Research from Robert Half finds employees are concerned about inflation outpacing expected salary increases this year.
By Maggie Mancini
New Zealanders overwhelmingly want pay raises in 2025, but are concerned about inflation outpacing salary increases, according to research from Robert Half. More pay is the primary objective for about a third (32%) of New Zealand workers in 2025. However, the proportion rises to almost two-thirds (62%) of workers when asked to rank their top three preferences. Flexible work hours (36%) and more benefits (36%) are workers’ other top priorities.
When asked about what they want to get from their job in 2025, New Zealanders have made it clear that more pay is at the top of their 2025 list. While some are keen to receive increased flexibility or a promotion, which can potentially bolster their remuneration package, perks and career development opportunities rank well below the preference for greater financial compensation.
There is a deeper motive behind New Zealanders wanting more pay in 2025. The majority (87%) of employees are concerned about inflation outpacing salary increases this year, with Gen X the most concerned (94%) and Gen Z (82%) the least concerned.
“Kiwi workers aren’t just looking for a pay bump, they’re seeking financial security. With inflation biting, employees want to ensure their pay is not going ‘backwards,’” says Megan Alexander, managing director at Robert Half. “Businesses need to demonstrate a genuine understanding of their employees’ financial realities and offer a compensation package that is a true reflection of their skills and experience as they progress in their role. Ignoring salary concerns could lead to increased employee dissatisfaction and higher turnover rates.”
The research includes several tips for employers to support employees when pay raises cannot be offered. These include:
- looking for other areas of value, like increased flexibility and development;
- being transparent about the company’s financial situation;
- investing in employee growth and development; and
- fostering a supportive work environment.
