Looking Around or Upping Your Daily Rate?

Whether you’ve been considering switching employment since before the pandemic or you’ve decided to take advantage of the current demand for skilled labour, now could be the time to look around for new contracts that provide more job satisfaction and greater financial reward.

The Reserve Bank of Australia has reported that job mobility has now returned to pre-Global Financial Crisis levels, with nearly 440,000 people switching jobs in the three months to February 2022.

Figures show similar trends in the United Kingdom and the United States – in the US, a record 4.4 million workers, or 2.9% of the workforce, quit in April – up from 2.8% in the same month last year.

According to the RBA, it’s the high-skilled end of the workforce that has experienced the greatest increase in job mobility since mid-2021 – i.e., professional services and particularly those skilled in IT. Job mobility in the healthcare industry – where employment growth has been particularly strong since the start of the pandemic – has also increased to be at its highest level in over two decades. Contact-intensive industries and construction were slower to catch on but have also recently increased.

This rise in the number of people moving around – often into another job requiring the same skill set as the last – has been primarily driven by full-time workers, particularly women. According to the RBA’s report, part-time workers are less likely to intend or expect to move in their employment.

Higher wages are cited as the primary motivation – though we see from other studies like Deloitte’s that employees are also looking for greater flexibility, job satisfaction and purpose.

Data from the Household, Income and Labour Dynamics in Australia (HILDA) survey show that people who move jobs generally gain higher-than-average wage increases, while people who stay with the same employer have lower but more stable wage growth over time. Other research has shown that higher job mobility also tends to be associated with higher aggregate wages growth because workers typically experience a pay bump from changing jobs; and indirectly, because an employer may offer a pay raise to retain a worker in their current job due to competition for labour.

Looking to make the switch?

The Ayers Group can smooth the way with contractor management services that will reduce your administrative burden and help you maintain compliance with your financial obligations. Our contractor management solution includes a user-friendly online dashboard, available 24/7 for you to manage contracts, upload timesheets, expense claims, invoices and more. One place where all your contractor finances can be accessed for day-to-day and year end management. Call an expert at the Ayers Group today to find out more.