Job stability is still important to today's workers, but they are also looking at their work/life balance. Photo / Thinkstock
Job stability is still important to today's workers, but they are also looking at their work/life balance. Photo / Thinkstock
Workers’ goals are changing and employers must think about how to retain staff.
As New Zealand's economy strengthens, employers need to think more about retention and providing better work-life balance.
When Sandy Smith* was interviewed for a job as a junior accounts person last month she knew she had done well. But she had not expected to be called back for a second interview that afternoon, or to be offered the job the same day.
What was surprising for Sandy, though, was not unusual in today's market.
And changes don't affect only those who are young and starting out. People like Sandy are being snapped up quickly. Older or more senior staff are in a stronger position to seek a more favourable work-life balance.
Both trends show New Zealand shrugging off the global financial crisis. Clerical staff no longer struggle to find a foothold. Older workers feel secure enough to look for new options. And as the Robert Half Salary Guide released this month shows, earnings have risen.
In this, particularly with junior salaries, we outpaced Australia - an accounts payable clerk's salary rose 1 per cent in Sydney, 4 per cent in Melbourne and 11 per cent in Auckland.
During the financial crisis, many businesses stopped or significantly reduced training. Once seen as a source of stability, multinational employers were quick to scale back. People with degrees worked as waiters or took junior jobs to get a start.
Hours of work rose and salaries stagnated. But older or more senior workers were glad to hang on to the jobs they had.
Now the tide has changed. Stability is still important, but staff are starting to look at new lifestyle options such as working closer to home. Specialised skills are in demand in accounting and finance as the economy has picked up, leading to a rise in projects, such as IPOs and significant property developments. New projects are the number one driver (66 per cent) in New Zealand, underpinning demand for finance and accounting professionals.
The scale of the shift is also reflected in the Robert Half salary guide for the finance and accounting industry. Seventy-nine per cent of CFOs say they are concerned about losing professionals, 75 per cent say they can't find the talent they are looking for, 55 per cent plan to increase salaries this year.
The economy is driving the change. Inflation is more than controlled, unemployment is falling, supported by the service and export sectors. There is a lot of building under way in Auckland and Christchurch. We are seeing a lot more willingness to negotiate pay with top candidates.
Increased work-life balance is cited as the main reason people are leaving jobs, followed by career advancement elsewhere.
The counter-offer has also returned, although we think this is something employers should continue to approach with care. And candidates are being more upfront with salary demands. Plenty of young couples these days have done their sums and know exactly what they need to earn to service high mortgage payments.
In many ways we are still catching up with Australia. New Zealanders rated work-life balance and pay equally at 31 per cent when considering a job. In Australia, 25 per cent were primarily focused on pay and a closely similar 30 per cent on life balance. Fully 94 per cent of Australian CFOs are worried about losing talent.
As the market moves, some key factors about successful employment and careers remain in place. The environment people work in remains vitally important. Increasing salaries helps retain top talent, but autonomy and flexibility go a long way in retention and driving productivity as well.
*name has been changed
• Robert Half surveyed 100 New Zealand chief financial officers in December last year.
