Commentary: Employees pay a hidden tax by staying on with their companies

In an ideal world, a company and a worker enter into an agreement where for every unit of work, there will be an equal unit of reward. Everyone goes home happy.

But in reality, shrewd employers will do what they can to keep costs low, even when it comes to human resources.

An August 2022 survey of Australian workers by recruitment company Robert Half revealed that while 96 per cent of employers were prepared to award raises, 63 per cent of them will only offer pay raises to those who ask.

In stark contrast, only 44 per cent of employees plan to ask for a pay increase.

LOYALTY DISCOUNT WILL BACKFIRE ON EMPLOYERS

Managers should take note: When loyalty is discounted, so is employee retention.

Workers are also feeling the pinch from inflation and want their pay cheques to keep pace. A survey published October 2022 by recruitment company ManpowerGroup said Singapore workers that stay on can expect salary increments of 3 per cent to less than 5 per cent in 2023. With core inflation at 5.5 per cent in February, that raise might not be sufficient for Singapore workers.