With the shortage of workers in nearly every sector you would think it was those at the top end that would be benefiting most when it comes to their pay packets.
But not so, say experts from remuneration specialists Strategic Pay.
Managing director Cathy Hendry says it is those atthe lower end of the pay scale who have found their incomes boosted the most in the current market.
"We have seen the biggest upturn in salary movement at those lower-level roles. We haven't seen that movement in 10 years ... and it's quick."
Figures from its March remuneration report showed general staff saw a 4 per cent rise over the year compared to a rise of less than 1 per cent a year earlier.
She said admin and support roles were usually easy to fill but not so at the moment which meant those roles were commanding higher rates.
The rise in the minimum wage and inflation pressure were also factors in the increases.
Northern consulting manager Don Young said the rise at the lower end was in turn putting pressure on junior managers' pay - those in the first rung up from being a worker.
"The other thing that happens - what we don't always take into account is that if those lower-end jobs are moving faster than the rest of the market then we get this thing called compression where first-level supervisors are finding themselves getting paid the same or very little more than the staff that report to them."
That was putting pressure on employers to increase the pay of those workers too.
But he said there was only so much money in the pot that organisations had to pay from.
"We are seeing quite a lot of organisations putting more money at those lower levels to address the minimum wage movement, the compression, the dissatisfaction at that supervisory level.
"They are also having to address the pay of technical specialists which is as a result of border closures and so the only place they can really pull back on that a little bit in that robbing Peter to pay Paul scenario is at the executive level."
Senior managers or chief executives of small organisations saw an average 1.7 per cent rise over the year to March.
For chief executives of medium-sized organisations, or general managers of larger organisations, it was slightly better with an average of 2.1 per cent.
And projections showed it was likely to be general staff which continued to benefit with an average rise of 4.6 per cent projected over the 2022/23 year compared to 3.9 per cent for senior management and 3.5 per cent for general managers of large organisations.
Young said executives were typically part of the decision-making process when it came to making staff remuneration decisions.
"I think there is an element of reality of how much money do we have and where does the money come from. There is also a bit of a narrative which says the current inflation rate is going to hit the pocket of people at the lower end harder than those at the upper end - we know that is true and I think that in a sense they [the executive] are saying this is not our time. We will just tighten the belt a bit and try and ride this one out."
Hendry said it was tough on executives who were still having to deal with the continuous change brought by the Covid-19 pandemic but they were also being shoulder-tapped by recruiters.
She said its research showed staff turnover had increased substantially this year with a May survey finding 79 per cent of respondents reporting an increase in turnover - up from 56 per cent in January.
But Young warned companies also faced risks poaching staff from other businesses and paying them more.
"You might be able to poach somebody by paying them a bit more but then you are potentially messing up your internal relativities, particularly if you are bringing in somebody doing the same role at a higher rate than what your current staff are on."
He said that could upset existing staff if they found out and result in those workers moving on.
"That is something that has come out of this research is - don't forget about the staff you have already got."
Strategic Pay senior consultant Don Young. Photo / Supplied
Hendry said it was definitely starting to see retention bonuses coming back.
But employers were also using other benefits like flexibility - not just a variation in hours or working from home but allowing employees to decide where they were located in the country as well.
"And also what we are finding is companies considering what can they do to train and develop staff. It's an employee market now and they can be really discerning so they are going to pick organisations that are more attractive and invest in their staff."
How long will the employee market last?
Hendry said the current conditions were similar to what New Zealand saw prior to the global financial crisis - high inflation, severe skills shortages and negative net migration.
"Even when the GFC hit it lagged a couple of years before pay rates started coming back down again. I would say it has moved a lot faster than we have ever seen so you could argue it could adjust back a lot quicker as well.
"But the thing we have got is the skills shortages are so severe and the economy is pretty strong in a lot of areas and by opening the borders we are seeing more people leave and less people come in - I can't see it adjusting in 12 months."
