Significant Talent Shortage Looms as Hiring Rises

Significant Talent Shortage Looms as Hiring Intentions Rise

Rapidly rising demand for new staff in New Zealand’s growing ICT sector is set to worsen an already tight labour market, according to the results of a new survey.

The absoluteIT Employer Intentions Survey for August 2010 reveals that 76.5% of the 536 respondents are intending to recruit new personnel over the next 12 months – that’s a total of more than 1300 vacancies due to hit the market.

“This reinforces our prior research showing that a more widespread skills shortage is imminent as the sector continues to grow,” says absoluteIT Director Grant Burley.

“We already have talent shortages in key areas such as solutions and applications architects, business analysts and software developers. We expect that it will be increasingly difficult to find project managers, testers, networking and infrastructure and DBA support skills.”

The survey reflects increasingly high employer confidence with more than 80% of respondents having no plans to reduce staff and nearly three quarters seeking permanent staff and a lower 25% seeking contractors.

“This high level of permanent recruitment activity underpins not only growing employer confidence but also indicates a move to a more settled workforce.”

Business growth is also the main reason employers are recruiting with 34.6% of employers catering for new projects; 21% for increasing customer demand, 18% for increased internal business and 17.5% due to expected employee churn.

“Employers are telling us they feel much more confident, that predominantly they are bolstering headcount to meet new business – not because they are trying to replace lost people and ease the load on overworked staff.”

Regionally, permanent recruitment activity is highest in Auckland where, of the 64% of employers recruiting in the next 12 months, 79% want permanent staff and 21% contractors. Wellington offers more for contractors with of the 59% of employers planning to recruit, 68% are seeking permanent and 32% contractors.

Results for Hamilton, Christchurch and other North and South Island regions also reflect the high levels of recruitment activity occurring in the larger centres.

However, Mr Burley says as demand for talent grows so does the brain drain and employers must respond competitively by introducing more initiatives to attract and retain talent.

Their January survey of employees shows a major trend in IT talent emigration, with nearly 36% of the 3,700 respondents planning to work overseas, and more than 60% of them for more than two years. A June update confirms the trend is growing.

“The reasons people are moving overseas are primarily lifestyle, remuneration and career satisfaction which gives employers some clear directions in terms of initiatives to combat the brain drain.

“Considering that lifestyle is one of the key reasons talent leave, we believe workplace flexibility is going to be the key driver in changing people’s minds.”

ENDS

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