CEO plea - 'Open border so we can source staff'
CEO plea – ‘Open border so we can source staff’
The tight New Zealand labour market threatens to undermine our post-pandemic economic recovery as skills shortages increase.
It is such a headache for CEOs that a considerable 71 cent of respondents to the Herald survey say sourcing and retaining skilled staff is one of the key issues keeping them awake at night.
Stats NZ data shows the unemployment rate fell from a recent peak of 5.3 per cent in the September 2020 quarter to 4 per cent in the June 2021 quarter.
The situation is exacerbated by the current Covid-related border restrictions.
Some 72 per cent of survey respondents say their business operations have been hindered by the inability to bring essential skilled executives, investors, or workers across the border.
A further 25 per cent have not been affected.
Spark CEO Jolie Hodson says she sees pressure on skills in areas like cyber security, data automation and AI.
“We’re committed to doing our part in training and investing in our employees in these areas, and in creating pathways for entry level talent and in some cases for internships,” she says.
“But these are long and medium-term solutions, and we have some significant recruitment challenges in the immediate term.”
MinterEllisonRuddWatts chair Sarah Sinclair, says “current preferred candidates for roles remain offshore.”
Similar challenges were shared by others in the tech sector.
“Twenty per cent of open roles are currently unstaffed,” says the CEO of a major IT firm.
But this issue isn’t restricted to any particular sector.
Tim Myers, chief executive of farm machinery firm Norwood says there is a desperate shortage of skilled technicians and mechanics.
“One, there aren’t enough, and two, they’re being incentivised to move to Australia with more competitive wages and more affordable housing”.
Federated Farmers CEO Terry Copeland shares a similar story.
“Many of our members are reliant on skilled migrant labour and seasonal workers on farms, vineyards, orchards and processing facilities,” he says.
“Around 7000 full-time roles are currently vacant and not being filled by New Zealanders.”
Almost all CEO respondents — a considerable 94 per cent — say New Zealand should be doing more in the short term to bring in skilled migrants to ensure firms can support economic growth.
An independent director says there is an immediate and very serious labour market shortage that will see New Zealand lose jobs overseas and its relevance as an employment option. “Developing our own skills needs to be done — but it will take time.
“The opportunity/threat is here right now.
“Companies will not wait for the government and many are now setting up hubs overseas so that they can continue to execute their strategy.”
The CEO of an agribusiness firm says the widespread business impacts that the lack of workers is having on the industry requires urgent attention.
“If we are going to become less reliant on migrant workers, it will take time — years.
“Just pulling the pin as has been the case is poor judgement, commercially naïve and certainly not representing a just transition.”
Employing more Kiwis is not the answer,” underscores OfficeMax NZ managing director Kevin Obern.
“We have skilled people desperate to move here, there has never been a better time to access those skills.”
Adds EMA’s Brett O’Riley: “The current approach is inhumane, ignores wellbeing and wellness for those involves, and does not represent New Zealand’s values of manaakitanga.”
