By RNZ

A recruitment firm says the era of large pay increases to retain workers is over, urging workers to consider other ways to improve their pay packet.

The latest Robert Half Salary Guide indicates a third of about 500 workers surveyed were looking for a new job because their current role offered few opportunities to progress their career, with only 43 per cent of workers committed to sticking with their current position.

“There is restlessness in the New Zealand workforce, with a portion of workers eyeing an exit as a result of long-term career goals not being met at their current employer and mounting cost of living pressures pushing employees to a job with higher pay,” Robert Half managing director Megan Alexander said.

All generations in the workforce ranked limited career progression opportunities as the number one reason why they would consider leaving their role, with Gen Z (37 per cent) and Millennials (36 per cent) most likely, followed by Baby Boomers (32 per cent) and Gen X (25 per cent).

“While financial compensation remains a key motivator for all employees, all generations take on a long-term view and recognise the importance of developing their skills to future-proof their career and set themselves up for promotions and continued professional growth,” Alexander said.

Money was a concern for about 22 per cent of workers, who thought their pay was uncompetitive, with 18 per cent needing a better-paying job to meet living expenses.

However, Alexander said employers were no longer offering large pay increases to retain staff.

“New Zealand employers are being more conservative with their salary increases due to cost pressures on their side, so while pay is a top priority for most due to rising cost of living, professionals should reflect on whether the grass is actually greener when seeking a new role in the current market.”

However, about half (57 per cent) of the surveyed office workers in New Zealand indicated they were likely to look for a new job this year, with 10 per cent having done so in the first quarter of the year, 6 per cent in the first half of the year and 37 per cent planning on making a move before the year was out.

The survey also indicated fewer workers (40 per cent) at small and medium-sized enterprises had no plans to leave their jobs, compared with 62 per cent at large organisations.