Salaries Set to Rise for NZ Finance Staff

Salaries Set to Rise for NZ Finance Staff

Almost half of New Zealand companies employing finance and accounting professionals plan to increase salaries over the next 12 months, according to results from a new survey carried out by international recruitment specialists Robert Half International.

Robert Half asked 506 finance and accounting professionals involved in the recruitment and/or hiring of staff in four Asia-Pacific countries if they planned to increase salaries in the next 12 months. In New Zealand, 46% of those surveyed said they plan to lift salaries, though that rate lagged Australia at 60%, Hong Kong at 67% and Singapore at 51%.

Megan Alexander, New Zealand general manager of Robert Half International, New Zealand, said many New Zealand companies were in a wait-and-see mode to gauge whether the worst of the economic downturn was over. Still, proactive companies should be looking now at ways to boost remuneration for valued employees to prevent them from leaving for rival firms, or markets, as the domestic economy returns to growth.

“Many of the companies we see have been delighted that there’s been little turnover in staffing levels over the past year or two, but we think that the employment market is on the brink of change again,” said Alexander. “Companies need to wake up and look ahead; they’ll need to start upping salaries or face the expense of retraining and recruiting for staff to replace those that’ll inevitably leave for better conditions elsewhere.”

New Zealand companies were gloomier than others elsewhere in the region about the prospect the economic recession was already over. Robert Half posed survey participants the question: Is the downturn over? Some 40% of Kiwi firms said yes, compared with 44% in Hong Kong, 42% in Singapore and half of Australian survey participants.

“The message for companies in New Zealand is ‘pay up or pay out’,” said Alexander. “Australia continues to be a major draw-card for those working in the finance and accounting sectors, so employers in those sectors will need to work harder to keep talent at home. Proactive companies with good leaders will look at how to prevent this from happening now. Indeed, some have already put measures in place.”

Alexander cited the example of nationwide retailer Briscoes, which this month reported an 80% surge in profit for the 12 months ended January 31, a period that was generally tough for the retail sector. Briscoes had benefitted, in part, from a change of focus to key performance indicators (KPIs) for its store managers, said Alexander.

“Their managers are incentivised to keep costs low and sales high, and they shared in the profits when those things are achieved,” said Alexander. “Increased accountability, when linked with a financial incentive like profit sharing is a wonderful way to retain your top performers. People feel like they’re a major part of the success of the wider company and will be reluctant to move on when profits do eventually bounce back.”

Geoff Scowcroft, chief financial officer for Briscoe Group, said: “The recent operational restructure has presented the opportunity for store management to create and share incremental profit and has changed the way store management view their areas of responsibility. The change has driven true ownership of sales, margins and costs within their areas of control.”

The Robert Half 2010 Workplace Survey questioned more than 1,280 finance, accounting, HR and executive-level managers from four countries, including 368 from New Zealand. It was carried out in February and March this year.

ENDS

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