Article: Local Government Remuneration Report – what you need to know

This month, Strategic Pay released its bi-annual Local Government Remuneration Report. In this survey, we gathered research from 80 councils and similar organisations, as well as almost 30,000 incumbents, ranging over 263 different jobs in local government. Around a quarter of the participants were from metropolitan areas across New Zealand – another quarter were from the South Island, with the remaining half from the rest of the North Island.

A few findings of the survey

Factors that contribute to salary increases:

1. Market remuneration data (94 per cent)

2. Performance (86 per cent)

3. Affordability (64 per cent)

The survey also found that around two-thirds of participants are provided 20 days off per year, and around one-third receive 25. Many of the local government employees surveyed said they received benefits; more specifically, 56 per cent claim to be enrolled in KiwiSaver. The other benefits included life insurance, medical insurance and additional leave – all rolling in at only two per cent of participants.

One of the other significant findings had to do with gender imbalance in management. According to the survey, around 85 per cent of CEOs in local government are male, and 74 per cent of other Senior Management positions are also held by men.

Key takeaways

There are a number of things we can learn from this survey, particularly in reference to salary increases. Though an employee’s performance and affordability has an effect on whether or not that person is offered a raise, the market remuneration data clearly plays the largest role. This means that organisations are paying close attention to what other similar jobs are offering their employees and suggests that companies should use this information to help them make their remuneration decisions.

One of the other big trends the survey noticed was, of course, that males have a much stronger presence in higher level management than females. This is a societal issue that is slowly changing, but it’s still worth noting this imbalance and trying to remedy it.

Strategic Pay’s survey reports

Here at Strategic Pay, we are continuously conducting research to help businesses become more informed about remuneration. If your company is interested in purchasing the Local Government Remuneration report, or finding out about what other remuneration reports we offer, please feel free to contact a member of the Market Information team today.

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