The majority of employers across New Zealand (70%) increased salaries to keep pace with the cost of living, reports Radio New Zealand, citing research by Robert Half New Zealand. The data showed private sector wages grew by 6.6% in the year to December 2023, above inflation which rose 4.7% over that time. At the same time, the research showed 24% of respondents froze salaries.

Robert Half New Zealand managing director Megan Alexander said businesses will be managing costs and looking closely at salaries. "In the last few months in particular, New Zealand companies have grappled with rising costs and tighter profit margins, prompting them to initiate restructuring and reallocate resources. As a result, companies are being more selective with who they give salary increases to, favouring top-performing talent rather than giving a rise to everyone.”

Meanwhile, 36% of New Zealand workers point to salary when asked what the most important factor is when considering a new role. Aside from salary, the top three factors identified as the most significant aspect when considering a new job were flexibility (12%), benefits (10%) and company culture (9%).