Pay Rises & Workplace Benefits

Hey guys,

Just looking for a bit of a round up on what the consensus is for pay rises, as well as other conditions/benefits, that seem to be going around the workplaces of this country (and indeed further abroad) in these weird economic times.

We are just entering into negotiations with our employer and the obvious marker would be to ask for a minimum of 7.2% - However I've been around the traps long enough to know that getting money out of some places is like getting money out of a stone. 

Interested to see what's on the table out there. Also interested in seeing what benefits are being bandied about to keep staff as well.

Have at it. 😎

massive dependance on the company, sector and region you're in. Getting a payrise that macthes inflation is probably not on the cards, maybe in the private secort for a big corp, but I'd say you'll be lucky if the company offers somewere in the range of 4-5%. If you're in a government agency you'll be on a stepped increase to get to 100% of whatever your band is. So again if you're a good performer meeting your targets etc then you'll get a 3 and move 4-5%.

theprof

massive dependance on the company, sector and region you're in. Getting a payrise that macthes inflation is probably not on the cards, maybe in the private secort for a big corp, but I'd say you'll be lucky if the company offers somewere in the range of 4-5%. If you're in a government agency you'll be on a stepped increase to get to 100% of whatever your band is. So again if you're a good performer meeting your targets etc then you'll get a 3 and move 4-5%.

Quite successful business, especially over the past couple of years as it helps the country and the world move towards the electric revolution going on. They released a profit guidance earlier this year stating they expect to earn between €560-590m EBITDA. So not too shabby. 

Regionally we outperform our neighbours across the ditch, so hoping that will work in our favour as well.

Interested to hear from across the board though. I'm always intrigued to see what other industries offer up.

has this company traditiionally shared the profits with its employees? If you've always got the stock standaard ncreases then pushing for more is smart but not a guarantee.

If you fully believe that payrises should be related to inflation then would you have been okay with a 0.5% payrises back in 2015? Or even possibly a pay decrease going forward?

This is a very hard question to discuss without knowing if you're a a line worker in a factory in Huntly or if you're a software engineer in Auckland. But, the only real consideration that matters is what the market is paying. As businesses prepare for bad economic times, most companies are hiring less, and this will have the effect of neutering the crazy job market of late. (At least in my sector anyway).

If you can get some recent market data of salary range for similar jobs, it'll help back up any argument and will give you a good framework of what you should be aiming for. (E.g. top 25% of the market)

This is largely the problem with Unions negotiating on eployees behalf's. Most belief that pay rises should be in line with inflation, but they continue to ask for pay increases when inflation is dropping or times are tough. Jjst really shows a lot of union dlegates really hve no idea of how the economy works.

Unfortunately, the best way to get promotions and pay rises is usually to move jobs.

It doesn't make any sense because if you lose an employee then you have to pay for the cost of recruitment, you usually have to pay higher wages because you have to attract someone (and pay market rates), and then you have the cost of onboarding them and getting them up to speed.

It's almost always cheaper to retain people than replace them, but managers don't see it.

20 Legend

If you fully believe that payrises should be related to inflation then would you have been okay with a 0.5% payrises back in 2015? Or even possibly a pay decrease going forward?

This is a very hard question to discuss without knowing if you're a a line worker in a factory in Huntly or if you're a software engineer in Auckland. But, the only real consideration that matters is what the market is paying. As businesses prepare for bad economic times, most companies are hiring less, and this will have the effect of neutering the crazy job market of late. (At least in my sector anyway).

If you can get some recent market data of salary range for similar jobs, it'll help back up any argument and will give you a good framework of what you should be aiming for. (E.g. top 25% of the market)

Factory worker in New Plymouth, but not far off. 🤣

Without giving too much away we seem to be bucking the trend - lots of new hires, and lots of orders on the books and coming through. Hard to get a comparison on pay when we're the only ones in the country that make what we do. But compared to Aussie (again, aware of the laws etc over there as well) they're on 95-110k starting whereas guys over here ranging anywhere from 65-80k.

Historically, pay rises here have been more or less in line with what inflation has been. Hence the 7.2% figure as a baseline to work from this time around.

YoungHe.\rt

20 Legend

If you fully believe that payrises should be related to inflation then would you have been okay with a 0.5% payrises back in 2015? Or even possibly a pay decrease going forward?

This is a very hard question to discuss without knowing if you're a a line worker in a factory in Huntly or if you're a software engineer in Auckland. But, the only real consideration that matters is what the market is paying. As businesses prepare for bad economic times, most companies are hiring less, and this will have the effect of neutering the crazy job market of late. (At least in my sector anyway).

If you can get some recent market data of salary range for similar jobs, it'll help back up any argument and will give you a good framework of what you should be aiming for. (E.g. top 25% of the market)

Factory worker in New Plymouth, but not far off. 🤣

Without giving too much away we seem to be bucking the trend - lots of new hires, and lots of orders on the books and coming through. Hard to get a comparison on pay when we're the only ones in the country that make what we do. But compared to Aussie (again, aware of the laws etc over there as well) they're on 95-110k starting whereas guys over here ranging anywhere from 65-80k.

Historically, pay rises here have been more or less in line with what inflation has been. Hence the 7.2% figure as a baseline to work from this time around.

Right, well I think if you can get hard data from Australia to build an argument that you should be much closer probably the decent bet.

If it's not publicly available, try have a gasbag with someone from the other company. While it blurs the lines I've worked for businesses where the HR departments of the biggest players have lunch every month or so, and basically filter through what is bullshark and what is real!

I'm kind of intrigued by what you do though. Sounds like it could be a company worth trying to get some equity in!

20 Legend

YoungHe.\rt

20 Legend

If you fully believe that payrises should be related to inflation then would you have been okay with a 0.5% payrises back in 2015? Or even possibly a pay decrease going forward?

This is a very hard question to discuss without knowing if you're a a line worker in a factory in Huntly or if you're a software engineer in Auckland. But, the only real consideration that matters is what the market is paying. As businesses prepare for bad economic times, most companies are hiring less, and this will have the effect of neutering the crazy job market of late. (At least in my sector anyway).

If you can get some recent market data of salary range for similar jobs, it'll help back up any argument and will give you a good framework of what you should be aiming for. (E.g. top 25% of the market)

Factory worker in New Plymouth, but not far off. 🤣

Without giving too much away we seem to be bucking the trend - lots of new hires, and lots of orders on the books and coming through. Hard to get a comparison on pay when we're the only ones in the country that make what we do. But compared to Aussie (again, aware of the laws etc over there as well) they're on 95-110k starting whereas guys over here ranging anywhere from 65-80k.

Historically, pay rises here have been more or less in line with what inflation has been. Hence the 7.2% figure as a baseline to work from this time around.

Right, well I think if you can get hard data from Australia to build an argument that you should be much closer probably the decent bet.

If it's not publicly available, try have a gasbag with someone from the other company. While it blurs the lines I've worked for businesses where the HR departments of the biggest players have lunch every month or so, and basically filter through what is bullshark and what is real!

I'm kind of intrigued by what you do though. Sounds like it could be a company worth trying to get some equity in!

Have a look in here ⬇️ 👀

https://yellowfever.co.nz/categories/off-topic/topics/what-does-everyone-do-work-careerwise

Had you invested in shares around the first COVID lockdown you would have tripled your money since then. 😅

YoungHe.\rt

20 Legend

YoungHe.\rt

20 Legend

If you fully believe that payrises should be related to inflation then would you have been okay with a 0.5% payrises back in 2015? Or even possibly a pay decrease going forward?

This is a very hard question to discuss without knowing if you're a a line worker in a factory in Huntly or if you're a software engineer in Auckland. But, the only real consideration that matters is what the market is paying. As businesses prepare for bad economic times, most companies are hiring less, and this will have the effect of neutering the crazy job market of late. (At least in my sector anyway).

If you can get some recent market data of salary range for similar jobs, it'll help back up any argument and will give you a good framework of what you should be aiming for. (E.g. top 25% of the market)

Factory worker in New Plymouth, but not far off. 🤣

Without giving too much away we seem to be bucking the trend - lots of new hires, and lots of orders on the books and coming through. Hard to get a comparison on pay when we're the only ones in the country that make what we do. But compared to Aussie (again, aware of the laws etc over there as well) they're on 95-110k starting whereas guys over here ranging anywhere from 65-80k.

Historically, pay rises here have been more or less in line with what inflation has been. Hence the 7.2% figure as a baseline to work from this time around.

Right, well I think if you can get hard data from Australia to build an argument that you should be much closer probably the decent bet.

If it's not publicly available, try have a gasbag with someone from the other company. While it blurs the lines I've worked for businesses where the HR departments of the biggest players have lunch every month or so, and basically filter through what is bullshark and what is real!

I'm kind of intrigued by what you do though. Sounds like it could be a company worth trying to get some equity in!

Have a look in here ⬇️ 👀

https://yellowfever.co.nz/categories/off-topic/topics/what-does-everyone-do-work-careerwise

Had you invested in shares around the first COVID lockdown you would have tripled your money since then. 😅

Only if you sold before the cost of living crisis though.

I get the annoyance since your pay rise is essentially a decreased pay cut when it is below inflation but if inflation was 1% and most people got a 1.5% pay rise they wouldn't be happy.

With high inflation I real feel for the lower earners right now.

Working for a Government department (surely not the only one on here), we obviously had a pay freeze for a couple of years where we were told we were not allowed to have pay increases because the Government needed to be able to pay for covid. Expected it for the third year in a row this year but unexpectedly got 2%. I think the freeze may still be in place for higher earners. 

Better than 0 but still essentially moving backwards. Secure job and able to work from home etc though so appreciate many are worse off. 

ajc28

Working for a Government department (surely not the only one on here), we obviously had a pay freeze for a couple of years where we were told we were not allowed to have pay increases because the Government needed to be able to pay for covid. Expected it for the third year in a row this year but unexpectedly got 2%. I think the freeze may still be in place for higher earners. 

Better than 0 but still essentially moving backwards. Secure job and able to work from home etc though so appreciate many are worse off. 

Crown entity here, so similar situation.

ditto, think its the same for all govt agencies, working on a band increase to get people to 100% of whatever band your on, but other than that not alot of movement.

There is a lot to like about 100% band.  

It means people bad at negotiating money but great at their job don't get paid less than people who are great at selling themselves and negotiating but are shark at their job.

The lack of flexibility sucks.

I'm ok with it while I'm under that mark, when I reach the 100% mark I'm gonna have to make sure I note down everything I do to get that minute 2-3% increase.

I work with a govt agency, not for, and they're paid so far below the market and are so over worked, I have no idea how they manage to retain staff. So the fact that there's a wage freeze, or even 2% increase, is just horrible.

Did I hear correctly that Te Reo teachers got a sizable pay increase?

Ryan

I work with a govt agency, not for, and they're paid so far below the market and are so over worked, I have no idea how they manage to retain staff. So the fact that there's a wage freeze, or even 2% increase, is just horrible.

Yeah retaining staff can be helped by a great workplace culture.

Attracting staff at below market rates is tough as hell.

LG

Did I hear correctly that Te Reo teachers got a sizable pay increase?

Just had a quick Google and it looks like they were massively underpaid before.

I thought most teachers have received sizeable salary increases recently? Same for health care/disability support workers. Having work in the latter field for a decade, that was long overdue! And same for teachers! 

I have to say, from my perspective (IT, private sector) I've seen increases that went well above the inflation rate. One of the advantages of an ultra competitive market with a relative lack of foreign talent to fill the skill gap. 

My advice to anyone looking for a career change, is to become a software engineer or similar. It really changed my life (see my other posts in "What does everyone do career wise"). I was at a loose end working for a Crown Entity. Was unhappy and didn't know what to do. Couldn't get a new job to save my life (I was a jack of all trades and master of none). A 1 year course allowed me to pivot into IT. I appreciate not everyone will be able to do it, but I highly recommend it. Things like Working for Families, student loan (and a trooper of a wife!) can help you during the retraining period. 

the big issue I have with new poeple getting higher starting alsaries than the existing staff, is that it simply emcourages staff turnover, and it the long run it causes costs to go up, leaving us in a higher wage/salary state but also inflated costs.
it's great for the individuals gettingt he higher pay - all power to them - its just not sustainable in the long term - companies will begin to lay people off once the $$$$ run out,.

Cheers for the insights so far everyone. Really interesting to see across the board what's on the table. 

It does look in some cases to be heavily dependent on what industry you find yourself in. Geography also at play in this one, different areas of the country obviously are going to lean more towards certain types of work, especially in terms of public/private sectors. Really good read so far. Cheers.

newzealandpower

I thought most teachers have received sizeable salary increases recently? Same for health care/disability support workers. Having work in the latter field for a decade, that was long overdue! And same for teachers! 

I have to say, from my perspective (IT, private sector) I've seen increases that went well above the inflation rate. One of the advantages of an ultra competitive market with a relative lack of foreign talent to fill the skill gap. 

My advice to anyone looking for a career change, is to become a software engineer or similar. It really changed my life (see my other posts in "What does everyone do career wise"). I was at a loose end working for a Crown Entity. Was unhappy and didn't know what to do. Couldn't get a new job to save my life (I was a jack of all trades and master of none). A 1 year course allowed me to pivot into IT. I appreciate not everyone will be able to do it, but I highly recommend it. Things like Working for Families, student loan (and a trooper of a wife!) can help you during the retraining period. 

Yeah.  Given they were below living wage I am gonna guess that the Te Reo Kaiarahi were treated like teacher aides or something.

For getting into IT, heaps of places offer part time study too.  So if you can't afford the hit it is worth  squeezing in the time to get in.

theprof

the big issue I have with new poeple getting higher starting alsaries than the existing staff, is that it simply emcourages staff turnover, and it the long run it causes costs to go up, leaving us in a higher wage/salary state but also inflated costs.
it's great for the individuals gettingt he higher pay - all power to them - its just not sustainable in the long term - companies will begin to lay people off once the $$$$ run out,.

This has always been a stupid contradiction.

You hire internally and promote people and under pay them.

They then have to go elsewhere to make heaps more money after they have some experience and take all their knowledge about the company and their previous roles with them, as opposed to keeping using it to benefit your org.

Then you pay more for someone who takes months just to understand your org before they can really start being functional.

Insanity.

It seems so obvious that you underpay them for 12 months in the "apprenticeship" type situation, then should reassess their pay against the market so they don't leave and you lose all that value.

Seems obvious but.... Nobody does it so maybe I am missing some important point.

It doesn't make any sense, but it's actually tough to move jobs, people will often stay because they're friends with their team and there's a fear of the unknown and a desire to complete whatever you're working on.

So, I'm guessing there's a bit of a gamble that's going on. There's also the idea that if you increase the compensation for one person, you should be increasing it for everyone--In a unionised workforce, you have to.

Bananas

LG

Did I hear correctly that Te Reo teachers got a sizable pay increase?

Just had a quick Google and it looks like they were massively underpaid before.

Bananas

LG

Did I hear correctly that Te Reo teachers got a sizable pay increase?

Just had a quick Google and it looks like they were massively underpaid before.

80% Pay rise is impressive. I think that puts them up to around 80-90k??

LG

Bananas

LG

Did I hear correctly that Te Reo teachers got a sizable pay increase?

Just had a quick Google and it looks like they were massively underpaid before.

Bananas

LG

Did I hear correctly that Te Reo teachers got a sizable pay increase?

Just had a quick Google and it looks like they were massively underpaid before.

80% Pay rise is impressive. I think that puts them up to around 80-90k??

which is probably about where they needed to be, suggesting they were massively underpaid for a long time.

Interesting chat on retaining/hiring and how the system is incentivised for new employees, and not for loyalty toward existing employees.
You see this pattern in almost all industries, and anything financial in the world really. 
Your services at home (internet, power etc), your banking and all financial services, pretty much our entire world is now geared toward incentivising new employees/customers and just change in general, and there is very little in it for loyalty whatsoever. Oh wait but if you buy 10 coffees you get 1 free I guess LOL
I think this bleeds down from the way that money works. Money is incentivised to be spent immediately, with inflation and the system being 100% debt-based.
There is no incentive to save, or store money for the future, it's all just borrow and spend. This drips down through every crevice and has permeated society with the same attitude. Wasteful spending, products with short lifespans, replace everything, borrow everything, change everything, all the time. 

Not wrong about ISPs and stuff.  It's been long known new customers cost a lot more than retaining them but they just focus on customer turnover.

The first thing our new HR manager did after he was hired was to conduct a pay review for all current staff against the job market so I guess some companies are trying to stem the flow of people leaving. 
To be fair though this is the first job I've been in where something like this had happened

Thats awesome.  And smart.