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Dollars and Sense

Dollars and Sense

It’s not unusual to walk into a client meeting and be confronted with a salary survey from an international or offshore recruitment firm.

I won’t rant on about my frustration with that, suffice to say, it bugs me because those surveys simply aren’t relevant to the building industry in New Zealand.

My “real world view” is based solely on what I see coming across my desk and the levels at which we are placing our candidates.

With this real world view in mind I have provided the median annual salary across the last 12 contracts we have filled for the four levels of sales role relevant to our market, without any observation of age or experience.

  1. Territory Manager – $80,975 (supplier calling on merchant; may also include some end user or GHB work).
  2. Business Development Manager – $92,500 (supplier calling on a specialist client base, specifier/contractor/commercial firms).
  3. Key Account Manager – $105,000 (supplier calling on buyers/category managers within resellers).
  4. Merchant Representative – $82,600 (merchant rep calling on residential/commercial builders).

The obvious and glaring question here is around bonuses.

There is however a general rule that exists, which is that 10-15% of base salary will be available based on revenue achievement and/or company performance.

Merchant representatives had the widest variation of base salary amounts but typically are on some form of percentage-based commission.

 

A QUESTION OF GEOGRAPHY

There’s also very much a question of geography when looking at the above figures.

It’s safe to assume that Auckland salaries are on average 10% higher than the rest of the country, commensurate with demand and cost of living.

However, over the last two years, Christchurch has also been at these levels and sometimes higher, based purely on demand.

Having said this, in some cases we are finding salaries in this area to be returning to pre-earthquake levels.

Another salient point to consider is the hourly rate when thinking salary, especially in this age of work-life balance.

For example it could be argued it’s better to work a 40 hour week for $70k than a 55 hour week for $80k.

It seems to me that makes sense.