Otago falls behind in average salary levels

"I strongly suspect that the Otago figures are inclusive of Central Otago seasonal worker...
"I strongly suspect that the Otago figures are inclusive of Central Otago seasonal worker components" - OSEA chief executive John Scandrett
Seasonal workers and part-time work by students could be the reason the average Otago salary is well down the list published yesterday by SEEK New Zealand.

The average Otago salary is just below $59,000 with only Manawatu, Hawkes Bay and Marlborough below Otago.

Neighbour Southland is six places above Otago on $62,797.97.

Like Otago, Hawkes Bay and Marlborough have large numbers of seasonal fruit pickers.

Since September, the national average increased by $619 to $69,140.

The Otago Daily Times asked Otago-Southland Employers Association chief executive John Scandrett about the disparity in the average salaries for the two regions.

"Unfortunately, we do not have the specific comparable data for the Otago and Southland provinces.

But from past experience, I would assess the local regional averages across most employment sector categories to be tracking more or less in alignment with the South Island levels," he said.

Traditionally, the average salary levels within the South Island generally tracked under those seen nationally, he said.

The association's latest wage and salary survey, published mid-2010, showed no significant alterations to that situation.

A senior accounts clerk's mean national average salary was $53,000, equating to $57,000 in Auckland and $50,000 within the South Island.

A financial controller's national average level of about $140,000 meant a level of $148,000 in Auckland and $122,000 in the South Island.

A construction project manager's national average was about $104,000 - $116,000 in Auckland and $99,000 in the South Island.

"It is difficult to comment widely on the differences in the averaged annual salary levels the SEEK survey has presented for Otago and for Southland.

However, I strongly suspect that the Otago figures are inclusive of Central Otago seasonal-worker components .

"They also could take into account situations where Dunedin students hold part-time employment to support study commitments."

Those cases, which were significant in number, would serve to explain to a large extent the lower Otago average level against the Southland figure, Mr Scandrett said.

In Southland, there was an emphasis on more long-term and full-time employment, which would bump up the average salary.

SEEK senior executive Helen Souness said the increase in the national average was positive for workers but she cautioned employers on what expectations could be this year.

After two years of widespread pay freezes and retrenchment, the job market was stabilising and employees no longer felt "grateful" just to have a job.

The new year was traditionally when people looked at where they were in their career, and those who had not received a pay increase recently might be motivated to look at other options, she said.

"Many employees feel the only way to receive a significant increase in their salary is through a change in employer.

As the employee market changes in the new year, companies who want to keep valuable staff members will need to review the market rate for their roles and adjust salaries accordingly," Ms Souness said.

Mr Scandrett said there had been a substantial rise in enrolments for the business training programmes run by the association and the New Zealand Institute of Management.

"This fact demonstrates to us that management personnel in many different organisations have refocused positively on the important role employees play in running a business and that companies have been willing to outlay significant expenditure to keep staff fully skilled."

Mr Scandrett was aware local management had been reviewing salary levels and the add-on range of benefits offered to key people.

There were local cases where wider benefits had been granted and where bonus payments had been made - some of those offered in addition to a rise in salary.

A high degree of caution should be applied to assessing what was happening across the local salary front, he said.

There were still many areas where "recession spill-over" was being experienced.

That was being seen in the service sector, and particularly across hospitality and retail activities.

"There is a strong case for saying that where positive salary shifts are being made, these are confined to manufacturing and niche production areas and that selected key staff are the main recipients," Mr Scandrett said.

 

AT A GLANCE
Location Average     Salary Package
Wellington                  $74,393
Auckland                     $71,103
West Coast                $70,549
Taranaki                     $69,927
Northland                   $63,604
Southland                   $62,798
Waikato                      $62,269
Canterbury                 $61,639
Gisborne                     $61,126
Bay of Plenty              $59,604
Tasman                      $59,464
Otago                         $58,888
Manawatu                  $58,734
Hawkes Bay               $57,510
Marlborough               $52,785
National average        $69,140

 

 

The average Otago salary is just below $59,000 with only Manawatu, Hawkes Bay and Marlborough below Otago.

Neighbour Southland is six places above Otago on $62,797.97.

Like Otago, Hawkes Bay and Marlborough have large numbers of seasonal fruit pickers.

Since September, the national average increased by $619 to $69,140.

The Otago Daily Times asked Otago-Southland Employers Association chief executive John Scandrett about the disparity in the average salaries for the two regions.

"Unfortunately, we do not have the specific comparable data for the Otago and Southland provinces.

But from past experience, I would assess the local regional averages across most employment sector categories to be tracking more or less in alignment with the South Island levels," he said.

Traditionally, the average salary levels within the South Island generally tracked under those seen nationally, he said.

The association's latest wage and salary survey, published mid-2010, showed no significant alterations to that situation.

A senior accounts clerk's mean national average salary was $53,000, equating to $57,000 in Auckland and $50,000 within the South Island.

A financial controller's national average level of about $140,000 meant a level of $148,000 in Auckland and $122,000 in the South Island.

A construction project manager's national average was about $104,000 - $116,000 in Auckland and $99,000 in the South Island.

"It is difficult to comment widely on the differences in the averaged annual salary levels the SEEK survey has presented for Otago and for Southland.

However, I strongly suspect that the Otago figures are inclusive of Central Otago seasonal-worker components .

"They also could take into account situations where Dunedin students hold part-time employment to support study commitments."

Those cases, which were significant in number, would serve to explain to a large extent the lower Otago average level against the Southland figure, Mr Scandrett said.

In Southland, there was an emphasis on more long-term and full-time employment, which would bump up the average salary.

SEEK senior executive Helen Souness said the increase in the national average was positive for workers but she cautioned employers on what expectations could be this year.

After two years of widespread pay freezes and retrenchment, the job market was stabilising and employees no longer felt "grateful" just to have a job.

The new year was traditionally when people looked at where they were in their career, and those who had not received a pay increase recently might be motivated to look at other options, she said.

"Many employees feel the only way to receive a significant increase in their salary is through a change in employer.

As the employee market changes in the new year, companies who want to keep valuable staff members will need to review the market rate for their roles and adjust salaries accordingly," Ms Souness said.

Mr Scandrett said there had been a substantial rise in enrolments for the business training programmes run by the association and the New Zealand Institute of Management.

"This fact demonstrates to us that management personnel in many different organisations have refocused positively on the important role employees play in running a business and that companies have been willing to outlay significant expenditure to keep staff fully skilled."

Mr Scandrett was aware local management had been reviewing salary levels and the add-on range of benefits offered to key people.

There were local cases where wider benefits had been granted and where bonus payments had been made - some of those offered in addition to a rise in salary.

A high degree of caution should be applied to assessing what was happening across the local salary front, he said.

There were still many areas where "recession spill-over" was being experienced.

That was being seen in the service sector, and particularly across hospitality and retail activities.

"There is a strong case for saying that where positive salary shifts are being made, these are confined to manufacturing and niche production areas and that selected key staff are the main recipients," Mr Scandrett said.

 

AT A GLANCE
Location Average     Salary Package
Wellington                  $74,393
Auckland                     $71,103
West Coast                $70,549
Taranaki                     $69,927
Northland                   $63,604
Southland                   $62,798
Waikato                      $62,269
Canterbury                 $61,639
Gisborne                     $61,126
Bay of Plenty              $59,604
Tasman                      $59,464
Otago                         $58,888
Manawatu                  $58,734
Hawkes Bay               $57,510
Marlborough               $52,785
National average        $69,140

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