This is “the year of the pay rise” in the advertising and creative industries, says recruitment agency Aquent.

A survey conducted by the specialist in the marketing, communications and creative industries found 80% of respondents planned to increase salaries and 39% of those planning to employ account executives – or “suits” – would bump up salaries 10% or more.

Simon Lusty, manager of Aquent New Zealand , said the findings made “sober reading” for local employers. The shortage of talent seen in the past two years had not only worsened, but employee turnover in the creative industries had dropped dramatically. “The twist for us this year was very much around the fact that demand has gone up even higher but turnover has dropped,” said Lusty.

Last year, 56% of creative and advertising businesses reported annual staff turnover of less than 10%. This year, the proportion of businesses reporting low turnover rose to 81%. “This lack of natural vibrancy is either a cause for celebration if you are fully staffed or nervousness if you are looking for fresh talent,” said Lusty.

Normally, in a buoyant job market, turnover would also be high. Lusty put the drop down to employees wanting stability, with household debt high and the expiry of fixed mortgages exposing many to higher interest rates.

Employers were also working harder to retain staff, and to be seen as an employer of choice.

More than three-quarters of businesses said they were using training and education as a staff retention strategy, followed in popularity by discretionary bonuses, cellphones, and additional leave.

This year, the number of orders taken by Aquent for freelance Mac operators was heading towards 500, compared with 200 last year.

Lusty said shortages were likely to get worse, with 83% of creative employers planning to hire more permanent staff in the coming 12 months.