Big OE more popular than ever - and the benefits are huge

New Zealand workers are not only in high demand at home, but are also highly sought after abroad. And given the tight labour market, Kiwis who want to work abroad are not worried about finding work when they return home.

This could not be more true than in the accounting industry, as the universal language of numbers transcends borders and allows accountants a huge amount of freedom.

Destinations such as London, continental Europe and North America are among the favourites.

Bill Wilkinson, a staff partner with KPMG chartered accountants, says he uses this mobility as a recruiting carrot.

"It is very easy with an accounting qualification to move overseas," he says.

"When we recruit graduates from the universities, we tell them that with us they can move overseas and that's what they'll do."

Wilkinson says the impetus to go on an OE as a professional happens because people often do not have the opportunity to go overseas as students.

"What I perceive happening here is that people will go straight from university to train as an accountant with people like ourselves and then very shortly after qualifying, they then in effect go on their OE."

Accounting blunders of the past years have meant a windfall of opportunities for accountants in New Zealand and overseas. And there is no shortage of organisations screaming for accountants to sort out their books in this post-Enron era.

"There is a very involved and detailed process ... And that is just sucking accountants into everywhere that North America reaches."

Wilkinson says accountants who leave create a big problem for the industry.

"Most of the people who leave us are probably going into accounting positions anyway.

"There's a balance between those who will move to go with the same firm, probably say in London. So, they'll leave KPMG Auckland and go to KPMG in London.

"I think that's what the majority have done, but we've also got people going to North America and people going to Europe as well. And that gives us a big problem."

Wilkinson says there is another downside to having such a fluid workforce.

"As long as we're replacing what we've lost, you're getting people who have the experience anyway. But it does mean our business is a little more expensive because we've got the cost of moving people about.

"We've got clients who like a bit of continuity and it's very difficult to provide continuity of staff."

But calling this a brain drain could be a bit too simplistic because the cycle can come full circle.

"There is a bit of reverse traffic coming the other way. So we're recruiting accountants again from within KPMG. We've got people in this office from North America and Europe."

Wilkinson says when New Zealanders return from overseas with that experience, it is a great benefit to the organisation.

"If we've got people coming back, it means that they've gained additional experience in our business. They've seen how possibly bigger entities operate. They're getting experience of what's happening in the head office maybe rather than a subsidiary."

The professional OE generally lasts about two years.

He says people traditionally go on a secondment for about two years before coming home.

They are lured away with the promise of more money and experience - both professional experience as well as personal experience.

And they generally find all of those things.

"They have enjoyed it. They know they have to work hard, but they do get the opportunity to do the things they went there for."

The cost of living in London is high, but wages more than make up for it. Wilkinson says Kiwis often go to London for a year and work and then have a six-month to a year's break.

"When they go to somewhere like London now, because of the low-cost airfares you're getting in Europe, it's such a great base to actually fly to places just for the weekend. It's definitely a lifestyle."

Some people stay even longer before returning. "We've had some people who have rejoined us after being away for a period of six or seven years. They've been in fairly serious and quite senior management positions overseas, come back and join us and they've done well for themselves."

Wilkinson says there is no risk of accountants not being able to find work when they come home, because there is such a shortage.

And there is certainly no sign of this trend slowing down. New accounting standards with different systems and controls come into effect this year in Britain and Australia.

"There are a lot of projects to convert existing accounting systems to report in accordance with new standards."

The standards come into effect in New Zealand in a couple of years. And New Zealanders who have worked with these systems overseas will be in even hotter demand when they come back home.

BUT even less-skilled workers are in hot demand overseas.

STA Travel works with young New Zealanders who want to go to work in North America at ski fields and in hospitality.

Marketing manager Nicky Pentreath says people are not afraid to quit their jobs and take off, given the current job market in New Zealand.

"From my experience I wouldn't think that people would worry about that type of thing especially with the current buoyant New Zealand job market. I think a lot of people feel that if they get experience overseas that it's probably a good thing to have on their CV when they return to New Zealand."

They go to work overseas for experience and money and generally come home with both.

"I guess people have lots of different motivations, but I would say from personal experience and just from a lot of people I know who have lived in Britain after they've finished studying, [the motivation] is probably to earn British pounds.

"But that's not the main objective. They want to go out and see the world and travel. I guess by earning pounds and basing yourself in Britain, it's such a good base to be able to travel through the rest of Europe and northern Africa."

Vicki Kenny is the founder of International Working Holidays and recruits people to work as nannies, camp counsellors and lifeguards throughout Europe and North America.

"The demand for Kiwis overseas is inexhaustible. We can't find enough people to fill all the jobs."

Making US$200 ($285) a week, nannies often travel after they've completed their work period.

Recently four of Kenny's nannies were caught up in a New Orleans hotel during Hurricane Katrina, but despite this worst-case scenario for an OE, they continued with their travel plans to Europe.

Kenny says the only people who should think twice about working overseas are young women.

"They have to be prepared to leave friends and family behind and understand that they will get homesick.

"I would say the worst possible thing that a female could do is leave a boyfriend behind. They are the ones most likely to come home. Wait till you're single and then do it."

Those most likely to stay abroad are the ones with great jobs. As well as accountants, the jobs in hottest demand in the US, according to the Bureau of Labour Statistics, include teachers, nurses, customer-service reps, computer support, general-operations managers, sales representatives, truck drivers and software engineers.

The British Home Office says Britain most needs teachers, nurses, doctors, social workers, pharmacists, IT workers, actuaries, dentists and dental assistants, engineers and aircraft engineers.