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New Zealand’s professional employment market continues to be challenged by a shortage of quality talent and employers will have an ongoing focus on staff attraction and retention during the next 12 months.
According to the Michael Page New Zealand 2013/14 Salary & Employment Forecast, 48% of employers surveyed expect a professional skills shortage in the coming 12 months. As a direct result of this talent shortage, 52% of employers will develop a more targeted attraction strategies, with these likely to include the promotion of a strong company culture as well as recognition and reward incentives.
Pete Macauley, Regional Director of Michael Page in New Zealand, said: “New Zealand continues to be impacted by a shortage of professional talent across a range of industries, and employers are tightening their focus on attraction and retention strategies as a result,”
To attract and retain talent, the most popular tool for 34% of employers will be to promote a strong company culture, while 25% will offer recognition and reward incentives. Flexible work arrangements are a popular work-life benefit for employers and employees alike, as indicated by 81% of survey respondents.
Salary remains a key attraction and retention strategy, particularly in an environment where skill shortages are expected. More than half (52%) of surveyed employers believe the skills shortage in New Zealand will cause salaries to rise above the inflation rate. The majority of surveyed employers (62%) say over the next 12 months they will award salary increases to all of their employees with the amount based on performance. For most of them (58%) the average salary increase will be between +3% and +5%.
Mr Macauley added: “With the state of New Zealand’s economic market over the past few years, many employers have been limited in their ability to provide strong salary and remuneration increases. While domestic economic conditions continue to be a factor likely to impact salary levels over the next 12 months, according to 72% of surveyed employers, the ability to offer competitive salaries will be a key determining factor in keeping top talent within businesses.”
Bonus payments will also be important, and the majority of employers will award a bonus as part of the remuneration package (64%). Most employers will award bonuses based on a combination of company, team and individual performance (59%), with the average payment expected to be between 6% and 10% for 44% of surveyed employers.