State of the Market June 2022

STATE OF THE

MARKET June 2022

The information enclosed herein is sourced from Find Recruitment Consultants & official sources with permissions.

Duplication or recreation of this material without express permission from Find Recruitment is prohibited.

Kia ora, r

2022. What a year it’s been so far! The recruitment sector has seen exponential growth over the past 12 months, with no sign of things slowing down. Despite market trends such as the Great Resignation making waves through the market, we’re continuing to see the resilience of the New Zealand market, and with borders opening once again, we expect to see new arrivals revitalising our market.

We’ve started to see a larger influx of international candidates as the borders have begun to open, and applications to roles from valid international sources are beginning to rise. Recent SEEK NZ data has highlighted that permanent and fulltime job ads are on the rise, although the application rate still remains comparably low to pre-pandemic levels.

Our team has grown over the past 12 months, across both our Auckland and Wellington businesses. We’ve welcomed new members into the Find whanau, and have further broadened our offerings and accessibility to different markets throughout New Zealand.

Both of our offices are now back into the full swing of working flexibly, and both offices are due to undergo some refurbishment starting with our Lambton Quay office in Wellington. As our teams and brand continues to evolve, so too does our desire to create spaces that embolden our commitment to excellent recruitment, and that fosters an environment our people, clients and candidates can enjoy!

Our brand exposure is at an all-time high, with us stepping into different market mediums. Most recently, we advertised physically around the streets of Wellington, to appeal to Accountants, and we’ve highlighted our presence across different digital channels including Reddit which has made waves.

We’ve compiled this report, complete with market insights and data, to keep you up to date with what is happening in the kiwi market. Our consultants have weighed in with trends they’re seeing across their sectors, and we’ve capped off each market with a summary.

Happy reading!

The team at Find Recruitment 2

Our Top Level Thoughts We've included a lot of content in the pages following, but we know you're busy and so wanted to give you a surface-level view of things until you get a chance to read it all! If you have any questions, feel free to get in touch with us for a chat!

Speed Matters

It's a Candidate's Market

The market is still on the move, and candidates are receiving numerous offers, meaning that the employer who has the easiest process and reacts fastest to candidate interaction is more likely to succeed in hiring great talent.

Money is still the greatest drawcard.

There are still high quality, motivated candidates in the marketplace. There’s not a shortage, clients just have to be nimble and need to remain open minded to different approaches.

Talk about Benefits

Demand remains High

Candidates are expecting more from a package than just salary; flexibility on location and hours, car parks, mental and physical wellness days or allowances and opportunities to claim back time are more important than ever before.

Candidates are chasing higher salaries and contract rates as well as a demand for flexibility in both workable hours, and where they can be based to do the work.

Flexibility is key to staying ahead in this market across New Zealand.

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Auckland/Tāmaki Makaurau

STATE OF CORPORATE

Auckland/Tāmaki Makaurau

Simon Rooney Director, Find Recruitment Auckland

Speed is Everything

Consultant Spotlight

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A number of themes have emerged in the calendar year to

Those that move fast win. This was true before the

“In the last 6 months we have seen a drop on applicants across a wide range of roles. We are still able

date across all sectors we service that were more apparent

pandemic, and it’s even truer now. The client that moves

to fill roles, however there are less options and more of a fight for quality candidates. There has been

in only a few sectors during last year; increased and inflated

the fastest is more likely to get the candidate accepting

an increase in salaries and a big push for candidates being available immediately.

salary expectations and candidates have more options

their offer, than the client that spends too long reviewing

than ever before meaning under 30’s are eyeing up the

or prioritising processes that don’t favour a succinct and

UK as they have a looming timeline to get their specialist

smooth hiring process. We frequently have candidates

visa. There is a fight for talent in Auckland so we have

tell us that a smooth interview process over a short period

seen a dramatic increase in demand for Contractors and

of time (one week, two interviews or if more senior, two

flexible working opportunities (particularly for more junior

weeks, three interviews) rather than some long, elongated

With employees having to isolate due to Covid and being generally run down, this has caused even

candidates where travel expenses cut in to their salary). It is

processes, gives them confidence in the functionality of

more pressure on teams so we have had an increase in contractor roles as a result.

those candidates or employees that often comprise a large

the employer, and confidence to accept an offer once it is

part of the team and so they’re more likely to join/align to an

presented to them.

employer that is aware and supportive of these conditions.

One of the main reasons I have found candidates looking for a new role is they are wanting a hybrid role with WFH options more than at other levels. Covid has given employees a taste of a more flexible working life and now companies are requesting employees to return to the office full time, some are deciding this doesn’t suit them anymore.

The other trend I have observed is candidates that have not been in the job market for many years are now considering something new and they have more options than ever before!”

Candidates in this modern market have so many

AMELIA NELSON

However, clients are also feeling the fatigue and exhaustion

opportunities coming their way, and many are watching

Principal Consultant

of this ongoing labour market strain. Clients are busy with

how clients perform, to assess if they can see themselves

the hectic day-to-day, month-to-month activities of their

as part of that business. We’re also seeing a greater degree

businesses, with some having to deal with additional strains,

of individuals who are warming up to the idea of changing

such as resignations, counter offers, team members wanting

jobs as they see others around them achieving their goals.

out of sync salary reviews and a growing workload which

Reacting to these opportunities quickly, can make all the

keeps them busier than ever before.

difference in your hiring process.

“Risk and Compliance is a very busy space with new legislation adding to the regulatory load. NZ has played catch-up to more Risk Mature markets, placing pressure on Teams and Institutions. Everyone has been stretched. Insurance and Private Wealth have been the growing theme of vacancies this year while the Banks have been quieter. The latter having added headcount significantly last year.

A dominance of Line 2 roles (the architects of processes) in 2021, have made way for Line 1 (the implementors of processes) in 2022. Interestingly, many vacancies have been newly created positions.

If you are a client recruiting, you will have noticed Candidate Advert Response has reduced to very low levels. Most recently, I am seeing an increase in international candidates, mainly from South Africa. Many require a job offer with Visa Processing times being touted as 2-3 months. Improving these processing times would be a welcome improvement to the industry!

Salary increases have been c. 15%. Stagnating salaries have become a primary reason for candidates

The official employment rate is sitting at about 68.6% for the March 2022 Quarter.

“Employed” is anyone 15 years or over in employment.

The underutilisation rate for New Zealand is sitting at 9.3%.

This showcases a measure of untapped potential within the New Zealand market.

Total actual filled jobs in the March 2022 quarter were 2.18 million. There was almost no shift compared to December 2021 (down 339 jobs).

to consider a move. Work flexibility is a must for any potential employer and is often one of the first points made during conversations with prospective applicants. Most clients offer a hybrid office/ home working model with a recent swing towards more time in the office than out. Shortages are seeing contracting trend up after this area stalling last year. Rates are now more aligning with the high paying IT sector.”

Official statistical data sourced from stats.govt.nz

CHRIS MARTIN Senior Consultant

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STATE OF IT & DIGITAL

Auckland/Tāmaki Makaurau

Pete Thompson Director, Find Recruitment IT & Digital Auckland

Salary & Benefits

Consultant Spotlight

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The Auckland Market is on the move, and loyalty is not a

To add onto the feedback above this is the same case for

“Clients & hiring managers need to move away from looking at short stints on

given like it was previously. Candidates have more choice,

interviews with long 3 hour technical sessions + 2 coding

CV’s. Life happens, and people leave jobs for a number of reasons. Whilst these

and people are more likely to be loyal if they feel valued and

exercises. This should no longer be considered a given, and

can be a good indicator, it often doesn’t tell the full story. We’re also finding that

cared for by their employer. Especially after the past 2 years

there are plenty of ways that large clients in the market have

candidates are expecting more from a package than just salary; flexibility on

of significant disruption.

made their processes more streamlined. The majority of

location and hours, car parks, mental and physical wellness days or allowances

candidates are still working full time so to find 3 hours of time

and opportunities to claim back time are more important than ever before.”

to complete a technical test can deter them from wanting

SIF ARNARDOTTIR

to proceed onto the further stages – especially when they

Senior Consultant

What we’re seeing most commonly however, is people go wherever the money is – which is contracting (or moving overseas). We have seen many people have gone into contracting since the initial lockdowns, and this is further exacerbated by the candidate driven market. With the

might have 5 other opportunities lined up which are just 1 hour cultural and 1 hour technical interviews.

volume of project-based work increasing – many contractors

We have witnessed some creative solutions to this, with

“One of most common forms of feedback we receive from candidates are

are engaged for longer durations and higher rates which has

some clients offering a form of compensation for these

the long interview processes which continue to be an obstacle. This doesn’t

resulted in many seasoned permanent candidates following

tests when they’re unavoidable (usually in the form of a fuel

necessarily mean an interview with a 3 step process – but the fact that often these

suit. Our candidates feel that the overall pay and the variation

or food voucher) and this can go a long way to showing a

interviews can be dragged out across a few weeks, or even months. Candidates

of different projects are enough to prefer contracting to the

candidate that you understand the weight of what you’re

get excited about the role when there’s a sense of commitment and eagerness

stable Permanent work. (Although the current demand

asking from them.

from the other side to get the ball rolling.”

for contractors has meant that it’s almost as stable as

SANG-WOO KIM

permanent work).

Recruitment Consultant

Many clients we work with have also seen this and have been open to bringing in contractors for a 6 -12 month duration to “We’re still seeing candidates getting snapped up incredibly quickly. A lot of

cover whilst they search for a permanent employee to join

companies are reducing their interview processes and now hiring after one round.

their team (which is seen as a more difficult find these days).

All of these interviews are taking place remotely, with only a very scarce few taking place in person. We’re also seeing international companies looking at NZ talent currently, and taking advantage of the growing lack of loyalty, due to the cost of living crisis, and rising inflation, as a means to attract them.”

SUSANNA DYSON Recruitment Consultant

In the year to the June 2021 quarter, median weekly income from wages and salaries increased by $32 (3%) to $1,093.00

Median weekly income from all sources collected increased by $105 (15.9 percent) to $770 for the year to the June 2021 quarter, up from $665 in the June 2020 quarter. This is the largest annual increase in the series began in 1998

From the March 2021 quarter to the March 2022 quarter, the number of filled jobs rose by 2.9 percent (31,281 jobs) for men and rose by 3.6 percent (37,504 jobs) for women.

Official statistical data sourced from stats.govt.nz

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Wellington/Pōneke

STATE OF CORPORATE

Wellington/Pōneke

Mike McKay Director, Find Recruitment

It’s a Candidate’s Market

Consultant Spotlight

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I’ve recruited for 23 years in Wellington and have never seen

culture are key parts to be promoted, but in inflationary

"It is currently a candidate driven market, meaning attracting top talent is

conditions be so largely in favour of people seeking work.

times the $$ tend to talk. Contracting is growing strongly

becoming a lot more competitive. We are seeing candidates being offered

Wellington Corporate market is full steam ahead after a brief

and is a key part of the workforce mix. I often chat with

multiple roles, and the companies are getting creative with their packages. We

respite in April, largely due to the Easter break running into

clients about the ‘culture’ mix and there still seems to be a

are starting to see sign on bonuses, retention bonuses, increasing the annual

Anzac day and then school holidays. We’re seeing the impact

school of thought that positive cultures can’t be built when

leave and much more.

of the pent up Covid travel lag with large numbers of under

contractors make up a portion of the staff. I do and will argue

30’s heading off on their OE’s and others taking 6 – 8 week

against this, my experience is largely that contractors are still

travel breaks. A bonus of the offshore drift has been the re-

people who like to engage, contribute and deliver and can be

engagement of the mature workforce. For a number of years

a useful group to help shift and build cultures.

we’ve seen middle manager’s or mature staff cut out of operating structures and some did struggle to get back into work, but with the hiring demand and low unemployment that workforce demographic is now highly employable.

Retention is the best form of recruitment. In a market where unemployment is at its lowest, you want to make sure you are looking after your current top talent to ensure they don’t look elsewhere. The time and money of recruiting can put a halt in your organisation’s growth journey. Ensure you have a retention strategy

There are still high quality, motivated candidates in the

in place; whether this is listening to your employees, ensuring they are happy, or

marketplace. There’s not a shortage, clients just have to be

continually providing them with opportunities to develop, grow and challenge

nimble and open minded to different approaches.

them. Be proactive and not reactive."

KENDALL BUSHBY

Hiring processes are being tested. We’re spending time

Principal Consultant

working with clients to redesign recruitment workflows, creating processes where speed and urgency are combined with robustness and verification. Clients investing in recruitment and committing to prioritising recruitment are the ones who are winning the war for talent. Find has worked hard to map, meet and validate talent before our clients need it. Therefore when a client needs a resource we’ve already

"With the borders opening, candidates of all levels of experience have been Unemployment is sitting at 3.2%, with an estimated 94,000 people in New Zealand classified as ‘Unemployed’.*

talking about their long-awaited holidays or are looking to move overseas.

The New Zealand population has risen and is sitting at 5,127,100 as of March 2022. This is based on quarterly increases.

Primarily due to the prospect of more flexibility, higher salaries, and a new challenge. Organisations must be looking to provide flexibility around hours & location and holidays & sick leave as well as offering a competitive salary package.

done the identification and the process can move quickly.

Providing development and career progression opportunities is a significant

We’re proactively filling our talent pools, building depth and

factor in keeping and attracting employees. Also, it is a time-sensitive market so

using all the tools at our disposal. Our view is that we are the

organisations can no longer afford to drag out the recruitment process. With a

market experts, so we should know the market before you

quality candidate shortage, it is not uncommon for candidates to have 2-3 job

call. $$ in the back pocket still remains the greatest drawcard when candidates are considering jobs and associated salary packages. Clients mix of remote working, benefits and

In the last two months alone, border crossings (both directions) are at their highest in over two years.

opportunities on the go. So, speed in recruitment is key."

Winter illness is hitting hard in 2022, with sick leave ‘taken’ up 67% year on year, for the quarter from March 2022.

JENS JESSEN Senior Consultant

Official statistical data sourced from stats.govt.nz Unemployment relates to everyone in the working-age population who, during the reference week, were not employed, were available for work, and had actively sought work in the past four weeks ending with the reference week (only looking at job adverts is not counted as actively seeking) or had a new job to start within four weeks. Note that the ‘working age population’ is those people 15 and over. *

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STATE OF IT & DIGITAL

Wellington/Pōneke

Josh Rea Practice Manager ICT, Find Recruitment IT & Digital

Demand remains high What we are seeing.

The Tech labour market in Wellington remains extremely

Consultant Spotlight

r

back into new contract roles given the demand is so high across both Private and Public sectors.

“Contractors are looking for “interesting” projects and pieces of work to work

tight and the shortage of skilled Tech talent is high across

Rates for most Contract roles have been creeping up with

on, or they are seeking work that exposes them to leading edge technologies.

the sector.

certain skillsets e.g. Business Analysts, Developers, DevOp

They are also seeking flexible contract options, traditionally organisations hire

Engineers, commanding significant hourly / daily rates.

a contractor to deliver a set piece of worth within a specified timeframe which

Candidates in both Contract and Permanent roles are spoiled for choice in the market and organisations are having to be very creative to attract the best talent.

Candidates are chasing higher salaries and contract rates as well as a demand for flexibility in both workable hours, and where they can be based to do the work.

The borders have re-opened, and we have started to see an increase in applications from overseas (May 2022) candidates, however the reality is they are a long way off starting their Visa application process with Immigration New Zealand. We do not expect there to be any throughput from these international applicants until quarters 3 & 4 this year.

Contract Market – Wellington Tech The demand for skilled Contractors in Wellington is high across all areas we recruit into, it is particularly tight in technical roles such as Developers, Dev Ops Engineers, and

Permanent Market – Wellington Tech.

Permanent employees are also spoiled for choice. They often have multiple job opportunities on the go if they are actively in the job market. We are seeing substantial hikes in base salaries to get candidates interested in moving from their current job into a new one.

The other factor weighing heavily on the number of job

meant that applying flexibility to a contract was difficult. In this market however we are seeing organisations having to offer flex to contractors so they can secure the skills required to deliver the outcomes.

Organisations are getting better at re-signing Contractors well before their contracts come up for renewal, so they can stop them looking elsewhere.”

ADELAIDE HARRIS Principal Consultant

seekers turning down job offers is the “counter-offer”.

We have multiple examples of candidates being offered significant increases in their salary or bonuses to stay put in their current roles. This is fine if money is their only driver, but more often that not there are other reasons an employee is seeking a new role, and they will often return to the market several months later as the higher salary will

“The ability to work remotely and the proof that this model is working globally is being witnessed more by multiple local examples of technical candidates, e.g. Developers, who have been hired by offshore organisations and are being exposed to interesting pieces of work, while also being remunerated at UK & USA rates – often significantly more than what NZ businesses can offer.”

only go so far in satisfying their original drivers for looking

RACHEL GRAY

for new opportunities.

Senior Consultant

other specialist areas (Salesforce & SAP).

We are seeing frustration from businesses that are being forced to let Contractors go once they have done 2 years within the organisation. This is usually an HR driven policy but one that is costly to Projects having to then compete in this market to secure a new Contract resources who take time to get up to speed and deliver the same outputs as the existing Contractor.

In May and June, we are seeing more Contractors coming

Within the next 5 years, larger businesses have indicated a desire to invest in cleaner, greener, technology solutions

In the past 2 years, sales of IT services increased 34% to $9.0 billion, increasing demand for IT skilled professionals.

Demand from management, board, employees & customers has resulted in many businesses reducing their carbon footprint.

available due to the end of the Governments financial year which is a common occurrence. Most are getting sucked

Official statistical data sourced from stats.govt.nz

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PLACEMENTS FOR PERMANENT VERSUS CONTRACT (%) The beneath shows a shift in favour of permanent resources compared to the same quarter of 12 months prior. We’re seeing a gradual increase in the number of permanent roles being filled, over contractor.

56%

44%

Permanent placements

Contract placements

versus 39% for period January to March 2021.

versus 61% for period January to March 2021.

PLACEMENTS BY MARKET OFFERING (%) The beneath details the split between Find Corporate and IT/Digital businesses for placements by permanent or contractor work types.

62%

38%

39%

61%

Corporate Permanent

Corporate Contract

IT Permanent

IT Contract

versus 37% for period January to March 2021.

versus 63% for period January to March 2021.

versus 38% for period January to March 2021.

versus 62% for period January to March 2021.

PLACEMENTS BY LOCATION (%) The beneath details the split between Find Corporate and IT/Digital businesses for placements in Auckland or Wellington.

62%

38%

48%

52%

Auckland Permanent

Auckland Contract

Wellington Permanent

Wellington Contract

versus 47% for period January to March 2021.

versus 53% for period January to March 2021.

versus 32% for period January to March 2021.

versus 68% for period January to March 2021.

Placement source data – for the period of January to March 2022, 78% of placements came from our independently sourced database of Candidates. This data is liable to change throughout the year, but exemplifies that a large proportion of our database is active, and searching for work.

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