Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 

Digital Talent Recruitment Expert Warns Employers To Plan For ‘salary Bidding Wars’

A digital talent recruitment expert is warning New Zealand employers to start planning without delay for in-demand employees being able to trade salary offers off against each other as skill shortages deepen.

Campfire Digital Recruitment Director Amelia Cranfield says she has noticed a significant spike in sky-high salary counter offers.

“Digital is a very dynamic recruitment market at present, with huge demand for mid-level people who have hands-on experience implementing campaigns. This has resulted in remarkable counter-offers being made in salary bidding wars for in-demand candidates,” she says.

Cranfield has seen examples such as an employee on a $57,000 salary going to resign and being offered a $95,000 salary as an incentive to stay. Another person’s salary increased from $100,000 to $150,000 to keep them on.

Several factors have contributed to the current situation, including increased demand as more businesses move their offering and promotional mechanisms online. Furthermore, a change in the mix and salary expectations of new immigrants versus returning New Zealanders used to high-paid overseas jobs has also contributed to higher salaries.

“There’s a major salary market correction happening in the digital job world and it’s not likely to be going away any time soon.”

Cranfield says many agencies and other employers work on thin margins, so an unanticipated salary hit can be devastating. That’s why it is important to be pro-active in addressing the salary threat.

“I can’t stress strongly enough how important it is for businesses to start putting steps in place to protect themselves against potential negative consequences of rapidly escalating salaries in the digital job sector.”

Seven top tips for businesses seeking to protect themselves against salary market corrections

  1. Front-foot the situation by identifying the employees you most want to retain in the short-medium term.
  2. Meet with them to discuss their employment needs, and their likely intentions over the coming year to 18 months. And don’t delay; do this by Christmas.
  3. Identify which employees you are likely to lose and be pragmatic about that, but lock in the ones you can’t afford to lose.
  4. Put contingency plans in place for those who you anticipate will need to be given a significant salary increase, including developing a salary strategy.
  5. Have up-to-date job descriptions for all roles, which clearly articulate not only the role but how working at your organisation will benefit the employee
  6. While pay is important to employees, so are ‘soft’ benefits such as flexible working hours and pleasant working conditions, so be sure to factor this into your planning.
  7. Develop – and communicate - career development pathways for all roles.

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 


FMA: Files Civil Proceedings Against Kiwibank For False Or Misleading Representations Over Fee Waivers

The Financial Markets Authority (FMA) - Te Mana Tātai Hokohoko has filed High Court civil proceedings against Kiwibank for making false and/or misleading representations, under the fair dealing provisions of the Financial Markets Conduct Act (FMC Act)... More>>

ALSO:


What Lies Beneath: Is The Housing Market Turning?
Rising interest rates, combined with further tightening of credit availability appear to be dampening the enthusiasm of investors and first home buyers. While house values continue to rise, what lies beneath QV's latest figures is growing evidence that price pressure has shifted... More>>



R&NTU: KiwiRail strike notices withdrawn following new offer

Strike notices on KiwiRail have been withdrawn. Rail and Maritime Transport Union General Secretary Wayne Butson says following negotiations between the RMTU and KiwiRail, a new offer from KiwiRail will be taken back to union members for ratification... More>>


Reserve Bank: Deputy Governor Reflects On Time At RBNZ
Central bankers must continue to look forward to guard against the unpredictable, Deputy Governor Geoff Bascand says in a speech published today. Mr Bascand joined the Reserve Bank of New Zealand – Te Pūtea Matua in 2013 during the aftermath of the Global Financial Crisis... More>>


Xero: Data Reveals ICT Expenditure Key To Small Business Sales Growth
Xero, the global small business platform, today released a new report which shows New Zealand small business ICT expenditure has increased 25 percent compared to pre-pandemic levels - more than the UK (20%) and Australia... More>>


Fonterra: Lifts Forecast Farmgate Milk Price Range And Revises Earnings Guidance At First Quarter Update

Fonterra Co-operative Group today lifted its 2021/22 forecast Farmgate Milk Price range, reported a solid start to the 2022 financial year and revised its earnings guidance... More>>


Canterbury Museum: New Research - Bald Haast's Eagle Feasted On Moa Guts

New Zealand’s extinct Haast’s Eagle (Hieraaetus moorei), the largest known eagle, gulped down viscera like a vulture and may even have been bald, new research suggests... More>>