NZ Herald
  • Home
  • Latest news
  • Herald NOW
  • Video
  • New Zealand
  • Sport
  • World
  • Business
  • Entertainment
  • Podcasts
  • Quizzes
  • Opinion
  • Lifestyle
  • Travel
  • Viva
  • Weather

Subscriptions

  • Herald Premium
  • Viva Premium
  • The Listener
  • BusinessDesk

Sections

  • Latest news
  • New Zealand
    • All New Zealand
    • Crime
    • Politics
    • Education
    • Open Justice
    • Scam Update
  • Herald NOW
  • On The Up
  • World
    • All World
    • Australia
    • Asia
    • UK
    • United States
    • Middle East
    • Europe
    • Pacific
  • Business
    • All Business
    • MarketsSharesCurrencyCommoditiesStock TakesCrypto
    • Markets with Madison
    • Media Insider
    • Business analysis
    • Personal financeKiwiSaverInterest ratesTaxInvestment
    • EconomyInflationGDPOfficial cash rateEmployment
    • Small business
    • Business reportsMood of the BoardroomProject AucklandSustainable business and financeCapital markets reportAgribusiness reportInfrastructure reportDynamic business
    • Deloitte Top 200 Awards
    • CompaniesAged CareAgribusinessAirlinesBanking and financeConstructionEnergyFreight and logisticsHealthcareManufacturingMedia and MarketingRetailTelecommunicationsTourism
  • Opinion
    • All Opinion
    • Analysis
    • Editorials
    • Business analysis
    • Premium opinion
    • Letters to the editor
  • Politics
  • Sport
    • All Sport
    • OlympicsParalympics
    • RugbySuper RugbyNPCAll BlacksBlack FernsRugby sevensSchool rugby
    • CricketBlack CapsWhite Ferns
    • Racing
    • NetballSilver Ferns
    • LeagueWarriorsNRL
    • FootballWellington PhoenixAuckland FCAll WhitesFootball FernsEnglish Premier League
    • GolfNZ Open
    • MotorsportFormula 1
    • Boxing
    • UFC
    • BasketballNBABreakersTall BlacksTall Ferns
    • Tennis
    • Cycling
    • Athletics
    • SailingAmerica's CupSailGP
    • Rowing
  • Lifestyle
    • All Lifestyle
    • Viva - Food, fashion & beauty
    • Society Insider
    • Royals
    • Sex & relationships
    • Food & drinkRecipesRecipe collectionsRestaurant reviewsRestaurant bookings
    • Health & wellbeing
    • Fashion & beauty
    • Pets & animals
    • The Selection - Shop the trendsShop fashionShop beautyShop entertainmentShop giftsShop home & living
    • Milford's Investing Place
  • Entertainment
    • All Entertainment
    • TV
    • MoviesMovie reviews
    • MusicMusic reviews
    • BooksBook reviews
    • Culture
    • ReviewsBook reviewsMovie reviewsMusic reviewsRestaurant reviews
  • Travel
    • All Travel
    • News
    • New ZealandNorthlandAucklandWellingtonCanterburyOtago / QueenstownNelson-TasmanBest NZ beaches
    • International travelAustraliaPacific IslandsEuropeUKUSAAfricaAsia
    • Rail holidays
    • Cruise holidays
    • Ski holidays
    • Luxury travel
    • Adventure travel
  • Kāhu Māori news
  • Environment
    • All Environment
    • Our Green Future
  • Talanoa Pacific news
  • Property
    • All Property
    • Property Insider
    • Interest rates tracker
    • Residential property listings
    • Commercial property listings
  • Health
  • Technology
    • All Technology
    • AI
    • Social media
  • Rural
    • All Rural
    • Dairy farming
    • Sheep & beef farming
    • Horticulture
    • Animal health
    • Rural business
    • Rural life
    • Rural technology
    • Opinion
    • Audio & podcasts
  • Weather forecasts
    • All Weather forecasts
    • Kaitaia
    • Whangārei
    • Dargaville
    • Auckland
    • Thames
    • Tauranga
    • Hamilton
    • Whakatāne
    • Rotorua
    • Tokoroa
    • Te Kuiti
    • Taumaranui
    • Taupō
    • Gisborne
    • New Plymouth
    • Napier
    • Hastings
    • Dannevirke
    • Whanganui
    • Palmerston North
    • Levin
    • Paraparaumu
    • Masterton
    • Wellington
    • Motueka
    • Nelson
    • Blenheim
    • Westport
    • Reefton
    • Kaikōura
    • Greymouth
    • Hokitika
    • Christchurch
    • Ashburton
    • Timaru
    • Wānaka
    • Oamaru
    • Queenstown
    • Dunedin
    • Gore
    • Invercargill
  • Meet the journalists
  • Promotions & competitions
  • OneRoof property listings
  • Driven car news

Puzzles & Quizzes

  • Puzzles
    • All Puzzles
    • Sudoku
    • Code Cracker
    • Crosswords
    • Cryptic crossword
    • Wordsearch
  • Quizzes
    • All Quizzes
    • Morning quiz
    • Afternoon quiz
    • Sports quiz

Regions

  • Northland
    • All Northland
    • Far North
    • Kaitaia
    • Kerikeri
    • Kaikohe
    • Bay of Islands
    • Whangarei
    • Dargaville
    • Kaipara
    • Mangawhai
  • Auckland
  • Waikato
    • All Waikato
    • Hamilton
    • Coromandel & Hauraki
    • Matamata & Piako
    • Cambridge
    • Te Awamutu
    • Tokoroa & South Waikato
    • Taupō & Tūrangi
  • Bay of Plenty
    • All Bay of Plenty
    • Katikati
    • Tauranga
    • Mount Maunganui
    • Pāpāmoa
    • Te Puke
    • Whakatāne
  • Rotorua
  • Hawke's Bay
    • All Hawke's Bay
    • Napier
    • Hastings
    • Havelock North
    • Central Hawke's Bay
    • Wairoa
  • Taranaki
    • All Taranaki
    • Stratford
    • New Plymouth
    • Hāwera
  • Manawatū - Whanganui
    • All Manawatū - Whanganui
    • Whanganui
    • Palmerston North
    • Manawatū
    • Tararua
    • Horowhenua
  • Wellington
    • All Wellington
    • Kapiti
    • Wairarapa
    • Upper Hutt
    • Lower Hutt
  • Nelson & Tasman
    • All Nelson & Tasman
    • Motueka
    • Nelson
    • Tasman
  • Marlborough
  • West Coast
  • Canterbury
    • All Canterbury
    • Kaikōura
    • Christchurch
    • Ashburton
    • Timaru
  • Otago
    • All Otago
    • Oamaru
    • Dunedin
    • Balclutha
    • Alexandra
    • Queenstown
    • Wanaka
  • Southland
    • All Southland
    • Invercargill
    • Gore
    • Stewart Island
  • Gisborne

Media

  • Video
    • All Video
    • NZ news video
    • Herald NOW
    • Business news video
    • Politics news video
    • Sport video
    • World news video
    • Lifestyle video
    • Entertainment video
    • Travel video
    • Markets with Madison
    • Kea Kids news
  • Podcasts
    • All Podcasts
    • The Front Page
    • On the Tiles
    • Ask me Anything
    • The Little Things
  • Cartoons
  • Photo galleries
  • Today's Paper - E-editions
  • Photo sales
  • Classifieds

NZME Network

  • Advertise with NZME
  • OneRoof
  • Driven Car Guide
  • BusinessDesk
  • Newstalk ZB
  • Sunlive
  • ZM
  • The Hits
  • Coast
  • Radio Hauraki
  • The Alternative Commentary Collective
  • Gold
  • Flava
  • iHeart Radio
  • Hokonui
  • Radio Wanaka
  • iHeartCountry New Zealand
  • Restaurant Hub
  • NZME Events

SubscribeSign In
Advertisement
Advertise with NZME.
Home / Business / Economy / Employment

Pressure mounts for pay rises

By Andrea Milner
Herald on Sunday·
3 May, 2008 05:00 PM6 mins to read

Subscribe to listen

Access to Herald Premium articles require a Premium subscription. Subscribe now to listen.
Already a subscriber?  Sign in here

Listening to articles is free for open-access content—explore other articles or learn more about text-to-speech.
‌
Save

    Share this article

KEY POINTS:

The rising costs of living are prompting calls for pay increases, but employers say high prices are hitting businesses too and workers will have to push hard for a raise.

Employees are now demanding and receiving compensation for higher inflation, says Westpac chief economist Brendan O'Donovan, who predicts
a "miniature wage-price spiral" as salary pressure continues.

Salaries have been picking up pace over the past couple of years and are set to rise even more rapidly over the next 12 months.

O'Donovan is forecasting a 1.1 per cent increase in the mean salary this quarter and expects the labour cost index to reach a record 3.6 per cent this year.

However, employees will need to present a business case for a pay rise as firms become more cost-conscious.

Business New Zealand chief executive Phil O'Reilly says price increases mean companies have less capacity to increase pay.

Alasdair Thompson, Employers and Manufacturers Association chief executive, says it's hard to get business credit from banks now, interest rates are high, and the high exchange rate is eating into exporters' profits. "So if an employee says, 'The cost of living has risen, give me more money,' that's not going to work."

The key to gaining a salary increase is understanding what the benefit to the employer will be. Don't look like an "increase beggar", says Auckland Chamber of Commerce chief executive Michael Barnett. "Show the value you bring over and above what someone else might offer, your point of difference from others in the market."

Frog Recruitment director Jane Kennelly agrees: "It is never good to just state you want a salary increase - you need to be able to demonstrate why you deserve a pay rise."

To support their case, employees need to consider how they can increase their productivity and the success of the business and outline their strategies to achieve this, Thompson says. Employees must be able to tangibly link the reason for seeking a pay rise to something that is going to benefit the organisation.

Julie Cressey, of Madison Recruitment, says knowing your impact on productivity, profitability and sustainability is key, as well as understanding how you are measured in the role.

Articulate the future value you can bring to the role through continuing to develop professionally, Bartlett says, and point out what you have done to enhance your skills and be able to show you have excelled in key aspects.

Proactive employees are cherished inside organisations. Workers should be specific about extra tasks or areas of responsibility they've added to their position, and their accomplishments - especially revenue earned or saved for the organisation, Kennelly says.

Examples include positive customer feedback, special projects taken on over and above the position description and delivered well, systems and procedures implemented that have created efficiency in the organisation, and working extra hours.

If an employee has good skills, drive and commitment, then they've got something to sell and can put that to their employer, Thompson says.

To understand their worth, Annemarie Duff, of SEEK Limited, recommends employees investigate what other employers are offering in similar jobs. And Kennelly says there has been an increase in people canvassing her agency to research their market worth this year.

Advise your employer you want to discuss a salary increase when preparing for pay rise negotiations, and have the discussion face to face, says Kennelly. Never bring up the topic in a social situation and maintain professional decorum. A good tip is to pretend you're negotiating on behalf of someone else. Present supporting documentation, such as a list of key achievements.

An employee should know what increase they want and not be drawn into "jockeying for position", Kennelly says, but also be aware this isn't a situation where the employer is left with no option. Threatening to leave can leave a sour taste in an employer's mouth. Be firm in negotiating, but don't get emotional. Instead, have a good attitude and be confident.

An employer likes to hear you are committed to the firm - so express it, adds Thompson.

If an employer turns down a request for a salary increase, ask why they said no because the answer could indicate whether or not to stay in the organisation. Explore other opportunities available and then make the decision.

Ultimately, the biggest saving businesses can make is retaining their current, highly productive staff. The cost of going back to market, having that role vacant and filling it has a huge bottom-line impact on businesses.

Barnett estimates the cost to an employer of replacing an employee is probably more than 125 per cent of their salary. Cressey frequently hears of "huge" counter offers being made to prevent staff accepting employment offers from other organisations in the current market.

TOP JOBS IN AUCKLAND

Each year the Auckland Chamber of Commerce surveys members to find out what employees are being paid in the region.

The membership database predominantly comprises Small and Medium Enterprises (companies with less than 10 employees). There were more than 2500 responses last year.

Popular top earners:

CEO / MD - $126,422.

General manager - $120,827.

ICT manager - $104,363.

National sales manager - $109,145.

HR manager - $99,523.

Finance manager - $98,645.

Marketing manager - $98,277.

These figures are averages including allowances such as bonuses and commissions, vehicles, and any other income subject to fringe benefit tax such as medical insurance, low interest loans or superannuation.

CASE STUDY

Office manager Anna has worked for a professional business services firm for three years.

As often happens, her role has developed into a broad collection of tasks and functions.

They include supplier management for the organisation's technology and telephone systems.

Recently, Anna felt it was time to broach the topic of a pay rise.

She says she loves her job, but "I just wanted to feel I was getting the right money".

Anna was uncomfortable asking for a pay increase. "I was worried my boss might say 'no', because reviews had been happening annually." However, she was aware that her position was diverse, more time was needed to do the job, and that other people in the company had received increases.

Anna took a three-step approach to preparing for the conversation. She:

Called an agency to find out what other opportunities were out there to get an idea of comparable salaries.

Reviewed her initial job description to see what had changed as her role had developed, listing things she was doing that involved more responsibility.

Emailed her boss and asked for a meeting to discuss a pay rise. "I really felt I could not ask face to face."

Anna was nervous at the meeting, but she was successful in securing an increase. She says having reference information to hand really helped.

In this case she presented her job description together with a list of additional tasks she had taken on during her time in the role, plus a list of the achievements.

In one area, she was able to show that a small modification to the telephone system of about $1000 had saved the company a portion of a part-time salary.

Discover more

Small Business

Have you curbed your spending recently?

14 Apr 12:00 AM
Advertisement
Advertise with NZME.
Advertisement
Advertise with NZME.
Save

    Share this article

Latest from Employment

Premium
Business|economy

18,800 people booked for NZICC; anaesthetists, ophthalmologists the latest

03 Jul 10:39 PM
Property

Ikea opening ‘around Christmas trading period’, plans for traffic mitigation at Sylvia Park

01 Jul 10:57 PM
Premium
Property

Watch: First look inside City Rail Link’s unique new Te Waihorotiu Station

30 Jun 03:00 AM

There’s more to Hawai‘i than beaches and buffets – here’s how to see it differently

sponsored
Advertisement
Advertise with NZME.

Latest from Employment

Premium
18,800 people booked for NZICC; anaesthetists, ophthalmologists the latest

18,800 people booked for NZICC; anaesthetists, ophthalmologists the latest

03 Jul 10:39 PM

Anaesthetists to meet April 30-May 5, ophthalmologists November 5-9 next year.

Ikea opening ‘around Christmas trading period’, plans for traffic mitigation at Sylvia Park

Ikea opening ‘around Christmas trading period’, plans for traffic mitigation at Sylvia Park

01 Jul 10:57 PM
Premium
Watch: First look inside City Rail Link’s unique new Te Waihorotiu Station

Watch: First look inside City Rail Link’s unique new Te Waihorotiu Station

30 Jun 03:00 AM
Premium
Liam Dann: Never mind the swear words, our politicians need to raise the quality of debate

Liam Dann: Never mind the swear words, our politicians need to raise the quality of debate

28 Jun 05:00 PM
From early mornings to easy living
sponsored

From early mornings to easy living

NZ Herald
  • About NZ Herald
  • Meet the journalists
  • Newsletters
  • Classifieds
  • Help & support
  • Contact us
  • House rules
  • Privacy Policy
  • Terms of use
  • Competition terms & conditions
  • Our use of AI
Subscriber Services
  • NZ Herald e-editions
  • Daily puzzles & quizzes
  • Manage your digital subscription
  • Manage your print subscription
  • Subscribe to the NZ Herald newspaper
  • Subscribe to Herald Premium
  • Gift a subscription
  • Subscriber FAQs
  • Subscription terms & conditions
  • Promotions and subscriber benefits
NZME Network
  • The New Zealand Herald
  • The Northland Age
  • The Northern Advocate
  • Waikato Herald
  • Bay of Plenty Times
  • Rotorua Daily Post
  • Hawke's Bay Today
  • Whanganui Chronicle
  • Viva
  • NZ Listener
  • Newstalk ZB
  • BusinessDesk
  • OneRoof
  • Driven Car Guide
  • iHeart Radio
  • Restaurant Hub
NZME
  • About NZME
  • NZME careers
  • Advertise with NZME
  • Digital self-service advertising
  • Book your classified ad
  • Photo sales
  • NZME Events
  • © Copyright 2025 NZME Publishing Limited
TOP