Employers offer higher wages, finders' fees, flexibility to entice employees
The economic conditions we’re currently experiencing have historically gone hand in hand with high rates of unemployment and a goldmine of talent to choose from when vacancies pop up.
New data released by the Employers and Manufacturers Association (EMA) confirms that historic precedent will not be the case as we head into a rumoured recession once again.
The survey of 550 businesses across 17 industries found that the talent shortage continues to plague businesses. A staggering 90% of organisations surveyed were struggling to fill vacancies in their workforce.
EMA chief executive Brett O’Riley said, “The survey results confirmed just how bad things really were for businesses trying to find staff.”
In the aviation industry, the talent shortage is so severe that Air NZ is looking to fill 400 entry-wage roles. The airline issued a press release this week announcing that it has increased its entry wage to $30 per hour in a bid to attract talent.
Air New Zealand Chief People Officer Nikki Dines said, “The airline is continuing to ramp up operations to meet growing demand, and a critical part of this is rebuilding its airports team. I’m pleased that we’re continuing to welcome more people to our whānau and that we’re in a position to invest further in our people.”
‘Great difficulty recruiting’
Annie Brown, chief people officer at Trade Me, also said her company was actively recruiting for many roles.
“For most of 2022, we experienced great difficulty recruiting candidates for key tech roles. While the skills shortage continues to be a problem facing employers in the tech industry, this has eased recently and there’s more tech talent available in our experience.”
Gabrielle Cook, National People & Culture Manager NZ at Gallagher Bassett, said that a global survey of the company’s insurer partners they conducted late last year found that the battle for talent was a major concern for 2023.
The recent flood in Auckland means the insurance company is seeing a higher level of claims and their recruitment needs are only growing.
“It’s clear that this is still a priority with the volume of roles we’re seeing in market right now. With the recent catastrophe events, this demand has only increased,” she said.
Annie Brown was recognized as one of the Best HR Leaders in New Zealand awardees. Check out the full list of winners here.
Finders’ fees and visas
While some organisations are ramping up base pay to attract staff, others are looking to their EVPs or offering finders’ fees.
Jo Stevenson, people and culture director at Simpson Grierson, said, “The job market is still tight and we’re always on the lookout for talented lawyers. We have a generous finders’ fee of $10,000, which works well because having our people recommend Simpson Grierson as an excellent place to work gives a greater sense of security for prospective applicants.”
Stephenson added, “To date, we’ve had a lot of success recruiting senior lawyers by offering meaningful flexibility, generous parental leave terms, part time options and a supportive culture that encourages diversity and inclusion.”
The government’s easing of visa processes was welcomed by Stevenson who said, “The process for recruiting overseas lawyers has been easier because the visa process seems more efficient.”
The firm was prompted to travel to London later this year to meet with potential candidates who are thinking of a move to New Zealand in the future.
Conversely, Brown said Trade Me had seen little affect from the government’s move.
“Although the government’s made moves to encourage more offshore talent to consider roles in Aotearoa, the quantity of skilled migrants showing interest in tech roles remains low,” she said.
