Hays Salary Guide points to moderate salary increases in NZ

The 'new normal': Hays Salary Guide points to moderate salary increases in New Zealand

• 23 per cent of NZ employers increased salaries last year between three and six per cent, while 55 per cent increased by less than three per cent;
• 22 per cent of NZ employers intend to increase salaries between three and six per cent when they next review, while 63 per cent will increase by less than three per cent;
• New Zealand sits on the edge of a two-speed economy.

New Zealand's workforce can expect a moderate salary increase this year as current market conditions remain, according to the 2012 Hays Salary Guide.

But do not expect any swift or dramatic upswing in global economic conditions, says Jason Walker, Managing Director of Hays in New Zealand. "There is no silver bullet over the horizon to wait for," he said. "Current conditions are here to stay for some time, so the sooner we can adapt business practices to meet the requirements of this - the 'new normal' - rather than waiting for a dramatic reversal to the global market to set us on a more secure road, the more effective we'll all be.

"That's why forward-thinking employers and candidates are going ahead with their hiring or career plans. It's also why employers are increasing salaries, albeit moderately."

Released today, the 2012 Hays Salary Guide reveals salary and recruiting trends for well over one thousand roles across Auckland, Wellington and Christchurch, and was based on a survey of employers as well as placements made by Hays.

It found that most employers are increasing salaries, albeit moderately; 55 per cent of employers in New Zealand increased salaries less than three per cent in their last review, while 23 per cent increased between three and six per cent. Nine per cent increased salaries above six per cent, but 13 per cent gave no increases.

In general, the biggest salary increases have been seen in IT and insurance since the rebuild of Christchurch is driving up demand.

Looking ahead, 63 per cent of employers intend to increase salaries by less than three per cent when they next review. 22 per cent will increase between three and six per cent and six per cent will increase above six per cent. The final nine per cent do not intend to offer any increases.

"New Zealand is sitting on the edge of a two-speed economy," says Jason. "The South Island is in top gear as the demolition and rebuild of Christchurch fuels demand for skilled professionals. But in sharp contrast the North Island is in a holding pattern and is neither improving nor worsening.

"With New Zealand's economy set to run on two speeds for some time, we have a recruitment market full of contrast. Without doubt employers are more positive in their outlook in the South, where skills shortages and the movement of professionals out of the Canterbury region have created sourcing challenges and vacancy activity for employers.

"Overall, we're now starting to see more people in work and more people looking for a new role. Perhaps that's why there is a wide-ranging understanding from employers in all industries that to find and retain the best people remains a challenge. Often the candidates that are available do not match all the requirements employers have. That's why there is still a shortage of the right candidates to fill vacancies and competition for the top talent remains."

The 2012 Hays Salary Guide is available at www.hays.net.nz/salary, by contacting your local Hays office or by downloading The Hays Salary Guide 2012 iPhone app from iTunes.

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

ENDS

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