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Home / New Zealand

Pay rises: Who's doing best in the tight labour market

31 May, 2006 01:19 PM3 mins to read

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More than three-quarters of workers got pay increases of more than 3 per cent, says the annual survey by recruitment firm Hays New Zealand.

The survey, due out today, will show that in the present tight labour market the group that has prospered most is the one employed to find
and retain workers - human resources specialists.

"The focus on recruitment and retention for many organisations has driven demand for human resources specialists, who received the biggest overall salary increase of all roles surveyed," said Hays regional director Jason Walker.

Typical salaries for human resources specialists in Auckland rose 18.3 per cent.

The survey, which covers 13 employment sectors and hundreds of job roles in Auckland, Christchurch and Wellington, reports "moderate" salary increases.

On average, the survey reveals, 58 per cent of employers increased salaries by 3 to 6 per cent, 13 per cent raised salaries by 6 to 10 per cent and 4 per cent by more than 10 per cent.

A quarter of workers got pay rises of less than 3 per cent.

"The last 12 months was characterised by one of the most sustained periods of low unemployment and jobs growth in modern times, the well publicised joining of Generation Y candidates to the workforce and the fierce global resources boom," Mr Walker said.

"So it is no surprise it was a year with an unprecedented focus on the candidate."

Compared with last year's survey, the number of higher-end salary increases more than doubled. Last year, 16 per cent increased salaries by more than 6 per cent; this year 36 per cent increased salaries above 6 per cent. Last year, half were offered increases under 3 per cent. This year, 19 per cent were offered increases at this lower level and 53 per cent were offered increases between 3 and 6 per cent (42 per cent last year), and 28 per cent were offered rises over 6 per cent (compared with 8 per cent last year).

In the manufacturing sector, 22 per cent of employers offered increases between 6 and 10 per cent (compared with 2 per cent last year).

There were smaller increases in the hospitality, travel and entertainment sectors. Some 46 per cent increased salaries between 3 to 6 per cent, down from 66 per cent last year.

Instead, more employers are offering increases below 3 per cent (36 per cent versus 29 per cent last year).

Salaries in advertising, media, construction, property, engineering, financial services, professional services, public sector, retail, transport and distribution industries remained relatively stable.

There was severe demand for audit, risk management, IT/systems skills, assistant accountants, payroll and credit controllers.

- NZPA

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