Certainty. There’s something about this feeling we all love, as it gives us a sense of security and control. Whether making plans for our weekends or choosing a career path – the desire for certainty is a fundamental part of our lives.

The professional world is no exception to this “rule”.

In fact, studies reveal a substantial link between job security and employee engagement. This connection suggests that the more employees feel certain about their jobs, the more engaged and motivated they become in contributing to the company’s success.

Although vital, job security is only one part of the equation. Equally significant is wage growth, as it directly influences employees’ financial well-being. It translates into a tangible reward for their dedication.

And we’re certainly not the only ones addressing these topics.

In the recently released “The Working Future” white paper, the Australian government’s officials listed “promoting job security and strong, sustainable wage growth” as one of its main goals for creating a labour market that benefits both employers and employees.

So, how can your company become part of this change? Read on to explore the top three actionable strategies inspired by the government’s white paper that you can start implementing today.

Top 3 strategies for promoting job security and wage growth in your organisation

#1 Encourage bargaining sessions

Bargaining involves having open conversations with your teams about their needs and expectations. And it’s one of the best ways to fortify job security and ensure fair wages. Furthermore, when employees have a voice in their employment terms, they feel valued and engaged, reducing the odds of them seeking opportunities elsewhere.

This, in turn, improves employee retention. Additionally, it paves the way for sustainable wage growth, recognizing and rewarding loyalty and dedication.

Some of the actionable steps you can take to promote bargaining:

  • Provide training on the importance of bargaining and the value of employee input in shaping their work terms.
  • Include employees in decisions regarding their roles, wages, and other working conditions.
  • Reward employees for their input and suggestions.
#2 Foster productivity growth

Per the Productivity Commission, productivity growth is the primary driver of real wage growth. As such, it also boosts job security, reducing stress about losing a job, so people can focus on doing their work well. Essentially, it’s a full cycle: better productivity leads to more company earnings, which, in turn, results in higher wages and job security.

Therefore, it’s essential to explore methods for enhancing productivity in your company.

  • Create regular career advancement opportunities for your teams.
  • Demonstrate recognition and reward your employees’ contributions.
  • Expand education and training programs to equip your teams with valuable skills.
#3 Establish a fair compensation strategy

Did you know that in Australia, women earn an average of $252.30 less than men each week? It’s a stark reminder of the ongoing gender pay gap challenge. The good news is that you can develop a fair compensation strategy within your company and actively contribute to reshaping these statistics.

The first step?

Start by evaluating your current wage structures and remain attentive to the gender pay gap and any potential income differences within various employee categories. Recognizing these disparities serves as the initial crucial step towards attaining pay equity.

Here are a few additional steps to get you started with creating or enhancing a fair compensation strategy:

  • Consider implementing collective agreements that minimize wage disparities among employees performing similar roles.
  • Foster inclusive workplace culture to combat discrimination and bias, which are among the primary drivers of wage inequality.
  • Make an effort to create better career prospects for women to address the historical undervaluation of female-dominated roles.

 

Design a winning job security and wage growth strategy for your business

The essence of job security and wage growth is the same across all countries, industries and companies: it’s the employees’ confidence in their ongoing employment and stable, continuous wage increases.

However, the means through which you, as an employer, can provide job security and wage growth are unique to your business. Therefore, it’s essential to assess the strategies mentioned above and carefully develop your customized approach.

Remember, the primary objective is to effectively support all your employees and foster an environment that aligns with your company’s goals. It’s a perfect way of contributing to The Working Future’s aim of enhancing the Australian labour force while establishing a strong foundation for your company’s prosperity.

At Fresh HR Insights, we can help you achieve that goal. Our team of employment and HR experts is ready to tailor a job security and wage growth strategy that instils certainty and leads to success. Contact us.

Sources

  • https://treasury.gov.au/sites/default/files/2023-09/p2023-447996-working-future.pdfhttps://www.pc.gov.au/ongoing/productivity-insights/productivity-growth-wages/productivity-growth-wages.pdf