S POTLI G HT O N N E W ZE A L A N D

Transcription

1 BAC K S POTLI G HT O N N E W ZE A L A N D REM U N ER ATI O N TREN D S Movements sitting at 2.8% in November 2017 Executives and Management receiving highest increases Waikato/BOP Transportation awards highest pay Equipment industry rises records highest movement Companies with parent location in Asia pass on highest increases Reported throughout this document is the employment cost (EC). Also referred to as total package or fixed remuneration, employment cost includes base salary, cash allowances, benefits and FBT but excludes variable reward. A LL DATA M OV EM ENT S The median general market employment cost same-incumbent movement for New Zealand sits at 2.8% in November The forecast for New Zealand is currently also sitting at 2.8% for 2017/2018.

2 CAREER STREAM MOVEMENTS EC movements for executives () and management () are above all other staff categories. Professional (2.8%) movements are at the general market, while para-professional () movements are lagging slightly behind the general market and displaying the lowest movements of all staff categories in New Zealand. EXECUTIVE MANAGEMENT PARA- LOCATION MOVEMENTS Waikato/BOP (3.5%) recorded the highest annual increases. Other areas were on par with national movements, with the exception of Wellington (2.2%), which is well below the national rate. Auckland Waikato/BOP 3.5% Other North Island 2.8% Wellington 2.2% Christchurch Other South Island INDUSTRY MOVEMENTS In the year to November 2017, transportation and equipment (3.9%), energy (3.5%) and high-tech (3.5%) recorded the highest movements, while chemicals (1.7%) and other manufacturing () passed on the smallest increases and fell well below the general market movement. 3.9% 3.5% 3.5% 1.7% Chemical Energy High-tech 2.6% Other Manufacturing Other Non-Manufacturing Services (Non-Financial) Transportation Equipment

3 JOB FAMILY MOVEMENTS Most job family movements hovered around the overall market movement (2.5%-), with jobs in research and development (4.0%) and human resources (4.0%) awarded well above average increases. The lowest movements recorded were for the communications (1.8%), legal (), finance and administration () and marketing () job families. Administration 1.8% Communications 2.8% 2.5% 2.3% Consulting Contact Centre Corporate Affairs Engineering and Administration 4.0% 3.3% Human Resources Information Technology 3.8% IT Analysis and Design IT Deployment and Support 3.4% Legal 2.2% Manufacturing Marketing Project Engineering 4.0% Quality Repair and Maintenance Research and Development 2.5% Retail Sales Sales and Marketing 3.5% Supply and Top Management MOVEMENTS BY PARENT LOCATION Organisations with the parent company located in Asia recorded the highest increases (4.0%) and sit well above the overall market median. Organisations with the parent company located in the UK (2.2%) and Europe (2.3%) recorded the lowest movements. Australia/NZ headquartered organisations sat above the general market at 3.4%. USA 2.8% Europe (excl. UK) 2.3% UK 2.2% Asia 4.0% Australia 3.4%

4 NEW HIRE PAY RATES Measures the relativity between salaries offered to hire new staff compared to existing employees within an organisation. A negative value indicates the market is hiring at salaries below that being paid to existing employees, while a positive figure indicates that new hires are attracting salaries above employees currently in the role. Job market conditions within the New Zealand market indicate that the new hiring pay index is currently sitting at - in November This indicates the market is offering a discount compared to existing incumbents. New employees are being remunerated at - below existing employees already in the role. All staff categories were offering salaries below existing employees. Management roles performed best, with new employees in those positions being hired -0.4% lower, on average, compared to existing employees. Staff in professional positions followed next, with staff being hired at a discount of -1.7% to existing employees already in the role. The para-professional (-6.7%) staff category offered new hires salaries well below existing incumbents already in the role. MANAGEMENT -0.4% -1.7% PARA- -6.7% High-tech () fared highest overall this month when viewing results by sector, followed by energy (1.5%) and transportation equipment (0.7%). In contrast, incumbents hired in the remaining sectors were offered salaries at a discount to existing employee pay with Other non-manufacturing (-15.5%), and services (non-financial) (-8.8%) offering the most discounted salaries. BY INDUSTRY -3.9% Chemicals Energy 1.5% -2.3% High-Tech -3.7% Transportation Equipment 0.7% % Other Manufacturing -15.5% Other Non-Manufacturing -5.3% -8.8% Services (Non-Financial)

5 PAY INCREASE BAROMETER The pay barometer measures the extent to which salaries are passed on at, below or above market rates in the past six months. The terms contraction, stable and expansion are used to define the proportion of individuals that in the past six months have received below, at or above market rates, respectively. Results for the New Zealand pay barometer in November 2017 show pay increases over the past six months have stabilised with 3 of all individuals in the sample receiving at (stable) market increases. The proportion of individuals awarded above (expansion) market rates is 31.0%, while the proportion of individuals awarded below (contraction) market rates is currently sitting at 36.0% in November. Industry results this month showed the highest proportion of individuals receiving above market increases were employed in the non-financial services sector (51.0%), while incumbents employed in the other manufacturing sector (57.0%) were more likely to receive increases significantly below the overall market movement. BY INDUSTRY Overall 36% 33% 31% Contraction 27% 45% 28% Stable High-tech 13% 51% 36% Expansion 45% 22% 33% 27% 56% 17% Other Manufacturing 57% 19% 24% Other Non-Manufacturing 5% 53% 42% 38% 34% 28% Services (Non-Financial) 8% 41% 51%

6 GENDER PAY INDEX Measures the relativity between salaries offered to male and female staff working in the same role within the same organisation. A positive value indicates the market is offering female employees salaries below that being paid to male employees in the same role, while a negative figure indicates that female employees are attracting salaries above male employees in the role. Please note: the global standard and WGEA standard is for a positive value to indicate where males are being paid more. Job market conditions indicate the New Zealand gender pay index is currently sitting at 1.2% in November Overall, the market is currently offering female employees salaries 1.2%, on average, below male employees. Female staff across most categories were being remunerated at lower rates of pay compared to male employees, with executives being the only staff category to offset the trend. The largest gender pay gap existed within executive positions, where female employees are currently being remunerated at 7.2% above male employees. This is in stark contrast to conditions within the Australian jobs market, where female executives are at a pay disadvantage (3.2%). Female employees in management (1.4%) and professional (1.6%) roles were earning salaries, on average, below male incumbents. Para-professional (0.8%) roles followed closely behind, but are still falling short in terms of pay compared to their male counterparts in the same roles. BY CAREER LEVEL EXECUTIVE MANAGEMENT PARA- -7.2% 1.4% 1.6% 0.8% Sectors mostly contributing to the negative result this month are other manufacturing (3.1%), mining and metals (), and life sciences (2.3%). The energy staff category (-6.4%) was able to offset this overall trend, offering female incumbents higher salaries compared to male employees in the same roles. BY INDUSTRY -6.4% Energy Chemicals 1.5% -1.9% 1.3% -0.4% Other Non-Manufacturing High-Tech 1.1% 2.3% Mining and Metals Other Manufacturing 3.1% 1.7% Services (Non-Financial) 1.4%

7 TOP BEST AND WORST JOBS -9.6% Warehouse Clerk - Experienced Technical Sales Representative - Senior - Pre-sales Engineering 12.5% -4.1% -7.2% Account Manager - Specialist/Key Account Manager -6.4% Customer Service Representative - Senior - Contact Centre -1.1% Account Management Manager (Key & Non-Key Accounts) -3.3% Warehouse Clerk - Entry Administrative Assistant - Experienced Customer Service Representative - Experienced - Contact Centre -0.5% -3.3% Sales Representative - Experienced Production Worker - Experienced Manager Production Line - Team Leader 4.2% 6.9% Product/Brand Marketing Professional - Experienced Product/Brand Marketing Professional - Senior 3.4% Account Manager - Senior/ Jr. Key Account Manager 3.6% 3.3% 4.8% Prod. Worker (Entry) Sales Representative - Senior Officer Sales Manager - Regional 2.1% Account Manager - Experienced 1.7% The information and data contained in this report are for information purposes only and are not intended nor implied to be a substitute for individual professional advice. In no event will Mercer be liable to you or to any third party for any decision made or action taken in reliance of the results obtained through the use of the information and/or data contained or provided herein.