Queenstown business sees hiring success with $5,000 bonuses

Company also offers much-needed accommodation to out-of-town workers

Queenstown business sees hiring success with $5,000 bonuses

Accommodation and cash bonuses appear to be winning applicants over after a Queenstown restaurant saw success for offering them amid a tight labour market in New Zealand.

Pizza bar Fat Badgers promised a $5,000 bonus for the position of junior manager, Stuff reported, and another $2,000 bonus in two more ads prior to Christmas in order to attract talent as visitor count rebounds after closure from the pandemic.

The company also offered migrant worker sponsorship, as well as accommodation in the rental property the pizza bar owner has.

The offers put the pizza bar on the global map, attracting employees, and allowing the company to open seven days a week throughout Christmas and New Year, according to Stuff's report.

"We have had phone calls all over the world," Marsh told Stuff in an interview.

Accommodation problems

However, getting employees onboard wasn't only a financial matter for employees, as employers also need to provide accommodation from new hires coming from out of town.

"Kiwis absolutely don't want to do these jobs, so we are needing to provide accommodation for out-of-towners because there simply is nowhere to stay," Marsh told Stuff.

Providing staff accommodation may be provided as additional compensation after money, according to the Ministry of Business, Innovation and Employment (MBIE).  This offer may be deducted from the wages of employees subject to an agreement that both parties will consent to.

The rental agreement, however, should be made separate from the employment agreement, said the MBIE.

"The value of the work being performed must be written in the employment contract and agreed to by the employee. Take note that the job can't be dependent on the employee staying in the accommodation," the ministry said.

Accommodation is emerging as a problem as Queenstown loses 50% of potential workers because they can’t find a place to stay, according to Ed Stott, recruitment agency director at Remarkable People, as reported by Stuff.

It follows landlords' decision to sell their rental properties over the last year for homeowners, reducing potential living quarters for employees coming overseas.

Queenstown's recruitment challenges

Fat Badgers' accommodation and cash incentives come at a difficult hiring period for many employers in New Zealand, including Queenstown.

HRD previously reported that while tourism numbers recover, the number of staff members aren't catching up.

One restaurant manager in Queenstown said their venues would close two days a week to reduce the burden on staff, as they remain hopeful of New Zealand's immigration changes.

Working-holiday visa holders are a major source of talent for tourism and hospitality sectors, and recent changes will allow employers to tap on an additional 12,000 candidate pool over the next year.

The government is exerting efforts to reduce challenge on employers, according to Tourism Minister Stuart Nash.

"We are working as hard as we possibly can to fill the gaps, even though there are some areas – Queenstown comes to mind – where the labour shortage is reasonably acute," Nash said as quoted by Radio New Zealand.