PrintEmail

Have you considered how the rugby World Cup will create skill shortages and conversely opportunities to scout talent this year?  That and employment law changes will make for an interesting year.

Attrition on the up.  

‘Unsatisfied employees’ now exceed those ‘satisfied’ as reported by Hewitt Associates, a worldwide HR Consultancy in September 2010 and requests for CV writing services are on the increase. In January requests for CV writing services through Global CV Solutions, in New Zealand increased by 300% on the previous January.   They reported there was a distinct difference this year with requests arriving from people more established and senior in their career.  Both are indicators of employees planning to leave.  Attrition will only happen as fast as opportunities are available, but valued employees may leave for larger businesses whose hiring has taken off sooner or consider contractor opportunities. 

Slow return to hiring.   

Many small businesses prefer to hire temps and contractors over permanentsuntil there is more market certainty.   Temps and contractors can provide SMEs the flexibility and competitive edge we require but they generally cost more hourly, due to the nature of a short-term role.  Recently there are more roles advertised as well as recruiters being hired again; with higher attrition expected we need to be prepared for replacement hires, which are more likely than hiring for growth.   Temps and contractors should be hired with the same rigour as a permanent person, especially if they deal with customers, which is often the case with contractors looking after large strategic projects.

Employment law changes

Changes with regard to the Employment Relations and Holidays Acts will also have an impact. 

The extension of the 90 day trial period to businesses with 20 plus employeeswill take some stress away from employment decisions. Along with having more flexibility around dismissals, as of April companies may be less nervous about deciding whether to upscale business operations and take someone on. 

Overwhelm and exhaustion

A lot of employees have had to carry the load after redundancies. Some of these people are at the end of their tether and expect to be eventually compensated; if companies aren’t yet in a position to recognise this (or have the attitude that they’re lucky to have a job) then these will be some of the first to move.

Move towards companies doing their own recruitment. 

Many larger companies are bringing their recruitment in-house, and some medium businesses are reporting they are now under instruction to recruit themselves.   They will need more structured processes, improved interview techniques and handing of the entire end-to-end process, as well as sorting through the mass of applicants that haven’t yet abated.