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

 

BusinessDesk: APN's NZME Sees Future In Paywalls, Growth In Digital Sales

APN News & Media has touted a single newsroom concept for its NZME unit in New Zealand, similar to what Germany's Die Welt uses, saying an 'integrated sales proposition' is helping it win market share, including ... More>>

Labour Party: Global Milk Prices Now Lowest In 6 Years

The latest fall in the global dairy price has brought it to the lowest level in six years and shows there must be meaningful action in tomorrow’s Budget to diversify the economy, says Labour’s Finance spokesperson Grant Robertson. “Dairy prices ... More>>

BusinessDesk: NZ Inflation Expectations Creep Higher In June Survey

May 19 (BusinessDesk) - New Zealand businesses lifted their expectations for inflation over the next two years, sapping any immediate pressure on the Reserve Bank to cut interest rates, and prompting the kiwi dollar to jump higher. More>>

BusinessDesk: Lower Fuel Costs Drive Down NZ Producer Input, Output Prices

May 19 - Producer input and output prices fell in the first quarter, mainly reflecting lower fuel costs and weakness in prices of meat and dairy products. More>>

Media: Fairfax Media NZ Announces Senior Editorial Team

Fairfax Media New Zealand has today confirmed its new editorial leadership team, as part of a transformation of its newsrooms aimed at enhancing local and national journalism across digital and print. More>>

Science: Flavonoids Reduce Cold And Cough Risk

Flavonoids reduce cold and cough risk Research from the University of Auckland shows eating flavonoids – found in green tea, apples, blueberries, cocoa, red wine and onions – can significantly reduce the risk of catching colds and coughs. The research, ... More>>


BusinessDesk: RBNZ House Alert Speech The Catalyst For Government Action

Prime Minister John Key all but conceded that pressure from the Reserve Bank of New Zealand for concerted action on rampant Auckland house prices was one of the main catalysts for the government's weekend announcements about tightly ... More>>

BusinessDesk: How To Fall Foul Of The New Housing Tax Rules: Tips From IRD

Just because you rented out your investment property doesn't absolve you from paying tax, says the Inland Revenue Department in a summary of commonly made mistakes by non-professional property investors when it comes to their tax liability.More>>

Legal: Superdiversity Law, Policy And Business Stocktake Announced

Mai Chen, Managing Partner at Chen Palmer New Zealand Public and Employment Law Specialists and Adjunct Professor of Law at the University of Auckland, today announced the establishment ... More>>

Housing: More House Price Gains Expected

House price expectations remain high, with a net 56% of respondents expecting house prices will increase. Fears of higher interest rates are fading, consistent with the RBNZ’s signals this year. Affordability and a lack of houses for ... More>>

TDDA: State-Of-The-Art Drug Testing Laboratory To Open In Auckland

World leading drug testing agencies, The Drug Detection Agency (TDDA) and Omega Laboratories, open New Zealand laboratory More>>

Network: Bigpipe Launches Ultra-Fast Broadband Into Wellington

Bigpipe Launches Ultra-Fast Broadband into Wellington Naked broadband provider Bigpipe has extended its national reach, announcing today, the launch of its unlimited UFB offering into Wellington. The Spark Venture business is giving Wellingtonians the ... More>>

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news