NZ firms lean on scales for new roles, market for old

New research from recruiter Robert Half indicates that New Zealand employers use different methods to set pay for established roles than for new or redefined positions, with internal salary scales taking the lead when there is no hiring history.

The survey, commissioned by Robert Half among 250 finance, accounting, and IT and technology hiring managers across New Zealand, found that companies typically draw on a mix of external market references and internal inputs. The balance shifts depending on whether the role is one the organisation hires for regularly.

Familiar roles

For roles that employers hire for frequently, online salary guides ranked as the most cited input, with 44% of respondents using them. Industry benchmarking tools followed at 40%.

Direct manager recommendations also featured strongly. Some 39% of employers said they used recommendations from the direct manager when setting pay for familiar roles. Internal comparison points remained close behind, with 38% referencing compensation of internal peers.

Company performance and profitability also played a material part in decision-making for established roles. The survey found 37% of employers used company performance or profitability as an input.

This mix suggests that for common hiring needs, employers often check market data and then validate it against internal constraints and existing pay structures.

New roles

For roles that are new to the organisation, the survey found a stronger reliance on internal mechanisms. Fixed salary scales ranked first, cited by 40% of employers.

Recommendations from the direct manager ranked second at 38%. Guidance from HR or internal salary benchmarks ranked third at 37%.

Company performance and profitability remained a factor for new roles, with 36% of employers referencing it. Compensation of internal peers ranked fifth at 32%.

The results point to a more conservative approach when employers set pay for roles without historical precedents inside the organisation. Internal pay frameworks appear to set the first boundary, with management and HR inputs shaping the final figure.

Market signals

Megan Alexader, Managing Director at Robert Half, said the research showed that external market references still have a central role in salary setting for familiar roles.

"Online salary guides, like Robert Half's, remain the top driver of pay for familiar roles, indicating that many businesses continue to take a data-driven approach to salary decisions," said Megan Alexader, Managing Director, Robert Half.

She said internal expertise remained important, and warned against relying on it in isolation.

"While internal expertise and experience are valuable for salary benchmarking, relying on them alone can leave businesses misaligned with the market for both existing and new roles. Companies that balance internal performance with up-to-date market data are better positioned to attract and retain in-demand professionals, especially in sectors where salary expectations move quickly.

"With job structures evolving and skill demands changing, flexibility and adaptability are now critical to effective workforce planning. This is driving greater reliance on market-informed salary setting for new and emerging roles, signalling a wider shift towards data-driven decision making," concludes Alexander.

The survey focused on hiring managers working across small and medium-sized businesses, large private companies, publicly listed organisations, and the public sector. It covered decision-making among employers recruiting in finance, accounting, and technology functions.

The results add to an ongoing debate in New Zealand about pay transparency, internal equity, and competition for specialist skills. Employers face pressure to keep pay bands consistent internally while also responding to changes in market rates for high-demand roles.

The research suggests that the role of line managers remains central across both established and new roles. It also shows that HR and internal benchmarks take on more weight when job titles and responsibilities change or when employers create positions for emerging needs.

Robert Half said Alexander was available to discuss salary trends and compensation strategies for 2026.