Salary expectations are a growing source of tension between businesses and employers, according to Hudson’s Salary and Employment Insights 2012 series of reports.
Roman Rogers, executive general manager of Hudson New Zealand, says employers are under pressure to simultaneously improve the quality of their hires and control the cost of these hires. “They need valuable employees to take the business forward, but not at any cost,” he says.
Almost half of hiring managers report the salary expectations of preferred candidates exceed their budget, with 43 percent increasing their budget to secure the best candidate, with the remaining employers settling for their second-choice. Furthermore, about six out of ten employees feel that they deserve a pay rise in 2012.
Nearly seven out of ten employees are considering moving jobs in 2012, while two-thirds of employers say they are worried about losing their existing high performers.
Across the board, nearly 28 percent of employers intend to increase permanent staff levels. Candidates with business acumen, a cross-functional knowledge and an ability to contribute to the organisation’s overall strategic direction are highly sought-after across all sectors.
“In order for managers to cope with the increasing salary pressure being placed on them, they need to understand the difference between ‘cost’ and ‘value’ when choosing their teams and allocating their salaries,” says Rogers.
Hudson recommends companies adjust their approach to recruiting to ensure they get the best performers. To identify high achievers, organisations need to broaden their approach from traditional methods of selecting new hires that focus on technical qualifications and experience, and include assessment that measure candidates motivational and behavioural attributes.
SOURCE: Roman Rogers
Hudson, New Zealand