Employers are becoming more innovative in solving labour issues, especially around retaining staff, says ASB's Small Business Banking general manager, Michelle Eng.
She says in small businesses roles can be more like jack-of-all-trades where staff work across a range of different areas and responsibilities: "For a lot of people, that is a really great opportunity to build on what we call 'T-shaped skill sets' where there are quite adaptable people who can be placed into different roles. There are lots of opportunities there."
Eng says one small business had a staff member looking for advancement in her role; she was placed in a management position on a short-term basis.
Initially, it was a bit bumpy but she says the business took a positive approach, bringing in a business advisor to support her and train the team. "Through that process, the business has retained all three, and they are doing really well," says Eng.
"Through our research, among really rapid or high-growth companies, business advisors are reminding businesses of the core skills they need – and then bring in experts and advice to support them."
Eng says some businesses were almost reconsidering what it meant to be a competitor, whether in the same industry or the same region.
"They are recognising that all these small businesses are facing similar challenges and they are looking at ways they might be able to share resources for in-demand skill sets to support their cost and recruitment challenges.
"They are looking at different ways to re-think and challenge the boundaries of how they have thought about the business in the past," she says.
Asked how small businesses can compete with the resources of a large corporation, Eng says: "For many employees, it's not just about the pay packet. They are looking for something else. It could be creating strong work/life balance, more flexibility or even more varied roles in smaller businesses.
"Not everyone is looking to work for a large corporate. For businesses based in the regions, we know lifestyle may play a part in attracting staff – as may offering remote working to people who live in cities."
Eng says something that's really appealing to potential employees is offering them "skin in the game", making it clear there is a well-defined career path for them, even additional training and development opportunities.
"Employers need to provide candidates with a really clear understanding of what's involved when they are coming on board. In hospitality, we've seen some businesses provide wages and free take-home meals – which could be a really great talent attraction tool with the cost of living being really high at the moment."
A recent ASB Economic Note said New Zealand was past its labour sweet spot and foresees "much lower growth in the labour force ahead." It said the labour market is extremely stretched, with the population ageing and more people leaving the country than arriving.
For the year ending June, the net permanent and long-term migration outflows were 11,500 people (10,710 aged between 15-64). This compared with net inflows of 91,700 (70,680 aged between 15-64) in the March 2020 year.
The government recently announced a 19 per cent increase in the recognised Seasonal Employer scheme to 19,000 workers, providing workforce relief to the horticulture and wine sector.
ASB's Economic Note said permanent and long-term arrivals were expected to reach 100,000 by late next year compared with just less than 50,000 in the year ending June.
"We also expect a pick-up in shorter-term arrivals for those on work permits and study visas. Moreover, not all migrants arriving in New Zealand are likely to settle here permanently, with some heading across the Tasman, or further afield, for the higher incomes on offer.
"Departures from New Zealand are also expected to accelerate, with red hot labour markets offshore a major drawcard for Kiwi workers," said the report on New Zealand Labour Supply Outlook.
The report says the current shortages for both skilled and unskilled labour are the most acute in a generation, and businesses are unlikely to shed staff unless they have to.
"They know they will be scrambling for staff when the upturn arrives. A period of labour hoarding looks more likely to us than wholesale job shedding."
Eng says a lot of businesses have flexed up their online channels and "we are hearing about a critical shortage of supporting talent and cyber security in web services".
"There is an opportunity for businesses to work more closely with universities to ensure graduates are graduating with the right skills to fill tech roles and other jobs needed in different sectors."
For more business insights, tips and tools visit the ASB Business Hub asb.co.nz/businesshub
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