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The vast majority of Aussie employers are putting additional pressure on their employees but failing to provide extra compensation.
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More work, same pay: A new trend from the top down?
17 May 2023
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10 minute read
According to recruitment firm Robert Half, 79 per cent of Australian employers have given their existing employees extra responsibilities in order to keep their business operating effectively. Despite this, 45 per cent have not provided a financial incentive for doing so, including via a pay rise or a bonus.
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When asked about the reasons why employers did not compensate staff financially for taking on extra responsibilities, 44 per cent remained adamant that the increased responsibilities would be temporary.
Forty per cent said they were “trialling” their employees in a new role or assessing their performance in completing the extra responsibilities before offering them a pay rise or a bonus.
Meanwhile, 34 per cent of employers stated they lacked the budget to be able to provide financial incentives this financial year. Another 31 per cent reported the extra work was not part of an official promotion.
Robert Half director Nicole Gorton said while placing additional responsibilities on existing employees is not uncommon, especially when they’ve experienced a long tenure at the company, employers need to be transparent if and when they’re asked about additional compensation requests.
“While it is common for extra responsibilities to go hand in hand with extra pay or benefits, it is also not uncommon for employers to instate a probationary period during which they assess an employee’s suitability for a role before confirming a permanent salary increase for new responsibilities. This is especially true at a time when there’s a magnifying glass on cost management within businesses,” Ms Gorton said.
“Looking at the opportunity and the big picture is key for employees. Aside from viewing the extra duties as a sign that their employer recognises the value an employee brings to the organisation, candidates can view temporary extra responsibilities as a way to gain experience in their field and increase their skills, both of which add to their career development and market value.
“In saying this, if employers are not in a position to increase compensation for staff who take on extra responsibilities, they need to be transparent as to why a pay rise isn’t on the table and when pay will be reviewed. Hinged on clear communication, transparency will create clarity and understanding, so employees know where they stand.”
Not being transparent will be a costly and painful exercise for employers, Ms Gorton said.
“If a tenured, talented staff member resigns because they feel they are not being sufficiently compensated, it will likely cost more to the business long term than if they had rewarded the employee accordingly for the increased work they were doing,” she explained.
“Managers need to be aware of any changes in responsibilities and or increased staff workload, and ensure they are paid a fair salary, in line or above market rates.”
This article was originally published by Accountants Daily’s sister brand HR Leader.
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