Recruitment News
Recruitment News: The NZ skills shortage – reality or imagination?
Recruitment News Article Series: There are strong indications skill shortages will worsen (worse than pre-recession levels) in 2011.
- This skill shortage is driven by:
- Strong skills demand in Australia and perception of higher income potential there.
- Return of demand in Europe.
Continued but gradual improvement in New Zealand economic conditions: lowering unemployment and driving skills demand in Wellington, with even more accelerated improvements in other parts of New Zealand.
Organisations need to ready itself for more competition for the best talent. Everything organisations can do to ensure responsiveness, provide market competitive rates and remuneration, promote its recruitment value proposition and continue its retention strategies will be worthwhile investments.
Contracting – Recruitment Auckland and Wellington
There is a noticeable trend of contactors not accepting short term contracts (less than 6 months), driven by improvements in this market and a perception that longer term engagements will be in plentiful supply for the rest of 2011 and into 2012. We are also seeing rates starting to move upwards (they were more static in 2010).
Organisations may need to look at ways to make shorter term engagements more attractive, such as completion bonuses. Organisations also need to ensure it has an up-to-date understanding of what will be a rapidly changing recruitment market by gathering information on a regular basis, something Beyond is able and keen to assist with.
Permanent – Recruitment Auckland and Wellington
Like contracting, the permanent recruitment market is feeling skills shortage pressures. Of particular note is the Business Analysis market where widespread organisational change management programmes, baseline consolidation and effectiveness reviews are occurring, particularly in Wellington.
Similarly Human Resources skills are finally in more demand (this sector has been particularly flat in the last 2 years). We are seeing less demand for Legal professionals which will improve supply of this historic skills-shortage pressure point.
As the contract market improves, permanent candidates will be attracted to contracting. Organisations should be aware of employees in your permanent workforce that moved from contracting through 2009. We would consider these to be at risk individuals currently.