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Home / Rotorua Daily Post

Bay of Plenty wages soar in a 'war for talent'

Zoe Hunter
By Zoe Hunter
Rotorua Daily Post·
21 Nov, 2021 10:51 PM5 mins to read

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Stats NZ data showed weekly earnings jumped 9.5 per cent - or $92 - from 2020. Photo / Getty Images
Stats NZ data showed weekly earnings jumped 9.5 per cent - or $92 - from 2020. Photo / Getty Images

Stats NZ data showed weekly earnings jumped 9.5 per cent - or $92 - from 2020. Photo / Getty Images

Pay rates are soaring as a "war for talent" rages in the Bay of Plenty.

Experts say skilled employees have more negotiating power because of the skills shortage and are able to demand more money and flexible working arrangements, recruiters say.

And employers are having to account for higher housing costs in the salary packages they offer in order to attract and retain staff.

The comments come after Stats NZ data showed 2021 median weekly earnings for people in paid employment in the Bay of Plenty was $1060 and $27.06 per hour - the highest since records began.

Weekly earnings jumped 9.5 per cent - or $92 - from 2020 and 53 per cent - or $368 - in a decade.

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Top Staff Solutions managing director Kirsten Bangs. Photo / Andrew Warner
Top Staff Solutions managing director Kirsten Bangs. Photo / Andrew Warner

Rotorua-based Top Staff Solutions managing director Kirsten Bangs said there were still more skilled people applying for jobs.

"People can say what they are worth and companies will pay it."

Bangs said skilled jobs was a "very candidate-driven market" at the moment.

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"It's really hard to get good staff. So I think employers and businesses are trying to think of different ways they can attract people and it's not just money."

Employers were also open to flexible work environments and were writing health and wellbeing policies that included offering gym memberships for their employees, she said.

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"Historically it has been about this is the pay rate if you want the job apply for it.

"Employers are having to be a bit more creative now. It's about treating people how you want to be treated."

Rotorua Business Chamber chief executive Bryce Heard said a big part of him was happy to see data showing a rise in the region's wages.

"The minimum wage level is really low compared to the cost of living. The humane side of me is pleased to see it moving up."

Rotorua Business Chamber chief executive Bryce Heard. Photo / NZME
Rotorua Business Chamber chief executive Bryce Heard. Photo / NZME

But, he said, wages always had to be balanced with the ability to pay and a lot of businesses in some sectors were struggling with that.

"Employment is a market too and the power swings as supply and demand change. This time, especially in the skilled jobs, there seems to be a bit more power on the employees' side."

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Tauranga Chamber of Commerce chief executive Matt Cowley said increasing housing and renting costs meant staff were asking for more money.

House prices in Tauranga had reached a record $990,000 according to the Real Estate Institute of New Zealand and Trade Me's latest data showed the city's average weekly rent had jumped 8 per cent year-on-year to $595.

"This is making it more expensive for employers to hire and retain staff.

"Staff wage inflation is a significant risk to the local economy, which is why many employers are focusing on promoting non-financial benefits, including workplace flexibility, professional development, and team culture."

Cowley said the overall rising cost of doing business had increased dramatically since Covid-19.

"Along with rents, energy, and transport costs, the cost of retaining or attracting staff has put pressure on employers."

Border restrictions had also impacted the region's economy where sectors such as primary, retail, hospitality and healthcare, were reliant on free-flowing international workers.

"Businesses are having to come up with creative solutions against the staff shortages.

"Some are investing in automation, others are sharing resources with a competitor, or outsourcing to remote overseas providers."

Cowley said many business leaders say their people are the most critical factor to their success.

"Businesses have a stretched workforce already, so they only have a small capacity to train newbies into roles that require skills and experience.

"The Government's skilled migrant programme needs to restart sooner than later."

Priority One chief executive Nigel Tutt said feedback from nearly all sectors was the employment market was very competitive.

"The problem is equally felt in blue and white-collar sectors. The war for talent has seen wages increase as employers adapt."

Tauranga-based The Staffroom Ltd consultant Natalie Brant said there was a shortage of skilled applicants so potential employers might have to negotiate salary and hours.

"Candidates are less likely to leave positions or are being counter-offered by their current employer if they are actively searching for roles."

A Fletcher Building spokesperson said it was at the "starting blocks" of the recruitment process as the plant would not be operational until 2023.

"But so far, [we] are really pleased with the interest we are receiving. There is great talent in the region ..."

The spokesperson said its Tauriko Plant was going to have "brand-new, best-in-class" technology, which will be a drawcard for many skilled workers.

One of the advantages it will offer its new employees is the opportunity for people to grow their careers and gain skills in different aspects of the building and construction industry, the spokesperson said.

"We believe our biggest asset is our people,so whether you are an engineer, forklift operator, customer service rep or tech whiz, you can be confident we will be focussed on providing the best possible workplace with room to grow and develop.

"In fact, we started our recruitment process early, to give people who think Winstone Wallboards could be a great fit, time to get any skills or qualifications needed to be able to join us."

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