An overwhelming number of workers will be seeking salary increases this year, concerned about their pay falling behind inflation, new independent research by specialised recruiter Robert Half finds
More pay is the primary objective for about a third (32%) of New Zealand workers to get from their job 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’ second and third priorities respectively.
What workers want in 2025
When asked about what they want to get from their job in 2025, Kiwi workers have made it clear that more pay is at the top of their 2025 wish 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.
| What workers want in 2025 | % of employees to rate it as a top 3 preference | % of workers to list it as their top want for 2025 | The generation that wants it most |
| More pay | 62% | 32% | Millennials (63%) and Baby Boomers (63%) |
| Flexible work hours | 36% | 12% | Gen Z (45%) |
| More benefits | 36% | 10% | Millennials (40%) |
| A promotion | 32% | 10% | Gen Z (42%) |
| More recognition | 25% | 6% | Gen Z (31%) |
| More professional development and training | 31% | 10% | Gen X (37%) |
| More responsibilities | 15% | 4% | Baby Boomers (18%) |
| More remote working options | 22% | 6% | Baby Boomers (27%) |
| Better corporate culture | 18% | 6% | Baby Boomers (23%) |
| A mentor/career coach | 14% | 4% | Millennials (16%) |
Independent survey commissioned by Robert Half among 500 full-time office workers in New Zealand.
“Given the current inflationary environment and rising living costs, employees are understandably seeking strong financial security and comprehensive benefits,” says Megan Alexander, Managing Director at Robert Half. “Money still talks, but flexible work hours, professional development and other benefits have become more commonplace as pay alternatives in the modern workplace.
“When it comes down to it, employees want to feel valued and appreciated for their contributions. Competitive pay and benefits are a tangible way for organisations to demonstrate that they are committed to the welfare of their staff.”
Workers worried inflation will outpace salary rises
There is a deeper motive behind Kiwi workers 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’. 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,” concluded Alexander.
Tips for employers when pay requests cannot be offered
Consider options
Even if you can’t match requested salaries dollar-for-dollar, look for other areas of value. Focus on those areas that employees value, too. This could include increased flexibility, professional development opportunities or enhanced recognition programs. Exploring creative solutions and demonstrating your commitment to employee wellbeing will stand you in good stead among your workforce.
Open and honest communication is key
Be transparent with your employees about the company’s financial situation and/or other reasons why the pay rise will not be rewarded. Open and honest communication is crucial.
Invest in employees where possible
There are many cost-effective ways to invest in employees’ growth and development, such as providing employees with a mentor or secondment placements. Providing opportunities for upskilling and career advancement can also increase employee loyalty and engagement, even if immediate salary increases aren’t feasible.
Foster a supportive work environment
Intangible benefits can be beneficial in retaining top talent. Employees may find it difficult to leave a positive and supportive work environment, even if they do not receive the tangible benefits they want. Foster a culture of recognition, appreciation and work-life balance, and create a workplace that is enjoyable.
