Avoid These Common Salary Review Mistakes That Cost Your Business
Frog Recruitment
Find the job you love with Frog Recruitment in 2024. 2023 NZ Excellence in Candidate and Client Service Award Winners.
As businesses approach the end of the year, salary reviews become a focal point for organisations and employees alike. These reviews not only impact financial well-being but also play a significant role in fostering employee satisfaction, retention, and overall morale. Amid rising living costs and a competitive job market in New Zealand, salary reviews are an opportunity to solidify trust and commitment between employers and their teams.
Recent data indicates that New Zealand’s median annual salary has seen steady growth, but significant disparities remain, particularly across industries grappling with economic uncertainty. Meanwhile, trends such as “quiet quitting” and heightened employee expectations highlight a growing need for fairness and transparency in remuneration practices. Employers who ignore these factors risk losing talent, incurring higher recruitment costs, and damaging workplace morale.
Additionally, businesses are increasingly recognising that pay equity and clear communication are critical to sustaining a motivated workforce. Unequal pay practices and the absence of transparent salary review processes can exacerbate dissatisfaction, particularly as employees become more vocal about expectations. Employers need to consider not only legal compliance but also how they align with market competitiveness and employee perceptions. The cost of inaction is significant, with studies consistently showing the financial and cultural damage caused by undervaluing staff. A well-structured salary review process is not just about numbers; it is about creating an environment where employees feel valued and supported.
“If you’re not explaining salary decisions to individuals, you risk losing their trust.”
During the NZ Market Update, Shannon Barlow , NZ Managing Director of Frog Recruitment , and Lizzie van Winden , Health, Safety, and Environment Manager at Accor , explored the complexities of salary reviews. They underscored the importance of aligning salary reviews with broader workforce strategies, ensuring compliance, and fostering trust.
One key point was the importance of transparency in the process. Employers should clearly communicate the criteria and methods used in salary decisions. Lizzie explained, “You’ve got to respect your team. If you’re not explaining salary decisions to individuals, you risk losing their trust.” Shannon reinforced this by stating, “The last thing you need is a gap in expectations or for outcomes to come as a surprise. Setting the context early in the year can mitigate these challenges.” These insights highlight how proactive communication year-round can reinforce trust and... [ Read full insights ]
The Wave of “Revenge Quitting" in 2025
The workplace has been a whirlwind of change in the past few years, with trends like "quiet quitting" dominating headlines. Now, as 2025 approaches, another phenomenon is set to shake the employment market: “revenge quitting.” Coined as a dramatic buzzword, the term refers to employees who feel undervalued or stuck in their roles and are ready to resign as soon as better opportunities arise. This movement is underpinned by compelling statistics. A recent survey by Glassdoor found that nearly two-thirds of professionals in the United States feel stuck in their careers, with many signalling intentions to quit once the job market improves. The sentiment isn't limited to the US; similar trends are emerging globally, including in New Zealand.
Closer to home, a poll revealed that 59% of New Zealand employees plan to seek new jobs when the employment market becomes more favourable. This dissatisfaction reflects a broader issue: employees are quietly enduring roles that no longer fulfil them, waiting for the right moment to leave. For employers, the message is clear: complacency could come with a high price. The year 2025 may see a resurgence of mass resignations reminiscent of the “big quit,” unless organisations actively address employee satisfaction and retention strategies.
The driving force behind revenge quitting is often linked to a mismatch between employee expectations and workplace realities. The pandemic reshaped how employees view their careers, with many now prioritising flexibility, growth opportunities, and workplace culture. When these expectations aren’t met, discontent brews. This highlights a critical area for employers to address—not just reacting to immediate concerns but building environments that align with evolving employee values and needs.
“The key message for employers is to avoid complacency and, as always, to do right by your people.”
In a recent NZ Market Update, Shannon Barlow, Managing Director of Frog Recruitment NZ, unpacked the concept of revenge quitting and its implications for the workforce. Kicking off the NZ Market Update, Barlow acknowledged the dramatic flair of the term but quickly pointed out its relevance: “These American buzzwords are getting dramatic, aren’t they? But actually, it turns out... [ Read full insights ]
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