Business heads are gearing up for another challenging year
With the new year upon us, many HR leaders are gearing up for the next 12 months ahead.
New Zealand has led the way in responding to the pandemic with community transmission remaining at zero.
But that doesn’t mean 2021 is going to be easy for employers and HR leaders.
With international border closures in place and many businesses still reeling from the economic devastation of lockdown, employers will have their work cut out as they begin to recover.
EMA, the country’s largest business service organisation, has identified some of the top concerns facing employers going into the new year – and many of them centre on the 2021’s looming employment changes.
The EMA’s annual member employer survey found 35% of respondents predict they will increase staff headcount in 2021.
But more than half are finding it difficult or very difficult to attract suitable candidates for skilled positions.
Read more: NZ employment law changes in 2021 – key areas to watch
Despite a rise in the number of expats returning home, closing New Zealand off to the rest of the world has been particularly difficult for employers in some skilled sectors.
"Employers are having to transform and grow their businesses, often in ways they hadn’t planned, and they desperately need the right people with the right skills to enable that, many of which are either not available or plentiful in New Zealand," said EMA chief executive Brett O’Riley.
"52% of employers would usually recruit migrants from overseas, 22% are finding the immigration process very difficult, and 12% say it is virtually impossible."
However, the biggest concerns facing employers relate to the string of employment law changes set to come into effect this year.
Before her re-election late last year, Jacinda Ardern’s Labour government campaigned on a number of amendments to improve conditions for employees.
Read more: Employee wins unfair dismissal case after being fired three days into new job
Her government confirmed pledges such as doubling sick leave allowance to 10 days and an increase in the minimum wage will come into effect this year.
But some employers are concerned about the timing and the financial impact after an already difficult 12 months.
"SMEs have been carrying the country through the economic recovery and are hugely resilient, but 2020 has brought a decade’s worth of change in one hit and that means timing of many of the proposed changes will be critical to business managing the impacts and costs of those changes," O’Riley said.
"SMEs also want to see previous measures such as the 90-day trials reinstated, as that enables them to alter their workforces and adapt quickly to change, something that has been crucial this year."
The top 5 wishes of employers identified by the EMA include;
- Reinstatement of the 90-day trial
- No minimum wage increase
- No change to sick leave
- Increased assistance for training and upskilling staff
- Subsidies for new employees
