The following update is a high-level paper of what is happening in the NZ people marketplace.

The data we use is valid and interpretable from a sample sizing perspective. However, a caveat is that all figures can be manipulated to tell a story so please talk to us about market constraints and your actual job sizing, scope, and extent. 

We can support you in hiring the best people to deliver the right results for your business without over inflating salary for competence levels. 

Employment Landscape NZ

The current landscape shows a 9.1% growth in the number of roles advertised in the public arena with candidate availability being typical in comparison to the previous 5 years average.

Interestingly enough, salary growth is neutral however expect to see an increase in salary as a result of the finite talent in NZ and inability to import talent from overseas for the foreseeable future in certain job groups.

Areas (Disciplines) of Growth

40%    Organisational Development (OD)

15%    Recruitment (Equal for both Internal Recruitment and Agency Recruitment)

11%    Consulting and Generalist HR

-41%   Significant losses are seen in Remuneration and Benefits

Candidate Availability

  • Due to job growth in OD, candidate availability is low and thus salary is on the increase due to scarcity and competence levels.
  • Industrial and Employment Relations are also showing signs of low candidate availability and this is based on the increased need over the last 12 months.
  • OD and I/ER are partners always in growth mode in times of crisis

Candidate Mobility

Mobility is healthy with the spread of job seekers / available talent being over the three main workforce areas.

  • Auckland 81% are local candidates and 19% mobile
  • Wellington 58% are local candidates and 42% mobile
  • Christchurch 68% are local candidates and 32% mobile

The flexible workforce has arrived.  Candidates are looking at work life balance and are becoming more mobile given fewer opportunities in generic HR.  Generic HR is salary neutral.

Salary Growth

Although across all HR functions, the average is neutral there has been clear increases in certain areas as indicated above.

  • Organisational development showed an increase of 8% with an average national salary of $111k
  • Consulting and Generalist has seen a 2% rise with an average salary of $93k
  • Training and Development has shown a slight rise of 1% with an average salary of $93k
  • Internal Management salary has decreased by 4% with a current average of $117k. Note: This does not mean salaries are reduced, this effectively shows less people are working in the internal management position at the higher pay bands.

Average Salary Distribution NZ – 12 months to March 2021

 

Percentage of HR Community <1% 14% 25% 25% 17% 10% 4% 5%
Salary 40k 40-59k 60-79k 80-99k 100-119k 120-139k 140-159k 160k+

 

Given the criticality of the HR/People positions in a business it is disappointing to see only 36% of Practitioners/ Professionals are earning $100k+ with the top 5% earning in excess of $160k.  Compared to wider Risk Management and General Management counterparts, the trend is still flat.

MDs Tips for the Quarter

NZ is gently recovering and confidence in markets continues to lead to shortages in skilled workforce.

In turn this is placing a higher burden on HR people in all disciplines.  From Recruitment to General HR, from OD to Learning and Development of a finite pot of people through to IR and Employment Relations when things haven’t quite gone to plan.

So, please ensure you have robust retention strategies when hiring.  Retention is part of the recruitment process not at the point of exit and a counteroffer.

Continue to identify your key talent, ensure your people are recognised during their employment journey.  If they are critical roles, what is the flight risk and resultant risk to your business operations.

Great people leaders are scarce – learn to build capability from within with our workforce planning and talent mapping / pipelines.

Thanks for reading and please feel free to give me a ring as happy to discuss any element of this short paper and how we can support you in your recruitment and retention of HR people.

Alison Gill, CMInstD

Managing Director – 021 024 69661

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