Employee Relations – Wages

Employee Relations – Wages

The Reserve Banks’ February statement has raised some interesting comments and data from Employers.

Interestingly, employers said workers appear willing to trade wage growth for greater job security – a significant development.

However  employers, in a tough market have been careful not to offer salary wage increase below the expected inflation rate. The recent Jetset Pay deal is a good counter example.

The statement says (in part):

“Year-ended wage growth has slowed significantly across all states and territories, and has stabilised at around 2–3 per cent in most industries, well below decade averages,” the RBA reports.

“This is consistent with evidence from business liaison, which suggests that, while wage growth has slowed, many firms are reluctant to offer wage increases below the expected rate of inflation.”

“This is consistent with business liaison that suggests employees appear to be willing to trade lower wage growth for greater job security.”

Michael O'Shaughnessy

Michael is a specialist in all things HR. With vast HR experience in the USA and Australia, Michael brings a wealth of knowledge and advice to HR Central. When he's not blogging for HR Central you can find him out for dinner in one of Melbourne's newest restaurants.

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