-
Man with briefcase - Source: ONE News -
Watch Video
Pay expectations for most professional and management roles are subdued, but after a year of "taking it for the team" employees' expectations may start to adjust.
Jarrod Moyle, director of remuneration experts Moyle consulting, says there have been very few salary increases during 2009 for permanent employees, particularly those in management and professional roles.
"For many individuals it certainly hasn't been the time to ask for a salary increase. Many people have been content to accept no salary increase while they still have a secure job," says Moyle.
In the contracting sector, management, sales and marketing contractors expect their hourly rates to decline in the next six months by between 2-11%, according to a survey by contracting specialist Crackerjacks.
Conversely, accounting and IT contractors expect their hourly rates to increase by 4-6% with demand for their services increasing as organisations look for help with cost-saving initiatives.
Moyle believes the lead taken by IT and accounting contractors may prompt a shift in permanent employees' pay expectations.
"Increased demand for contractors in accounting and IT could flow into increased demand for permanent roles in this sector and that'll place greater pressure on salary increases," he says.
"Employees will be very much aware of that, and they'll be thinking 'I took one for the team last year', accepting that it wasn't the time for a salary increase, but they'll be wanting some recognition for sticking it out during the tough times."
Changing expectations will also depend on continued improvement in business sentiment.
Moyle says one of the big factors will be workforce mobility. Once employers feel confident to start taking on new staff and people are prepared to look for new jobs, remuneration will come under upwards pressure.
"I think the latter half of 2010 could be quite interesting in terms of pay expectations," he says.
November is economy month on TVNZ 7
Spotlight on the Economy kicks off on November 3 with a look at National's first year in government. We want to hear from you ....
Tell us your thoughts about the economy, how the recession has affected you and any message you'd like to say to the government. Your comments could appear during the debate. Submit a question here .
