Services And Programs To Suffer As Government Hobbles Itself In The Middle Of A Race For Talent

The peak industry body for recruitment, staffing and talent acquisition in New Zealand, RCSA, has expressed bewilderment at the Government’s decision to implement a radical new plan for staffing and recruitment services that will undermine its ability to source or attract talent at a time when demand for skills is at a once-in-a-generation high across the New Zealand labour market.

RCSA CEO Charles Cameron said the new model will make the supply of new skills and talent into government unattractive and unsustainable for the sector.

“Right now, New Zealand is experiencing the greatest talent crisis in its history and Government is a lead driver of demand, with public sector job ads increasing 6% just last quarter,” said Mr. Cameron

“Indeed, Government demand was at an historic peak even before the announcement last week that Government Ministers, will need 3,423 new full-time and contractor staff to fulfill its budget commitments alone.”

“It is impossible to understand why, within this context, the Government has moved to unilaterally impose a radical new model for staffing acquisition with zero consultation with industry on what the impacts might be,” he said.

Charles said the commercial model proposed by the Government in its All-of-Government Talent Acquisition Services Tender will result in government becoming the least attractive client for staffing firms in a highly competitive market. The untested commercial model has been proposed without any consultation with the industry and seemingly without any regard for its impact on the ability of government to source and attract talent.

In what RCSA can only assume is an attempt to reduce expenditure, the model will slash fees paid to staffing firms for sourcing niche and in-demand talent, at a time when recruitment and staffing services are in hot demand across the broader labour market and firms have hundreds of alternative clients to supply talent to.

“Right now, demand for staffing and recruitment services is greater than it has ever been. While RCSA has no insight into the motivations for the change, because nobody within the Government will explain it, we can only assume it was a poorly-informed attempt to reduce costs,” said Mr. Cameron.

“It might end up saving a lot more than anticipated as talent is directed away from government agencies and into private sector roles where clients are more than prepared to pay sustainable costs for professional recruitment services that are vital to helping them navigate current skills and talent shortages.”

“This short-sighted approach completely undermines the Government’s stated recruitment needs and ambitions, but it is the NZ public that will ultimately suffer, as government struggles to resource community programs and services into the future,” he said.

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