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NZ employers to maintain focus on attraction and retention of top talent

Key survey findings: (Source: Michael Page New Zealand 2013/14 Salary & Employment Forecast)

  • 52% of surveyed employers view current hiring activity as steady compared to the last 12 months, while 21% believe it is slightly stronger.
     
  • 48% expect a professional skills shortage in the next 12 months and 52% believe this skills shortage will cause salaries to rise above inflation.
     
  • 49% of surveyed employers expect staff turnover in the next 12 months, with 32% citing the key reason employees will leave is to broaden their work experience.
     
  • To attract and retain talent, 34% will promote a strong company culture and 25% will offer recognition and reward incentives.

17 September, 2013: New Zealand’s professional employment market continues to be challenged by a shortage of quality talent and employers will have an ongoing focus on staff attraction and retention throughout the next 12 months.

According to the findings of the Michael Page New Zealand 2013/14 Salary & Employment Forecast, 48% of surveyed employers expect a professional skills shortage in the coming 12 months. The impact of this lack of talent on businesses will lead to 52% of employers developing more targeted attraction strategies, with these likely to include the promotion of a strong company culture as well as recognition and reward incentives.

“New Zealand continues to be impacted by a shortage of professional talent across a range of industries, and employers are tightening their focus on attraction and retention strategies as a result,” says Pete Macauley, Regional Director of Michael Page in New Zealand.

To attract and retain talent, the most popular tool for 34% of employers will be to promote a strong company culture while 25% will offer recognition and reward incentives. Flexible work arrangements are a popular work-life benefit for employers and employees alike, and chosen by 81% of survey respondents.

Salary remains a key attraction and retention strategy, particularly in an environment where skill shortages are expected. Some 52% of surveyed employers believe the skills shortage in New Zealand will cause salaries to rise above the inflation rate, and the majority of surveyed employers (62%) say over the next 12 months they will award salary increases to all of their employees with the amount based on performance. For most of them (58%) the average salary increase will be between 3% and 5%.

“With the state of New Zealand’s economic market over the past few years, many employers have been limited in their ability to provide strong salary and remuneration increases. While domestic economic conditions continue to be a factor likely to impact salary levels over the next 12 months, according to 72% of surveyed employers, the ability to offer competitive salaries will be a key determining factor in keeping top talent within businesses,” adds Mr. Macauley.

“With the state of New Zealand’s economic market over the past few years, many employers have been limited in their ability to provide strong salary and remuneration increases. While domestic economic conditions continue to be a factor likely to impact salary levels over the next 12 months, according to 72% of surveyed employers, the ability to offer competitive salaries will be a key determining factor in keeping top talent within businesses,” adds Mr. Macauley.

To read the Michael Page New Zealand 2013/14 Salary & Employment Forecast report in full, visit the Michael Page New Zealand News & Research Centre.