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.