Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Employers Cautious to Commit to New Headcount

Employers Cautious to Commit to New Headcount Despite Strong Economic Outlook


Hudson Report survey shows solid economic expansion not yet translating into increased hiring expectations


New Zealand – 26 March 2014 – Hiring expectations have dipped slightly for the second consecutive quarter, down 3.5 percentage points (pp), according to the latest Hudson Report: Employment Trends released today[1].

The drop indicates a slower-than-expected start to the year in terms of hiring given strengthening business confidence and robust economic growth.

Nearly two-thirds (64.6%) of the more than 1,000 employers surveyed said they intend to keep staffing levels steady this quarter. This is a 4.3pp increase, while positive hiring intentions remain relatively stable at 27.3% and, Hudson says, reflects caution in the market.

“The 2014 year started gangbusters with economic indicators almost universally promising renewed and strengthening growth. But while the market is undoubtedly feeling confident, it hasn’t translated into the aggressive hiring activity that was predicted,” said Roman Rogers, Executive General Manager, Hudson New Zealand.

“Employers are also facing the dual pressures of needing to reward and energise existing staff seeking higher pay, with the ongoing mandate to limit cost increases.”

“Where rewarding all staff is not immediately possible, we recommend being very clear on what the next steps are for employees and what they can do in order to reach their salary goals. Organisations might also consider putting in place intermediary periods whereby KPI-driven performance-based salary increases may be introduced on July 1 or October 1, as these performance targets are met.”
Hiring intentions in the South Island, while remaining the strongest across the regions, have dropped a significant 10.3pp with 38.7% of employers intending to increase headcount, in the lowest result since Q2 2011.

“This drop in hiring intentions is, in part, linked to the lack of speed around the execution of the Canterbury re-build, as well as the continued adjustment of the market’s expectations around actual hiring requirements,” Rogers said.

Construction and commercial roles remain in demand in Canterbury, including project managers, quantity surveyors and estimators, and there is also increased demand from manufacturing companies who are supplying products to the re-build.

Construction and investment in professional services[2] are driving the economy in Auckland and the wider region. Building consents for 2013 are at their highest levels since 2008[3] and intentions to keep headcount steady are up 6.9pp to 69.1% in Upper North Island.
Intentions to increase headcount in Wellington increased a marginal 0.4pp. With the Government Financial Year ending on June 30 and the General Election in September, little growth in hiring is expected in the coming two quarters.

Nationwide, the Construction / Property / Engineering sector remains the industry with the highest positive hiring intentions (50.0%), followed by Information Technology (43.4%), Manufacturing (32.9%), Government (26.2%) and Financial Services / Insurance (21.6%).

Hiring intentions in Financial Services / Insurance is back on the rise, up 3.1pp.

“This reflects increasing profitability in the banking sector and a higher level of confidence in the industry’s future” said Rogers.[4]
Teams have been realigned to meet new strategic plans and specialisations, and sought after roles include product managers, credit, operational risk & compliance, insights & analytics, change managers, business analysts and project managers.

Contractor hiring expectations are up across the board with intention to hire Office Support contractors up a significant 10.5pp this quarter, followed by contractors in Financial Services and Sales, Marketing & Communications, up by 7.3pp and 3.1pp respectively.

“Contracting is on the rise, with companies seeking to grow by using contractors more extensively than before. And, people are more open to taking on contracting roles than they had been previously,” Rogers said.

“While employees in this market have usually been risk-averse, their worries have been alleviated by evidence of the more positive economy. They view contracting as more lucrative than permanent work, see an opportunity to gain flexibility around work / life balance and are keen to experience more interesting project work that they might otherwise get.”


- ENDS -

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Half A Billion Accounts: Yahoo Confirms Huge Data Breach

The account information may have included names, email addresses, telephone numbers, dates of birth, hashed passwords (the vast majority with bcrypt) and, in some cases, encrypted or unencrypted security questions and answers. More>>

Rural Branches: Westpac To Close 19 Branches, ANZ Looks At 7

Westpac confirms it will close nineteen branches across the country; ANZ closes its Ngaruawahia branch and is consulting on plans to close six more branches; The bank workers union says many of its members are nervous about their futures and asking ... More>>

Interest Rates: RBNZ's Wheeler Keeps OCR At 2%

Reserve Bank governor Graeme Wheeler kept the official cash rate at 2 percent and said more easing will be needed to get inflation back within the target band. More>>

ALSO:

Half Full: Fonterra Raises Forecast Payout As Global Supply Shrinks

Fonterra Cooperative Group, the dairy processor which will announce annual earnings tomorrow, hiked its forecast payout to farmers by 50 cents per kilogram of milk solids as global supply continues to decline, helping prop up dairy prices. More>>

ALSO:

Results:

Meat Trade: Silver Fern Farms Gets Green Light For Shanghai Maling Deal

The government has given the green light for China's Shanghai Maling Aquarius to acquire half of Silver Fern Farms, New Zealand's biggest meat company, with ministers satisfied it will deliver "substantial and identifiable benefit". More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news