HALF YEARLY EMPLOYERS SURVEY SUMMARY FINDINGS

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1 HALF YEARLY EMPLOYERS SURVEY SUMMARY FINDINGS JUNE 2016

2 BACKGROUND EMA s membership of over 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 over 250,000 staff. Our highly diverse membership includes companies and organisations involved in the manufacture, importation, supply, distribution and retail of most product types and the provision of services in a wide range of service sectors including governmental, contractual, 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 we actively participate in both the submission process and any development of regulatory proposals that may impact on our membership. The EMA is considered the leading employers organisation by most business and on issues that affect employment relations. 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 report: Michael Burgess Employers and Manufacturers Association Private Bag Victoria Street West Auckland mike.burgess@ema.co.nz EMA SURVEY SUMMARY FINDINGS 1

3 CONTENTS Summary 3 Business Outlook 3 Demands for Skills 3 Ageing Workforce 4 Flexibility in the Workplace 7 Well Being 7 Employment Standards 8 Holiday Pay Calculations 9 Immigration 9 Traffic Congestion 9 Employing Youth 10 Education Links 10 Workplace Literacy 10 Health and Safety 10 EMA SURVEY SUMMARY FINDINGS 2

4 1. SUMMARY This report summarises key findings from the EMA Employer Survey in May The purpose of the Half Yearly 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 covered 90 employers between May 13th and May 30th The main employment sectors contributing to the Survey were manufacturers at 26% followed by wholesale trade at 11%. The Survey covered from Taupo North, with Auckland at 64% of respondents, Waikato 20%, Bay of Plenty 8%, and Northland 2%. 2. BUSINESS OUTLOOK Most businesses expect overall business conditions over the next six months to stay the same (56%), while those expect it to improve (38%). 53% of businesses expect their own business to grow over the next six months. 3. DEMAND FOR SKILLS 52% of employers had increased their number of employees in the first half of this year, while 48% had not. A number of employers had made some redundancies during the year (30%). 44% of employers will increase their number of employees over the next 6 months. While 46% will maintain their current workforce. Employers more commonly are finding it difficult to recruit for skilled positions (66%), while only 2% find it easy. EMA SURVEY SUMMARY FINDINGS 3

5 Most commonly, employers were finding it difficult to recruit in the following positions: (End of year survey 2015 in brackets) Professionals 35% ( 32 % ) Technicians 24% ( 24 % ) Managers 22% ( 22 % ) Sales workers 21% ( 15 % ) Machinery operators 18% ( 13 % ) Service workers 11% ( 11 % ) Labourers 13% ( 8 % ) Clerical/Administrative 4% ( 6 % ) Other 15% ( 28 % ) Employers were showing increased shortages in machinery operators, sale workers and labourers. Most employers (62%) see a skill shortage in their industry sector. Most businesses are meeting their skill needs over the next 12 months employing staff with required experience (58%), retaining existing staff on the job (52%) and up skilling those who don t (43%). Other areas to meet the skill need: Seek skilled migrants 22% Take on an apprentice 19% Employ contractors 12% 4. AGEING WORKFORCE 68% of employers say they view an older employee as being 60 plus with 27% saying 50 to 59 is considered an older worker. Most employers see an ageing workforce (75%) as somewhat important to extremely important. 25% do not see it as important. 62% of employers felt a major amount of knowledge was lost when an employee retires or otherwise leaves their organisation. EMA SURVEY SUMMARY FINDINGS 4

6 Employers were asked to rate the following issues in importance: Very to Extremely Important Recruiting skilled employees 81% Retaining skilled employees 92% Training /retaining current workforce 63% Introducing new technology into the workplace 63% Developing programmes to improve employee performance 52% Addressing the needs of ageing workforce 25% Increasing the number of part time employees 8% Decreasing the number of contract employees 7% Ensuring a diverse workforce 26% Providing eldercare benefits 10% Employers were engaged in the following human resource processes in response to mature workers: Redesigning jobs 24% Ensuring mature workers have input in determining their workload 35% Opportunities to transfer less stressful or strenuous jobs 32% Training to update their jobs 23% Training top acquire new skills 28% Access to new technology 33% Provide opportunities for younger employees to be promoted 72% Employers are currently engaged in the following human resource practices: Increasing financial compensation 68% Proving more holidays and time off 26% Recognising the accomplishments of mature employees 49% Recognising the experience, knowledge skill and expertise of mature workers 55% Recognising the role mature workers can play as mentors 56% Ensuring mature workers are treated with respect by others 72% Showing appreciation for a job well done 88% EMA SURVEY SUMMARY FINDINGS 5

7 Human resource practices engagement: Increasing financial compensation 76% Providing more vacation and additional time off 28% Recognising the accomplishments of mature employees 52% Recognising the experience knowledge skill and expertise of mature employees 58% Recognising the role that mature employees can play 59% Ensuring mature workers are treated with respect by others in the organisation 72% Showing appreciation for a job well done 92% Employers experience in the following: Agree Disagree Have a strong appreciation for the value of older workers 76% 23% Widely held negative stereotypes about older workers 85% 16% Biases held by managers that affect decisions about older workers 83% 16% Age neutral management decisions and practices 25% 74% Age discriminatory behaviour regarding job assignments 84% 16% Age discriminatory behaviour reading opportunities for individual promotion 80% 18% Discriminatory behaviour regarding performance evaluation 84% 15% Age discriminatory behaviour regarding opportunities for personal and 84% 15% professional development of employees Age discriminatory behaviour in the daily leadership of older workers 83% 16% EMA SURVEY SUMMARY FINDINGS 6

8 5. FLEXIBILITY IN THE WORKPLACE A number of employers have policies on flexibility with their employees. Their preferred options have been: Providing flexible work schedules 67% Reduced work week 52% Job sharing 18% Offering unpaid leave 43% Providing options to work from home 40% Providing challenging and meaningful assignments 75% Creating new roles for mature employees 20% Casual Contracts A large number of employers (82%) up to 10% of their staff working on a casual contracts. 6. WELL BEING Over 43% of employers have a well-being strategy in place, with 56% having no strategy. % of Employers who offer the following health-related benefits Immunizations 68% Diet and nutrition guidance 23% Smoking cessation 20% Health insurance 43% Other 35% EMA SURVEY SUMMARY FINDINGS 7

9 Work Life Balance Employers providing the following work life balance activities: Encourage use of Holidays 55% Flexible schedules 22% Community involvement programmes 7% Child care assistance 2% Elder care assistance 0% Other 14% Retirement related assistance Financial education 18% Financial counselling 7% Other 75% * The other category responses were Kiwisaver 7. EMPLOYMENT STANDARDS The Employment Standards Legislation that came into force on 1st April % of employers have found it easy to implement parental leave entitlements. 60% were finding it easy to include agreed hours (zero hours) are included in employment contracts. 51% find it easy to comply with Employment Standards and inspections. EMA SURVEY SUMMARY FINDINGS 8

10 8. HOLIDAY PAY CALCULATIONS 64% of employers surveyed do not find it difficult to administer holiday pay calculations. Most employers 92% would like to see one formula for payments of all types of leave. 9. IMMIGRATION The survey collected information on employers who were recruiting using immigration. Overall 35% found the process difficult. 23% of respondents were accredited immigration employer. 10. TRAFFIC CONGESTION Traffic congestion effects on employment Employers showed the following concern with traffic congestion. A serious problem 43% A problem but not serious 35% Not a problem 22% The effects of congestion are: Reduced productivity 55% Inability to get staff to work on time 61% Effect on appointments and meetings 64% Recruitment or retention difficulties 44% EMA SURVEY SUMMARY FINDINGS 9

11 11. EMPLOYING YOUTH Employers were asked on how satisfied they were with work readiness of students School Leavers Tertiary Students Very Satisfied 1% 5% Satisfied 13% 40% Neutral 46% 36% Dissatisfied 33% 17% Very dissatisfied 7% 2% 12. EDUCATION LINKS Employers had the following links with education Secondary schools 4% Universities 17% Industry Training Organisations 21% No Links 49% 13. WORKPLACE LITERACY Lack of numeracy and literacy skills had the following effects: Poor completion of workplace documents/reports 43% Wasted time 29% Potential for workplace injuries or unsafe workplace practices 26% Material wastage/non-compliance 18% Lack of staff confidence/unwilling to take on new work 35% Financial miscalculations 15% Recruitment difficulties 20% Teamwork issues/communication problems 37% Other 21% 14. HEATH AND SAFETY 76% of employer s directors were active to proactive in the information they look at with Health and safety. 32% very informed on the understanding around multi PCBU workplaces. EMA SURVEY SUMMARY FINDINGS 10

12 CONTACT US Free call AdviceLine, NZ AU Visit our website Follow us on twitter.com/ema_nrthn By joining EMA you become a member of BusinessNZ, New Zealand s most influential voice for business and employers. The BusinessNZ regional network of associations include Employers and Manufacturers Association (EMA), Business Central, Canterbury Employers Chamber of Commerce (CECC) and Otago-Southland Employers Association (OSEA). Please Note: All information contained in this publication was correct at time of printing but may be subject to change.