I’ve always seen the end of financial year as traditionally being a time for pay rises, bonuses and added incentives but this year I’m seeing a whole new ball game. It’s no longer as simple as handing out pay rises – businesses are facing a new set of challenges, with many fighting to maintain profitable and generate positive cash flow, in an effort to avoid laying off staff, salaries are being put on ice.
I hear news of some of Australia’s leading companies freezing and downsizing salaries, changing existing pay arrangements and reassessing budgets and cutting back on a range of employee benefits. Personally, I think this is a responsible strategy as it potentially protects employees from redundancy.
Those employees who have their hand out expecting a salary increase this year should lower their expectations and consider the greater good of the organization. Chances are most employees are already on a good wicket, due to the inflated salaries of the past 4 years. Now is not the time, to be making unrealistic demands on your employer if the company has been in any way effected by the downturn (and lets face it few haven’t).
There is a lot of talk in the business media about employers needing to restructure their companies responsibly to avoid laying off staff, but I also think that there needs to be some emphasis placed on ‘responsible employees’. Employees can help by lowering their salary expectations, being prepared to take a cut now and to work harder and smarter to help their employer survive these tough times.
2009 is not the time for employees to have their hand out or be building a case for a pay raise or promotion. I believe it is time for employees to give back a little to their employer, to play their part in cost savings wherever possible and this includes lowering salary expectations and being grateful to have a good job.
Do you think your employees expect a salary increase in 2009?
