Companies consider pay implications for WFH and the top 10 jobs for pay rises this year
The news | The AFR revealed this week that employees at Origin Energy and Suncorp Group risk having their bonuses cut if they fail to comply with office attendance rules.
The details | The policies were introduced this year to set clearer expectations for staff and come as big white-collar employers try to strike a balance with workers who became used to more workplace flexibility during the pandemic.
Origin, which requires all office-based employees to spend at least 40 per cent of their time in the workplace, started linking office attendance to annual performance reviews and bonuses for those who receive them in October.
A company spokesman described the 40 per cent rule as a clear and “modest” expectation, saying it enabled connection and collaboration and was good for productivity and employee wellbeing.
Meanwhile, Suncorp said it had not introduced a company-wide office mandate, but employees were required to comply with the hybrid working plans they agreed to with their managers. And these plans, which vary depending on an employee’s role, are included in “scorecards” that help determine an employee’s annual bonus and account for a small percentage of their overall performance rating.
The big picture | A handful of overseas employers, including banking giant Citi and UK-based law firm Osborne Clarke, have adopted similar policies. But research suggests the practice is uncommon in Australia. A survey of 342 employers by the Australian HR Institute found that just 1 per cent had reduced pay or benefits for people who worked from home. But that could soon change.
What’s next | As workplace correspondent David Marin-Guzman reported this week, a global survey by law firm Herbert Smith Freehills found that 37 per cent of senior executives in large Australian corporations planned to differentiate pay between remote and in-office staff in the next three to five years.
The HSF report said such a move could lead to conflict with staff who feel relegated to “second-class status”. Atlassian co-founder Scott Farquhar said it “beggars belief”.
“That’s like docking people’s pay if they don’t use a blue pen instead of a black pen. Does it matter if you use blue or black pens if the output is the same?” Farquhar asked.
Our own LinkedIn poll shows followers are so far overwhelmingly unsupportive of differentiated pay for WFH: have your say before the poll closes here. AFR Success will continue to watch the trend closely.
Other news | Elsewhere, we reveal the 10 jobs that landed the biggest pay rises last financial year, tour the favourite lunch spots of Sydney’s top bankers, and find out why the new Australia Post CEO was left gobsmacked by his new office.
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The Legal Brief
The one question the High Court chief justice asked to hire associates Susan Kiefel says she only needed 10 minutes to interview prospective associates, and one key question helped her decide. writes Michael Pelly .
The lawyer who loves colour – and Manolos King & Wood Mallesons lawyer Denise Katidis offers styling tips and shares her outfit of the day on her TikTok account, writes Lauren Sams .
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The 10 jobs that landed the biggest pay increases last year
Entry-level project engineers topped consultancy Mercer’s list of 10 jobs that landed the largest salary bumps in 2022-23.
The report found their salaries increased by an average of 19 per cent, as employers grappled with a long-running engineering shortage exacerbated by the skill-hungry demands of the global energy transition.
IT specialists, industrial mechanics and other types of engineers received large pay increases too, the research said. But experts expect these pay bumps will moderate as the economy slows and skills shortages ease.
Click here for the full top 10.
Ask an expert
Ask an expert is our weekly column dedicated to helping readers overcome problems at work and get ahead in their careers. This week, Dr Edwin Trevor-Roberts, PhD , chief executive of career advice firm Trevor-Roberts, helps a reader plan their next steps after redundancy.
The problem: I’ve just been made redundant from a role I held for the past five years. I would like to take a break for a few months to figure out my next move, rather than rushing into more of the same. But I’m not sure how to best use my time, and I don’t know how I would explain a career break to a future employer. Any suggestions?
The advice: A 2022 LinkedIn survey found that nearly two-thirds (62 per cent) of people have taken a career break. So, don’t stress about the gap in your CV. Just add a few lines explaining what you did during your break and what you got out of it.
As for how to use your time effectively, Trevor-Roberts has three suggestions.
Got a work-related problem you need help with? DM Euan Black under the subject name “Ask an expert”. AFR Success will get an expert to answer your question and keep your name and details anonymous.
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I help businesses capture workforce time and attendance, saving them time and money | Co-Founder at BundyPlus | WEB3 enthusiast | 3D Printing nerd | Daughter Dad
1yI can see why some businesses are considering asking their employees to come back to the office, but I believe it's a situation that needs to be assessed individually rather than making it a one-size-fits-all decision. Unfortunately, for certain individuals, their work ethic or ability to avoid distractions doesn't align with working from home. This is where the complexity arises. It's important to acknowledge that during the COVID-19 pandemic, working from home was a lifeline for many businesses and employees. Tracking time may be straightforward 😉, but assessing work effectiveness can be a bit more challenging.
International Talent Transformation Leader @ Woolworths | Maximing Value through Unlocking People Potential | People Strategy
1yI would love to see actual data and insights on how RTO mandates are good for employee wellbeing.
Account Director @ Zendesk | Transforming CX at Scale. Strategic Advisor to innovative thinkers.
1yImagine paying people less because they didn't do something that results in lower performance? Just tie bonuses to Individual outcomes. If office attendance is needed to perform people will come as it makes them more money. Many staff don't like coming into the office because it inhibits performance and people achieve better results when they can choose where they work. No need to overcomplicate it because an empty asset on the balance sheet looks bad.
Happy HR - Founder / Chief Happy Officer | Yolk Agency - CEO & consultant
1yScott Farquhar I agree with you. Why dock someone’s pay if the output is the same. I work with thousands of companies and with the right hr framework and culture towards happiness and accountability breeds productivity and success.
AUS #1 Market Analyst, 3x AUS Buyer's Agent of Year, REIA Hall of Fame, REIQ Hall of Fame & Fellowship, extremely passionate Brisbane Lions fan, pragmatic, introvert, @Propertyology
1yAhh, here we go. An old fashioned game of SPOT THE DINOSAUR. They are the ones who refuse to accept ‘change’ and therefore fail to embrace structural progress. Their denial will cost them. They’ll fail to attract and retain the very best talent. They’ll miss the opportunity to actually *increase* productivity while also enhancing employee lifestyles at the same time. They will get left behind the genuine leaders.