KEY POINTS:
We in New Zealand hear a lot about skills shortages - but lately we've also been hearing about job lay-offs and recession.
According to a nationwide survey of more than 1969 employers conducted by Hudson and released in July, New Zealand businesses were indicating that they were adopting
a "wait and see" approach to hiring until at least Christmas. So how does this affect skills shortages?
"It has no marked impact," says Sara Clarke, general manager of executive and specialist recruitment at Hudson.
She says it's true that with the slowdown employers are taking longer to make decisions and are thinking more carefully about contracting staff, but this is "not freeing up talent".
So where are the skills shortages? Various recruiters have said there is plenty of competition for the top jobs and even for junior positions. "The skills shortages are in the mid-market level," says Clarke. "It's difficult to source people with at least three to five years of experience."
She says this applies to many industries, including engineering, marketing, accountancy and human resources.
The reason for the mid-market gap, she says, is that a large number of New Zealanders who fit the bill leave the country for their OEs.
"The market gets less tight the more senior you go. There is definitely more competition for general management jobs and high leadership positions.
"That's because this is not the demographic of people leaving the country, it's more likely that when people are at this stage of their career that they will be coming home. Many new immigrants fit this bill as well. Also people at this stage of their career tend to be less flexible, as they often have families, than younger people who have few ties and tend to be more mobile.
"Basically, the more senior the role, the more choice there is of candidate - this does depend on how specialised the skills required are though. For example, auditors will always be in demand as there are fewer people pursuing jobs in that line."
As far as companies holding off hiring people because of the economic situation, Clarke says she is not seeing that in areas affected by skills shortages. "Companies are eager to have people with certain skills - they are crying out for them, and of course key roles are being replaced."
She does say, however, that there seems to be a hesitation to move among candidates.
"Many are not ready to leave a secure position and career contractors are becoming more interested in full-time opportunities.
"A lot of people are staying still. During the past few years it hasn't mattered how long they've stayed in the job - the situation has been quite free and easy for them. Now they're taking more time because their sense of job security is not so strong."
Clarke says the areas where employees have lost jobs because of the economic slowdown - for example, manufacturing - have had no affect on the skills shortage. "It's just that that's not where the demand is."
Carmen Bailey, director of Emergent & Co, agrees that the skills shortage is in the middle market.
She told the Herald last week: "We are still incredibly short of talent at that $90k to $120k mark or the $45 per hour to $60 per hour mark in terms of contracting - once you get over that mark there seems to be a lot more choice for the employer."
She says the market still likes the energy that younger people returning from overseas can offer. "However I don't believe the candidates will be able to be as picky as they have been in the past."
Managing director of Beca Corporate, David Carter, says his company's growth has outstripped New Zealand's capacity to supply graduates in the engineering field.
"Estimates are that there is a 500 to 1000 employee shortage of engineers and technicians in the service sector. We are not seeing a slowdown - particularly as a lot of our offshore work is still strong. Asian countries are providing a lot of work."
He said although there was an increase of people in the New Zealand market, there was a long way to go with resolving the skills shortage.
"What tends to happen when there's a slowdown in one market, companies turn their focus on to other sectors."
Carter said there were a number of factors connected to the skills shortage, not least people leaving school without the basic skills in the physical sciences that were required.
He believes the shortage runs across the age groups. "There will always be a need for leaders who are also technical specialists."
He said a lot of people in the 60-65 age group are being encouraged to stay. "Beca increases their holiday allowances etc. They have huge institutional knowledge, but we do know that ultimately they will want to retire."
He says he thinks it's good for New Zealanders to do their OEs. "It's a large part of our culture and is not a bad thing - as long as companies track these employees and get them back. This is through encouraging them to return with exciting prospects."
Carter suggests companies create an alumni set-up where relations are maintained with past employees who travel overseas.
"We, as an international firm, do give people the opportunity to both work around the world and to stay with Beca. Also, we even hold alumni functions in London and run social networking sites."
He says Beca has also doubled its in-house training budget.
"Because of the shortages, we need to be more deliberate about training. We also have a big focus on recruiting offshore.
"New Zealanders tend to have a breadth of experience, but often not specialised experience - sometimes we have to go overseas for that."
Carter says he has noticed a lot of press coverage of employment opportunities in Australia. "People don't seem to realise that good people in New Zealand are getting good salaries. There are also exciting projects for engineers - which is always a motivation for them to stay."
Marlene Strawson, human resources director at Yellow Pages, says with this being an election year, a worsening local and international economy and the global credit crunch, there are changes of demand in the workforce.
"There are fewer roles for people to move into as there are not as many people leaving their jobs," she says.
"The strong period is over, as is the time of over-inflated salary expectations. Employers making counter-offers to employees who say they're leaving is coming to a bit of a halt."
She suggests that those going to job interviews prepare well, research the company and think about what they can bring to the position they are applying for.
"Also be realistic about salary. Generally our recruitment partners tell us there are not as many roles out there. People are staying put and there is less contract work."
However, she says Yellow Pages is doing well and there are still skills shortages in some areas of the market, particularly in online advertising.
"Also, there are always positions for accountants, health professionals and other skills in the market."
