Author: Kristy Jones

In the past six months, analysis shows that the percentage of employees obtaining 3-5% salary increases has increased slightly, while those getting more than 5% or between 1-3% has gone down. This indicates that employers are being more cautious with their salary decisions, opting for moderate raises to balance cost-of-living pressures. This trend matches the latest Wage Price Index (WPI) results, which show a slight decrease from 4.2% to 4.1% this quarter. Notably, this is the first drop in private sector annual wage growth since 2020.

From 1 July 2024, the National Minimum Wage will increase by 3.75%. The new National Minimum Wage will be $915.90 per week or $24.10 per hour, effective from the first full pay period on or after this date.

As the labour market changes, companies need to adjust their pay strategies to reflect these trends. After job security, fair pay has become the second most important reason people stay with their employer, up from fourth place in 2022.

Expectations represent a shared understanding between a manager and employee. Managers play the key role in making sure that their employees understand what is expected of them.  Expectations are tailored to individual position descriptions and work plans.

Expectations cover how people go about their job and what they are responsible for, including performance, goals, productivity, and achievement.

• Start conversations early.
• Provide clarity, context and alignment with the organisation’s visons and values. Provide the why.
• Where you can, include the employee and ask them about their goals.
• Set and communicate your expectations.
• Be as specific as possible about outcomes and what the job entails.
• Talk about how they might accomplish the work.
• Tell them what they need to know – values, cultural norms, policies, processes, systems, communication, decision making and accountability.
• Set realistic tasks and deadlines.
• Be open and transparent.
• Make goals clear and measurable.
• Document objectives and key deliverables in a performance development/appraisal plan.
• Communicate clearly and often.
• Coach for improvement.
• Regularly follow up on progress.
• Celebrate success!

A stay interview is a conversation you have with your employee to discover what they like about their role, and what they would like to change.  Have you thought about adding stay interviews to your onboarding or people management strategies?  They can be a great addition to your talent management strategy and can also result in less exit interviews.

When recruitment is tight and turnover high, stay interviews can support better retention as they give you a good idea of what your people want and need, how they are finding their job and team, and of any underlying issues.

Stay interviews can help you learn what matters to your people and what they’d like to see improve, long before they decide to find another opportunity.

Where you do get a heads up on any issues, positive or areas for improvement, it is important that you follow up on any actions. When you act on the feedback your people feel valued and heard. Showing you are invested in your people and their growth can set you apart as an employer of choice.

Navigating the complexities of Modern Awards can be a daunting task, even for seasoned employment lawyers and/or industrial relations gurus, given the intricate nature of these legal documents. Awards are however essential for providing protections to employees but are often criticised for their lack of user-friendliness and outdated provisions that struggle to align with contemporary workplace practices.

Recently, The BelRose Group assisted a client whose workplace policies aimed to offer flexibility in working hours and location. However, they faced a hurdle with the particular Award that covered them, which imposed restrictive conditions on some roles working hours, limiting them to conventional weekdays and times.

Award limitations in accommodating flexible work arrangements highlights the need for employment frameworks that can adapt to the evolving needs of today’s workforce.

To resolve this, we guided our client in utilising an Individual Flexibility Agreement (IFA), a mechanism within modern awards that allows for the modification of certain Award terms. By developing an IFA that met the Better Off Overall Test (BOOT), we facilitated a solution that enabled our client’s employees to achieve the desired workplace flexibility.

Do you need help interpretating Awards and Conditions relevant for your workplace?  If so, reach out to  The BelRose Group team at info@belrosegroup.com.au or 1300 308 707.

Australian Remuneration Movements
Analysis of current remuneration trends and salary forecasts in Australia, inform us of the evolving nature of employment cost movements and industry-specific salary trends. In the last quarter of 2023, the median employment cost (EC) movement was observed at 4.5%, which is above the inflation rate of 4.0%. This figure includes various components of EC like base salary, cash allowances, and benefits, but excludes variable rewards. Additionally, there was a noted increase in the official unemployment rate to 3.9%.

For 2024, the forecast suggests that total salary increases will vary between 3.5% and 4.5%, with the median expected to be 4.0%.

Throughout the first three quarters of 2023, the median EC movement, indicating the year-on-year salary changes for identical employees in the same roles at the same organisations, consistently increased, stabilising at 4.5% in the final quarter. Upon examining the data across different states and territories, four out of the eight regions reported figures that either met or exceeded the overall median EC movement. 

One of the most important things you can do as a manager is to set clear expectations for your team.   Not doing so is one of the biggest causes of people management problems and conflict.  It makes sense if you think about it, as how do people know what success looks like if we don’t tell them. People need and want clear expectations about their work, culture, performance, individual and team behaviour.

For your team to perform effectively, they need clarity about their role and how their responsibilities impact the team and the organisation.

Make time to consider what your expectations are, and to sit down with individuals or the team to be clear and to discuss.  Let employees know why your expectations are important, be as clear and specific as possible as everyone needs to be on the same page. Providing context and justification for your expectations establishes accountability.  Helping people understand the why and the bigger picture also builds stronger engagement.

Ensure that your expectations are understood and agreed and continue to manage them to ensure sure everyone is working with the same understanding and commitment.

In the dynamic world of employment costs, understanding the trends and forecasts is crucial for businesses and employees alike. The past year has witnessed significant shifts in remuneration trends, especially as the market adjusts post-pandemic.

As of the third quarter’s end, there’s been a noticeable rise in median employment cost movements to 4.5%, a jump from 4% in the previous quarter and 3% from the same period last year. This increase surpasses pre-COVID-19 levels, marking a significant recovery and a continued upward trajectory.

In a recent landmark decision by the South Australian Employment Tribunal, the Department of Child Protection (DCP) has been ordered to compensate a youth worker, for pericarditis developed after receiving a Covid booster as mandated by workplace directives. Despite the DCP’s argument that the injury resulted from compliance with a Public Health Order rather than employment conditions, the Tribunal found the employer liable, emphasising the role of employment as a significant contributing cause.

For this matter, the human rights lawyer highlighted the importance of this ruling in setting a precedent for employer accountability for vaccine-related injuries incurred at work.