Employers holding tight to the purse strings
New Zealand employers will increase permanent staff levels, expect business activity to rise and say the skill shortage will impact the effective operation of their business or department, but this is not leading to big salary increases.
The 2016 Hays Salary Guide, which contains salary and recruiting trends for more than 1,000 roles, says just 23 percent of New Zealand’s workforce can expect a salary increase of three percent or more in their next review. Instead the majority of workers (68 percent) will receive an increase of less than three percent. The final nine percent will receive no increase.
A media release from Hays says that during the last 12 months, 63 percent received an increase of less than three percent, 20 percent saw their pay increase between three and six percent, and a lucky eight percent received a raise of six percent or more.
“We may no longer be a ‘rock star’ economy, but we still score goals when it comes to maintaining a buoyant recruitment market,” says Jason Walker, managing director of Hays in New Zealand. “Employers are getting on with the task at hand by adding highly-skilled professionals to their headcount.
“But one thing they aren’t doing en masse is using salary to attract and retain highly-skilled professionals. Despite a steady job market and demand outstripping supply for the top talent, especially those with local experience, for the most part employers remain cost conscious.”
According to Hays, this is leading to employees taking matters into their own hands. “Fifty-three percent of employees say they’ll ask for a pay rise in their next review. Another 30 percent are as yet undecided about popping the salary question. Meanwhile staff turnover has increased over the last 12 months in 23 percent of organisations.
“With employees ready to take action by asking for a pay rise or by looking for a new job elsewhere, one thing is certain – in the year ahead savvy employers will need to ease the purse strings for highlyskilled talent in demand,” says Walker.
The Hays Salary Guide is based on a survey of 419 organisations in New Zealand, representing 245,716 employees, as well as placements made by Hays. See www.hays.net.nz/salary