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The recent release of the latest Australian HR Institute’s (AHRI) survey has highlighted the issues that businesses are considering cost-cutting measures, which presents a delicate balancing act.
HR Leader recently spoke to Shannon Karaka, Deel’s country leader for ANZ, about the recent AHRI survey that revealed some of the difficulties businesses face.
The AHRI report revealed the wage intentions data adds further evidence that the surge in wage growth over the past couple of years may have peaked.
“This may help ease concerns around the gap between low productivity and relatively strong wage growth, which has been of concern to both employers and policymakers,” AHRI chief executive Sarah McCann-Bartlett said.
“With CPI inflation at 2.8 per cent in the 12 months to September, many employers will not be offering inflation-matching pay increases to workers who continue to be weighed down by rising living costs and high levels of debt.”
With employers being too reluctant to conduct pay increases, other incentives that can boost employee experience and engagement must be considered, as Karaka explained.
“Australian businesses are currently facing a delicate balancing act. Recent data from Deel echoes a similar sentiment to that of the Australian Human Resources Institute’s research released this week. Nearly three-quarters (70 per cent) of businesses are considering cost-cutting measures,” Karaka said.
“While many (60 per cent) are focusing on leveraging new technologies like AI to cost save through automation, 41 per cent are considering layoffs.”
“A strong employee experience has never been more important. Deel’s research also found that career development and flexible working opportunities outweighed competitive salary when it comes to attracting and retaining top talent.”
It’s now the time for businesses to get creative with their employee experience and engagement perks. As Karaka mentioned, flexibility ranks as a high priority for employees throughout Aussie organisations, but it’s not enough. Non-monetary perks and new and improved engagement methods should be considered to foster a productive workforce.
“So it’s clear, for many employees, it’s not just about the pay [cheque]. Despite the current economic climate, businesses have an opportunity to rethink and revamp a forward-thinking talent strategy that incorporates non-monetary perks and creative engagement efforts, ensuring employees feel valued even in challenging times,” Karaka said.
“After all, a happy and engaged workforce is arguably more resilient and adaptable to change.”
In terms of recruitment, global hiring can be an option to lean on, especially if those recruitment packages for overseas workers include the perks that Karaka spoke of.
“Global hiring can also play its part, especially for industries who are battling local skills shortages and rising wage costs. By offering competitive compensation packages and attractive work arrangements, organisations can attract skilled talent from overseas who may be affected by wage freezes and layoffs in their home countries,” Karaka said.
RELATED TERMS
An employee is a person who has signed a contract with a company to provide services in exchange for pay or benefits. Employees vary from other employees like contractors in that their employer has the legal authority to set their working conditions, hours, and working practises.
Employee engagement is the level of commitment people have to the company, how enthusiastic they are about their work, and how much free time they devote to it.
Kace O'Neill
Kace O'Neill is a Graduate Journalist for HR Leader. Kace studied Media Communications and Maori studies at the University of Otago, he has a passion for sports and storytelling.
