KEY POINTS:
Employees who are considering changing jobs still expect sizeable salary rises despite tightening worldwide economic conditions - and local employers are under pressure to compete with what's on offer overseas.
A new global online survey of the salary expectations of 3500 professionals by international recruitment consultancy Robert Walters shows that almost a third of respondents (29 per cent) would expect a pay rise of more than 20 per cent if they moved to a new job.
And 16 per cent say they would want a rise of more than 30 per cent.
Only 14 per cent say their expectations are for a rise of less than 10 per cent. The remaining 41 per cent expect increases of between 10 and 20 per cent if they were to move.
In New Zealand, as well as Australia, the UK, Europe, and the United States, the majority of responses were in this 10-20 per cent range.
Expectations are the highest in Asia, with more than 50 per cent of candidates in China alone saying they would expect a rise of 30 per cent or more if they were to move jobs.
In other parts of Asia (Hong Kong, Japan, Singapore and Malaysia), the majority of respondents indicated an expectation of a 20 per cent increase or more.
The country with the highest proportion of responses in the 0-10 per cent bracket was the Netherlands, with 26 per cent.
Richard Manthel, managing director of Robert Walters New Zealand, says the webpoll shows Kiwis changing jobs generally expect a 10 per cent increase, while in other countries where the candidate market is running hot expectations are higher.
"These results point towards a continued confidence from candidates on remuneration levels," says Manthel.
"Economic uncertainty and financial troubles may be dominating the headlines, but candidates with the requisite skills remain in short supply.
"Across a wide range of sectors, employers continue to offer attractive packages to capture talent with specialist skillsets."
David Ealson, director of Cornerstone Search NZ, the local arm of executive search company Cornerstone International, says Kiwi companies need to match the salary packages offered by offshore companies - even if this means increasing the cost of goods to the end consumer.
Cornerstone carried out a survey of 44 countries, including New Zealand and Australia, which showed that 68 per cent of business leaders expect to take on additional employees this year - up from 44 per cent in 2005.
Ealson says Kiwi companies need to be aware of these trends.
"This study shows business leaders around the world are competing for the top talent, especially at senior level.
"We need to be aware we can't just rely on the lifestyle in New Zealand to retain people when they can be attracted offshore by big salaries and rewards."
He says Kiwi companies are being "raided" by Australian companies paying between 30 and 50 per cent more to do the same work in Australia.
Manthel agrees New Zealand is being targeted by offshore companies, and there are top opportunities in Asia as well.
He notes that IT talent is continually in demand everywhere. Local businesses need to focus on boosting productivity, thereby profitability, so they can pay better, Manthel says.
