New Zealand businesses open to salary negotiations this year

All businesses in New Zealand are willing to engage in salary negotiations this year amid optimism in the country's economic outlook, according to a new report.  

Findings from Robert Half reveal that 100% of businesses are open to salary negotiations and are willing to offer alternative perks and benefits if salary expectations are not met.  

"After several years in which salary conversations were deprioritised, pay rises and offering higher starting salaries are firmly back on the agenda for many organisations," said Megan Alexander, managing director at Robert Half.  

"Businesses recognise that remaining competitive for top talent requires intentional investment in their workforce."  

According to the findings, at least half of employers will be willing to offer higher performance bonuses (53%) and more professional development opportunities (50%) to secure talent. Others said they plan to offer:  

• More flexible work arrangements (48%)
• More stock options (40%)
• Insurance programme (36%)
• More paid time off (34%)
• A one-time signing bonus (25%)  

"While competitive pay remains a cornerstone of talent attraction, non‑financial incentives can be equally influential in negotiations," Alexander said.  

"Employers are embracing more creative and flexible options to meet candidate expectations, particularly when hiring pressures are high and salary budgets are tight."  

Assessing a candidate's value  

But employers are also being strategic when it comes to negotiations. Alexander noted that employers consider a range of factors in assessing a job candidate's value.  

The top factor that employers consider during negotiations is an employee's people management responsibilities (38%), according to the findings.  

Employers are also putting a premium on candidates with highly specialised skills (37%) and years of experience (33%). Other factors that they consider during negotiations include:  

• Filling an urgent hiring need (36%)
• Scarcity of qualified talent in the market (33%)
• Seniority of the role (32%)  

"We're seeing a consistent trend in how employers assess value during salary negotiations," Alexander said.  

"Companies consider a range of factors, with technical expertise, specialised skills, and strong soft skills often carrying the most weight."  

Employers' willingness to negotiate stems from their positive economic outlook for New Zealand, with 84% saying it will positively impact their approach to setting salaries for staff in the next 12 months.  

It also comes amid concerns of brain drain in the country, after Stats NZ logged a record net loss of 45,900 in the April 2024 year.  

This recently slowed, however, to an annual net migration loss of 40,000 New Zealand citizens in 2025. More than half (61%) of those who departed the country also migrated to Australia, according to the latest estimates from Stats NZ.  

"While many employers were cautious about stretching offers last year, the combination of a tightening skills market and a shifting economy is creating a more optimistic outlook for 2026," Alexander said.  

"Even with organisations continuing to remain mindful of budget constraints, we are seeing greater flexibility and a growing willingness to offer more for the right talent."