Sunday, November 7, 2010

It´s pay rise time! Underpaid Australians are getting grumpy

Australians will be asking for a pay rise very soon, at it has to be big, otherwise they will be frustrated...  Wages as a part of national income fell nearly 2% over the last 12 months, productivity has increased by 1% and profit share of national income increased by nearly 2 %. This means that wages part of national income is at its lowest point for 40 years, writes BRW (data from ABS).
In short: People work harder, get paid less for hard work, while companies are cashing in. Company profits up 27.5% over the past year while wages for the private sector are only up with 2.7%, according to Australian Council of Trade Unions. Add to that the fact that 63% now have a higher education, compared to 49% ten years ago.
We know that a lot of employees have been unhappy with where they are for a while. According to a study from May 2010, conducted by OfficeTeam, 56% of employees have been in their current job for less than two years but thinking of calling it quits.
Productivity in Australia is still low compared to other similar countries, which may cause a problem a decade ahead (OECD has given us a warning), and I am not claiming that the way to go is to pay people because they deserve it, based on what is fair or unfair, and that they otherwise will start riots (ah well, unlikely in Australia, more common among French or Chinese workers, Aussies go surfing and build up their anger within). More money is not making people happy.  

So employers... you will need to open the wallet, but most importantly, have a look at this video where Daniel Pink gives a TED talk on motivation:

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