Market Update – Quarter 3 2024

Advice Business News Employer

Our New Zealand economy started 2024 on a weak footing and the outlook for the second half of the year remains challenging. This downturn is leading to inflationary pressures, high interest rates and our unemployment rate continuing to climb at 4.3%, expecting to hit 5% by the end of the year.

Despite rising unemployment, skill-shortages are still evident across a range of sectors. Sourcing candidates with the right skills and qualifications is still proving challenging for employers across a variety of different industries in this ever-evolving business landscape.

The appeal of higher salaries and greater opportunities abroad, especially over the ditch in Australia, continues to draw our Kiwi talent away. In addition, with a global shift in relation to working remotely from home and offshore, many New Zealanders have the opportunity to work for internationally recognised companies, whilst residing locally. A recent study by Statistics NZ, identified that 52,500 citizens left New Zealand from April 2023 – March 2024, with more than two-thirds of these jet-setters being under the age of 45, many of which comprising of skilled talent that our country desperately needs. Immigration simply is not supplying the critical talent that our employers need.

In short, although there has been some loosening of the employment market, it’s still far from easy. There are still significant skill shortages throughout several sectors with a slight ease of market conditions masking the reality of our situation. In a market such as this, it makes good business sense to be laying some foundations for future growth, and in terms of employment, one of these areas is in determining your employer value proposition (EVP). How a company markets themselves to prospective talent, and also how key talent is retained are both key aspects of your EVP. Consider what your business offers over other organisations? Why should your organisation be an employer of choice to talent out in the market and what value will that bring?

Having a robust reputation as an employer goes beyond attracting the best employees to your vacancy, it will provide positive opportunities and financial advantages to your company. Engaging and ultimately retaining talented staff saves your business money. Employees that stay with your company can be trained and developed retaining essential skills and knowledge. Do you know the real cost of having to replace an employee in a key role who has been with your company for several years and is leaving to work for a competitor?

Some of the ways in which you can look at enhancing your employer brand include adopting Equal Employer Opportunity practises, community involvement and engagement, flexibility with work options, environmental and sustainability policies, providing a point of difference as an employer from your competitors, real benefits, genuine commitment and care of your employer brand through company integrity and leadership.

Do you know what your employer brand is – how your business is perceived by those not in the marketplace but those who are already working for you. Starting in-house with an initial employee survey could be the first step in researching current perception and what you might take on board as feedback to improve your employer brand for the future.
Acknowledging that this is an incredibly difficult time in business for many and businesses are surviving in the best way they can. Hiring for the inevitable recovery may not be an option however working on your people strategy is. Progressive businesses who continue cultivating a motivated, productive workforce through developing their EVP, will no doubt add value to the business in the years to come. Talent ID is here to support you to navigate your way through this downturn and help New Zealand businesses develop skills and capability they’ll need for the workforce of tomorrow.