KEY POINTS:
If you are good at what you do, and can prove that you are capable of adding value, you can expect to have several new job offers within a week in this labour-starved job market, according to a new survey.
And if you decide to stay, the chances are you'll be able to negotiate yourself a generous salary raise.
Job candidates across all sectors from finance to marketing, became very savvy during 2007 and realised they were in the driving seat, says the Robert Walters Global Salary Survey 2008, due to be published in early February.
"As a candidate you are in demand and with the right application of your efforts combined with a good positive attitude, the world is your oyster," says Richard Manthel, Robert Walters NZ managing director.
And as a result, salaries are climbing, with companies starting to flout their traditional salary banding on a regular basis. Interestingly,
SMEs are proving more flexible on this than larger corporates.
"Top candidates are receiving increases (counter offers) above their banding when they resign as a way of enticing them to stay," says the report.
"In my experience, I have never seen so many companies trying to retain staff with increased salaries once they resign," says Manthel.
"Some candidates now have the confidence to demand certain salaries and astonishingly many companies are now yielding due to the frustration and difficulty in finding some skills," he says.
This cannot always be the wisest thing to do. Statistics show that once a staff member has decided to look around they will inevitably leave.
"Many HR professionals would say the horse has already bolted and not to bother. "Companies are having very mixed results in this area," says Manthel.
Frustrated companies are being forced to look seriously at their staff sourcing strategies.
The spotlight is now on companies to make themselves extremely appealing to existing staff and prospective employees. They are doing this by improving their "employer branding". They have to be seen to be helping staff with their career plans, paying them well, and providing good internal training programmes.
Companies should also be being proactive about hiring staff.
"I would recommend that all companies' CEOs or general managers spend more time this year thinking about their staffing requirements and putting in place more proactive sourcing measures," says Manthel.
His advice to job-hunters is to look for a company where you can improve your skills, get good training and potentially advance through the organisation.
Hopeful candidates should realise that they will have to jump through quite a few hoops before they are accepted as right for the job.
Interviewees these days can often expect to go through four interviews, as well as numerical, verbal and psychological testing. In sales and marketing, product and brand managers are required to provide detailed proof of return on investment (ROI).
And while the job tight market may make it seem like open season for everyone dissatisfied with their current position, it is the star performers that a lot of companies are looking for, says Jarrod Moyle, manager reward practice at Sheffield, the human resources consultancy. "It's not the entire (working) population which is in massive demand," he says.
The rest, according to Sheffield's next salary review survey due out in February, can expect a salary rise of 4 per cent this year, just as they had last year. Which with KiwiSaver contributions, is not a huge fillip.
Moyle has seen evidence of companies like Coca-Cola Amatil NZ up their employer branding. The company has the website Coke Careers - the entire website is devoted to what it's like to work at Coca Cola.
"They are really going the extra mile to get the message across, how wonderful it is to work in the organisation," says Moyle. He points out that an increasing number of companies have hired fulltime recruitment and retention specialists, in a bid to plan a campaign to keep and woo staff.
Competition will continue to be tough and there will be winners and losers. Some accountants in the big four firms are moving to the middle tier firms and commanding higher salaries.
There is more flexibility in these firms to pay top dollar.
SMEs can offer staff a better quality of life and better prospects of career progression, says Moyle.
The road to CEO in a large firm can seem too long and uncertain.
Smaller companies also often have a better sense of community, he adds.
People are not driven purely by money, they are being offered extra holiday, or working a four-day week.
"A lot of people choose to leave a business because of things other than pay," says Numero principal John Nevill, a specialist recruitment company in finance, accounting and supply chain. Being passed over for a job leads to dissatisfaction.
One dilemma employers have is that if they promote someone, it creates a vacancy so at times they will hire someone for the more senior position which is easier to fill, says Nevill.
While it is clear that New Zealand's companies are desperately seeking staff, they can still be demanding about their choices.
"The scarcity is of quality and the quality is dictated by our clients," says Nevill.
"They used to want someone in the top 30th per centile three years ago now; they want someone in the top 15th. People are more focused on excellence. They are looking to recruit from the top of the tree," says the recuitment specialist. And in business critical positions companies are trying to harder to retain their people.
Always keeping an eye out for the next job can be distracting. You need some clarity on how often you want to move. If looking to plan your career then you should build tenure, says Nevill.
"When people are looking at CVs, they are looking for people who add value to business.".
The New Year is often a time to reflect on the changes we want to make in our careers, says Grainne Troute, managing director of human resource specialists, Right Management.
Assess your skills and abilities, she suggests. "Are you doing what you do best? People whose skills, abilities, and interests are at their highest, perform at the top of their games, and get the most satisfaction out of the work they do."
As well as your own performance, assessing your employer's financial outlook is worth doing from time to time. It is important to consider how well your employer is performing, financially and what the economic future looks like. Are sales, market share and head count increasing or decreasing? Is your employer an innovator in its field and competitive in its industry?, says Troute.
Lastly assess your career net worth.
"Career net worth is the value the market places on your unique abilities and knowledge, and technical expertise creates demand, keeps you competitive and generates the highest career," she says.
