Solving tomorrow's recruitment challenges today

Over the next two months, we’re bringing you a series of articles and insights which highlight many of the factors shaping the attraction and recruitment landscape currently. As the economy picks-up the battle for critical skills will become more intense. Already we’re helping clients shape their plans and advising them how they can respond individually and collectively to this challenge. ?

Our series aims to inform the people and business leaders on what they need to know and do to compete and adapt. We’ll be sharing ideas and insights from a range of experts, along with practical steps for employers to take now, and over the medium term. ? ?

This week it’s all about the ‘flying kiwis’, with their one-way tickets to the world. Topics over coming months include:? ??

1.???? Migration. Who's moving out, and what does it mean??

2.???? Demographics and social change. How significant demographic shifts in NZ society will impact workplaces, with Professor Paul Spoonley.??

3.???? Infrastructure and spending. Do we have the capacity and capabilities for building the infrastructure pipeline? How best to retain skills and attract global talent??With insights from Nick Leggett - CEO Infrastructure New Zealand

4.???? New Zealand Inc, what’s our new story as we aim to attract the world’s best and brightest. ?

5.???? Shaping up for our future skills needs. How business and government can work together to meet our medium to longer term talent requirements. ?Something at HainesAttract that we've done before with Government and will do again.

Issue 1: Migration: The flying kiwi

There’s nothing new here right, beyond the flightless bird that flies? It is a well-worn narrative that New Zealanders will travel and explore overseas shores, gain skills, and return. A rite of passage is the story often told, and as a nation we’ve offset that with incoming arrivals of migrants, which has seen continued population growth. So, what’s different right now? Everything. ?

For months now we’ve read about the ‘brain drain’, yet we’ve not seen much analysis of what that means for business and the future capacity of talent and skills. ?Departures are happening rapidly, and there’s going to be a gap to fill, especially in that “intermediate demographic”, kiwis aged between 20 – 30.

The migration data is possum in headlights stuff. 134,000 people left NZ in the year to August 2024. More than 81,200 of them were New Zealand citizens (up 31% YOY). This is the highest number on record and about double the number of annual departures prior to the pandemic.?

So, what does this mean, don’t all kiwis fly home eventually? We asked Massey University’s Distinguished Professor Emeritus Paul?Spoonley, who warns this data set is a lagging indicator, and the situation may be even more challenging than we think.??

While there’s no profile of the level of skill in that talent pool, the data tells us that?those aged between 25-29 are the largest demographic, followed by 20-24 and 30-34. ???

New Zealand’s overseas based population relative to its “on Island” population is massive and exceptionally well-educated. We have the highest proportion of tertiary-qualified expats in the world, Professor Spoonley notes. ???

In a very real sense, young Kiwis are footloose and fancy degree. It seems we’re training our young people to work overseas. In terms of spread as a proportion of the population, New Zealand is second only to Ireland.? ?

This loss of talent is just one of the significant employment and skills issues developing right now, underpinned by a massive demographic shift in New Zealand’s citizen ethnicity. ?

And when you factor in New Zealand has an ageing population – in four years, one in five people will be aged over 65; by 2050 it will be one in four - it gets you thinking about the shape of your workforce and how to attract and retain the next generation.?

Some positive upsides in all of this are the Government’s recent commitments to attract higher skilled migrants, set clear standards for access to lower skilled labour, and recover the costs of the immigration system from those who benefit from it. ?And into next year the forecast is for a slight net gain of 16,000 migrants by end of year. Entering a period of the lowest population growth since "Slice of Heaven" was number one on the charts, and our first crack as a nation for the America's cup. That year being 1986!

So if we’re going to win back departing kiwis in a hurry, we’ll need make sure we’re highly attractive to the best and brightest. A recent Economist article highlights that global competition for talent is fiercer than ever. Canada, Australia and Ireland are presently winning that race. And as a nation we don't like to lose right?

New Zealand is still a place the highly skilled want to work but to win, we’re going to need to be putting in a co-ordinated and competitive effort to attract and recruit.

So, as a smart employer what can you do??

1.???? Hold onto your best people; invest in their success. Give them reasons to grow not go. ? ?

2.???? Keep in touch with your departing Kiwi’s and show your interest in having them back. They may not return in the next 18-24 months, but relationships go a long way. Stay connected and interested in the skills and experiences they’re gaining. ? ?

3.???? Be brand-led, a business that’s remembered (using your story as your emotional advantage), and ensure you have an employer brand strategy that is easily activated. Be bold! ?

4.???? Focus on recruiting and attracting skills from off-shore, how you can be competitive as an employer? Understand the gaps and future needs.

And beyond that use your imagination, we welcome the chance to discuss with you how to solve tomorrow's immigration challenges today,

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