Professionals in the IT job family were paid a year-on-year salary increase of up to 13 per cent in a bid to retain top talent, according to Mercer’s Total Remuneration Survey. 

New Zealand, 17 January, 2023

Mercer’s annual remuneration survey, Total Remuneration Survey (TRS), has today revealed the current job market in New Zealand is ripe for candidates looking to boost their remuneration packages.

TRS is the world’s largest and most comprehensive source of compensation and benefits market data. The New Zealand specific data represents a broad range of industries from more than 330 employers across the country.

The local findings reveal that jobs within IT and Project Management job families are offering the biggest year-on-year salary increases.   

For example, the survey found that the median salary increase for Information Systems Architecture Specialist professionals was over 13 per cent, while Technical Project Management Specialist Professionals are receiving increases as high as 9 per cent, year-on-year.

With nearly one-third (31 per cent) of organisations citing employee turnover as an issue last year, Andrew McKechnie, Head of Workforce Solutions for Mercer New Zealand, urges organisations to take a holistic approach to employee benefits that considers the “why” as opposed to the “what”.   

“While competitive salaries may get employees in the door, organisations must think about what will incentivise them to stay, particularly in a high inflation environment with record-low unemployment rates,” Mr. McKechnie said.

“In this war for talent, it’s important to remember that remuneration packages are so much more than pay packets and there is still value in non-financial benefits. That’s why it’s vital for organisations to leverage industry data, and regularly benchmark their rewards and benefits packages against their competitors, to understand how they stack up in the market.

“Employees are increasingly looking for a more personalised work experience – one that’s consistent with their personal values, provides greater flexibility and work-life balance, presents career development opportunities, and offers inspiring work.

“By having meaningful and transparent conversations with employees, and regularly conducting health checks on employee engagement and sentiment, organisations will be able to determine what drives them to want to work for an organisation and structure their rewards and benefits programs accordingly”, he said.

“One of the biggest trends we’re seeing is the gift of time. Off the back of the pandemic, it’s no surprise we’re seeing an increasing number of organisations offering hybrid and flexible working arrangements such as compressed work weeks, staggered working hours, or providing different types of leave options, which gives employees space to prioritise work alongside what matters to them most.”

• New Zealand employers are planning for a median salary increase of 3 per cent in 2023 across a range of industries, unchanged from 2022, despite rising inflation.
• Sectors forecasting the biggest salary growth in 2023 are manufacturing (2.7 per cent to 3.5 per cent from 2022 to 2023), energy (2.5 per cent to 3.2 per cent from 2022 to 2023), and life sciences (2.9 per cent to 3.5 per cent from 2022 to 2023). 
• 24 per cent of New Zealand businesses are planning to expand their workforce in the coming 12 months, compared to only 15 per cent prior.
• More than 31 per cent of New Zealand organisations reported increased employee turnover as an issue in 2022, up from 14 per cent in 2021.
• 51 per cent of organisations reported having difficulty hiring or retaining employees in certain roles, compared to 42 per cent in 2021.
• Top in-demand jobs that are reporting annual salary increases are
  • Information Systems Architecture – Specialist Professional: 13.2 per cent
  • Technical Project Management – Specialist Professional: 9.1 per cent
  • IT Business Systems Analysts – Specialist Professional: 8.3 per cent
  • Store Shift Management (retail) – Team Leader: 6.6 per cent
  • Procurement – Manager: 6.3 per cent
  • Information Systems Architecture – Manager: 6.3 per cent 

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