Majority of employers suffering from key staff shortages

February 18 2011

Many NZ companies don’t have plans in place for the human capital challenges that lie ahead

A Deloitte survey of how New Zealand businesses manage their human capital shows an overwhelming majority are suffering key staff shortages today and many expect they will worsen as the economy improves.

The inaugural survey, Talent Edge New Zealand, was conducted late last year and had 360 respondents in management roles across a broad range of economic sectors and company sizes.

Deloitte partner Richard Kleinert, who leads the human capital practice for the firm in New Zealand and for the Asia-Pacific region, says talent problems are real for New Zealand companies today, and not an abstract concept that may happen in the future.

When asked if talent shortages were affecting their business today, 81% of respondents reported they had at least moderate shortages, and with many employers anticipating an increase in their workforce in the next 2-3 years, these shortages are likely to worsen.

“I’d encourage employers not to delay in examining their talent requirements and programmes, because as the economy improves there will be increasing demand for sought-after skills. Businesses which aren’t prepared in advance may be in for a rude awakening in the not-too-distant future,” Mr Kleinert says.

The types of employees most in short supply included managers, IT professionals and accounting and finance, particularly chartered accountants. These categories, particularly IT staff, were also identified as critical components of businesses’ return-to-growth strategies.

These findings were reflected in questions about anticipated changes in workforce across industry segments, with the IT, professional services, and construction and property sectors anticipating highest growth in the next 2-3 years

Overall, employers were somewhat bullish about future workforce growth expectations for their business, with 45% expecting at least moderate growth while only 13% predicted contraction. However, larger employers were less optimistic, with 30% predicting growth and 22% expecting contraction.

When asked about anticipated rates of voluntary turnover in the next 2-3 years, employers seemed fairly unconvinced that large numbers of staff would be seeking greener pastures as the economy improves, despite the recent period of salary stagnation and belt-tightening.

Most employers are not expecting significant turnover rates, with 48% expecting the level to be insignificant, 43% predicting moderate turnover and only 6% anticipating it will be significant.

“These results are rather surprising and I’m a bit concerned that this may indicate employers have not recognised this as a potential problem in the near future,” Mr Kleinert says.

“One of the most important out-takes from the survey results is that now is the time for businesses to start reflecting on their people strategy to see that it is directly aligned with the business objectives and with what employees value.

“It’s also important for businesses to update their talent strategies and people management practices to take account of the new economic circumstances, otherwise they could be in for a shock when the economy bounces back.”

To read the full report, go to www.deloitte.com/nz/talentsurvey.

ENDS

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