Employers face a salary squeeze as candidates and employees demand higher pay

70% of Kiwi employees say it has become more challenging to negotiate a pay rise this year compared to last year, while 86% of workers plan to ask for a salary increase in 2025
Workers want a pay rise to recognise they have consistently exceeded performance goals (37%), to keep pace with the cost of living (33%), and after taking on new projects and workload (32%)
If an increase is not granted this year, 46% of employees will be patient and maintain a good work ethic but 35% of workers will look for a new job

Auckland, 27 February 2025 – The lagging effects of inflation and increasing responsibilities are driving growing demands for higher salaries this year but employees are finding it challenging to negotiate an increase in pay, the newly released Robert Half 2025 Salary Guide reveals.

The research by specialised recruiter Robert Half uncovers the war waging between workers and their employers about their remuneration. The majority (70%) of Kiwi professionals report it is more challenging to negotiate a pay rise now than it was last year. Only 9% of workers say it is now less challenging, while 21% state it is no more or less difficult than it has previously been.

“Our 2025 Salary Guide reveals the complex salary dynamics shaping this year's Kiwi job market,” says Megan Alexander, Managing Director at Robert Half. “Salary issues plague the current work environment. Employers, facing budget constraints and prioritising cost management, are struggling to meet employees' demands for higher pay after years of stagnant wages despite their hard work and need for financial stability.”

Workers duel with employers over pay

Robert Half’s newly released 2025 Salary Guide reveals 86% of workers will not let challenging salary negotiations stop them from asking for a pay rise this year. When asked on what basis they expect a salary increase in the coming 12 months, recognition for their increased efforts in their role (37%) ranks similarly to their need for a higher income (33%) and having taken up new projects or a larger workload (32%).

Reasons why a pay rise is warranted	Percentage of employees
I have consistently exceeded my performance goals	37%
The cost of living has increased and my salary needs to keep pace	33%
I have taken on new projects or a larger workload	32%
I have acquired new skills or qualifications that are valuable to my role	31%
I am seeking a promotion to a higher-paying position	28%
I have not received a salary increase in a long time	10%
I am not being compensated fairly for my work	7%
I expect a raise every year	11%

Independent survey commissioned by Robert Half among 500 full-time office workers in New Zealand.

When employers and employees cannot successfully negotiate

Workers maintain a measured approach to their career decisions when employers cannot fulfill their salary requirements. While more than a third (35%) will look for work elsewhere, the Robert Half 2025 Salary Guide reveals about half (46%) will bide their time and maintain good work ethic, 41% will focus on professional development and 44% will ask to revisit the conversation in a few months.

Plans if a pay rise is not received this year	Percentage of employees
Be patient and maintain good work ethic	46%
Focus on professional development	41%
Ask to revisit the salary conversation in a few months	44%
Look for a new job	35%
Ask for more benefits (such as additional paid time off, remote work options, flexible schedules)	36%
Work harder (such as work longer hours, take on extra responsibilities)	30%
I’ll do nothing	2%

Independent survey commissioned by Robert Half among 500 full-time office workers in New Zealand.

"The lagging effect of inflation is driving employees to be more assertive about their contributions and desired compensation. A costly mistake for a business to make would be failing to recognise and reward top performers. Even when salary increases are challenging, open communication, robust benefits and professional development are vital for maintaining morale, engagement and loyalty. After all, competitive compensation and a comprehensive rewards package are essential for attracting and retaining top talent and positioning an organisation as an employer of choice,” concluded Alexander.

Top in-demand roles for 2025

Robert Half’s 2025 Salary Guide reveals the permanent roles that are in highest demand in finance and accounting, and IT and technology this year, along with their starting salaries.

Finance and accounting

Role	25th percentile	50th percentile	75th percentile
Head of Finance	$180,000	$225,000	$250,000
Financial Controller	$180,000	$215,000	$250,000
Finance Business Partner	$120,000	$130,000	$150,000
Financial/Management Accountant	$100,000	$115,000	$130,000
Accounts Payable Officer	$65,000	$75,000	$85,000
Accounts Assistant	$75,000	$78,000	$85,000

IT and technology

Role	25th percentile	50th percentile	75th percentile
Senior Software Developer	$125,000	$140,000	$150,000
DevOps Engineer	$130,000	$150,000	$175,000
Security Engineer	$120,000	$135,000	$150,000
Systems Engineer	$110,000	$120,000	$130,000
IT Support	$55,000	$60,000	$65,000

Notes to editors

About the Robert Half Salary Guide 

The Robert Half Salary Guide is the most comprehensive and authoritative resource on starting salaries and recruitment trends in finance and accounting and IT and technology. The results and insights of the Robert Half Salary Guide are based on comprehensive analyses, local job placements, local expertise and independent research of industry executives. 

Starting salaries are not a one-size-fits-all, which is why they are separated into three percentiles. The percentiles account for differences in experience, skills, professional certifications, demand for the role and the size/complexity of the company that’s hiring. 

25th percentile 

The candidate is new to the role, with little or no experience, and requires more than casual instruction or supervision to perform day-to-day duties. 

50th percentile 

The candidate has the experience to consistently perform core responsibilities without direct supervision and is very comfortable with processes and subject matter associated with the role. 

75th percentile 

The candidate’s value to the organisation goes far beyond the ability to perform normal job duties; the candidate has (rare) qualifications that enable consistent contribution in unique ways and is ready for the next career level when the opportunity becomes available. 

Note: The 25th percentile is not the lowest end of the salary range, and the 75th percentile is not the highest or a cap. Robert Half provides these percentiles because they are the ones most commonly used. Salaries outside of this range occur far less frequently and, as a result, are not included in the Robert Half Salary Guide. 

About the research

The study is developed by Robert Half and was conducted online in November 2024 by an independent research company among 500 full-time office workers in finance, accounting, and IT and technology. Respondents are drawn from a sample of SMEs as well as large private, publicly-listed and public sector organisations across New Zealand. This survey is part of the international workplace survey, a questionnaire about job trends, talent management and trends in the workplace.

About Robert Half

Robert Half is the global, specialised talent solutions provider that helps employers find their next great hire and jobseekers uncover their next opportunity. Robert Half offers both contract and permanent placement services, and is the parent company of Protiviti, a global consulting firm.  Robert Half New Zealand has an office in Aukland. More information on roberthalf.com/nz

For more information    

Courtney Fletcher

PR Manager

Courtney.Fletcher@roberthalf.com.au

+61 421 209 304

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