The Hays Salary Guide FY26/27: New Zealand professionals feel secure and mostly satisfied – but pay alignment and progression are driving retention risk

Published: 28 May, 2026

The Hays Salary Guide FY26/27 found 66% of New Zealand professionals are confident in their job security over the next 12 months
Average salary increases sits at 3.3%, in line with inflation levels
59% are satisfied or very satisfied in their roles, but 49% say they are underpaid relative to their responsibilities
Pay rises are often modest: the most common individual pay change reported is 2.5%–5% (26%), while 26% say pay stayed the same
63% have been with their current organisation for four years or less, signaling a workforce still relatively early in tenure

AUCKLAND, NEW ZEALAND, 28 May 2026 – New Zealand professionals are largely confident and generally satisfied in their roles, yet almost half believe their pay does not match their responsibilities. A combination that is creating a “quiet” retention risk for employers, according to new research from recruitment and workforce solutions specialists Hays.

The Hays Salary Guide FY26/27, New Zealand and Australia’s largest and most comprehensive review of salaries and workforce trends, shows job security remains strong (66%) and overall job satisfaction is relatively healthy (59%) but pay alignment is the fault line, with 49% of professionals saying they are underpaid, and only 43% satisfied with their salary.

This gap matters because it is happening alongside limited clarity on progression inside organisations where only 8% of professionals say promotions are frequent and based on clear performance criteria, while 34% report no clear promotion structure and 25% say promotion criteria are not always clear.

“Salary increases are modest and broadly in line with inflation, and nearly half of professionals feel underpaid relative to their responsibilities. The conditions for a retention challenge are building beneath what appears to be a stable workforce.”

“Workers are staying put out of caution, not contentment. Progression pathways lack clarity for many, pay growth remains limited in real terms, and underlying dissatisfaction is building quietly.”

“This is a crucial moment for employers to pause, understand the concerns of their teams, and address these issues before they translate into future turnover.” said Matthew Dickason, CEO, Hays APAC

Pay rises are happening – but the ‘value gap’ is widening

The NZ data shows pay movement is real, but often incremental. The most common self-reported pay change is an increase of 2.5%–5% (26%), and a further 17% report increases up to 2.4%. At the same time, 26% say their pay stayed the same, and 3% report a decrease.

When professionals explain why their pay changed, the leading reasons are cost-of-living/inflation adjustments (32%) and standard company-wide pay adjustments (28%), ahead of promotion (18%) or moving to a new job (10%).

These patterns help explain why salary satisfaction lags with only 43% are satisfied with their pay, while 49% say they are underpaid for their responsibilities.

Progression clarity is the pressure point employers can’t ignore

In New Zealand, the strongest indicator of retention risk is the lack of confidence in internal career progression. More than a third of professionals (34%) say there is no clear promotion structure in their organisation, while a further 25% report that promotions do occur, but the criteria are not always clear. Nearly one in five (19%) believe promotions are rare and largely influenced by tenure or internal politics, and just 8% say promotions are frequent and based on clear performance criteria.

At the same time, reasons for wanting to leave are closely tied to both pay and career opportunities. Over two in five (43%) cite salary and benefits as a key driver, while 37% point to a lack of future opportunities. A further 34% say their salary is too low, reinforcing the ongoing link between remuneration, progression, and retention.

The job market is ‘open but cautious’ and that’s where retention risk builds

New Zealand professionals are not in mass “job-hopping” mode, but they are also far from disengaged. Around 30% are actively looking for a new role, while a larger proportion, 40% are not actively searching but remain open to new opportunities, and a further 30% are not actively looking at all.

Over the past 12 months, this cautious approach is reflected in career movement patterns. More than half (55%) report making no career change, while 14% have started a new job with another employer and 12% have secured a promotion within their current organisation.

Retention is shaped by more than pay but pay still anchors the equation

When asked what influences them to remain with an employer, professionals most commonly point to a combination of financial stability and workplace experience. Stable income and benefits are the leading factor, cited by 41%, closely followed by relationships with colleagues and managers. Flexible working arrangements are also a key driver at 35%, alongside job security at 34%.

Flexibility, in particular, has now become a baseline expectation rather than a differentiator. Seven in ten (70%) professionals say flexible work is very or extremely important in their decision to stay with or join an organisation.

However, the overall benefits picture is more mixed. Only 34% of professionals report being satisfied with their benefits package, while the majority (73%) say it has remained unchanged year-on-year. A further 14% believe their benefits have worsened, highlighting an opportunity for employers to strengthen their overall value proposition.

Advice for employers

“A workforce that feels secure but not fully satisfied is the reality in New Zealand this year," said Matthew Dickason, CEO, Hays APAC.

“Pay growth is modest and largely cost-of-living driven, and with nearly half of professionals feeling underpaid, incremental increases alone won’t close the gap without clearer alignment between pay, responsibilities and progression."

“Progression is the critical lever. Too many professionals lack visibility on how advancement is determined, which is directly impacting retention. Employers who make career pathways clear and strengthen their overall value proposition, including flexibility and benefits, will be best placed to retain talent in a market where many are open to new opportunities.”

Advice for professionals

“If you’re feeling dissatisfied, take the time to understand why before making a move,” said Matthew Dickason, CEO, Hays APAC.

“For many professionals, it goes beyond salary. While nearly half feel underpaid, progression, role clarity and future opportunity are just as critical.”

“Being clear on what matters most will help you decide whether to reset where you are or move on in a market where many are open, but cautious, about change.”

Download the Hays Salary Guide FY26/27.

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About the study

The Hays Salary Guide FY26/27 is based on an online survey of more than 6,500 professionals across Australia and New Zealand, conducted between 6 February and 1 March 2026. Participants were recruited via the Hays database. A total of 5,223 respondents were from Australia. The research captures insights from both employees and those in hiring roles, and data was weighted to reflect the working population by age and gender.

Media contact

Archetype on behalf of Hays Australia: hays@archetype.co

About Hays

Hays plc (the "Group") is the world’s leading specialist in recruitment and workforce solutions, such as Recruitment Process Outsourcing (RPO) and Managed Service Provider (MSP). The Group is the expert at recruiting qualified, professional, and skilled people worldwide, being the market leader in the UK, Germany, and Australia and one of the market leaders in Continental Europe, Latin America, and Asia. The Group operates across the private and public sectors, dealing in permanent positions, contract roles and temporary assignments. As of 30 June 2025, the Group employed over 9,500 staff operating from 207 offices in 30 countries.

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