ATTRACTING KIWI TALENT BACK TO NEW ZEALAND. New Zealand returners survey findings. hays.net.nz
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1 ATTRACTING KIWI TALENT BACK TO NEW ZEALAND New Zealand returners survey findings hays.net.nz
2 BACKGROUND Talent shortages are evident across a breadth of highly-skilled professions in New Zealand, placing intense pressure on wages in these industries. New Zealand is not just about milk powder and dairy prices. Talent is the single most important factor in the future prosperity of any industry. The lack of available talent will be the greatest restriction on growth. When times are buoyant and business confidence grows, there is a frenzy of competition for talent; the demand for trained and skilled labour drains the domestic market with immigration often filling the gaps. The biggest upcoming challenge will be to meet the unprecedented workload driven primarily by the Canterbury rebuild, the continued growth across most parts of New Zealand in residential building, the demand for commercial buildings in Auckland and the increased investment in infrastructure nationwide. Firms are reporting difficulties recruiting skilled and experienced staff. Those most in demand being quantity surveyors, estimators and project managers, right through to leading hands, architects and entry level cadets. The New Zealand government is already offering a greater number of visas to candidates with the right skills in a bid to help address the challenges faced. New Zealand s skills shortage is not restricted to the built environment however. While it is certainly the epicentre of the challenge, the country s improving economy has also seen skills shortages become more acute in other fields, such as finance and IT. This is supported by findings from the 2014 Hays Global Skills Index, which shows that New Zealand has been poised on the edge of a competitive talent market for some time. A general upswing in business confidence has led to a meaningful increase in hiring intentions and the return of more intense talent shortages. With the upswing of work, employers are recruiting both permanent and contract staff to deliver projects on time and on budget. They re also growing their teams in order to generate more work. It s no wonder that returning Kiwis are being met with open arms by employers who want to fill jobs with experienced locals. Such talent can help counterbalance the skills shortage by offering employers the opportunity to recruit Kiwis with indemand skills and highly valued international experience. So what motivates Kiwis to return and what is the best approach to their recruitment? To help answer these questions, we recently contacted Kiwis (and those who have lived or worked in New Zealand before) - who are either studying or working overseas, but thinking about coming back to New Zealand for their next career step. 635 such Kiwis completed a confidential online questionnaire in February and March We share their insights here. INTRODUCTION
3 Profile of our survey respondents Of our 635 survey respondents, 66 per cent were based in the UK and 25 per cent in Australia. The majority of our returning Kiwis, 84 per cent, had studied in New Zealand and they are typically a highly educated group. 61 per cent hold a Bachelor degree, 22 per cent a Masters. Almost a third (32 per cent) of our survey group have 5-10 years' experience and 50 per cent have more than ten years of experience.
4 WHY ARE RETURNING KIWIS IN DEMAND? International work and life experience provides them with a broader way of thinking and experience of how business is done overseas. They gain experience on larger and more complex projects and often in bigger multinational organisations. Employers operating in our globalised economy, on projects and programmes of work that require specific experience, or in areas where local skills are in short supply value such skills and experience not least because these returners are in demand over overseas talent. They also have one further advantage however; their local knowledge, qualifications and experience of the New Zealand market. This is particularly valued in the construction, property, engineering and accountancy industries where knowledge and experience of local regulations is invaluable. This mixture of knowledge and experience of the local market and global business acumen is appealing to employers as competition for talent is heating up. KEY FINDINGS Motivations We firstly asked our returner survey respondents what would make them consider coming back to New Zealand. A significant 77 per cent of returners said they miss the culture and lifestyle. A further 66 per cent said it was a desire to live closer to their family. Culture and family ties are strong factors in motivating talent to come back home, far more than any ambition to achieve certain career goals. Only four per cent said they were motivated by more job opportunities in New Zealand than where they currently are abroad and only seven per cent because they thought their career path would be faster in New Zealand. Returners seem to have less faith in RETURNERS MOTIVATIONS CAREER 66% 17% JOBS 77% The greatest skills shortages in New Zealand lie in the construction and property related industries, and this doesn t seem like it is going to be relieved by our returners, with only four per cent looking to return to work in these industries. The majority of respondents would be looking to return to financial services (20 per cent) and professional services (15 per cent). However, there is good news for the skill-short IT industry, with ten per cent wanting to return to work in IT. Salary expectations Attracting returners can expand the talent pool for businesses struggling to fill highly skilled roles. The question is, however, whether these individuals bringing with them a wealth of knowledge, new ideas and capital, are actually worth quite what they expect. Family Culture & Lifestyle What would it take for you to return to New Zealand? the career opportunities and progression available back home and do not consider these to be motivating factors. We next asked our returner survey respondents which type of organisation they want to work for if they were to return. The majority (37 per cent) of returners want to work for a private company if they return or 26 per cent for a multinational.
5 Many returning Kiwis understand their worth in the global marketplace, the value of their demand back home, as well as the advantage of their local business understanding. Of our survey respondents, 19 per cent will only return if they can increase their current earnings. The majority however are more pragmatic as 29 per cent understand their salary will be determined by local market conditions when they The value of experience Sixty two per cent of returners we surveyed said their overseas work experience is their number one advantage compared to local jobseekers. A further 26 per cent nominated their international cultural skills and understanding as a key advantage over local candidates RETURNERS SALARY EXPECTATIONS ATTRACTING RETURNERS 32% 19% 17% = 70% 65% Same More Less return and 32 per cent would at least like to earn the equivalent of their current salary overseas. Surprisingly, 17 per cent would be willing to take a drop in salary to return for a good job, which proves salary is not the only factor for those considering returning. Apart from salary, other factors that can influence their career decisions include an improved work/life balance (70 per cent), a desire for new challenges (65 per cent) and opportunities for advancement (56 per cent). So even though career development does not motivate people to return to New Zealand (in the previous section we saw only seven per cent would return because they thought their career path would be faster in New Zealand), once they do return they still want to ensure they work for an organisation that provides opportunities for them to advance. Would you consider working overseas? Improved work/life balance with no overseas exposure. Returners understand that their overseas connections are of less importance in the local market, with only three per cent citing this as an advantage. Length of job search A desire for new challenges Almost half of our returner survey respondents (49 per cent) expect it will take one to three months to find a job if they were to return to New Zealand. Only 13 per cent said it would take more than six months to find a job. However, the majority (77 per cent) of respondents think it s easier to get a job where they are currently living overseas. This shows that returners lack faith in the opportunities available back home, while employers still need to do more to promote their opportunities, projects and career paths on offer. The movement of students and professionals overseas shows no sign of abating. Increasing numbers of educated and qualified Kiwis are at the same time moving abroad in search of better opportunities. In a separate survey in early 2015, we asked 172 people if they would consider working overseas, either now or in the future. Majority (88 per cent) said they would consider working overseas for better job opportunities, career development or exposure and lifestyle factors. SALARY INFORMATION SALARY VS PROJECT SIZE/ANNUAL TURNOVER
6 ADVICE FOR EMPLOYERS How to go about attracting highly skilled talent back to New Zealand Our advice is to firstly make sure you pay appropriately for skill, and nothing else. Whilst salary is a driver, think about your overall offering and benefits package. What initiatives do you have in place to promote a healthy work/life balance for example? What career pathways and development opportunities do you have in place to help attract these ambitious individuals to your organisation? What new challenges can you offer them? Find your leverage and recruit intelligently. What attracts a candidate to your organisation might not be purely financial. As our survey shows, talent can be brought home by family ties and lifestyle, so talk to your recruiter to gain deeper insight on what motivates the candidate. With this knowledge, you can tailor your offer. For example, for one returner the opportunity to leave work an hour early one day a week to attend their child s sports game might be viewed as a highly attractive benefit, while for another a structured career development plan might encourage them to accept your job offer. Review your attraction toolkit to ensure your offering appeals to the desires of potential returners. Finally, hold on to what you already have. According to our survey, X per cent of New Zealanders are considering leaving the country because they believe they will access better career opportunities overseas. This highlights the importance of putting solid, individualised retention plans in place, which includes open and honest discussions about career development expectations and how you can meet them.
7 ADVICE FOR RETURNERS How to go about securing a rewarding career back in New Zealand Keep your eye on the market to identify the right time to make the move back for your particular industry or profession. Subscribe to the Hays Quarterly Report for the latest hotspots of demand and talent trends in New Zealand. campaigns for employers in Australia and New Zealand, so be the first in line to hear about opportunities with top employers back home. Speak to a recruitment consultant in your country of residence. Our specialist Hays Globalink team in London is dedicated to international career transitions and can provide useful information to you before your departure. This includes giving you an indication of market rates and salary guidelines, discussing visa and work permit requirements, arranging interviews in New Zealand prior to your departure, helping to update your CV and giving you job searching tips. The team in London also work specifically on recruitment
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