie workers say they’re underpaid — and want up to a 20 per cent pay rise to match their skills, experience and responsibilities.

Almost three-in-five (58 per cent) Australians believe they are not paid appropriately and a higher salary is justified given what they bring to the role and the duties required of them, new research shows.

Experts agree, saying wage stagnation and rising productivity have left workers feeling undervalued.

“The way people are working now does warrant more (pay),’’ Gartner research and advisory vice president and behavioural scientist Aaron McEwan said.

“For the best part of a decade-and-a-half, we’ve seen some slight upwards movement in wage growth but it’s been slow.

Gartner research and advisory vice president and behavioural scientist Aaron McEwan.

“If you go back to during the pandemic, Australian employees were working between seven to 14 additional hours a week and we haven’t seen that go down.

“There’s absolutely truth to those feelings that people aren’t being paid what they are worth.’’

GETTING PAID WHAT YOU DESERVE

On average, Aussie workers say they need their salary to increase by 12 per cent to accurately reflect their ability and position, according to the research from recruiter Robert Half.

Most workers (37 per cent) believe their wage must increase by 10 to 20 per cent, while 11 per cent say they need a pay rise of 30 per cent or more.

With the unemployment rate still relatively low, Mr McEwan suggested aggrieved workers take steps to get the pay they deserve.

“One of the fastest ways to get a boost in pay is to change jobs and that’s a legitimate option for many employees,’’ he said.

“There’s still talent shortages across the board and unemployment is still sitting at record lows so (changing roles) is a relatively easy way to get a pay gain.’’

Those who preferred to stay in their current role should put forward their case for a pay rise, focusing on any contributions that have helped the employer’s bottom line, Mr McEwan said.

“You’ve got to demonstrate how your efforts and contributions make a difference to the company’s performance,’’ he said.”

“Australians have an aversion to blowing their own trumpet but, in business, you have to – although not in an arrogant or conceited way.

“A lot of managers are disengaged in the day-to-day work their employees do so you have to be proactively making sure your manager and the business more broadly know what your contribution is.’’

PERCEPTION OR REALITY

Robert Half director Nicole Gorton said before making any approach for a pay rise, it was vital workers determine whether they were actually being underpaid or if it was just a perception.

She said there was a clear argument for more pay where companies had reduced headcount and spread more responsibilities among fewer employees or where workers had upskilled to take on a higher role.

On the other hand, asking for a higher salary because of costs of living would gain little traction with employers, she said.

Ms Gorton also advised workers to research job openings for similar roles and speak with colleagues and recruiters to determine if the pay for their job was fair and on par with what was offered elsewhere.

Workers needed to be mindful that, in some instances, pay rises would be subject to meeting other conditions, she said.

“Sometimes doubling your salary could mean you have to work more hours in the day (for your boss to agree to that pay rise) or you have to change to a different geography (work location),’’ she said.

The Robert Half research showed half of Australian workers would switch jobs if they came across a role that offered more pay.

The average salary increase that would compel workers to resign is 22 per cent, however many would change jobs for less.

VALUE IS MORE THAN MONEY

Lawyer Nakita Rose said being paid in accordance with her skills and experience was integral to feeling appreciated at leading law firm Gadens, where she started in a graduate position five years ago.

Since then, Ms Rose has progressed to associate and, as of next week, will move into a senior associate position. Both promotions have come with increases in pay.

Ms Rose said her career progression not only contributed to feelings of being a valued team member but also had a direct impact on her job satisfaction.

“Sometimes, there’s a misconception about law firms (overworking their staff) but, for me, I’ve always found that I’m really supported in terms of not only remuneration but also in terms of professional development and the way I perform as a lawyer,’’ she said.

Lawyer Nakita Rose said being paid in accordance with her skills and experience was integral to feeling appreciated at leading law firm Gadens, where she started in a graduate position five years ago.

“Absolutely, remuneration is important but when I look at things holistically, I’m fortunate to really enjoy the work I do and to enjoy working with the colleagues that I work with.

“I have great support from the (law firm) partners and other colleagues that are more senior than me and I’m able to have conversations where I can take on board feedback and learn from them.

“I do feel really lucky because I know not every workplace is like that.’’

Originally published as Majority of Aussie workers say they’re underpaid, calling for pay rises of up to 20 per cent