Talent shortage stalls property & construction projects

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Property and construction projects stalled due to acute talent shortage

Salaries have escalated between 10 to 20% for white collar professional staff in New Zealand’s property and construction industry. Job shortages are rife with employers having to be less selective and more flexible with the employees they hire says Pete Macauley, Regional Director of Michael Page New Zealand.

“Employees in the construction and property industry have employers over a barrel in a highly volatile job market with many property and construction professionals swayed by high-end utes, jobs that are close to home, type and profile of the project as well as higher salaries," continues Macauley.

"Loyalty is not strong and candidates are typically being offered between 5-10 jobs so they can be very selective. In comparison, professionals in other industry types typically receive 1-2 job offers."

“The construction and property job market is being fuelled by the huge population growth in New Zealand and subsequent investment in infrastructure. All construction and property companies are expecting to increase headcount in the next 12 months. Record numbers of immigrants have created a massive number of residential property projects and the demand for talent is going to get even tighter," explains Macauley.

“In addition to paying premium salaries, companies will need to have less stringent hiring criteria, they have to look at people with transferrable skillsets and there is a great need for training and development on the job. Many employees are being required to take the next step in their career with less experience. As an example it may have taken 15 years for someone to progress to senior level five years ago, where today an employee could realise that growth in less than 10 years. And it is likely to get worse. There are a number of developments with consent and lending approvals that are being held back as there is a shortage of talent to manage the jobs," says Macauley.

Employers will seek project managers, quantity surveyors, development managers and site managers. 75% of organisations are expecting to need specialists in the next 12 months, while 25% will hire mid-level employees.

"One third of employees in the construction industry expect a 6-10% salary bonus, while two thirds expect a 1-5% salary bonus. The majority of employees in the property industry expect a 1-5% salary bonus," continues Macauley.

“Many people have been priced out of the Auckland housing market and have moved to peripheral suburbs north of Auckland, the Hamilton & Waikato area and Tauranga in the Bay of Plenty. Construction and property activity in those areas have eroded available talent, as there are thinner pickings in these regions. There will only be a greater need for construction professionals in the regions as activity continues to increase, and employers will need to pay a premium for the skills," concludes Macauley.

For more in-depth insights into employment conditions, skills in demand, sector trends and salary benchmarks across industries, please refer to the Michael Page 2017 New Zealand Salary & Employment Outlook.

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