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Counter offers drive tech salaries up in constrained Kiwi market

Counter offers drive tech salaries up in constrained Kiwi market

Reports from Potentia Recruitment for Auckland and Wellington reveal how volatile the recruitment market has become.

Credit: Photo 117640101 © Golubovy | Dreamstime.com

Technology sector recruiter Potentia Recruitment is heralding a "golden age" of technology in Aotearoa as it reports booming tech salaries.

The dark cloud hanging over that, however, was a severe battle for talent.

For the first time, Potentia released separate reports covering the Auckland and Wellington markets. These found that with the "talent tap" of skilled migrants turned off during the COVID-19 pandemic and more candidates opting to stay in their current roles, talent shortages were worsening.

Thirty-five per cent of Auckland-based respondents reported they were actively looking for new jobs while 46.5 per cent, while not actively looking, had their eyes open for opportunities.

Three-quarters indicated an increased salary or pay rate would influence a change in role. This factor was followed well back by work/life balance (34 per cent) and career advancement or progression opportunities, at just 25.5 per cent.

In the jobs market, counter offers and multiple job offers were now the norm, contributing to a significant inflation of salaries and rates.

On average, 78 per cent of candidates had received a counter offer from their current employer.

To change jobs, 41.6 per cent of employee respondents required a salary increase of between $10,000 and $20,000 while 23.4 per cent required more than $20,000.

Contractors also wanted more, with 64 per cent expecting an increase of $11 per hour or better to move.

The Wellington’s tech sector's talent shortage also accentuated in last 12 months, contributing to salary inflation that even surpassed the median seen in Auckland.

"This is having an adverse effect on early stage startups in particular, many of which are struggling to compete with enterprises on salary," the report said.

Just over 40 per cent were actively looking for new jobs while 41.5 per cent were keeping their eyes open for opportunities.

Increased salary or pay was not as dominant a factor in Wellington as in Auckland, however, with 65.8 per cent citing it compared with 75 per cent up north.

Of the Wellington respondents, 35.6 per cent required a salary increase of $10,000 or more to move while 15.9 per cent required more than $20,000.

Fifty seven per cent of contractor respondents in Wellington expected an increase of $11 per hour or more to move, lower than in Auckland. However, 28.2 per cent required increases of more than $30 an hour.

“Since the release of our interim remuneration report in October last year, it’s safe to say that we’ve witnessed the most growth the tech sector has ever seen, period," said Guy Day, Potentia’s Auckland general manager.

Counter offers and multiple job offers were now the norm and this was contributing to a significant inflation of salaries or rates, Day said.

The reports include breakdowns of benchmark salaries and rates for numerous technology roles.


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Tags recruitmentskillstalent shortageSalary Surveypotentia

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