Kiwis more open to risk salary cuts than Aussies

Kiwis more open to risk salary cuts than Aussies | Insurance Business

Kiwis more open to risk salary cuts than Aussies
New Zealanders are more likely than Australians to take a base salary cut for the opportunity to earn more through performance-based bonuses, according to a new survey by recruitment experts Hays.

The survey revealed 68% of Kiwis were willing to bet on themselves compared to 59% of Australians.

In the online poll of 1,510 people, Hays found that 60% would take a base salary cut of up to 20% in order to receive a bonus based on their performance, with a further 8% open to taking a cut of more than 20% for the same opportunity.

When the same poll was run in Australia, only 46% said they would take a base salary cut of up to 20% in order to receive a bonus based on their performance, while a further 13% said they’d be willing to take a cut above that level.

The final 41% of Australians, compared to 32% of New Zealanders, were not willing to take a base salary cut for the chance to earn more in a performance-based bonus.

Hays’ managing director in New Zealand, Jason Walker, said this suggested that Australians are more risk-averse when it came to salary packages than we are, which may be unexpected to some.

“It is surprising that Kiwis seem to be more willing to bet on themselves than our Australian cousins. We tend to think of Australians as far more bullish and confident, particularly on the sporting field,” Walker said.

“However when it comes to the world of work, it is New Zealanders who are more confident in their performance and want their overall compensation package to reflect their results.”

Walker said recognition for good work was a key component of staff retention.

“For New Zealanders at-risk pay is a way to provide that recognition through their compensation package,” he said.

“It does make sense that employees who have been loyal to their employer through challenging times now want to share financially in the rewards of a more prosperous economy.

“Showing that they are happy to reduce their base income for the chance to potentially receive more in a bonus based on their performance also suggests that New Zealanders are prepared to accept an element of risk.

However, he added: “This typically only occurs when economic optimism is high.”

The poll was conducted in January and February 2015.