Employees at odds with employers on pay rises
How will you close the gap?

NZ release - temps

New Zealand’s labour market performed strongly over the past year, characterised by falling unemployment and good job opportunities. Permanent and temporary hiring intentions suggest further employment gains and increasing business activity in the year ahead.

However, employers warn that the shortage of highly-skilled professionals could dampen the effective operation of organisations and departments.

Given labour and skills pressure, falling salary intentions seem out of place. Yet that’s exactly what we’re seeing, with the value of salary increases falling for many employers compared to their last review. As a result, many workers will see little real difference in their pay packet in the year ahead.

This is at odds with the importance New Zealand’s skilled professionals now place on a salary increase. In fact, our survey results show a pay rise is their number one priority this year and over half of those who plan to look for a new job in the next 12 months cite an uncompetitive salary as a motivating factor. No wonder over half plan to request a salary increase if one is not forthcoming.

Given the disparate salary views of professionals and employers, how can you retain and attract top talent? Apart from a salary increase, career progression and ongoing learning & development are also factors that professionals value, which makes upskilling essential to your retention game plan. With the Fourth Industrial Revolution rapidly gaining ground, automating many job functions and introducing new technologies, constant learning is now a requirement of ongoing career success.

In the our Guide, we share findings from our survey as well as typical salaries in 25 sectors and industries. We hope these insights keep you informed for the year ahead.