Given the current economic conditions, logic dictates that people who are currently employed are simply happy to be getting a regular paycheck. Not so, according to recent findings that point to employees expecting a pay raise soon and employers expecting to provide them.

In Australia, more than two-thirds of workers expect to receive a pay raise this year, with one-third claiming they will look for another job if their request is unsuccessful, according to recent findings from CareerOne.com.au.

Nearly half of respondents (47 percent) believe they will need at least a 5 percent raise just to stay ahead of inflation.

"On the one hand we have the Reserve Bank calling for wage restraint as a way of coping with inflation, and on the other we have employees looking for wage increases — again, to cope with inflation and the rising cost of living," says Kate Southam, CareerOne.com.au editor, who says the findings highlight the way the Australian economy is being squeezed.

These and other findings serve employees both in and out of Australia, as employers come to realize just how critical their employees are in staying competitive — particularly in today's tight economy.

"[The] right pay strategy can transform a company," says Inc.com. "What's more, the right compensation system is pivotal in determining how effective you are at leading your company, how productive your staff is, and ultimately whether your company succeeds or fails."

In fact, as businesses continue to rely more on knowledge workers, fewer such workers are entering the marketplace, says CareerBuilder.com in its Q2 2008 Job Forecast: "The shortage of skilled labor has motivated more competitive compensation packages."

In a CareerBuilder survey of 2,757 hiring managers and human resource professionals in private-sector companies, 38 percent of employers recently reported they currently have positions for which they can't find qualified candidates.

Other highlights of CareerBuilder's findings:

• Seventy (70) percent of employers anticipate providing an increase in salaries for full-time, permanent employees in Q2;

• Forty-one (41) percent estimate the average raise to range between 1 percent and 3 percent;

• Twenty-seven (27) percent expect an average raise of 4 percent to 10 percent; and

• A fortunate/lucky/naive 2 percent expects a raise to be 11 percent or more.

On the other hand, 24 percent of employers anticipate no change in compensation levels, 2 percent expect a decrease and 5 percent are unsure.

Everything up to this point is a really long way of saying that even in a down economy, there are positive leverage points employees can utilize to negotiate to their advantage.

For ideas on negotiating and getting a raise, see How to Get a Raise.

Resources

Pay Rises Expected This Financial Year
CareerOne.com.au, May 21, 2008

Hiring Pace to Remain the Same, According to CareerBuilder.com's and USA TODAY's Q2 2008 Job Forecast
CareerBuilder.com, April 2, 2008

The Right Way to Pay
by Christopher Caggiano
Inc.com, November 2002