Talent Shortage Continues to Plague Businesses Despite Economic Downturn
According to new data released by the Employers and Manufacturers Association (EMA), despite the historically high rates of unemployment during economic downturns, the talent shortage continues to plague businesses. In a survey of 550 businesses across 17 industries, a staggering 90% of organisations reported difficulties in filling vacancies in their workforce. This is in contrast to the traditional belief that during economic downturns, businesses would have a goldmine of talent to choose from.
Air NZ, for example, is seeking to fill 400 entry-wage roles due to the severe talent shortage in the aviation industry. The airline has increased its entry wage to $30 per hour in an attempt to attract talent. Similarly, Trade Me is actively recruiting for many roles, while Gallagher Bassett is seeing an increase in recruitment needs due to a higher level of claims following the recent flood in Auckland.
While some organisations are increasing base pay to attract staff, others are offering EVPs or finders’ fees. Simpson Grierson, for instance, offers a finders’ fee of $10,000 to employees who recommend the law firm to talented lawyers. The company has had success recruiting senior lawyers by offering flexibility, generous parental leave, part-time options, and a supportive culture that encourages diversity and inclusion.
The government’s recent easing of visa processes has made it easier for companies like Simpson Grierson to recruit overseas lawyers. However, Brown from Trade Me noted that the quantity of skilled migrants showing interest in tech roles remains low, despite the government’s efforts to encourage more offshore talent to consider roles in Aotearoa.