Published on the 17/06/2026 | Written by Heather Wright

Demand strong in tight market…

Salary growth may be modest, but the fight for tech skills is far from over.

The Hays Salary Guide FY26/27 shows a market caught in an uncomfortable middle: Pay rises are modest or non-existent for many workers, yet employers continue to report widespread skills shortages across industries.

Despite softer salary movement, organisations are still struggling to find the capabilities they need. Hays reports that 82 percent of organisations experienced skills shortages over the past year, up from 79 percent the year prior, with Australia (79 percent) feeling it harder than New Zealand (75 percent). Tech, however, isn’t feeling the pain as badly as many other sectors – Hays has the ‘technology’ category experiencing skills shortages seven percent lower than average, with ICT 14 percent lower than average and software and services three percent lower. Hurting the most is the engineering sector – it is +12 percent above average when it comes to shortages.

“Budgets may be tighter, but critical tech roles don’t wait.”

At the same time, the guide highlights that pay growth has been modest, with hirers reporting an average salary increase of 3.3 percent in New Zealand and 4.0 percent in Australia across all roles. Many (42 percent), however, are reporting either no increase, an increase below 2.4 percent or even a decrease.

The result is a market where demand remains strong, but pricing power is constrained. That’s forcing a shift in how organisations compete. Instead of relying purely on salary increases, employers are being pushed to look at broader workforce strategies, particularly in high-demand areas such as technology and digital.

Robert Half’s 2026 New Zealand Salary Guide reinforces the trend, noting that organisations are rethinking compensation strategies to attract professionals with the specialised skills needed to ‘maintain a competitive edge’ particularly as digital transformation continues to drive hiring decisions.

What roles are earning

While overall salary growth is muted, pay for technology roles, particularly specialised ones, is holding up.

The Hays salary guide includes detailed benchmarks across dozens of tech roles in Australia and New Zealand.

Technology salaries in New Zealand ranging from around $55,000 to $80,000 for entry-level service desk roles, while the same role in Australia garners from $51,000 to $80,000.

Those with SAP expertise can also command higher salaries, with the difference between Australia and New Zealand also more stark – and the differences between Australian states also more apparent. While an SAP Functional Consultant will see a ‘typical’ salary of $200,000 in NSW, in Queensland it drops to $160,000, and in Tasmania and NT its $145,000 and $150,000 respectively. Across the ditch, Kiwis in the same role will see a typical salary of $160,000.

More senior Dynamics 365 professionals are also commanding big salaries, with functional consultants on par with their SAP counterparts, as are Oracle and Salesforce functional consultants.

Australian AI engineers are seeing typical wages of $155,000 (Tasmania) to $180,000 (NSW and ACT), while their Kiwi counterparts are typically receiving $165,000 (Christchurch) to $180,000 (Auckland). Senior AI engineers meanwhile are commanding up to $250,000 in NSW. It’s the GenAI engineers, however, who are reaping the big returns, with typical ACT salaries $220,000 – and up to $285,000. NSW follows closely with a typical salary of $215,000 and a high end of the range of $280,000. In New Zealand, it’s much more muted, with Auckland genAI engineers commanding the highest typical salary of $170,000, and up to $210,000.

Data and analytics roles are also showing strength, as are cybersecurity roles. CISOs in Victoria are seeing between $200,000 to $350,000, with a typical salary of $280,000; NSW and ACT are seeing between $200,000 to $340,000, while New Zealand CISOs are seeing between $180,000 to $350,000.

Robert Half data meanwhile shows entry-level IT support roles sit around NZ$60,000 to $70,000, while more experienced systems administrators can command up to $95,000. More specialised roles attract significantly higher salaries. An AI engineer can command $120,000 to $160,000, with an AI tech lead, driving the design, implementation and delivery of AI solutions, commanding up to $220,000.

Hiring pressure and retention risks

Robert Half’s IT-focused data shows talent shortages, digital disruption and economic uncertainty are all shaping the tech hiring environment, with organisations recognising that skilled IT professionals are critical to maintaining operations and competitiveness.

Even in a more cautious market, hiring urgency remains a factor. A significant proportion of tech leaders say the need to fill roles quickly is influencing their willingness to increase salary offers during negotiations. In other words, budgets may be tighter, but critical tech roles don’t wait.

That tension is reflected in how organisations are allocating compensation. While overall salary growth is moderating – Robert Half puts increases for most employers at three to five percent – employers are still prepared to pay more for candidates with in-demand skills, particularly those tied to ‘rare or emerging skills’ particularly in AI, data engineering and automation. Those three areas are also seeing counteroffers becoming more frequent as companies compete for talent.

With salary budgets constrained, both Hays and Robert Half point to a broader shift in how organisations compete for talent. Non-monetary factors, including flexibility, training opportunities and career development, are becoming increasingly important in attracting and retaining skilled employees.

The rise of hybrid work also reflects this shift. Hays reports hybrid arrangements are now the norm for a large proportion of employees, signalling that flexibility is no longer a differentiator, but an expectation.

At the same time, employers remain willing to negotiate for candidates who bring specialised skills and can deliver immediate impact.

While a topline glance might suggest a relatively stable labour market, the data suggests pressure is building.

Hays’ findings show many professionals are feeling underpaid, though despite the rising cost of living, dissatisfaction scores are largely in line with those seen last year, with 29 percent feeling dissatisfied or very dissatisfied (seven percent) and 29 percent feeling neutral. Just nine percent feel very satisfied, with the most satisfied tending to be more senior, higher income earners who had had a greater salary increase in the past 12 months.

Among tech workers, that isn’t translating into increased job hopping, however, with IT managed service providers, ICT and technology workers among those most likely to have longer tenures.

AI demand rising faster than capability

Compounding the issue is the acceleration of AI adoption.

Hays data, which is drawn from surveys with more than 7000 people across Australia and New Zealand, shows that 60 percent of employees are already using AI at work, but only a minority (22 percent) have received formal training. That flies in the face of what employers are saying, with just 27 percent of employers reporting no AI training or support is provided.

That gap is creating a new layer of demand, not just for technical roles, but for employees with the practical capability to apply AI effectively. Hays notes that on the hiring side, no agreed standard exists for evidencing AI capability. “[Employers] are split: 69 percent point to portfolio or practical examples, 52 percent to internal assessment, 49 percent to professional references, while 43 percent say none of the listed credentials suffice. Forty percent are seeking university or formal academic qualifications.

“The competency question is open and that ambiguity is itself an opportunity to bring structure.”