Younger workers get higher pay rises
Australian employers are prepared to deliver higher pay rises to their youngest employees, according to new data released by Mercer.
The latest Mercer Market Issues Survey has revealed those in the 18-24 year old age group received the highest median pay rise of 8.8 per cent, compared to a nation median of 4.8 per cent.
In fact, the survey showed that salary increases slowed as age increased, with those aged 25 to 39 receiving a 5 per cent salary increase, compared to 4 per cent for those aged 40 to 50 and 3.9 per cent for those aged 51 to 65.
Commenting on the findings, the principal of the Mercer human capital business, Martin Turner, said Australian organisations were acutely aware of the risks associated with an ageing workforce, and recognised that harnessing young talent and differentiating rewards across the workforce was vital to future success.
“Graduate and entry-level roles are attracting the bigger salary increases,” he said. “As unemployment falls and the economy recovers, a return to skills shortages is looming, so organisations are investing in retaining people and roles with a strong career stream and development opportunities.”
Turner said that the workforce was getting older and it was important to encourage baby boomers to remain in the workforce for as long as possible, but the reality was that they were retiring and organisations were being left with talent shortages – and some of those shortages could be filled with Generation Ys.
AUTHOR
Mike Taylor
Recommended for you
The month of April enjoyed four back-to-back weeks of growth in financial adviser numbers, with this past week seeing a net rise of five.
ASIC has permanently banned a former Perth adviser after he made “materially misleading” statements to induce investors.
The Financial Services and Credit Panel has made a written order to a relevant provider after it gave advice regarding non-concessional contributions.
With the election taking place on Saturday (3 May), Adviser Ratings examines how the two major parties could shape the advice industry in the future.
