New research shows 70% of employees finding it harder to negotiate pay increases despite rising cost of living pressures.
The newly released Robert Half 2025 Salary Guide reveals Kiwi workers and employers are locked in a remuneration struggle, with most employees planning to seek higher pay despite increasingly difficult negotiation conditions.
Research from the specialised recruiter shows 70% of New Zealand professionals report salary negotiations have become more challenging compared to last year, with only 9% saying it's easier and 21% noting no change in difficulty.
Despite these obstacles, 86% of workers plan to request a salary increase in 2025, primarily citing consistently exceeded performance goals (37%), cost of living pressures (33%), and increased workloads (32%).
"Our 2025 Salary Guide reveals the complex salary dynamics shaping this year's Kiwi job market," said 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."
Credit: Robert Half
When employers cannot fulfil salary expectations, workers show measured responses. While 35% will look for a new job, nearly half (46%) plan to remain patient and maintain their work ethic, 41% will focus on professional development, and 44% will request to revisit salary discussions within months.
The guide also identifies high-demand roles and their starting salaries across finance, accounting, and technology sectors. Top finance positions include heads of finance ($180,000-$250,000), financial controllers ($180,000-$250,000), and finance business partners ($120,000-$150,000).
Meanwhile, in technology, DevOps engineers ($130,000-$175,000), senior software developers ($125,000-$150,000), and security engineers ($120,000-$150,000) command premium compensation.
"The lagging effect of inflation is driving employees to be more assertive about their contributions and desired compensation," Alexander said. "A costly mistake for businesses 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."
The Robert Half Salary Guide findings are based on comprehensive analyses, local job placements, and independent research conducted among 500 full-time office workers across New Zealand in November 2024.
Do you also feel the strain of cost-of-living pressures? Do you agree with a pay hike? Share your comments below.
