Increase pay or we'll quit, workers say

Photo / NZ Herald

Many New Zealand workers are prepared to jump ship next year if the pay rise they are expecting fails to materialise, research has found.

The Salary Expectations Survey, conducted by consultancy firm Right Management, quizzed respondents on the extent to which salary levels and increases motivated them to remain in their jobs, or look for a new employer.

The results suggest staff retention issues may be on the horizon for employers as salary and wage growth continue to disappoint workers.

Almost 70 per cent of respondents expected a pay rise in the next 12 months, with 33 per cent indicating they were "quite likely" or "very likely" to look for a new job if they failed to get one.

Right Management practice leader Murray McLachlan said the results of the survey sent a clear message to employers.

"If employers want to retain quality staff they are going to have to think very hard about what they can do to prevent them looking elsewhere," he said.

Survey respondents were also asked what they considered a reasonable pay rise, with 35 per cent indicating they were expecting an increase of between 3 and 5 per cent.

Just 26 per cent of those surveyed said an increase of between 1 and 3 per cent would be acceptable.

The broadest measure in Statistics New Zealand's latest labour cost index showed wage growth increased by 0.5 per cent during the September quarter, up from 0.4 per cent in June and 0.3 per cent in March.

The research also asked respondents to rank the aspects of their jobs - other than remuneration - which helped keep them loyal to their employer.

Women were more likely to consider "managerial quality" and a "collegial work environment" as important factors, while men were more interested in career development.

Thirty-six per cent of both men and women chose a "work-life balance" as the most important, non pay-related factor.

McLachlan said if employers could not afford pay rises, career development and flexible work arrangements were good options for keeping their staff happy.

"If this isn't possible, employers looking to increase productivity should look at things such as training and development opportunities, or giving increased responsibility to employees," he said.

The survey polled 510 Kiwi workers from a range of industries.