Friday, 25 February 2011

Pay rises for IT workers... but what about the rest of us?

According to a report in Contractor UK, pay rises are 'only a matter of time' for IT workers. Apparently, IT directors are concerned about retaining key technical staff, and this could lead to IT departments having to increase pay in 2011. Obviously, they want to hang onto key techies before they're poached by higher-paying competitors, and this is driving pay increases. Retention is a concerning issue for as many as 85% of IT directors - which is good news for contractors who can use this to drive up their daily rate. Although, according to CW Jobs and JobsAdwatch, there may be a 'slowdown in overall IT recruitment activity in the current year." However, software houses and outsourcing consultants used the month of December to add contractors to their teams, and this may be set to grow this year.

Not such good news for council workers, though - they are feeling 'betrayed' over wage freezes in England, Wales and Northern Ireland. Last year, George Osborne promised that public servants on £21,000 or below would get an extra £250 a year from this April. Now, more than one million workers have been told that, in fact, they won't be receiving this increase. Employers (local authorities etc) say that a £6.5 billion funding gap is to blame, and the Treasury claims that they only meant those directly employed by the government to benefit. The unions have stepped in, with Brian Sutton of GMB saying that Mr Osborne "reneged on a promise to low paid workers." This freeze will hit home helps, social workers, dinner ladies and refuse collectors, to name but a few. Sutton added that local government could have kept this promise. He went on to claim that, with inflation taken into account, this freeze adds up to a paycut for those on low wages, as 70% of council workers earn under £21,000.

Next up to fight for fairer wages are 154,000 agricultural workers across England and Wales. The union Unite told Defra that these workers deserve a decent wage to counter inflation, as well as a public holiday to commemorate Workers' Memorial Day on 28th April. Many farmers and farm workers are struggling to manage on less than the average weekly wage, due to the rising cost of fuel, food and inflation, with 1 in 4 rural families living below the poverty line. Unite say that farming needs to be seen as a professional occupation, yet farmers are struggling to recruit skilled workers. Negotiations begin in June.

So, for those of us lucky enough to be able to negotiate a pay rise - what do we do if we reckon we're worth it?

Well, don't be nice to your boss - a study published last year in the Journal of Organizational Behavior found this definitely doesn't get you a payrise! Those Risk-averse employees, who try to please their employers, are more likely to compromise and cave into management wishes when it comes to negotiation time. Those who never discuss salary at appraisals or interviews hardly ever get a rise. More aggressive employees earn an average of $5000 (£3200) more a year - which works out at an extra $600k (£385k) more over 40 years, based on an annual increase of under 5%. Good news for us girls - women were found to be just as competitive as men, despite earlier indications to the contrary. Those who prepare for the negotiations - who learned about their market value, did their homework on the organisation, and inquired about previous offers - are able to use more competitive strategies and get the rise they want. This was an American report, however, and whether we more modest Brits will ever be able to throw off our self deprecating modesty and demand more money is yet to be seen.

Anyway, I'm off to brush up on my negotiation skills. Alternatively, I could always just get on with the work I'm already being paid for...

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