New Zealand businesses are grappling with a significant challenge: the “Great Resignation,” or as some prefer, the “Great Reset.” Talent is leaving, not just for other companies within the country, but often for opportunities overseas. This article explores the key reasons behind this exodus and offers actionable strategies to attract and retain valuable employees in Aotearoa.
The Pull Factors: Why Kiwis Are Leaving New Zealand
It’s not just about New Zealand being ‘not good enough’; in many cases, it’s about other countries offering compelling advantages. Examining these “pull” factors is crucial to understanding the problem and formulating effective solutions.
Higher Salaries and Lower Cost of Living (Sometimes):
One of the most prominent drivers is the potential for increased earnings. While New Zealand boasts a high quality of life, salaries in certain sectors, particularly tech and finance, often lag behind those offered in Australia, the US, and Europe. A report by SEEK New Zealand provides detailed average salary data across various industries, highlighting potential disparities compared to international markets. Coupled with this, the perception (and sometimes the reality) of a lower overall cost of living in some overseas locations adds to the appeal. For example, while housing costs in Auckland and Wellington are notoriously high, certain US cities or regional Australian areas might offer comparable or even cheaper options, especially when factoring in significantly higher salaries.
Career Progression Opportunities:
New Zealand’s relatively small market size can limit career advancement opportunities. Ambitious professionals may feel stifled by the lack of senior roles or specialized projects. Larger international companies often offer more structured career pathways, diverse projects, and the chance to gain global experience. Consider a software engineer working at a successful Kiwi startup. While they might gain valuable experience quickly, they could feel limited by the types of projects they work on and the eventual ceiling on their career progression within that company. A move to a multinational tech company could offer exposure to cutting-edge technologies, larger teams, and clearer pathways to leadership roles.
The “OE” (Overseas Experience) Factor:
For many young New Zealanders, an “OE” (Overseas Experience) is a rite of passage. Traditionally, this involved backpacking and working odd jobs. However, increasingly, graduates and young professionals are seeking skilled roles overseas, turning their OE into a long-term career move. This is intertwined with the factors above: the lure of higher salaries and better career prospects makes staying abroad a more attractive option than returning home. This is especially true if they manage to secure sponsorship and permanent residency in another country.
A Desire for Change and New Experiences:
Beyond purely financial and career motivations, many Kiwis simply seek a change of scenery and new experiences. Living and working in a different culture can be deeply enriching, broadening horizons and fostering personal growth. This desire for adventure and exploration is deeply ingrained in the New Zealand psyche.
The Push Factors: What’s Driving Talent Away From New Zealand
While the “pull” factors are important, understanding the “push” factors – the issues within New Zealand that are driving talent away – is equally critical.
High Cost of Living, Particularly Housing:
The exorbitant cost of housing in Auckland and Wellington is a major concern for many New Zealanders. Even those earning relatively high salaries can struggle to afford a home, creating financial stress and a sense of insecurity. This is particularly acute for young professionals starting their careers. The dream of homeownership, a cornerstone of the Kiwi lifestyle, is becoming increasingly unattainable for many, leading them to seek more affordable options elsewhere. Data from the Interest.co.nz property database paints a stark picture of housing affordability challenges across the country.
Perceived Lack of Opportunities for Specific Skillsets:
While New Zealand has a growing tech sector, certain specialized skills may not be in high demand. This can lead professionals with niche expertise to seek opportunities in larger, more developed markets. This applies not only to tech but also to other specialized fields like advanced manufacturing, biotechnology, and certain areas of finance. The lack of a critical mass of companies operating in these industries can limit the opportunities available for individuals with specific skillsets.
Burnout and Work-Life Imbalance:
While New Zealand is often perceived as having a relaxed work culture, burnout is a growing concern. Many companies are understaffed, leading to increased workloads and pressure on existing employees. The pressure to perform in a competitive environment can lead to long hours and a poor work-life balance, driving some to seek a more sustainable lifestyle elsewhere. A recent survey by the Mental Health Foundation of New Zealand highlighted the increasing levels of stress and burnout among New Zealand workers.
Limited Diversity and Inclusion:
While New Zealand prides itself on its progressive values, some professionals may feel that certain industries lack diversity and inclusion. This can manifest in a lack of representation in leadership positions, unconscious bias in hiring and promotion processes, and a general lack of cultural sensitivity. Individuals from minority ethnic groups, women, and members of the LGBTQ+ community may feel that their career prospects are limited in New Zealand, leading them to seek more inclusive and equitable opportunities overseas.
Winning Back Talent: Strategies for New Zealand Businesses
Addressing the Great Resignation requires a multi-faceted approach. New Zealand businesses need to proactively attract and retain talent by addressing both the “pull” and “push” factors.
Competitive Compensation and Benefits Packages:
While New Zealand businesses might not be able to match the salaries offered by some international companies, they can strive to offer competitive compensation and benefits packages. This includes not just base salary but also performance-based bonuses, superannuation contributions, health insurance, and other perks. Consider offering flexible benefits packages that allow employees to choose the benefits that best suit their individual needs. Research salary benchmarks for specific roles using resources like Hays Salary Guide and adjust compensation accordingly.
Investing in Employee Development and Training:
Providing opportunities for professional development and training is crucial for retaining talent. This demonstrates that the company is invested in its employees’ growth and helps them to develop the skills and knowledge they need to advance their careers. Offer internal training programs, mentorship opportunities, and tuition reimbursement for relevant courses or certifications. Create clear career pathways and provide employees with opportunities to take on new challenges and responsibilities.
Promoting a Positive Work-Life Balance:
Prioritizing employee well-being and promoting a healthy work-life balance is essential for reducing burnout and fostering a positive work environment. Offer flexible work arrangements, such as remote work options, compressed workweeks, or flexible start and finish times. Encourage employees to take breaks and use their vacation time. Implement policies that discourage excessive overtime and promote after-hours disconnection. A healthy work environment can significantly increase employee satisfaction and reduce turnover.
Creating a Diverse and Inclusive Workplace:
Building a diverse and inclusive workplace is not just the right thing to do; it’s also good for business. A diverse workforce brings a wider range of perspectives and experiences, leading to greater innovation and creativity. Implement policies and practices that promote diversity and inclusion in hiring, promotion, and training. Create employee resource groups to support employees from underrepresented groups. Foster a culture of respect and inclusivity where all employees feel valued and appreciated.
Investing in Technology and Innovation:
Embracing technology and innovation is crucial for attracting and retaining talent in a competitive market. Employees want to work for companies that are using cutting-edge technologies and are at the forefront of their industry. Invest in new technologies, automation tools, and innovative processes to improve efficiency and productivity. Encourage employees to experiment with new ideas and technologies. Showcase the company’s commitment to innovation to attract top talent.
Showcasing New Zealand’s Unique Advantages:
While New Zealand may not be able to compete with some countries on salary alone, it offers a unique quality of life that is highly valued by many. Promote the country’s natural beauty, outdoor recreational opportunities, and relaxed lifestyle. Highlight the strong sense of community and the welcoming culture. Emphasize the work-life balance and the opportunity to live a fulfilling life outside of work. These non-monetary benefits can be a powerful draw for talented professionals.
Strengthening Ties With Expatriates:
Maintaining connections with New Zealanders working overseas is crucial for encouraging them to return home. Offer mentorship programs for expats who are considering returning to New Zealand. Provide networking opportunities and connect them with relevant contacts in the industry. Showcase the opportunities and advancements happening in New Zealand to keep them informed and engaged. Make it easier for them to return by offering relocation assistance and streamlining the immigration process.
Government Initiatives and Support:
The New Zealand government also has a role to play in addressing the Great Resignation. This includes initiatives to address the housing crisis, invest in education and training, and promote diversity and inclusion. The government can also provide support to businesses that are struggling to attract and retain talent, such as tax incentives or grants. Collaboration between the government, businesses, and educational institutions is essential for creating a thriving and competitive economy.
Case Studies: Kiwi Companies Combating the Exodus
Let’s examine some real-world examples of how New Zealand companies are successfully retaining and attracting talent:
Company A: A Tech Startup Offering Equity and Flexible Working
Auckland-based tech startup, “Innovate Solutions,” recognized that it couldn’t compete with multinational corporations on salary alone. Their strategy focused on equity. They are offering significant equity stakes to early-stage employees, aligning their interests with the company’s success. They also offer unlimited vacation and fully flexible working arrangements, allowing employees to work from anywhere in the world. As a result, they’ve seen a significant increase in employee retention. This flexibility, while not always possible, is highly desired, particularly by younger workers.
Company B: An Engineering Firm Investing in Employee Development
Christchurch-based engineering firm, “BuildSafe Ltd,” faced challenges retaining experienced engineers. Their solution was to invest heavily in employee development. They created custom training programs targeted to each employee that gave them a clear path for advancement within the company. This included funding for external certifications and workshops. Coupled with that, they established a formal mentorship program, pairing junior engineers with senior leaders. This resulted in improved morale, retention, and a more competitive talent pool.
Company C: A Healthcare Provider Prioritizing Well-being
A national healthcare provider, “CareFirst NZ,” experienced high rates of burnout among its nurses and healthcare professionals. This led to shortages and attrition. They implemented a comprehensive well-being program that includes online resources, counseling services, and mindfulness training. They also increased staffing levels to reduce workload and implemented flexible scheduling options to improve work-life balance. This investment in employee well-being resulted in reduced burnout, improved morale, and a decrease in employee turnover.
FAQ Section: Answering Common Questions
Here are some frequently asked questions about the Great Resignation in New Zealand, answered with practical advice:
Q: What industries are most affected by the Great Resignation in New Zealand?
A: While most sectors are feeling the pinch, the tech, healthcare, and hospitality industries are particularly vulnerable. Tech companies are facing competition from larger international firms with deeper pockets. Healthcare providers are struggling with burnout and staffing shortages. Hospitality businesses are finding it difficult to attract and retain staff due to the relatively low pay and demanding hours.
Q: How can small businesses compete with larger companies in attracting talent?
A: Small businesses can leverage their unique strengths, such as a more personal work environment, greater flexibility, and opportunities for employees to make a significant impact. Highlight these advantages in recruitment efforts. Focus on fostering a strong company culture, providing meaningful work, and offering opportunities for growth. Consider employee referral programs and build relationships with local universities and training institutions.
Q: What is the role of government in addressing the Great Resignation?
A: The government can play a crucial role by addressing the underlying issues that are driving talent away, such as the housing crisis and skills shortages. This includes investing in affordable housing, improving education and training, and streamlining immigration processes for skilled workers. The government can also provide support to businesses that are struggling to attract and retain talent, such as tax incentives or grants.
Q: What should I do if I am approached by a recruiter from an overseas company?
A: Carefully consider the offer and weigh the pros and cons. Consider whether the higher salary and career opportunities outweigh the benefits of living in New Zealand. Research the company and the role thoroughly. Talk to other New Zealanders who have made the move to that country or company. Seek advice from a career counselor or financial advisor. Don’t make a hasty decision without fully understanding the implications.
Q: How can I improve my chances of getting a pay rise or promotion in my current job?
A: Demonstrate your value to the company. Consistently exceed expectations, take on new challenges, and develop your skills. Document your accomplishments and contributions. Prepare a clear and compelling case for why you deserve a raise or promotion. Schedule a meeting with your manager to discuss your performance and career goals. Be prepared to negotiate and be willing to compromise.
Q: What are some creative ways to attract and retain employees besides increasing salary?
A: Think outside the box! Consider offering wellness programs, pet-friendly workplaces, childcare assistance, student loan repayment assistance, or sabbaticals. Focus on creating a fun and engaging work environment. Celebrate successes, recognize employee achievements, and foster a sense of community. The key is to understand what your employees value and tailor your benefits package accordingly.
References
SEEK New Zealand Average Salary Data
Interest.co.nz Property Database
Mental Health Foundation of New Zealand Survey on Worker Stress
Hays Salary Guide
Ministry of Business, Innovation and Employment (MBIE) – various reports on skills shortages and labor market trends.
A Call to Action for New Zealand Businesses
The Great Resignation is a wake-up call for New Zealand businesses. It’s time to recognize that attracting and retaining talent requires more than just offering a paycheck; it demands a holistic approach that prioritizes employee well-being, development, and a positive work environment. By embracing the strategies outlined in this article, New Zealand businesses can not only stem the tide of talent leaving our shores but also attract top professionals from around the world. The time to act is now. Don’t wait for the talent pool to run dry. Invest in your people, build a culture of excellence, and create a workplace where employees thrive. The future of New Zealand’s economy depends on it.
