What does HR want from the incoming government?

As the country eagerly awaits the formation of a new government amid ongoing coalition talks, the three negotiating parties have relayed several employment-related policies during the election campaign.

Act has been vocally critical of the current personal grievance process and has suggested putting restrictions on remedies for employees and setting a one-month timeframe for all Employment Relations Authority (ERA) determinations. They’d also like to ensure contractors can't challenge their employment status in the Employment Court.

In a unique move, the party has also tabled getting rid of the January 2 public holiday to help out small businesses with Matariki-related costs and they're pushing for the reintroduction of 90-day trials.

National is on board with bringing back 90-day trials and emphasised flexibility for employers; the party’s aim is to allow parents to take paid leave at the same time.

When it comes to wages and pay, Act proposes reducing government KiwiSaver contributions, pushing for tax cuts, and capping contributions at 5% of a person's taxable income. National plans to adjust income tax brackets for inflation, something that NZ First is in agreement with; additionally, NZ First would like the first $14,000 of income to be tax free.

In terms of job creation, National wants to scrap the Reserve Bank's focus on maximising employment and Act is all about reducing the number of public servants and limiting pay increases until frontline staff are given pay increases. NZ First wants to train more police officers and continue supporting the Jobs For Nature program.

What HR leaders want from government

So what would all this mean for HR? HR leaders that HRD spoke with are largely concerned with the immigration policies of the incoming government, with the effects of the talent shortage still prevalent in some sectors.

“Like many employers, we’d be keen to see the next government review immigration settings to ensure NZ can attract workers with a range of skills,” said Sarah Able, chief people and culture officer at The Cooperative Bank.

The organisation is feeling the talent pinch not just in their head office but in provincial branches. Able said a review of immigration policies is necessary “to offset migration to overseas countries with a lower cost of living.”

Amie Amosa, chief people officer at Hammerforce, wants the government to be more proactive about migration. She told HRD, “The other side to this coin is to have a talent retention policy for key industries in NZ; it’s equally critical for the government to focus on this.”

However, policies around skilled labour and repositioning NZ on the international talent stage are still a top priority for Amosa.

“We need to have a clear value proposition for the international talent market both seasonally and long term,” she said.

International experience holds value

In Amosa’s view, HR teams and organisations need to understand the value that international experience can bring to local teams and businesses.

“NZ needs to be better at recognising the transferable value international skills contribute to the local workforce and have a value proposition that is attractive, inspiring, and leverages these skills for the betterment of the NZ businesses and the economy,” she said.

But it’s not just about attracting foreign talent: “It’s also about attracting skilled Kiwis abroad to come home and bring with them their skills and international experience,” said Amosa.

But any new policies will require a solid base to be effective and sustainably embedded, she said. “My perspective here is the need to strengthen the foundation of our economic landscape is a number one priority for all NZ’ders.”