Demand for skills at 6-year high

Demand for employment talent has reached a six-year high as the job market continues to surge, the latest Hudson Report says.

Released this morning, the report indicates 63% of the New Zealand workforce will be open to new opportunities in 2016, creating an increasingly fluid job market.

As expected, Auckland and Christchurch dominate the hunt for a skilled workforce but little mention is made of the area south of the Waitaki River.

Otago-Southland Employers Association chief executive John Scandrett said while specific southern references were not covered in the report, the region had recently been at the national forefront of manufacturing and services performances.

"As a consequence, I am comfortable that our local employers' forward intent to hire will match, and probably exceed, the levels seen in other regions.

"Our construction and general manufacturing outcomes are robust and while aspects of agribusiness activity are currently in a dip, these will recover, I'm sure.''

There was also not a great deal of report focus on the tourism sector but in 2015, there were three million visitors to New Zealand for the first time, up 9% on the previous year, he said.

Locally, Wanaka, with only 7000 permanent residents, now had more than 300,000 tourists a year.

Across those activity levels, employers simply had to have the right balance of staff in place, Mr Scandrett said.

Hudson New Zealand chief executive Roman Rogers said the six-year peak was bolstered by a surge of growth across previously muted industries.

"What we're seeing is other sectors starting to pull their weight, including manufacturing, transport, tourism, financial services and, chiefly, IT has regained momentum.''

Employers in the IT industry dominated the latest figures, with a net 40.7% wanting to increase or maintain permanent headcount in Auckland, Wellington and Christchurch.

Technology businesses were booming in Auckland and Christchurch hubs, with government projects behind the growth in Wellington, he said.

Organisations wanted to bring greater efficiency to what they did and, if they did not, their customers were demanding it.

There was a lack of tolerance for organisations using antiquated technology.

There was a groundswell to keep pace with demand, with organisations recognising the need to invest in IT in order to stay relevant, Mr Rogers said.

Employers had cited organisational growth as the top reason to add to workforce numbers, followed by increased workload.

"Growth is a good problem to have; it reflects a positive economy. While it makes talent attraction harder, it also means more customers and revenue for your business.''

The key was to plan for the lift in economic and hiring activity, he said.

With hiring sentiment indicating a high demand for talent, employers must be proactive with attraction, retention and engagement strategies.

An overwhelming 85% of professionals surveyed would move industries for the right role and 46% would move countries, Mr Rogers said.

Employees wanted three things in their job: to feel they were contributing; to feel their role was meaningful; and to feel they were successful.

If those elements were lacking, employees would start looking elsewhere.

Australia still topped the list of places Kiwis would relocate to, but there were also many Kiwis wanting to return home.

The reality of moving was not easy. People needed to do due diligence. Lower salaries and the cost of housing was challenging for people wanting to move back to New Zealand, he said.

Employees looking to change jobs were most likely to do so for the right salary (57%), followed closely by work-life balance.

"There is an expectation employers will open their wallets in 2016. In the past few years, employees have anticipated increased remuneration but those expectations haven't been met.''

There was a sense that was changing and if an organisation was willing to pay above market value for a role, it could be compelling, especially among the younger workforce, Mr Romans said.

Additionally, cost-conscious employers had in recent years avoided increasing employee numbers, resulting in current staff being stretched to the point of looking for new work.

 


AT A GLANCE

• Otago-Southland likely to match hiring intentions of other regions

• A lack of tolerance for organisations using antiquated technology

• An expectation of employers opening their wallets this year

• Moving back to New Zealand provides challenges for Kiwis 


 

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