New pastures prove greener

Kevin Chappell. Photo / Getty Images

People working in engineering and construction will be able to call the shots when it comes to their annual salary review, says one leading recruitment business owner.

Kevin Chappell, principal director of Talent Now, said most people would have a salary review built into their contract of employment but that review would not necessarily translate into a pay rise. However, people who resigned to work elsewhere were getting better salaries according to anecdotal evidence, he said.

"A lot of salaries have remained static in recent times and that is simply a reflection of the situation many businesses are facing," he said.

Chappell said only indispensable people were getting a wage rise out of their employer right now.

"The rules have never changed," he said. "If you are valued, and you are reasonable, and not holding a gun to your employer's head, then most firms will be willing to consider a pay raise.

"But even then, it all comes back to whether the company can afford it."

Chappell said in six months' time, as rebuilding Christchurch started, then trades people would be in a strong position to up pay rates.

"This will put pressure on employers who will need to think hard about how to keep these people working for them," he said.

Chappell tells building trades clients to think strategically about retaining staff.

"Those areas are going to be in high demand, employers will have to do something about it," he said.

A global salary survey carried out by recruitment firm Robert Walters showed while market confidence increased at the start of the year, salaries and hourly contract rates largely remained static in 2010 - mainly due to a relatively large pool of available candidates.

"As hiring activity continues to increase and the talent pool dwindles,"said the report, "We expect to see further demand for skilled candidates, placing upward pressure on salaries and contractor rates by the middle of 2011."

The survey also reveals little change in salaries across the board so far, with people earning about the same this year as last year.

The survey does not cover those working in engineering, construction or the trades.

At first blush, it doesn't look too good for most people working in offices who want a pay raise - unless they are prepared to walk out the door.

Chappell has noticed is it is costing employers more to replace people who leave jobs.

"We are finding that when a company is replacing a position then it is paying a lot more to hire the replacement," he said.

"But these firms won't necessarily increase a person's pay to retain them. In one example just recently, a firm paying someone $65,000-a-year had to pay $85,000 for their replacement."

Chappell said as people left employers would have to pay more to replace them.

"Good skills always will be in demand and firms will pay good money for them."

Steve Hart is a freelance reporter at www.SteveHart.co.nz