New Zealand employers are largely apathetic towards retention of talent and fail to put in place programmes that would foster career of people.
In addition, the corporate sector also suffers a paradox of scarcity amidst plenty in the job market, as an increasing number of employers find it hard to recruit talent, while the rate of unemployment remains high.
A Deloitte Survey found an overwhelming majority of New Zealand companies battling the challenge of sourcing human capital, with staff shortages in key areas.
“This situation will worsen as the economy reverts to growth,” it said.
Talent Edge New Zealand is the first in a series of an annual survey, which enlisted 360 respondents in management roles in small, medium and large businesses across the New Zealand business community.
Deloitte Partner and Human Captain Practice Leader Richard Kleinert described as ‘real,’ the problem of finding the right person.
He said 81% of the Survey respondents experienced moderate shortage of staff but the situation may worsen in the coming years.
“I would encourage employers not to delay in examining their talent requirements and programmes, because as the economy improves, there will be increasing demand for sought-after skills. Businesses which are not prepared may have a rude awakening in near future,” Mr Kleinert said.
The Survey identified Managers, professionals in the Information Technology, Accounting and Finance sectors (particularly Chartered Accountants) as critical components in the ‘return-to-growth strategies’ of businesses.
These findings were reflected in questions about anticipated changes in workforce across industry segments, with the IT, professional services, and construction and property sectors anticipating higher growth in the next three years.
Mr Kleinert said employers were somewhat bullish about future workforce growth expectations for their business, with 45% expecting at least moderate growth.
According to the Survey, only 13% of the respondents predicted reduced recruitment but employers in large companies were less optimistic, with 30% predicting growth and 22% expecting contraction.
Many respondents remained ‘fairly unconvinced’ that an increasing number of employees would seek job change as the economy returns to growth, despite some untoward developments in recent months including redundancies, freeze on recruitment and salary increments.
About 48% of the participants in the Survey expected staff turnover to be insignificant, while 43% said it would be moderate.
“These results are surprising and I am a bit concerned that employers have not recognised staff turnover as a potential problem,” Mr Kleinert said.
He said the Survey clearly showed that it was time for businesses to reflect on their people strategy and align it with business objectives.
“It is also important for businesses to update their talent strategies and people management practices taking into account the new economic circumstances and avoid future shocks, “he said.*
