Easy does it – cautious approach to salaries

PRESS RELEASE
Wednesday 5th June, 2013
Easy does it – cautious approach to salaries

Employers take a cautious approach to salary increases in 2013-14 despite having a more optimistic outlook about business conditions for the year ahead according to the latest Hays Salary Guide.

• 40% of employers see the economy strengthening in the next 6-12 months and 68% predict increased business activity for their organisation
• 37% of employers plan to hire additional staff in the year ahead with most new hires to be full-time
• Despite tempered confidence, most employers plan salary increases of less than 3%

A forecasted increase in business confidence will not translate into large salary increases over 2013-14 according to a survey of more than 1,600 employers carried out as part of the annual Hays Salary Guide.

“In our 2012 survey only 27% of employers believed the economic outlook was strengthening but we have seen that group grow to 40% in our 2013” says Jason Walker, Managing Director of Hays in New Zealand.

“And 68% expect business activity to increase for their particular organisation over the coming months,” adds Jason.

“Only 8% of the employers surveyed for the Hays Salary Guide plan to keep salaries on hold compared to 11% in 2012 but looking ahead salary growth will be modest despite the expected growth in confidence in the economy,” he says.

Released today, the 2013 Hays Salary Guide outlines salary and recruiting trends for more than one thousand roles across 14 locations in New Zealand and Australia. The guide is based on a survey of over 1,600 employers in addition to data generated by the placements made by the Hays team.

Of the employers surveyed, 57% plan to increase salaries by less than 3% in the next salary review period. A further 32% of employers will increase salaries by 3% to 6%, 2% plan increases of 6% to 10% and only 1% plan pay increases of more than 10%.

“Employers will need to manage employee expectations around salary increases carefully and ensure that their top performers feel rewarded if they want to retain their best staff,” says Jason.

When asked about permanent headcount over the next 12 months, 37% of employers plan to increase hiring activity with 83% reporting that these roles will be full-time (down from 85% in 2012). A further 20% plan more part-time staff (18% in 2012), 14% more casual staff (15% in 2012) and 17% plans to increase their use of temporary/contracting staff (unchanged from 2012).

60% of the employers surveyed in the Engineering sector and 49% in the Project Management space plan to increase permanent headcount making these two of the strongest sectors for demand for talent.

The outlook for Accountancy & Finance recruitment is sluggish with 65% of employers planning to keep staffing levels at current levels. Junior to mid management Accounting and Finance roles are in most demand in this sector.

Areas of skill shortage include Operations staff and Junior to Mid Management talent for Engineering, Technical roles, Sales & Marketing and IT roles. However, within Sales, the professionals in most demand are those that can take on “hunter” style roles to bring in new business while demand for Account Management talent has declined.

Of the employers surveyed, 61% would consider sponsoring candidates from overseas for hard to fill roles – up 2% from 2012.

“The Hays Salary Guide is a must for candidates, particularly those who have not been in the market for a new job in a few years,” says Jason.

“The guide also provides a look at remuneration trends such as providing a car or car allowance, bonuses, private health insurance and rewarding staff with above mandated superannuation payments,” he says.

“We also look at working conditions, for example 83% of our survey group claim to offer flexible work arrangements and 26% admit overtime/ extra hours has increased in their organisation in the year since our last survey. We also found it interesting that only 1% of organisations have a policy of making a counter-offer when a staff member resigns.”

“It is useful for both employers and employees and candidates alike to know the prevailing mood about a number of these key trend areas when navigating the recruitment market.”

Hays, the world’s leading recruiting experts in qualified, professional and skilled people.

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