Salaries hold steady with increases on the horizon

PRESS RELEASE
Monday 14 June 2010

Hays Salary Guide: Salaries hold steady with increases on the horizon

One in three (33 per cent) employers expect to increase salaries by between three and six per cent in their next review. That’s one of several key findings from the annual Hays Salary Guide that herald a more promising year ahead.

The Hays Salary Guide includes recruiting trends and typical salaries for over 900 job functions, in 16 sectors.

It reveals that workers in the mining & resources sector are in for the greatest windfall, with 80 per cent of employers in this sector expecting to increase salaries by between three and six per cent. This is closely followed by professional services, where 47 per cent of employers expect to increase salaries by between three and six per cent, then IT & Telecommunications where 42 per cent expect to increase salaries by between three and six per cent.

According to the Hays Salary Guide, hiring intentions are also up. While last year only 21 per cent of employers expected to increase their permanent headcount, this year 33 per cent expect to do so. Sales professionals will be the hottest commodity, with 50 per cent of sales departments expecting to increase their headcount. This is followed by engineering (46 per cent), operations (41 per cent) and IT (35 per cent).

This year, 18 per cent of employers intend to increase their use of temporary workers, compared to 12 per cent last year. This growth will be highest in marketing departments (where 67 per cent intend to increase their use of temporary workers), followed by sales (50 per cent) and IT (41 per cent).

In other findings, 47 per cent of employers believe the economy will strengthen in the coming six to 12 months, compared to just 5 per cent last year. Consumer confidence still has the most significant impact on business activity. The use of counter offers has risen slightly, with 37 per cent of employers indicating they ‘sometimes’ use this strategy to attempt to retain resigning staff, up from 34 per cent last year.

Commenting on the Hays Salary Guide, Jason Walker, Managing Director of Hays New Zealand said: “The Hays Salary Guide shows that for the most part New Zealand salaries remained constant during the past year. 2009 was a challenging year for New Zealand businesses and so salary increases were negligible and candidates were more focused on job security than salary.

“Of course there were exceptions, such as in insurance and for candidates with very specific technical sales expertise, but in general salaries remained stable. Instead, many organisations made packages more attractive through non-monetary benefits such as flexible working hours. Work/life balance improved. The use of loyalty bonuses also rose as a means of retaining key staff in an improving market.

“The recovery in 2010 has been slow and steady. Improving optimism, which was absent for the preceding 18 months, has increased both business and customer confidence. There are clear indications that employers expect the market to improve further in the second half of 2010, which has also improved recruitment intentions.

“As a result, quality candidates are finding themselves on steadier ground. Those who sat tight during the GFC are now pursing career development. Those who can add value are seeking salaries above their current level, as are those who accepted lower salaries during the downturn.

“Add the new optimism that is evident in the market and employers’ own prediction that their permanent and temporary recruiting needs will rise, and we have a very different picture to this time last year.

“As a result, salaries will start to creep up over the next 12 months in line with the emergence of candidate shortages, particularly in specialist areas.

“In addition, a number of candidates, such as newly qualified Accountants, who put their travel plans on hold are once again heading overseas, which will also impact demand and drive salaries forward.

“But jobseekers shouldn’t expect an automatic or hefty salary increase. We still advise jobseekers to focus on finding a role that will add to your suite of skills and will offer opportunity with the right organisation. Moving roles at this stage can provide the opportunity to join an up-and-coming employer or a company that is emerging from the GFC in a strong position. But don’t price yourself out of contention with over-inflated salary expectations.

“If you are realistic in your expectations, show how you can add value and take the advice of a recruiting expert, a salary increase is likely to follow over the coming year in line with the market’s renewed optimism,” he said.

The Hays Salary Guide is available at www.hays.net.nz/salary

Hays, the world’s leading recruiting experts in qualified, professional and skilled people.

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