Many employees are not prepared to negotiate their salary and instead believe it is necessary to switch jobs for a pay increase, according to new research released today from Robert Half.
Robert Half’s Salary Survey of 656 Australian finance and accounting staff found more than half (52 percent) of employees believe it is necessary to switch jobs in order to gain greater bargaining power in salary negotiations.
The survey also found that almost one third (27 percent) of employees never negotiate their salary and more than half (57 percent), wait until their annual performance review to have this discussion.
“Career progression is more important than it was during the financial crisis, because it’s now more achievable,” said Andrew Brushfield, Director of Robert Half.
“Considering that many employees were put under greater pressure by their employers during the downturn, many still don’t trust that they will be adequately rewarded and no longer feel they need to remain loyal.”
According to Brushfield, a stronger financial market will see increased head-hunting activity by larger firms, particularly as many companies bring on-board specialist skills and replace staff that were made redundant during the downturn.
Although employees may believe that moving on is the best approach, Brushfield warns that job hopping to advance a career can backfire.
“While it is good to gain experience in a number of different positions, employees should allow themselves the opportunity to develop and grow their skills in an organisation.
“Potential employers may also hesitate to hire someone they suspect might leave before the ink on their business card is dry,” he continued.
Brushfield suggests employees take a proactive approach to discussing salary and career progression with their employer, and should prepare for the talk by looking at recent achievements.
“Negotiating salary is most effective if it’s timely,” he said. “Therefore, think about how you have gone above and beyond your job description and benefited your employer. Have you recently helped save money or brought in a new client?”
While not all employers are in a position to offer salary or bonus increases, there are many who may be willing to provide other benefits, such as extra training and flexible hours, which employees should explore before moving on.
“Many employers are now more open to negotiating salary and extra benefits. Employees need to realise they no longer need to job-hop to get to the top,” said Brushfield.