What’s the pay rate, mate?

If you ever heard the answer “we’re paying ‘market rate’ for this position” and wondered what they meant by ‘market rate’?

Market rate is the renumeration that is typically paid for a particular job in a specific location.

But, what if you’re the only Rocket Engineer in Miller’s Flat? What is the ‘market rate’ then?

Competitive pay is essential for attracting and retaining talent and in rural areas, there is no set ‘market rate’ for many of our jobs. With the cost of living in New Zealand rising all the time, it can be tough to strike a balance between paying your employees fairly and keeping your business afloat and with Central Otago being one of the more expensive areas of the country to live, how do we make sure the wages enable people to pay their bills, and stay here? 

You can go down a few rabbit holes trying to work out a pay bracket for a certain job in a certain sector but how do you really know you’re pitching it right or if it’s being pitched well to you? 

For up-to-date information on payrates, you can look at job boards like Seek, Trade Me Jobs or check government sites (MBIE, Statistics NZ) for official wage data. There’s also free access to annual Salary reports issued by recruitment organisations across more common sectors such as medical, legal, education and trades. 

As an employer, ask yourself what is the cost right now a week/month/year of not having that key person in the team? Crunching numbers often ends with the realisation that it could be a lot! 

Consider the added stress on yourself and potentially other employees of being understaffed. Well-Being in the Workplace is something we’ve previously covered here. Through this exercise you can start the process to work out a salary range/hourly rate that your business can afford and the growth and increased revenue trajectory you would be looking at based on clearly communicated expectations. What investment you can give, and what you can offer to make the role attractive to get the right person for the job!

Savvy employees use ‘market rates’ to make informed career choices. If you're thinking about starting your career, switching jobs, or relocating, it's important to research the market rates for your desired role and location. This will give you a good idea of what salary to expect.

As an employer negotiating salaries, be sure to consider the skills, experience, and contributions that person will bring to the company. You may also be in a position to factor in other benefits, such as flexible work arrangements, healthcare, professional development opportunities or whatever else might be on the table to sweeten that ‘market rate”. Is there a clear path to advance their career through growth in the business? This can be a good option for a higher salary in the long term.

Increasingly, individuals are opting for lower-paying positions in companies that prioritise work-life balance and uphold values aligned with environmental or community impact, reflecting a genuine commitment to making positive contributions and meaningful change. This direction of focus is encouraging, and it's hopeful that this trend continues to guide our collective efforts in the long run.

That being said, bills still need to be paid so balancing fair compensation with a positive work environment, career advancement opportunities, meaningful work, and a healthy work-life dynamic can be a win-win situation for all! 

At EASI NZ we have a wealth of local knowledge and insights into different industry roles and are always happy to offer support in this area.