Payrises in your future with growing skills shortage?

One minute we’re in the midst of the now famously-named GFC (Global Financial Crisis for those of you who have just peered out from under a rock), and everyone’s panicking about job queues, retrenchments, pay cuts and unemployment figures, and the next, we’re hearing about the skills shortage again. It wasn’t long ago that employers were sweetening deals all over the place and importing skilled professionals from overseas in order to fill jobs that were going begging because of the booming economy. Then, the GFC kicked in and everything went back to boringly normal; no lurks, no perks, you were lucky to have a job, fella!


And ... we’re back! Almost.


Australian Institute of Management (AIM) NSW/ACT Chief Executive David Wakeley weighed in on the topic in a story for The Age.


"As the job market continues to improve,” Mr Wakeley commented, “the big challenge is going to be finding ways to keep good people without incurring huge wage cost blowouts."

So basically, it’s not time yet to be extending your hand in the hope that an extra hundred bucks will cross your palm at the end of each week, but the future’s a little rosier, at least (for now) in terms of recognition and keeping your job. For employers, the need to retain staff is as important as it’s always been, to avoid the extra costs involved in employing new staff. But finding acceptable ways to do so is the challenge.


At www.smsthejob.com.au, we’re thrilled to see the economy improving and the jobless rate falling, and also delighted to be involved in linking candidates with potential employers. We’re also heartened that the jobs climate is such that an employee will receive fair remuneration for a fair day’s work. Juggling financial priorities remains a challenge for business owners, but with staff retention a priority, it’s sure to create a win/win for both parties.


Views: 62

Comment by Charles Van Heerden on May 24, 2010 at 11:19pm
Unless companies have an appropriate strategy we will see a lot of churn. It is a balancing act and many companies have not yet formulated a good approach to pay after having implemented a pay freeze.

For some companies, this will mean that as it will take time to catch-up to market pay, they may have to pay more to attract new staff. This is going to be a real balancing act.
Comment by Stephanie Bressan on May 24, 2010 at 11:57pm
Yes Charles! Companies can go wrong though, when they pay more to attract new staff and neglect loyal staff who have weathered the Pay Freeze phase.

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