New Zealand is experiencing a labour shortage in 2022. With unemployment figures sitting at near record lows, finding skilled staff can be challenging.

However, there are always solutions. Have a look at what is causing skilled worker shortages and some ways business and the government are working around the problem. 

 

Why is it hard to hire staff in New Zealand right now?

Most of the factors contributing to the skills shortage are down to COVID-19. 

Among the problems the pandemic caused are:

– More people leaving NZ than entering (As shared by The Guardian, The latest data from Stats NZ found that in the year to March, annual net migration was negative, with 7,300 more people leaving than entering).

– Low immigration from overseas, including international students and skilled workers

– Difficulty in movement due to lockdowns and restrictions

– Overseas employers offering higher pay

The end of lockdowns and travel restrictions has also led to many skilled New Zealanders packing their bags and heading overseas. Add to these the ageing population, and it is no wonder that quality workers are hard to find.

In New Zealand, almost every sector is being hit hard by the labour shortage with sectors that rely on seasonal workers perhaps suffering the most. As reported by the ABC in Australia, New Zealand Dairy farmer and Federated Farmers spokesman Richard McIntyre said his industry had been short staffed for a year.

 

Solving the problem of labour shortages in New Zealand

Operating a business means solving problems on a daily basis. Overcoming labour shortage issues can be mitigated with some or all of the following ideas: 

Recruit from overseas

COVID-19 made life difficult for a few years but borders are opening back up and the option of welcoming overseas workers is open to employers once more.

As an employer, you can investigate sponsoring overseas talent for work visas, or advertise to attract young people who are on working holiday or student visas. 

In Australia, for instance, some hospitality companies are taking drastic steps to appeal to staff, including offering free flights and $1000 vouchers. 

In New Zealand, The Government is making a raft of changes to the immigration system as part of an “immigration rebalance” that it says will fill skills shortages and fuel the economy after the pandemic closed borders. The Rebalance has been designed to make it easier to attract and hire high-skilled migrants, while supporting some sectors to transition to more productive and resilient ways of operating, instead of relying on lower-skilled migrant workers. It will also include a new Accredited Employer Work Visa system. Implemented in July, this scheme aims to make it easier for employers to prove no New Zealanders are available to fill their vacancy. 

Hire young people

The unemployment rate might be very low, but statistics can be deceiving. 

For example, the unemployment rate among young people is more than twice that of the older population in New Zealand. Young people are always looking for work, and even now, there is no exception.

Some companies hesitate to bring on younger workers because of their lack of experience and perceived lack of enthusiasm. However, everyone has to start somewhere. 

You can soon fill your staffing needs by hiring young people and implementing training programs. The training may be a little extra investment in terms of money and time but the payout is loyalty and a more capable workforce. 

In New Zealand, there are incentives for companies that hire and train workers. Do a little research, and you might find your company eligible for a grant to help bring newcomers up to speed.

Leverage technology

Hiring new staff isn’t always the only way to fill vacancies in the modern world. Modern technology is constantly creating ways to take care of repetitive tasks so individual productivity can be improved.

If your business is very paper-heavy, there may be ways to improve efficiency so you can do away with the need for additional headcount. 

The other way to leverage the digital world is to make the most of the gig economy. If full-time staff are too hard to find, look online for freelancers or use services like Upwork or Fiverr to have jobs completed without the need to pay someone full-time.

Reset client and customer expectations

It is important to communicate with your customers and clients while you fill the gaps in your team. Most people will understand if things are taking longer than they used to, especially if you are transparent about the situation. 

Hire staff in New Zealand with the help of a local PEO

The bottom line is that if you need to hire staff in New Zealand, there are ways around the labour shortage. When you engage the services of a reliable and responsive locally based PEO,  you can connect with the best recruitment firms and onboard new talent sooner. 

 

Need help finding and keeping good workers in New Zealand? Speak to ANZPEO today.