Salary vs job satisfaction in New Zealand

Does money really equal happiness? The lure of a bigger paycheck is often a strong motivator, tempting professionals to pursue new opportunities. But what if we told you that, for a notable segment of the workforce, changing roles can actually result in a lower salary? In many cases, this is a deliberate choice.

At Hays, we’ve noticed an interesting shift. More and more individuals are choosing purpose and fulfilment over financial gain. This raises an important question for both employers and jobseekers — how much weight does salary truly hold when it comes to job satisfaction, and what other elements matter just as much?

Job satisfaction trends in New Zealand

So, should you choose job satisfaction over a high-paying job? Hays Salary Guide FY25/26 reveals some compelling insights:

The Big Leap (and Small Step Back): While changing organisations and starting a new role often lead to significant salary bumps (one in four experienced an increase of over 20%), a surprising 20% actually saw their pay decrease. This suggests a deliberate choice rather than an unforeseen risk.
More Money, More Problems: Despite the potential for substantial increases, 60% of employees believe they are underpaid, with 12% feeling "grossly" underpaid. This sentiment persists even for some earning over $250k, who report dissatisfaction, while others earning less than $50k are quite content.
The Disconnect: We've seen individuals receive pay rises of greater than 20% yet still feel underpaid, while some receiving no increase at all feel fairly rewarded. This highlights that financial compensation alone doesn't always translate to feeling valued or satisfied.

This paradox underscores a fundamental truth. While financial security is undeniably important, it's not the sole determinant of a fulfilling career or lifestyle.

What factors influence workplace happiness?

If money isn't always the answer, what is? Our research consistently points to multiple factors that contribute to genuine employee satisfaction and a positive outlook.

Flexibility reigns supreme: Across all genders and age groups in New Zealand, flexibility is the top priority. This speaks volumes about the desire for the ability to integrate work seamlessly with personal life.
Time off is priceless: ollowing closely behind flexibility, additional annual leave is highly valued by 45% of employees. This further cements the importance of creating a healthy work-life balance.

These findings strongly suggest that employees are actively seeking roles that offer more than just financial compensation. They desire:

Work-life balance: The ability to effectively manage numerous responsibilities, balancing career with family, other interests, and personal well-being.
Meaningful work: A sense of purpose and the opportunity to make a positive impact, whether that's in a non-profit or creative arts.
Positive environment: A supportive workplace culture where employees feel valued, supported, and have opportunities for growth.
Job security: While not explicitly a "satisfaction" driver, the absence of financial stress contributes significantly to a more positive outlook.

How employers can boost team satisfaction

Understanding these nuances is crucial for businesses looking to attract and retain top talent. Focusing solely on high salaries might win some battles, but it won't necessarily win the war for long-term employee satisfaction and loyalty.

Rethink your value proposition: Go beyond just advertising a good salary. Highlight your company's commitment to flexibility, work-life balance, growth opportunities, and a positive work environment.
Prioritise culture: Foster a culture where employees feel valued, heard, and supported. This includes opportunities for professional development, recognition, and open communication.
Offer flexibility: Explore options for flexible work hours, remote work, or shorter workweeks where feasible. These benefits are often more impactful than a marginal pay rise.
Promote purposeful work: Clearly communicate the impact of your employees' contributions. Help them see how their hard work contributes to the business's success.

How NZ employees can find fulfilment

For individuals, the decision to pursue a new job should involve a comprehensive evaluation, not just a spreadsheet comparison of salaries.

Identify your non-negotiables: Before you start your job search, define what truly matters to you beyond your paycheck. Is it flexibility, progression, culture, or the chance to make a meaningful impact?
Passion vs duty: Ask yourself, what motivates you to work harder? Financial freedom is the top priority for some. For others, more personal time, family and cultivating a life outside of work are most important.
Think beyond the paycheque: A higher salary can be appealing, but it’s important to weigh up other key factors like work-life balance, commute time, team dynamics, and long-term career development opportunities.
Prioritise well-being: Financial independence is important, but it shouldn't come at the cost of your mental and physical health. Sometimes, a slightly lower salary in a more supportive and fulfilling role can lead to a more positive outlook and a happier life in the long run.
Engage with your network: Speak to people in similar roles or industries to gain insights into their real-life experiences. Understand the nuances of different career paths.

Ultimately, the choice between salary and job satisfaction is a deeply personal decision. While money can comfortably pay bills and provide some comfort, it doesn't always buy happiness. For many, true satisfaction is grounded in feeling valued, having a sense of purpose, and achieving a healthy work-life balance.

At Hays, we believe that understanding and addressing these core human needs is key to building a successful and sustainable career for individuals and a thriving business for employer.

Whether you’re struggling to fill a vacancy or navigating job-hunting, our expert recruiters are here to help.

Download Hays Salary Guide FY25/26