Confidence has returned but don’t expect a big pay hike
Confidence has returned but don’t expect a big pay
• 64% of employers gave a salary increase of less than 3% in their last review;
• 79% of employers expect business activity to increase.
Unless you are in a high demand role the average salary increase is forecast to be less than 3% in New Zealand, with cost pressure putting the breaks on more generous pay hikes for the year ahead, according to the 2014 Hays Salary Guide.
The Guide, out today, reveals salary and recruiting trends for over 1,000 roles in Auckland, Christchurch and Wellington. It is based on a survey of over 433 New Zealand employers as well as placements made by Hays.
It found that a massive 69% of employers plan salary increases of less than 3% when they next review, while 64% gave increases of less than 3% in their last review.
There are few instances of generous salary increases; just 6% of employers increased salaries by more than 6% in their last review, and only 4% intend to do so in their next review.
But 4% have no plans to increase salaries at all. Meanwhile 8% did not award any increases in their last review.
“New Zealand is gearing for growth and employers have thrown aside the ‘cautious’ optimism of last year and replaced it with unfettered certainty for a positive year ahead,” says Jason Walker, Managing Director of Hays in New Zealand.
“In the year that was, most employers said business activity had increased and over one quarter saw staff turnover rise. During this time, employers watched the talent pool deplete and skills shortages deepen.
“Despite this, salaries remain fairly stable. But there are always exceptions, and in this case we have seen higher increases for those who are already in extreme demand.
“In general though, most salary increases were less than 3% and were more conservative than they have been in the past,” said Jason.
In other key findings, 80% of employers in New Zealand see a more positive economic outlook on the horizon. 79% expect their levels of business activity to increase in the year ahead, and 70% have already seen an increase in business activity over the 12 months prior to the survey.
When asked about permanent headcount over the next 12 months, 44% of employers say it will increase, 47% say it will remain the same and 9% will make decreases. Of those employers planning to hire, 85% say the roles will be full-time.
Hays, the world’s leading recruiting experts in qualified, professional and skilled people.
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