NZ Employers Failing To Address Key Talent Challenges

Media release

5 March 2013

Many NZ Employers Failing To Understand And Address Key Talent Challenges

Survey shows 83% report talent shortages yet few have special programmes in place to promote attraction, retention or engagement of employees

Despite persistent talent shortages, there are many worrying gaps between what’s seen as important and the current effectiveness of recruitment and people management practices of New Zealand employers, according to a new Deloitte survey.

The third annual Talent Edge New Zealand survey was conducted late last year and had over 300 respondents from individuals in management roles across a broad range of economic sectors and organisational sizes.

Deloitte partner Richard Kleinert, who leads the Human Capital practice for the firm in New Zealand and for the Asia-Pacific region, says the time to confront the disconnect between what’s needed to address talent challenges and current practice is now.

“There are many gaps, but this represents opportunity for those organisations who respond promptly and proactively. Organisations that fail to understand and address them may not survive,” says Mr Kleinert.

Mr Kleinert points to a number of steps that organisations can take to address these worrying gaps, including:

• Develop a plan to address specific skills deficits
• Refresh the employment brand
• Consider the unique interests and attitudes of Millennials (Gen-Y)
• Review and update the performance management process

Mr Kleinert says that, despite ongoing economic uncertainties, talent problems that impact on business results are being experienced by the vast majority (83%) of New Zealand employers.

“The real problem behind this is skills, or skills shortages, which is by far the single largest talent challenge. The problem is consistently applicable across all sectors and organisational size.”

According to survey respondents, the type of skills that are in shortest supply are critical thinking and problem solving (45%) followed by general management/leadership (38%) and initiative and drive (31%).

Operations staff are reported in short supply most frequently (37%) followed by IT staff (25%), sales staff (23%) and executive leadership (22%).

According to Mr Kleinert, particularly confusing is employers’ perspective on diversity. “On one hand, we know from numerous one-on-one discussions that diversity is a priority, and a majority of NZ company directors in another recent Deloitte survey (Director 360 – Degrees of progress, 2012) acknowledge the need for diversity policies and guidelines. On the other hand, diversity is selected as the top talent challenge by only 1% of respondents to the Talent Edge NZ survey,” he says.

Few organisations have special programmes in place today to promote attraction, retention, or engagement of specific types of employees. While special programmes for Millennials are most common, they are used by only about 30% of organisations.

“This is a concern since Millennials, who are forecasted to make up 75 percent of the world’s workforce by 2025[i], reported the highest likelihood of leaving their current employer in the next 12 months (54%) and the lowest levels of understanding of their career path potential with their current organisations (38% disagree), belief that their current position makes good use of their talent and ability (31% disagree) and trust in their leadership (38% neutral),” adds Mr Kleinert.

“Proactive organisations have a great opportunity now to review their existing policies and practices through the lens of their future talent needs and to better and align and focus their talent strategies with their overall business goals,” Mr Kleinert concludes.

To read the full report, go to www.deloitte.com/nz/talentsurvey.

About Deloitte in New Zealand
Deloitte New Zealand brings together more than 800 specialist professionals providing audit, tax, consulting, and financial advisory services to public and private clients spanning multiple industries. Our people are based in Auckland, Hamilton, Wellington, Christchurch and Dunedin, serving clients that range from New Zealand’s largest companies and public sector organisations to smaller businesses with ambition to grow.

Deloitte’s local experts draw on best practice and innovative methodologies from around the world as part of Deloitte Touche Tohmatsu. With a globally connected network of member firms in more than 150 countries, Deloitte brings world-class capabilities and high-quality service to clients, delivering the insights they need to address their most complex business challenges. Deloitte’s approximately 182,000 professionals are committed to becoming the standard of excellence. For more information about Deloitte in New Zealand, go to our website www.deloitte.co.nz

About Deloitte
Deloitte refers to one or more of Deloitte Touche Tohmatsu, a UK private company limited by guarantee, and its network of member firms, each of which is a legally separate and independent entity. Please see www.deloitte.com/nz/about for a detailed description of the legal structure of Deloitte Touche Tohmatsu and its member firms.

[i] http://www.forbes.com/sites/85broads/2012/01/23/gen-y-workforce-and-workplace-are-out-of-sync/

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