29% Of Business Leaders Dissatisfied with Government Support

20 September 2018

Media Release

29% Of Business Leaders Are Dissatisfied with the Way the Current Government Supports Business Growth

An increasing number of New Zealand business leaders are unhappy with government action, but a struggle to find the right talent remains the largest barrier to the success of organisations.

According to the recently released Beyond Recruitment Economic & Labour Report, (a survey of business leaders across large and small, private and public sector organisations), 29% of business leaders were not happy with the way the current Labour-led government is supporting business growth. This figure is up significantly from last year’s report (6%) due to the change in government, as well as the ongoing fallout of Brexit and Trump contributing to a global atmosphere of uncertainty.

Interestingly, however, business activity has remained stable throughout this, and there has been little impact on market activity with most respondents indicating fairly strong business confidence. Hiring activity has also remained positive, with over 60% of employers having added to their workforce over the last 12 months.

“If 2017 was a year of change, then 2018 is a year of adjustment,” commented Beyond Recruitment Chief Executive, Liza Viz.

“While predictably, people have reacted with apprehension to a new government, Ardern’s Labour Party are yet to make a strong impact on the status quo.

“On top of that, the consequences surrounding global events like Brexit are still unclear nearly two years on, so whether our business ties with Europe and the UK will be affected remains up for debate.

“Although the results suggest some negativity towards the government, there is still confidence in business activity. This indicates that while things are getting harder, the obstacles can be overcome.

Responses also revealed the challenge that business leaders are facing when it comes to sourcing talent, with 47% of people citing this as a major obstacle faced by their businesses. It’s also affecting organisations in a commercial sense, with 44% of respondents indicating that a lack of talent is the biggest barrier to their continued success. However, despite this struggle to find people, 54% indicated that they are not intending to use overseas workers to fill skills gaps.

These findings suggest that, unsurprisingly, sourcing talent is still a prominent issue for businesses in New Zealand.

“Continuing with the trend of labour shortages from previous years, businesses are still finding it difficult to attract the right people,” Viz continued.

“We know that the talent pool is small, and we’re seeing those in jobs are less willing to move than before the recession.”

“However, the risks related to wage increases are only going to rise. With Government-led wage agreements, and more importantly, an increase in the cost of living which is impacting the quality of life of many, higher pay is necessary to attract and retain the best staff.”

“With last year’s election adding to an already uncertain business environment, it’s only natural for New Zealanders to have some hesitations about the future, especially once the cooling economy is considered.”

2018 Beyond Recruitment Economic & Labour Report

Access a copy of the report here: https://oliver-dev.s3.amazonaws.com/2018/09/18/01/56/03/380/Beyond%20Recruitment%20Economic%20&%20Labour%20Report%202018.pdf

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