Advice comes as 2023 labour market expected to be 'dynamic'
Employers across New Zealand are being urged to hold on to their talent as the first quarter of 2023 sees employees return with renewed career aspirations.
"We expect the first quarter of 2023 to be dynamic as people come back to work with renewed career aspirations and goals," said Kara Smith, Talent NZ country manager, in an insight.
Smith, however, said that candidates would be more cautious in their decisions in the last 12 months in anticipation of a recession.
Recent findings from ELMO Software also found that 73% of New Zealand employees plan to stay with their current employers in 2023, with 34% citing recession and 15% saying they want a new job internally.
"This could work in businesses' favour if they have competitive pay, strong benefits, an ESG strategy and a focus on DEIB & EVP," Smith said. "Our advice to businesses continues to be to do everything reasonably possible to retain your team members. Build that supportive culture and nurture those career aspirations."
The suggestion came as the labour market in New Zealand remains "highly competitive," according to the insight, due to the lack of overseas talent coming into the country despite international borders reopening.
New Zealand is also seeing the rise of contract roles as of late.
In Auckland, Talent insights revealed that 2022 saw "many candidates move away from permanent opportunities to contracting."
"Whether this trend continues in 2023, we will have to see," Smith said.
In Wellington, there are also "surprisingly" plenty of contract roles available, according to Talent Wellington managing director Nik King-Turner, as the market there shifts to a more balanced one.
"Candidates were in the power position mid-last year with multiple offers and choice, but now it seems we have a nice healthy balance of both candidates and vacancies," King-Turner said in his insight.
New Zealand's capital is also seeing a trend of candidates asking about remote working, but leaning towards hybrid work, according to King-Turner.
"They're also tending to lean towards companies who do have a social impact, candidates are looking at roles through a social lens," King-Turner said. "People-first is still a big driver for lots of companies, with a focus on output and delivery being key. Businesses hoping to attract talent are becoming more aware that they need to sell their EVP more now than ever."
