Using Salary Surveys to research your Market Value
At the bottom of this page you'll find a list of sites with free (NZ and Global) salary surveys, employment and labour market information. The section, Understanding factors that influence salary and wage ranges, will help you to interpret the survey information based on the job you're applying for.
These sources will give you an idea of the current market and salary range for similar positions. It's important to remember though that most public surveys provide information on basic remuneration which doesn't include addtional payments or benefits. For example:
Use of a vehicle
Professional Fees
Performance bonus
Telephone Allowance
Superannuation
Medical insurance
Vehicle Parking
Other allowances
Benchmark with other professionals
Once you've completed your research and determined a salary range you can test and refine this by running it past people who are in a similar position. Tap into your network but instead of asking how much they earn ask, "Does this range sound about right for this kind of job in this kind of company?" When you combine their comments with the salary information you already have, you'll have a clearer idea of the salary range.
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Understanding the Factors that influence Wage and Salary Ranges
Industry and Size of Company
A 2009/10 survey identified a 10-14%difference in salaries between the non profit and private sector however, even in the for profit business world salaries can vary considerably due to the industry and size of company.
Let's take the example of a National Sales Manager (below). There's a $65K difference between a sales manager in a small media company and their counterpart in a large consumer goods company. The range may not be as dramatic as this for other occupational groups but the nature of the industry and the size of the company will still have a bearing.
New Zealand National Sales Manager
(base salary @ 2011)
| The Industry |
Low |
High |
Small
Company |
Large
Company |
| Media |
$95,000 |
$120,000 |
$105,000 |
$160,000 |
| IT&T |
$105,000 |
$137,000 |
$126,000 |
$168,000 |
| Consumer Goods |
$116,000 |
$137,000 |
$116,000 |
$170,000+ |
Defining Small and Large in NZ
One Recruiters definition: Small to medium companies are defined as having a turnover of less than $100 million. Large companies are defined as having a turnover of more than $100 million.
The Ministry of Economic Development define small and medium-sized enterprises (SMEs), as those with less than 20 employees. There are 460,000 SMEs in New Zealand. They account for 31% percent of all employees (580,680 in 2011). SME's are unlikely to use a recruitment agency (because of cost) or have a formal remuneration system. Wage and salaries are lower compared to large enterprises and are more likely to be influenced by the business owner's accountant.
The Location
Companies in provincial centers (like Hamilton or Timaru) generally don't pay as much as businesses in main city centers (Auckland, Wellington and Christchurch). They are more likely to benchmark salaries toward the lower end of the scale.
The Size of the Job
The size of the job makes a big difference even though the job title may be the same. If we go back to the Sales Manager example, job size factors that will influence the salary range are things like, the extent of their decision making authority, the range of brands/products they're responsible for, the volume of sales as well as the size of the team reporting to the manager.
The Performance and the Policy
The financial health of the company will influence it's ability to pay. It's remuneration policy will also determine whether its practice is to pay top of the range (a lead payer) or if it benchmarks its salaries against median market rates.
The Law of Supply and Demand
If there's a shortage of good candidates and the employer is having difficulty recruiting then they are more likely to pay at a higher rate to attract a well qualified and experienced person. The reverse is true of course, if they can pick and choose, they wont need to be as competitive.
Factors that determine where YOU fit within the range
Your experience, skills and qualifications
The better qualified you are, the more relevant your experience, the more robust your track record and the greater your expertise the more likely it is that you will be positioned higher on the scale.
How much do they want you?
Many times during my HR'ing years a fabulous candidate will have impressed the recruiting manager so much the manager then said, "This person is perfect for the job. We have to have them. We can't afford to lose them!" We would then craft an attractive offer that recognised the value the person would bring to the business. A reminder that your performance in the interview will have a bearing on the employer's decision regarding your starting salary.
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2011 NZ Salary Averages
National Av: $69,140.00
Wellington Av: $74,392.33
Auckland Av: $71,103.33
Southland Av: $62,797.97
Marlborough Av: $52,785.00
Otago Av: $58,888.67
Average real salaries and wages are generally higher in large firms than in SMEs. Firms with 100+ employees account for approximately 45% of total salaries and wages.
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NZ Remuneration Surveys
Most major recruitment agencies conduct annual salary surveys where they collate and analyse wage and salary information from their employer database. Some agencies make a version of their annual salary survey reports freely available through their websites. Don't expect to receive the detailed type of reports that are available to employers. Employers purchase these, usually for hundreds of dollars. (The Employer's and Manufactuer's Salary Survery is one example)
In my opinion (with my HR bias) these remuneration reports are more useful to you because the information is based on what employers actually pay their staff. Also, some reports provide salary ranges according to region or major centers e.g. Auckland, Wellington, Christchurch, and size of the employer (small, large etc) which is much more useful than the very broad based salary ranges provided to the general public by sites like Seek.
List of New Zealand Salary Survey Sources
Robert Walters Global Salary Survey
Comprehensive salary survey covering a range of professional sectors. Surveys are available to download in PDF format for Australia, New Zealand, United Kingdom, United States and a number of European countries. The reports also include information on hourly contract rates.
It's worth keeping in touch too as they provide useful specialist quarterly market updates, by occupational group, on current recruitment and employment trends. This is an example of their 2010 update for Sales & Marketing in Auckland.
Hays Salary Guide
You can request your free copy of the Hays Salary Guide by entering your details and selecting the sections you're interested in. You receive an email with a link to the guide you 've requested.
Hays Quarterly Report
Hays also provide a quartely report on skills, salary, recruitment and salary trends that's worth reading.
Hudson Salary Guides
Hudson’s Salary Guides offer valuable insight into salaries presently being offered to candidates as well as a brief overview of the employment market and salary trends for professionals.
Auckland Chamber of Commerce
You can email your details for access to the Auckland Chamber Salary Survey.
Michael Page Salary Centre
Michael Page specialise in recruiting for Accounting, Banking & Finance, Marketing and Sales. Their simple dropdown menu allows you to view current salary rates for a range of job types across multiple industries.
Professional associations and specialist agencies
Sometimes professional associations and agencies that specialise in recruitment for industrys/occupational groups will have information about salaries on their websites
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