Gulf between employee and employer pay rise expectations

Two in five employees expect their salary to rise by less than three per cent in their next review, according to a survey by recruiting experts Hays.

In the survey of 469 New Zealanders, 41 per cent said they expect their salary to increase less than three per cent. 33 per cent expect an increase between three and six per cent, and 26 per cent expect an increase above six per cent.

The survey was conducted across Asia Pacific. The most positive salary expectations exist in Hong Kong, where 45 per cent of people surveyed expect an increase above six per cent. This is followed by Singapore (41 per cent), Australia (35 per cent) and New Zealand (26 per cent).

But employer expectations are not in alignment. According to the 2011 Hays Salary Guide, in New Zealand 14 per cent of employers expect to offer no increases, while 57 per cent will offer less than three percent. 25 per cent will offer increases between three and six per cent and the remaining four per cent of employers will increase above six per cent.

“In today’s market many employees have higher expectations than their employers when it comes to their next pay rise,┝ said Jason Walker, Managing Director of Hays in New Zealand. “But employers won’t be swayed by these expectations. Instead of offering widespread salary increases, many employers are choosing to review employee benefits to help them attract and retain staff. They’re also quick to discuss potential career paths with their high achievers and offer training and development. Work/life balance improvements are also being used as alternatives to large salary increases.”

If you are approaching your next salary review, Jason has this advice to help maximise your chances of an increase:
* Prepare a list of your recent achievements that exceed your objectives (if this is your first review, look back at your original job description). List the resulting benefit to the company. This gives you strong evidence to support the value you are providing to the business.
* Also list any changed or increased work volumes or duties you’re now undertaking.
* Be realistic. State the salary you feel your performance and results are worth, and back it up with evidence from a Salary Guide to show it is in line with current market rates.
* Keep your salary review discussion professional. Stay calm and focused. Do not become emotional and do not talk of how much money you need eg rising bills or mortgage repayments. Keep your review purely professional.
* Have a fall-back position. If your employer cannot afford to increase your salary, can you agree a date for another pay review in three or six months? What about additional annual leave, study or other benefits?
* Above all, use your accomplishments and the value you add to the organisation as the basis of your negotiation. In this way, you’ll clearly demonstrate your worth and will be in a stronger position to secure the maximum of the salary increase on offer.

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

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