More than 150 companies provided data for the November 2016 EY REMonTAP Survey. The 19th edition of the survey includes the latest remuneration data for over 50,000 incumbents, covering 398 roles and explores the following topics:
- Regional differences and talent attraction
- Market benchmarking and job sizing policies
- Flexible benefits
- An analysis of redundancy provisions
Caution and conservatism rule
The median overall actual salary increase reported for the previous 12 months is 2.5%. This data is constant across career levels at 2.5 - 2.6%, with the exception of Collective Agreements (2.0%). Despite the bright economic climate, forecasts are conservative, with the median at 2.5%, a slight decrease of 0.2% from November 2015.
Wage pressures are being diffused as a result of low of inflation, coupled with record high immigration rates. Although business confidence is at its highest point since 2014, there seems to be an atmosphere of caution and conservatism around spending. Many of our largest organisations are Australian-owned and with GDP growth much slower across the Tasman than has been typical over the last decade, Australian-parented organisations appear cautious around salary movements. Finally, the impact of major global changes such as Brexit and the recent elections in the United States make for an uncertain world economy, which puts a damper on business confidence and encourages conservatism.
War for talent continues
67% of respondents report difficulty attracting and retaining talent. Auckland is the hardest-hit region. At the same time 21% of organisations indicated that they are experiencing skill shortages across the whole country. Despite this and ongoing publicity about housing affordability in Auckland, 94.5% of organisations do not operate a regionally-differentiated pay policy.
Diversity strategies in short supply
- Only 36% of responding organisations have a specific diversity strategy in place
- Another 21% of organisations plan to implement a diversity strategy in the next 12 months
- Percentage of female management is the most commonly measured statistic
- No respondents measure LGBT participation in the workforce
85% of responding organisations have succession–related diversity policies in place. They want to recruit from balanced talent pipelines and candidate pools.