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Kenny McGilvary
Acumen Republic
+61 (0) 2 8908 5206
kmcgilvary@acumenrepublic.com

Media Release

Australians pulling bigger workloads but the pay packet doesn’t match, according to Hudson


Sydney, Australia – 01 February 2013 – Employees are taking the strain as Australian workplaces tackle the tough economic environment, with 77.2% of employees saying they are taking on more responsibilities but over half (55.9%) say they have not been financially rewarded for this, according to Hudson Salary & Employment Insights 2013. Similarly, more than half (54.7%) feel that they are either not adequately rewarded for their contribution to the business or that their high level of performance warrants a pay rise but is not being recognised.1

The report shows that employees are taking on greater workloads with only 15.6% of employers always replacing roles if a team member leaves, with the majority of employers distributing the work amongst the remaining team, while four in every five employers (80.0%) say their teams now have to do more with less.

The current economic conditions are causing real challenges for employers, with 80.3% experiencing increased pressure on budgets, 63.4% facing more stringent headcount approval processes and 62.0% managing greater workloads. As a red flag to employers, more than half (56.8%) of employees surveyed said they were looking for a new role, and of those looking to move nearly two-thirds (64.2%) said they expected to move within the next six months.

Pay is critical for job seekers, with 22.2% citing an increase in pay as the most important factor in their next role. It is also the biggest motivator for employees to stay in their current position, with 43.4% of job seekers saying they would remain in their current role if given a salary increase. Most employers (62.5%) intend to award pay increases of 2-3% for 2013, with retaining high performers the main reason, followed by ensuring pay parity.

However, other employment factors are also very important to today’s workforce, including having a role they are interested in, being in a work culture that makes them happy and improving their overall career opportunities. Employee benefits also play a significant role in the salary package with flexible working hours, bonuses and income protection insurance being the top three choices offered by employers.

“It’s clear that what matters most to people right now is their pay packet, and for employers getting remuneration right is of paramount importance. Employers that don’t ensure pay parity with competitors are at risk of losing both high performers and the best candidates. So a compelling salary proposition should be a primary consideration,” said Mark Steyn, CEO Hudson Asia Pacific.

Hudson recommends that when budgets are tight, employers should consider prioritising spending and ensure that reward and recognition programs incentivise high performance. Particular focus should be paid to rewarding those employees in critical roles, which may be hard to replace.

“During tough times like these employers may be better served increasing base salaries, scaling back benefits that are not always highly valued and looking at lower-cost ways of boosting staff morale and engagement. It’s also important to include regular and honest communication with managers and positive feedback on work or projects, to ensure team members are aware of business challenges and objectives, and feel involved and motivated,” said Steyn.

Interestingly, and in spite of the difficult operating environment, 68.9% of employees report that they feel the same or higher levels of optimism compared to a year ago and almost half (46.6%) say they feel more engaged at work than this time last year, while only 25.0% feel less engaged.

“When it comes to helping businesses survive during an economic slowdown, it’s people who are committed to the company’s vision and who fit the culture that are most likely to thrive and help achieve business goals,” concluded Steyn.

Click here to read the Salary & Employment Insights 2013 - Australia Executive Summary.

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Editor's Note
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About Hudson
Hudson is a global talent solutions company with expertise in leadership and specialised recruitment, contracting solutions, recruitment process outsourcing, talent management, outplacement and eDiscovery. We help our clients and candidates succeed by leveraging our expertise, deep industry and market knowledge, and proprietary assessment tools and techniques. With more than 2,000 people in 20 countries, and relationships with millions of specialised professionals, we bring an unparalleled ability to match talent with opportunities by assessing, recruiting, developing and engaging the best and brightest people for our clients. We combine broad geographic presence, world-class talent solutions and a tailored, consultative approach to help businesses and professionals achieve higher performance and outstanding results. More information is available at Hudson.com.

Forward-Looking Statements
This press release contains statements that the company believes to be "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact included in this press release, including statements regarding the company's future financial condition, results of operations, business operations and business prospects, are forward-looking statements. Words such as “anticipate,” “estimate,” “expect,” “project,” “intend,” “plan,” “predict,” “believe” and similar words, expressions and variations of these words and expressions are intended to identify forward-looking statements. All forward-looking statements are subject to important factors, risks, uncertainties and assumptions, including industry and economic conditions' that could cause actual results to differ materially from those described in the forward-looking statements. Such factors, risks, uncertainties and assumptions include, but are not limited to, global economic fluctuations; risks related to fluctuations in the company's operating results from quarter to quarter; the ability of clients to terminate their relationship with the company at any time; competition in the company's markets; risks associated with the company's investment strategy; risks related to international operations, including foreign currency fluctuations; the company's ability to implement cost reduction initiatives effectively, including the recently announced restructuring program; the company's dependence on key management personnel; the company's ability to attract and retain highly skilled professionals; risks in collecting the company's accounts receivable; the negative cash flows and operating losses that the company has experienced from time to time in the past may reoccur in the future; restrictions on the company's operating flexibility due to the terms of its credit facilities; the company's heavy reliance on information systems and the impact of potentially losing or failing to develop technology; risks related to our dependence on uninterrupted service to clients; the company's exposure to employment-related claims from both clients and employers and limits on related insurance coverage; volatility of the company's stock price; the impact of government regulations; and restrictions imposed by blocking arrangements. Additional information concerning these and other factors is contained in the company's filings with the Securities and Exchange Commission. These forward-looking statements speak only as of the date of this document. The company assumes no obligation, and expressly disclaims any obligation, to update any forward-looking statements, whether as a result of new information, future events or otherwise.


1 Hudson surveyed 3,529 employers and 4,525 employees in Australia
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HUDSON

Hudson is a global talent solutions company. We help transform the workplace and unleash the full potential of organizations and individuals. Our expert team and proprietary tools provide you with unique insights and services that help you maximize your success. Across 20 countries, we deliver a range of recruitment, talent management and recruitment process outsourcing solutions to get you and your business where you want to be.