Market Overview
The professional employment market in New Zealand has stabilised and is now showing early signs of measured jobs growth. Our annual employment survey, which this year includes the responses of over 200 companies from New Zealand’s corporate sector, reveals that 65% of employers expect their staffing levels to remain stable over the second half of 2010. Only 8% of the companies surveyed are planning to reduce staff with the remaining 27% intending to increase employee numbers. These figures highlight an improving employment market. Companies are now replacing people who leave and are beginning to proactively hire candidates with in-demand skill sets. While it is not a fast-paced recovery, conditions are certainly more positive than they were in 2009 and we are confident of a sustained upward trend in hiring activity.
With respect to hiring activity by business function, 54% of employers recruiting for new positions are focusing on front line roles. Companies are looking to increase market share and revenue streams during the early stages of recovery, which is driving demand for professionals in areas such as sales and account management. Based on our survey results, back office recruitment currently accounts for only 21% of hiring activity. We anticipate this will increase in early 2011 as companies hire professionals in areas such as marketing and accounting to support increased levels of sales activity.
Multinational organisations operating in New Zealand whose head office is in Australia or the broader Asia Pacific region are making the biggest investment in new jobs. Many multinationals with corporate headquarters in the UK or EU are only in a position to maintain current staffing levels because of global headcount freezes. Smaller sized companies are more cautious in their growth plans, focusing on incremental increases in front line staff. During the economic downturn, companies retained top performers and staff with business critical skills. Many of these employees were asked to cope with increased responsibility and work volumes without a review of salary. Now that the employment market is recovering, some of these employees are less cautious about a career move and actively looking for their next opportunity. Employers that fail to address this situation risk losing their most experienced and capable people at a time when their skills are crucial to support business growth. Of the employers planning to increase salaries over the next six months, 85% will be giving pay rises ranging from 2-4%. Some employees with business critical skills will not be satisfied with the pay rises on offer and will consider new career opportunities in an improving labour market. Employers need to respond to these issues with targeted investment to retain the skills that align most closely with their business strategy.
