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Published 26 September 2023 | 3 min read
Q3 - Which industries and roles are seeing the biggest salary increases?
New Zealand employers, are you struggling to attract and retain qualified staff? You're not alone. The latest Seek NZ Employment Report shows that advertised salaries are rising at the fastest rate in six years, amid strong hiring activity.
This means that you're competing with other businesses for a limited pool of talent, and you need to be prepared to offer competitive salaries and benefits to attract and keep the best employees.
Here are some key statistics from the report:
Rising job ad volumes
Kiwi businesses can rejoice as job ad volumes surged by 2.2 percent in August compared to July. This means that there is a growing demand for talent across various industries. For businesses, it's a clear sign that they can expand their teams and tap into a pool of skilled workers to fuel their growth.
Increasing applications per job
The fact that the number of applications per job has been steadily rising for six consecutive months is a testament to the resilience and determination of New Zealanders. Job seekers are actively pursuing opportunities, showcasing their eagerness to contribute to the success of local businesses.
Stellar salary growth
New Zealand's Seek Advertised Salary Index soared by an impressive 5.1 percent in the three months leading up to August compared to the same period the previous year. This is not just a statistic; it's a reflection of the faith businesses have in the Kiwi workforce. Higher salaries are not only attractive to potential employees but also a powerful tool for retaining existing talent.
Regional growth
Canterbury, with its 6.5 percent wage increase, stands out as a shining example of how regional economies are flourishing. Auckland, closely following at 4.7 percent, demonstrates the North Island's robust business environment. Businesses throughout the country can learn from these regions' success stories and adapt their strategies accordingly.
Southland's remarkable jump
Southland's incredible 9 percent increase in job ads showcases the diverse opportunities arising even in less populous areas. It's a reminder that businesses in every corner of New Zealand have the potential to thrive and find the talent they need to excel.
Diverse sector growth
From call centers to sales, education, hospitality, consulting, and community services, numerous sectors are witnessing substantial increases in job ads. This diversity highlights that businesses across various domains are experiencing growth, catering to different needs and markets.
Construction challenges
While most sectors are booming, the construction industry's 7 percent decline in job ads serves as a reminder of the sector's unique challenges. Businesses in construction may need to adapt and innovate to keep pace with the changing market dynamics.
Engineering Excellence: Engineering professionals are seeing a remarkable 7.6 percent increase in salary offers, indicating the importance of this field in the Kiwi job market. Businesses that rely on engineering talent should take this as a sign to invest in their workforce.
Tech sector potential
While the information and communication technology sector saw a modest 2.8 percent wage growth, it's essential to recognize its growth potential. With the right strategies and investments, businesses in this sector can leverage technology to drive innovation and growth.
Leading the region
New Zealand's advertised salaries rising faster than at any point in the past six years and outpacing Australia demonstrates the nation's resilience and competitiveness on the global stage. It sends a powerful message to businesses that New Zealand is a place where talent is valued, opportunities abound, and growth is achievable.
Our thoughts
If you're not able to match the salaries being offered by other businesses, you may find yourself losing qualified candidates to your competitors. This can lead to all sorts of problems, such as reduced productivity, increased turnover costs, and difficulty meeting customer demand.
The fact that advertised salaries are rising at the fastest rate in six years is a sign of a strong New Zealand economy. It also means that employers need to be more competitive in order to attract and retain top talent.
The industries that are seeing the biggest salary increases are those that are in high demand and have a shortage of skilled workers. This includes engineering, hospitality and tourism, consulting and strategy, education and training, and community services and development.
Employers who are struggling to attract and retain top talent should consider offering competitive salaries and benefits, creating a positive work environment, being flexible with work arrangements, and offering competitive professional development opportunities.
By taking these steps, employers can show potential and current employees that they value their contributions and that they're committed to creating a great place to work. This will help them to attract and retain the best talent, even in a competitive market.
Searching for high-performing NZ talent?
Our friendly executive recruitment experts are just an email or a phone call away.
Email us at info@eqconsultants.co.nz, or call us on 03 366 4034 for professional, one-on-one guidance.