Venkat Raman
January 30, 2022
Those seeking jobs and even those in current employment are reportedly seeking higher pay while negotiating employment contracts or as a bargaining chip to remain in current jobs.
Shannon Barlow, Managing Director of Frog Recruitment, a leading employment agency with offices in Auckland, Wellington, Sydney, Parramatta, Melbourne, Brisbane, Perth, Adelaide, said that the number of people seeking a change of jobs during December and January has been the highest in 2021-2022 that any other years.
“Those seeking jobs have raised their salary requirements. They realise that the power dynamic has shifted and hence ask for a higher salary. They know that there is a shortage of talent and hence can expect a higher level of salary,” she said.
Ms Barlow said that people seeking a change of job are also realising that they have different options and that employers are finding it hard to find the right people.
“They know that the shoe is on the other foot,” she said.
Ms Barlow said that her Agency advises job-seekers to expect a pay-rise of at least 5%, although it is not unusual to see increases between 40% and 50%.
Interest Rate hikes
According to an analyst, interest rate rises will also entail requests for a pay rise.
Expat and Singapore-based Financial Analyst Jeffrey Halley said that globally, increased interest rates and higher costs for basic items should prompt workers to consider what they are worth and take action.
Visiting New Zealand, which is his home, Mr Halley said that he was stunned by the high cost of living in this country.
“I was shocked to know how expensive things have become, and the cost of living of even small things has risen markedly. There will be pressure for that to be reflected in higher pay and hence it will be interesting to see how that plays out. The impact of increased interest rates will be felt for some time.
“When we look at the data coming in and the forecast from the OECD, the World Bank and other global organisations, they are all predicting that inflation will peak somewhere around the mid-year and then start tracking down gently,” he said.
Mr Halley believes that post-pandemic. Many countries will experience the scenario of the 1990s rather than that of the 2000s with inflation elevated.
If wages do not go up, individual households will feel the impact and that may cause more far-reaching problems.
“The people who get hurt in scenarios like this are people on lower and middle incomes because inflation and high prices erode their ability to spend. When you see that happening on a wide scale, you are usually saving up social problems further down the track. So, it will be very interesting to see whether wages move to reflect this. If they don’t, it will probably end New Zealand’s inflation issue faster, because we would probably move into recession,” he said.
High Job Listings
Trade Me Jobs Sales Director Matt Tolich said that employees considering improving their working conditions or pay are in a stronger position in the market than ever.
“2021 was truly the year of the job hunter, with record-breaking listing numbers and salaries. This is still the case as we enter the New Year. We continue to face a massive candidate shortage which will not be alleviated until the borders are open again,” he said.
Mr Tolich said that job hunters are still in the driver’s seat.
There has never been a better time for Kiwis to check out the market and explore their options, or ask for a pay rise, he said.
Job listing numbers on Trade Me website increased by 51% in 2021 compared to the previous year and the national average salary rose by 5%.
“2021 was a remarkable year… listing numbers outperformed the most optimistic of predictions made at the beginning of the year,” Mr Tolich said.
The highest demand was for workers in Science And Technology, Accounting, Automotive, Customer Service, and Human Resources. Architecture and Property were the only sectors where demand for workers decreased.
The low unemployment rate and high inflation is prompting job seekers to ask for more money from current and prospective employers.
Sourced from Radio New Zealand under a Special Agreement.
