Business confidence remains high, with 68% of employees stating that confidence in their industry is either good or very good, according to the 2016 Michael Page New Zealand Salary & Employment Outlook. Despite factors such as China’s slowdown and external data pointing at a market softening, businesses remain optimistic, though growth rates have started to slow compared to the past 12 months.
Property and construction continue to lead the way in growth, outstripping other industries in terms of activity and demand for talent for the next 12 to 24 months. Confidence levels are high, with 82% of employers in this sector rating their confidence at good and very good, versus the overall sector average of 68%. A large number of employees (62%) in this field are receiving bonuses, indicating strong performance.
The top three strategies companies use to attract and retain talent are: Strong company culture (70%), recognition and rewards (53%), training and mentoring partnership (44%). Currently, only 41% of organisations are prioritising career progression opportunities for candidates as a strategy.
Pete Macauley, Regional Director, Michael Page New Zealand, said, “If organisations have the means to provide adequate remuneration, their focus should be on highlighting the progression opportunities they can offer candidates, particularly as the market and businesses grow. This allows companies to demonstrate their point of difference and long-term value to candidates.
“We expect growth and job levels to continue upwards, but at a slower pace than the preceding 12 months. Companies continue to proactively introduce new products and revenue streams, moving into new markets and investing in headcount in response. We are in the midst of a candidate driven market, with active job search decreasing as candidates wait for opportunities to come to them, further driven by the growing role of social media tools in recruitment such as LinkedIn. High performers with a proven track record of success and delivering results are aware of their marketability and are happy to sit back and wait for the right offer to come to them.”
The report also shows that talent shortages are concentrated at the mid-level, due to a lack of investment at entry-level in the global financial crisis years up to 2012. This means organisations are now lacking the highly skilled internal talent to fill voids when people are promoted or depart. While current record levels of net migration have added to the talent mix, there is a question as to whether this influx of talent is needed to meaningfully address shortages at this level.
Most recently, significant infrastructure and construction projects have been announced for Auckland, and together with the ongoing Christchurch rebuild, look set to continue the current boom in construction, property and infrastructure. As businesses re-establish themselves in Christchurch, a pick-up in activity is expected for next level services, such as marketing, sales, finance and IT.
The 2016 Michael Page New Zealand Salary & Employment Outlook is a report based on survey findings of 335 employers across a range of industry sectors from market-leading multinationals to small and medium-sized enterprises. The report can be downloaded in full here.
