Em­ploy­ers hold­ing tight to the purse strings

NZ Business - - INBOX -

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

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