SURVEY OF EMPLOYERS END OF YEAR Published Findings

Transcription

1 SURVEY OF EMPLOYERS END OF YEAR 2015 Published Findings

2 Background EMA s membership comprised of 4000 companies, including 1700 manufacturers, is based in the top half of the North Island. Those companies are represented by 7500 operating or business units, which in total employ more than 250,000 staff. EMA has a highly diverse membership which includes companies and organisations from a range of sectors, including manufacturers, importers, retailers, government, tourism, IT, banking, insurance and business advisors. EMA seeks to have the principles of international best practice, and recognition of compliance costs, fully addressed in any legislation. As the leading voice of business in the upper North Island the EMA actively participates in both the submission process and development of regulatory proposals on key issues relevant to members. The EMA is considered the leading employers organisation by most businesses on key issues relevant to members. It also takes an active role in cross industry initiatives and cooperates with government activities that will assist or improve the growth and development of business within New Zealand. Contact Principal contact for the report: Michael Burgess Senior Policy Analyst Employers and Manufacturers Association Private Bag Victoria Street West Auckland mike.burgess@ema.co.nz

3 Contents 1. SUMMARY 3 2. BUSINESS OUTLOOK 3 3. DEMAND FOR SKILLS 3 4. USE OF TRIAL PERIODS 4 5. FLEXIBILITY IN THE WORKPLACE 4 6. CASUAL CONTRACTS 4 7. EMPLOYMENT CHANGES TO EMPLOYMENT RELATIONS AMENDMENT ACT 4 8. IMMIGRATION 5 9. WORKFORCE DEMOGRAPHICS EFFECTS OF HOUSE PRICES ON RECRUITMENT EMPLOYING YOUTH WORKPLACE LITERACY HOLIDAYS ACT EMPLOYMENT STANDARDS LEGISLATION HEALTH AND SAFETY 7

4 1. SUMMARY This report summarises key findings from the EMA Employer Survey in November The purpose of the end of year Survey is to collect information on employer related practices and perspectives on topics relating to the workplace. This information is used by the EMA to develop policies and establish a position to act on behalf of members. The Survey ran from November It had 211 respondents. The main employment sector contributing to the Survey were manufacturers at 24%. Respondents were from Taupo North, with Auckland being 42% of respondents, Waikato 16%, Bay of Plenty 13%, and Northland 5%. 2. BUSINESS OUTLOOK Most businesses expect overall business conditions over the next six months to stay the same (53%), while 40% expect it to improve. 57% of businesses expect their own business to grow over the next six months. 3. DEMAND FOR SKILLS 53% of employers had increased their number of employees over the year, while 46% had not. Employers are finding it difficult to recruit for skilled positions (67%), while only 2% find it easy. For positions generally, employers are finding it difficult to recruit (44%). Most employers were finding it difficult to recruit in the following positions: Professionals 32% Technicians 24% Managers 22% Sales workers 15% Machinery operators 13% Service workers 11% Labourers 8% Clerical/Administrative 6% Other 28% Most businesses are meeting their skill needs over the next 12 months employing staff with required experience and upskilling those who don t. A large number prefer to retrain existing staff on the job (48%). Other areas to meet the skill need: Seek skilled migrants 15% Take on an apprentice 24% Employ contractors 16% Employers felt if they had more time and money, they would spend it on training existing staff (67%). EMA SURVEY OF EMPLOYERS 4

5 4. USE OF 90 DAY TRIAL PERIODS A significant number of employers have used the 90 day trial period (78%). Significantly, 43% said the trial period meant they hired a person which normally they would not have. 60% of Employers are satisfied with the current 90 day period. While 40% would like to see it extended. Employers made the following comments on the 90 day trial period: We may have employed people anyway but it made the hiring decision easier. Being a small business if I did not have the 90 day trial I would be reluctant to take a punt on someone I would probably just freelance work out. This gives both parties a chance to see whether it is going to work out without the risk of litigation by either party. The 90 day trial is invaluable to allow the employer to accurately assess whether the employee is capable in the position they have been hired for. Happier to give a person a go knowing we have the trial period. Otherwise may have been more cautious about who we hired, now are perhaps more let s give them a go attitude. The 90 day trial gives us comfort when we take a chance on someone. Although 90 days is quite short and doesn t always give us enough time to assess someone s abilities. 5. FLEXIBILITY IN THE WORKPLACE A number of employers have policies on flexibility with their employees. Their preferred options have been: Flexi-time 66% Part-time work 82% Telecommuting 38% Job sharing 30% 6. CASUAL CONTRACTS A large number of employers (86%) have up to 10% of their staff working on a casual contract basis. 7. EMPLOYMENT CHANGES TO EMPLOYMENT RELATIONS AMENDMENT ACT Most employers are never or seldom affected by changes to the collective bargaining framework, requests for flexible working arrangements, and more flexible rest and meal breaks. Always Usually Seldom Never Changes to collective bargaining 8% 7% 20% 65% Requests for flexible working 8% 10% 59% 23% arrangements More flexible rest and meal breaks 13% 15% 38% 35% EMA SURVEY OF EMPLOYERS 5

6 8. IMMIGRATION The survey collected information on employers who were recruiting using immigration. Overall, 27% were using the Immigration process to recruit staff. A large majority rate the process of using immigration as difficult over 50%. Employers views on how the immigration process could be improved: There should be a period of time after which an employee on a continuously renewing work permit can apply for residency. A more simplistic approach possibly having a funded organisation who can help with the paperwork and transition. 9. WORKFORCE DEMOGRAPHICS 51% of employers said more people are working after the age of 65. While 65% said they are prepared for an ageing workforce. Employers made the following comments on how an ageing workforce has impacted on their business: Succession planning. Vital customer knowledge being lost. More mature employees have a lot to offer the business. Ageing workforce sometimes struggles with the physical requirements. At least they turn up to work and have a sense of commitment. 10. EFFECTS OF HOUSE PRICES ON RECRUITMENT Rising house prices have affected 21% of employers in recruiting or retaining staff. The respondents who were affected by high house prices were impacted in the following ways: Applicants expect a higher remuneration (78%) Staff are travelling longer distances to work (79%) Higher turnover of staff (42%) Fewer applications for jobs (55%) General comments made by employers: Harder to recruit from outside of Auckland region. Staff are leaving Auckland in particular because of high house prices. Potential candidates, both internal and external, from outside of Auckland are unwilling to relocate due to high house prices. Pressure to increase salaries and wages. People wanting more flexible hours to enable a wider geographical spread. 11. EMPLOYING YOUTH 38% of employers were not satisfied with the work readiness of school leavers. Only 12% were satisfied. Employers were asked to rank the most important factors when recruiting university and polytechnic graduates: EMA SURVEY OF EMPLOYERS 6

7 Ranking 1. Fit with your business culture 2. Personal skills/team work/problem solving 3. Relevant work experience 4. Subjects undertaken 5. Student results obtained 6. University or Polytechnic attended 7. International capabilities A number of employers have developed links with the education sector. More than 28% had links with secondary schools, and 32% with universities. 12. WORKPLACE LITERACY New Zealand workplaces are constantly changing and the workforce needs to be as well. Employers noted the impact of low workplace literacy and numeracy within their organisations. The most significant impact was poor completion of workplace documents and reports (65%), followed by teamwork issues and communication problems (63%). Poor completion of workplace documents/reports 65% Teamwork issues and communication problems 63% Wasted time 49% Lack of staff confidence /unwilling to take on new work 46% Potential for workplace injuries or unsafe work practices 42% Materials wastage/non- compliance 23% Financial miscalculations 18% Recruitment difficulties 15% Other 7% 13. HOLIDAYS ACT Most employers (63%) do not see any issues in administering the Holidays Act. While, 37% have difficulties with administering the Act. The reasons cited for the difficulty: Employees consistently work different hours daily, weekly and monthly - this makes holiday pay/allowance difficult to administer Too many options and calculations with different staff Those employers who had difficulty with administering the Holidays Act were asked their preferred options for changes. 89% preferred one formula for all payments of leave. 77% wanted accrual of all leave in hours rather than weeks. Employers were divided on having an employee s ability to cash up more than one week s leave. 57% were in favour and 43% against. EMA SURVEY OF EMPLOYERS 7

8 14. EMPLOYMENT STANDARDS LEGISLATION The Employment Legislation Standards Act is expected to be in force by April 1 Most employers are prepared for the changes in the Employment Legislation Standards Bill that include parental leave entitlements, agreed hours of work being included in employment contracts, and the enforcement of employment standards. Definitely Very Probably Probably Probably Not Unsure Parental leave entitlements 25% 23% 33% 18% 2% Agreed hours of work being included in 43% 21% 24% 10% 3% employment contracts Employment Standards 30% 24% 32% 6% 8% 15. HEALTH AND SAFETY Employers felt they are prepared for the introduction of the Health and Safety at Work Act which comes into force on April % were familiar with the Act, and familiar with employee engagement participation and representation. 75% indicated directors are active and understand due diligence with their responsibility under the Act. The survey indicated the training for Occupation Health and Safety representatives could include changes to the legislation, OH/S management systems and general compliance issues. Currently the OH&S representative course is being developed by NZQA. EMA SURVEY OF EMPLOYERS 8

9 Contact Us Free call AdviceLine, NZ AU Visit our website Follow us on twitter.com/ema_nrthn EMA is a founding member of BusinessNZ Through the BusinessNZ network, including EMA, OSEA, CECC, BusinessCentral and ExportNZ, you have a team of experts ready to ensure your voice and the voice of New Zealand business, is heard. Please note: All information in this publication is correct at time of printing and subject to change.