Hays: A skills recession is upon us

AUCKLAND, Wednesday: The latest Hays Salary Guide reports skills shortages in key areas of advertising and PR in New Zealand.

Hays says the top comms & marketing skills in demand here are …

• Performance marketing managers
• CRM managers
• eCommerce managers
• Digital marketing managers
• Communications specialists

Hays NZ MD David Trollope said: “Almost nine in 10 – 88% – of organisations in New Zealand are experiencing a skills shortage. In addition, 76% of employers believe the skills shortage will impact the effective operation or growth plans of their organisation.

“And 38% say the impact of skills shortages has intensified in the past 12 months.”

“To address this systemic skills shortage crisis, employers must move beyond individual solutions to collective action.”

Recruitment and workforce solutions specialists Hays found 76% of New Zealand employers believe the skills shortage will impact the effective operation or growth plans of their organisation.

They say the impact will be greatest on productivity (66%), increased workloads for existing staff (also 66%), project delivery (59%), growth and or expansion plans (48%), employee engagement and morale (47%), revenue and profit (45%), the ability to take advantage of new opportunities (44%), employee turnover (43%) and customer service (41%).

“To address this systemic skills shortage crisis, employers must move beyond individual solutions to collective action.”

The key drivers of the skills shortage, according to employers, are a lack of people with the necessary qualification/s or experience (80%) and increased competition from other employers (64%).

“New Zealand’s skills shortage narrative is well entrenched in our labour market, but this year our survey shows its impact continues to intensify in many industries.

“There’s growing concern among employers about the lack of skilled professionals in today’s labour market. Despite these challenges, vacancy activity remains remarkably resilient. After normalising from last year’s historic peak, today’s headcount expansion plans suggest current economic uncertainty will not impact all workforces.

“It’s clear we’re heading for a skills recession as a shrinking talent pipeline threatens the effective operations and growth plans of organisations.

“With the skills shortage predicted to last well into the 2030s, employers must guard against the long-term impact.

“How are employers are addressing the skills shortage?

“Over three quarters of employers have offered higher salaries than planned to attract skilled candidates. In addition, 62% are upskilling staff to help overcome skills gaps, while 44% are considering employing or sponsoring overseas candidates, up from last year’s 7%.

“Diversity, Equity and Inclusion initiatives, streamlining the recruitment process and improving employer branding are other strategies employers have adopted.”

About The Hays Salary Guide
It’s based on a survey of 1904 organisations and 2048 professionals in New Zealand.

• hays.net.nz/salary-guide