Research on Wages and Costs of Education and Training

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Introduction
Survey Methodology
Results Overview
Remuneration for BUILDERS
Remuneration for PAINTERS
Remuneration for BRICKLAYERS
Remuneration for MECHANICS
Remuneration for ELECTRICIANS
Remuneration for ENGINEERS
Remuneration for PLUMBERS
Remuneration for HAIRDRESSERS
Remuneration for TRAVEL AGENTS
Remuneration for CAREGIVERS
Remuneration for BEAUTY THERAPISTS
Remuneration for CAFÉ WORKERS
Remuneration for RETAIL SALES ASSISTANTS
Remuneration for ADMINISTRATORS

INTRODUCTION

Sheffield Ltd has been retained by the Ministry of Women’s Affairs (MWA), to research wages and costs of education and training in occupations that use work-based training. A range of occupations has been surveyed, some of which tend to attract young women and others young men. This survey is not intended to be a definitive survey of wages and costs of training, but provides a snapshot of current market trends and practices.

Why is MWA interested in this?

As part of its mandate to improve the economic independence of New Zealand women, MWA is interested in ensuring that information on wages and the costs of education and training in a range of occupations is available, so that young people are able to make informed choices about careers.

The aim of this project was to gather and analyse indicative data on wages and costs of education or training in a range of trade occupations and other occupations which use work based training (rather than tertiary education), in order to provide a preliminary indication of the financial rewards associated with these careers.  

What will the information be used for?

The research is intended to give a preliminary indication of wages and costs of training, rather than definitive results.  The results of the survey will be used to inform the work of MWA and other government agencies.  For example, the research may inform future research projects on young people’s career decisions, or support the need for greater data.

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SURVEY METHODOLOGY

In order to gather this information we selected 7 predominantly male occupations that use work-based training and 7 predominantly female occupations that use work-based training. For most of these occupations we then contacted the relevant Industry Training Organisations (ITO’s) to provide information on the typical costs of training. We then contacted over 150 organisations to provide information on the typical wages and costs of training. We received information back from 115 organisations. These organisations were mostly confined to the Auckland region and as a result may not be a true representation of the overall New Zealand population.

We surveyed the following male-dominated occupations:

• Builder
• Painter
• Bricklayer
• Mechanic
• Electrician
• Engineer
• Plumber

We surveyed the following female-dominated occupations:

• Hairdresser
• Travel Agent
• Caregiver
• Beauty Therapist
• Café Worker
• Retail Sales Assistant
• Administrator

Once we had contacted the appropriate person in the organisation we asked them the following questions:

• Does your organisation employ apprentices/entry-level trainees?  How many do you have at the moment?
• What is the typical starting wage rate for apprentices in your organisation?
• How long does it typically take to become fully qualified?
• What is the typical wage rate once an apprentice is fully qualified?
• What is the typical wage rate once qualified with five years experience?
• What are the typical costs of training for the apprentice to become fully qualified (such as fees, equipment, time off work)?
• Does your organisation cover those costs?
• What is the typical time commitment, outside of work hours, an apprentice needs to put in to complete their training?
• What is the gender make-up in your organisation?

Averages and medians for each industry were then calculated for wages, gender make up, costs etc. Gender make up for each industry was calculated by taking the midpoint or median of the percentages reported by the individual companies we contacted.

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RESULTS OVERVIEW

With all of the male-dominated occupations there was a clear “Apprentice” level role with a formalised training agreement in place. In the female-dominated occupations there was not often an apprenticeship structure but simply entry-level roles for those with no or few qualifications. Without a clear apprenticeship structure many of the female-dominated occupations had a variety of training options available which were primarily internal and customised. Some did not actually require any formal training.

Many of the participants were unable to state the exact cost of training for their employees. We have relied on information provided by the ITO’s and other training organisations to show the costs of training. In addition, few of the participants could state how many hours outside of work time an employee spent on their training. Therefore the results for this question have not been presented.

Many of the organisations contacted could not provide a specific wage rate for each of the three levels surveyed as they may not have had someone employed at that level. In those cases employers provided a range of what they thought would be typical. We used the midpoint of that range as the typical hourly wage. As the graph below shows, there is a clear progression from starting wages through to wages once qualified with 5 years experience. We can also see that the male dominated occupations generally receive higher wages once they are qualified and significantly more once they have 5 years experience. The exceptions to this are Hairdressers and Travel Agents. Hairdressers had the highest median hourly wage, of all the occupations surveyed, after 5 years experience.

All of the Hairdressers contacted for this survey had a commission component as part of their salary. As most of the sample were from well known salons and were from the Auckland area they probably had a greater potential to earn sizable commission due to the high volumes these salons usually deal with. Most Travel Agents also have commission as part of their salary; very successful travel agents can earn up to as much as $100,000 per annum. Other perks such as discounted travel, which is of significant value, were not counted in their remuneration package.

Starting wages were often dictated by the legal minimum wage. So for those employing trainees under 18 years of age, the hourly wage could be as low as $8.20/hour. For trainees over 18, the starting wage was likely to be closer to $10.25/hour.

When comparing the wages of all male-dominated occupations with all of the female-dominated occupations the distinctions are clear as experience increases. The graph below shows the median starting wages for both male and female-dominated occupations are very similar. Female-dominated occupations received slightly less, with a median of $10.50/hour, compared to $10.58/hour for the male occupations. However, once an employee in a male-dominated occupation has completed their apprenticeship, their wages jump to a median of $19/hour whereas the equivalent level for female-dominated roles was only $12.50/hour. Once an employee has 5 years experience, the male-dominated roles again generally received more at $24/hour compared to only $16.50/hour for female-dominated roles.  

In making comparisons between the male and female trades, the male dominated roles have clear apprentice structures where a clear career path and wage rate are evident. In most cases in the male dominated roles, apprentices had the opportunity to have their fees covered by their employer. However the female dominated trades tended to have in-house training or required training before entering the industry. While in-house training tended to be covered by the employer any training before entering the industry was usually covered by the employee themselves, including the loss of income while completing the training. This is demonstrated in the following table.

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• * indicates opportunity for employee to have training costs paid by employer
• ** indicates in-house training covered by employer
• *** plus living costs and foregone earnings for one year
• **** training not a requirement for role
• ***** training a prerequisite for industry

For the male-dominated occupations, many of the employers stated how difficult it is to find good apprentices. There is a feeling that the education system has encouraged young people into tertiary education and neglected the trades and the industry is suffering. Employers were also combating the perception that trades are low paying jobs. On the contrary, there is a clear opportunity to earn substantial remuneration as experience increases, especially so if the individual is able to run their own business, which is the likely route for many trades people.

In the female-dominated occupations, there was again opportunity to earn higher remuneration by owning their own business, especially with the likes of Café Workers, Hairdressers and Beauty Therapists. With some of the female-dominated occupations there were also significant opportunities to earn commission. This was particularly so for Travel Agents, Hairdressers and Beauty Therapists. For other occupations, being employed in large organisations (such as Retail, Travel Agents, Caregivers and Administrators) provided career advancement opportunities beyond their present role.

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REMUNERATION FOR BUILDERS

Market Data

A total of 7 organisations provided information relating to wages and costs of training for Builders. During this survey the title “Builder” and “Carpenter” were used interchangeably as there is often little distinction between the two. A mixture of small, owner/operator builders and large construction companies were included in the sample. Information was supplied on a total of 80 apprentices.

Commentary on Market Data

There was a wide range of starting wages offered to Apprentice Builders, from $9.58/hour through to $22/hour. There was no clear distinction between Apprentice wages for owner/operator builders and those in large construction companies. There was also a wide range for Apprentices once qualified, from $18 to $30/hour although the majority were around $19 or $20/hour. Wages for qualified Builders with 5 years experience ranged from $25 to $35/hour.

Cost of Qualifications

Costs of training varied depending on the training provider but ranged from $3,000 to $3,500. In all 7 of the organisations we contacted, the employer paid the full amount of these fees. It usually took between 3 and 4 years to complete a building apprenticeship, depending on how much time the apprentice devoted to their studies. The norm was 3.5 years.

Other Notes

All of the Builders in this survey were male.

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REMUNERATION FOR PAINTERS

Market Data

A total of 7 organisations provided information relating to wages and costs of training for Painters. A mixture of small, owner/operator painters and large companies were included in the sample. Information was supplied on a total of 13 apprentices.

Commentary on Market Data

Painting Apprentices were the lowest paid of all of our male-dominated occupations. Starting wages offered to Apprentice Painters ranged from $8.20/hour through to $12.50/hour. Once qualified, wages ranged from $15 to $18/hour. Wages for qualified Painters with 5 years experience ranged from $15.50 to $24/hour.

Cost of Qualifications

Costs of training varied depending on the training provider but were typically about $1,300. In all 7 of the organisations we contacted, the employer paid the full amount of these fees. Employers also had to cover for time off taken to attend block courses. Some employers stated that payment of fees was dependent upon the results the Apprentice achieves. Fees were not paid to sit a course the Apprentice had previously failed. It usually took between 3 and 4 years to complete a painting apprenticeship, depending on how much time the apprentice devoted to their studies. The norm was 3.5 years.

Other Notes

All of the Painters in this survey were male.

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REMUNERATION FOR BRICKLAYERS

Market Data

A total of 7 organisations provided information relating to wages and costs of training for Bricklayers. A mixture of small, owner/operator bricklayers and large construction companies were included in the sample. Information was supplied on a total of 19 apprentices.

Commentary on Market Data

As with most of the male-dominated occupations, Apprentice Bricklayers also started on relatively low wages. Starting wages offered to Apprentice Bricklayers ranged from $8.20/hour through to $9.50/hour. Once qualified, Apprentice wages ranged from $14.50 to $19/hour. Wages for qualified Bricklayers with 5 years experience ranged from $16.50 to $25/hour.

Cost of Qualifications

Costs of training vary depending on the training provider but were typically about $1,300. Four of the 7 organisations we contacted paid the full cost of the Apprentices’ training fees. Employers also had to cover for time off taken to attend block courses. It usually took between 3 and 4 years to complete a bricklaying apprenticeship, depending on how much time the apprentice devoted to their studies. The norm was 3.5 years.

Other Notes

All of the Bricklayers in this survey were male.

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REMUNERATION FOR MECHANICS

Market Data

A total of 7 organisations provided information relating to wages and costs of training for mechanics. A mixture of small, owner/operator mechanic workshops and large construction companies were included in the sample. Information was supplied on a total of 15 apprentices.

Commentary on Market Data

Wages for Mechanics were higher than those for Painters and Bricklayers but just below the overall median for the male-dominated occupations. Starting wages offered to Apprentice Mechanics ranged from $8.20/hour through to $11/hour. Once qualified, wages ranged from $17.50 to $24/hour. Wages for qualified Mechanics with 5 years experience ranged from $22 to $27/hour.

Cost of Qualifications

The cost of training for Mechanics was typically about $3,000 and the majority of Apprentices did their training through the Mechanics ITO. Three of the organisations we contacted paid the full amount of these fees. It usually took between 3 and 4 years to complete a mechanic apprenticeship, depending on how much time the apprentice devoted to their studies. The norm was 3.5 years.

Other Notes

All of the Mechanics in this survey were male.

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REMUNERATION FOR ELECTRICIANS

Market Data

A total of 7 organisations provided information relating to wages and costs of training for Electricians. Information was supplied mostly from large manufacturing and contracting organisations. In addition, information was received from the ECANZ (Electrical Contractors Association of New Zealand) March 2006 member survey on wages. Excluding the ECANZ survey, information was supplied on a total of 154 apprentices.

Commentary on Market Data

Starting wages for Apprentice Electricians ranged from $10.73/hour through to $14/hour. Large organisations tended to offer higher starting wages for Electrical Apprentices. This was shown by the fact that the rate for Apprentices from the ECANZ survey was much lower than our sample median. The ECANZ survey was a much broader sample, many of whom were owner/operator Electricians, while our survey had data from mostly large organisations. For qualified Electrical Apprentices wages ranged from $18 to $22.06/hour. Wages for qualified Electricians with 5 years experience ranged from $23 to $27.58/hour.

Cost of Qualifications

Costs of training varied depending on the training provider but ranged from $3,000 to $3,500. Four of the organisations we contacted, paid the full amount of these fees. It usually took between 3 and 4 years to complete an electrical apprenticeship, depending on how much time the apprentice devoted to their studies. The norm was 3.5 years.

Other Notes

Of the Electricians in the survey, 1% were female.

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REMUNERATION FOR ENGINEERS

Market Data

A total of 7 organisations provided information relating to wages and costs of training for Engineers. For this survey the title “Engineer” encompassed occupations that traditionally may have had the title of “Fitter and Turner” or “Fitter and Welder”. Information was also supplied by the Apprenticeship Training Trust of New Zealand (ATNZ) which employs at least 600 Apprentice Engineers who are then seconded out to employers. Information was supplied on a total of 618 apprentices.

Commentary on Market Data

Starting wages for Apprentice Engineers ranged from $8.20/hour, through to $13.28/hour. Once qualified, wages for Engineers ranged from $15.29 to $22.50/hour. Wages for qualified Engineers with 5 years experience ranged from $23 to $30/hour.

Cost of Qualifications

The majority of Engineering Apprentices completed their training through Competenz, the relevant ITO, with fees of approximately $3,900. In all 7 of the organisations we contacted, the employer paid the full amount of these fees. It usually took between 3 and 4 years to complete an engineering apprenticeship, depending on how much time the apprentice devoted to their studies. The norm was 3.5 years.

Other Notes

All of the Engineers in this survey were male.

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REMUNERATION FOR PLUMBERS

Market Data

A total of 7 organisations provided information relating to wages and costs of training for Plumbers. Information was also supplied by the Apprenticeship Training Trust and Masterlink which both employ Apprentice Plumbers who are then seconded out to employers. A mixture of small, owner/operator plumbers and large construction companies were included in the sample. Information was supplied on a total of 184 apprentices.

Commentary on Market Data

Wages for Apprentice Plumbers were typically low at around $8.20 to $8.50/hour. However once qualified, the wages for Plumbers were the highest of the male-dominated occupations in our survey. Wages for qualified Plumbers ranged from $19 to $30/hour. Wages for qualified Plumbers with 5 years experience ranged from $24 to $40/hour.

Cost of Qualifications

The majority of Plumbers did their training through the Plumbing, Gasfitting and Drainlaying ITO where the total fee was $5,000. In 3 of the organisations we contacted, the employer paid the full amount of these fees, while the others did not. It usually took between 3.5 and 4 years to complete a plumbing apprenticeship, depending on how much time the apprentice devoted to their studies. The norm was 4 years.

Other Notes

Less than 1% of the Plumbers in this survey were female.

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REMUNERATION FOR HAIRDRESSERS

Market Data

A total of 7 organisations provided information relating to wages and costs of training for Hairdressers. The organisations included typically had more than one salon. Information was supplied on a total of 21 apprentices.

Commentary on Market Data

Wages for Apprentice Hairdressers were between $8.20 to $10.25/hour, depending on age. Amongst the organisations we surveyed there was a clear consensus for wages for qualified Hairdressers, with almost all stating $14/hour as the going rate. For qualified Hairdressers with 5 years experience, wages ranged from $32.50 to $35/hour making Hairdressers the highest paid of all our occupations at this level.

Cost of Qualifications

There were a variety of training options for Hairdressers. Some of the larger organisations had their own training academies. However, fees for those who had to complete external training ranged from $2,000 to $2,500. For those completing external training, the employer would typically cover the cost of the fees. It usually took 3 years to complete a hairdressing apprenticeship, depending on how much time the apprentice devoted to their studies.

Other Notes

In this survey, 95% of Hairdressers were female.

Most qualified Hairdressers received commission on top of their hourly wages. For some senior Hairdressers their remuneration was based solely on commission. A successful Hairdresser could receive total remuneration in excess of $80,000 per annum.

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REMUNERATION FOR TRAVEL AGENTS

Market Data

A total of 7 organisations provided information relating to wages and costs of training for Travel Agents. However, Travel Agents did not typically have work-based training. The majority of Travel Agents first had to complete specific tertiary training before they could begin work.

Commentary on Market Data

For those who employed “Junior Travel Agents” the wages ranged from $10.50 to $12.00/hour. Wages for qualified Travel Agents ranged from $11.00 to $16.85/hour. Wages for Travel Agents with 5 years experience ranged from $20.35 to $45.08/hour. As with the Hairdressers these wages were inclusive of commission.

Cost of Qualifications

Travel Agents typically had to complete a year of full time study before they could work as a Travel Agent. The cost of these courses ranged from $4,500 to $6,500 depending on the provider. Since this training was pre-employment, the individual bore the cost of this training.

Other Notes

In this survey, 80% of Travel Agents were female.

As most travel agents received commission as part of their package, a very successful Travel Agent could earn up to as much as $100,000 per annum. In addition, Travel Agents received the benefit of discounted travel, which, while not being counted in their remuneration package, was of significant value.

The majority of the travel agents surveyed had shifted to paying annual base salaries rather than hourly rates. In order to provide comparable information, salaries were converted to an hourly rate based on a 40 hour week.

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REMUNERATION FOR CAREGIVERS

Market Data

A total of 7 organisations provided information relating to wages and costs of training for Caregivers. In this survey, a “Caregiver” was defined as someone working in the aged care or home care industry but without formal nursing qualifications. There was no official apprenticeship scheme for Caregivers, and formal training was optional.

Commentary on Market Data

Entry level wages for Caregivers were among the highest in our survey ranging from $11 to $11.50/hour. However, wages rose only slightly once the employee had completed some qualifications, to between $12.30 and $13/hour. For experienced Caregivers, wages remained low at $12.50 to $15/hour.

Cost of Qualifications

Training for Caregivers was provided through the Community Support Services ITO. The training was mostly conducted on-the-job and cost about $1,100. Of those completing external training, the employer typically covered the cost of the fees.

Other Notes

In this survey, 97% of Caregivers were female.

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REMUNERATION FOR BEAUTY THERAPISTS

Market Data

A total of 7 organisations provided information relating to wages and costs of training for Beauty Therapists. Organisations who participated tended to be from the larger, well known beauty therapy organisations. Beauty therapists did not typically have work-based training. All Beauty therapists had to first complete specific tertiary training before they could begin work.

Commentary on Market Data

None of the participating organisations employed any workers that were not already qualified Beauty Therapists. Once qualified (effectively starting wages) Beauty Therapists received between $11 and $14/hour. With 5 years experience Beauty Therapists could expect to earn $18 to $21/hour.

Cost of Qualifications

Training costs for Beauty Therapists were the highest of all of the occupations studied in this survey. Costs ranged from $6,600 to $6,800 for a one year course at two of the largest Beauty Colleges. Since the training was pre-employment, the individual bore the cost of this training. However, most Beauty Therapists received ongoing training, either on-site or off-site and the employer covered those costs.

Other Notes

In this survey all of the Beauty Therapists were female.

Two of the seven organisations contacted offered daily commission on top of base salary to senior Beauty Therapists.

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REMUNERATION FOR CAFÉ WORKERS

Market Data

A total of 7 organisations provided information relating to wages and costs of training for Café Workers. All cafés were franchises or multi store operators. There was no formal apprenticeship scheme for Café Workers and often no formal qualifications were required. In this survey  a “Café Worker” was defined as someone who prepared, served and sold fresh food and drinks to customers.

Commentary on Market Data

There was a narrow range of wages for entry-level Café Workers. Wages ranged between $10.25 to $10.75/hour. Most cafés reported an induction/training period of between 2 weeks to 6 months after which employees received an increase to between $11 to $11.50/hour. A Café Worker with 5 years experience received between $11.50 and $17/hour.

Cost of Qualifications

The majority of training for Café Workers was conducted in-house and paid for by the employer. Even then, this was restricted to the larger, multi store cafés. There were some external courses available in food service and coffee making. These were typically short or evening courses and the costs ranged between $300 to $600 per course.

Other Notes

In this survey, 65% of Café Workers were female.

Many cafés were franchises so wages were often determined by each individual franchisee. For this reason there tended to be considerable variation from café to café.

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REMUNERATION FOR RETAIL SALES ASSISTANTS

Market Data

A total of 7 from department and chain stores provided information relating to wages and costs of training for Retail Sales Assistants. As with Café Workers, there was no formal apprenticeship scheme for Retail Sales Assistants and often no formal qualifications were required.

Commentary on Market Data

Retail Sales Assistants typically started at minimum wage or just above. Wages ranged from $9.71 to $12.80/hour, although several indicated wages as low as $8.20/hour for those under 18. Many organisations had an initial internal training program and wages would increase to between $10.75 and $18/hour once this was completed. For Senior Sales Assistants wages ranged from $12.50 to $19.50/hour.

Cost of Qualifications

While there were some basic sales and service training courses available, the clear majority of Retail workers received solely in-house training. Most of the larger organisations had dedicated training and development staff that delivered the training. The Retail ITO was sometimes involved in providing an external assessor of skills learned.

Other Notes

In this survey, 95% of Retail Sales Assistants were female.

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REMUNERATION FOR ADMINISTRATORS

Market Data

A total of 24 organisations provided information relating to wages and costs of training for Administrators. This survey covered typical administrative roles such as Office Junior, Receptionist and Secretary. The titles were used as the categories for the three levels in this survey as they represented career progression for an administrative role. Information was gathered on a total of 56 Administrators. Administrators did not typically receive wages but were paid an annual salary. In order to provide comparable information, we broke this down to an hourly rate based on a 40 hour week.

Commentary on Market Data

Wages for Office Juniors ranged from $9.62 to $11.06/hour. For Receptionists, wages ranged from $14.42 to $16.93/hour. For Secretaries, wages ranged from $15.38 to $25/hour. While the data for Secretaries was not specifically based on those with 5 years experience, this would be a typical level of experience for a Secretary.

Cost of Qualifications

There were a variety of training options for Administrators. Many Polytechnics offered an introductory course covering communication, accounting, computer skills and general administration. However the majority of Administrators would only attend periodic off-site training courses, usually focused around acquiring a new skill. This would be paid for by their employer.

Other Notes

We were not able to collect data on the gender of Administrators as participating organisations did not supply us with the gender make up at their organisation.

Since many Administrators were employed by large organisations, there was the potential to
progress outside of a purely administrative role. Conversely, Administrators can progress within their profession to become Executive Assistants whose annual remuneration can be as high as $55,000 to $60,000.

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ISBN 0-478-25224-2 (digital)
ISBN 0-478-25223-4 (print)