Key Survey Findings:
- 49% of white collar employers believe skills shortages will continue over the next 12 months
- Some 69% predict that wages growth will outrun the inflation rate
- The vast majority of salary increases will be based on performance
Auckland, October 2011: The professional employment market in New Zealand is expected to remain talent short over the next 12 months, according to a survey conducted by global recruitment firm Michael Page International.
Almost half of the employers surveyed believe that professional skills shortages will continue over the next 12 months, with the demand for skills already exceeding supply across sectors such as sales, marketing and supply chain.
“The options for career growth were limited during the economic downturn period, with many professionals merely happy to keep their jobs. We are now starting to see more companies in the position to re-invest in their talent with career progression opportunities. This investment, coupled with nervousness around global conditions and the perception that the job market is flat, means that many top performers are not proactively looking for new roles, or are simply unwilling to move. This is limiting the flow of new talent onto the job market,” said Mr. Pete Macauley, National Director of Michael Page in New Zealand.
The Michael Page Salary & Employment Forecast, which this year incorporates the responses of more than 2,500 hiring managers from New Zealand’s corporate sector, also reveals that skills shortages are placing upwards pressure on salaries.
Some 69% of the employers surveyed believe that skills shortages will cause salaries in New Zealand to rise above the inflation rate over the next 12 months.
“One reason salary pressures are growing is that employers are struggling to attract new talent into their business. Companies are offering increasingly competitive salaries and bonus incentives in an effort to attract the talented pool of professionals that are hesitant to move in the current environment,” said Mr. Macauley.
To ensure their most valuable people are retained, most of the employers surveyed (71%) will be awarding salary increases based on performance.
“Although the competition for top talent is intensifying, companies are demonstrating a targeted approach to retaining and developing their best people. To be successful, employers need to complement financial rewards with opportunities for career growth and development,” said Mr. Macauley.