Isn’t it amazing how we eagerly anticipate the magical wind-down toward year-end and the festive season? It might seem a bit unconventional to be thinking about it right now, especially with the election frenzy surrounding us. While it’s true that things tend to move at a different pace around the announcement of a new government, it’s important for us as business owners to keep December in our thoughts and how we’ll wrap up the year with success. And as a small business, I’m certainly doing just that.
As we step into Quarter 4, instead of showing signs of slowing down, the job market traditionally (or at least in my many years of experience) gains momentum as businesses prepare for the new year. The question on everyone’s mind is how will this dynamic change in an election year?
Historically in election years, the job market has rebounded swiftly, and current indications point to a similar trend for this year, with SEEK saying last week “Typically, leading into a general election, we would expect to see a dip in hiring activity as businesses put plans on hold. Yet it is one month out from the election and hiring activity has picked up” and they are forecasting a vibrant pre-summer season saying, “Businesses are beginning to plan for a busy lead-in to summer with demand for workers rising for the first time in five months.”
As we enter the fourth quarter of 2023, the elections have introduced a temporarily slower pace for some businesses. However, post-election, a narrow window of just a few vital months remain to take a thoughtful approach, focusing on strategic planning and getting the right talent for our businesses. It’s a great time to explore creative talent strategies and start building the teams that will drive our businesses to success in the year ahead.
As you begin shaping your talent strategy for 2024, consider these pivotal factors in the current job market:
Record-Breaking Salary Growth
In the current job market, it’s worth noting that despite the ongoing election year, the New Zealand job market is displaying remarkable resilience. SEEK’s Advertised Salary Index (ASI) reveals an astonishing 5.1% year-on-year growth in advertised salaries, marking the fastest surge recorded since 2016. Across all regions in New Zealand, the overall trend is upward, with consulting and strategy, engineering, healthcare and medical, advertising, arts, and media, as well as construction, emerging as the top five industries experiencing substantial salary growth.
The New Zealand Advantage
Of particular interest is how New Zealand’s salary growth is outpacing that of Australia. Various factors contribute to this phenomenon, including slightly faster inflation rates and more rapid minimum wage increases in New Zealand. While wage growth has yet to catch up with inflation entirely, there’s a compelling prospect that it may continue to ascend.
Seeing salaries rise to align with inflation is undoubtedly a positive development for Kiwis. However, I find it unlikely there will be a sudden reversal of our highest-ever migration numbers to Australia anytime soon, especially with the allure of Australia’s sunny beaches.
Navigating a Dynamic Job Market
With the surge in job advertisements, it’s evident that businesses are actively seeking new talent, at the same time the market suggests an increase in the number of candidates ready to make a move. These dynamics underscore the need for businesses to proactively enhance their recruitment strategies, placing a strong emphasis on efficient hiring processes and the guidance of adept leaders or recruiters, to thrive in this environment.
Summary
As Quarter 4 begins, the dynamic job market in New Zealand presents an opportunity for businesses. Whether you’re expanding your team or filling key roles, taking action today ensures your business is well-equipped for the coming year. Evaluate needed skills, refine your talent strategy, and start recruitment to have new team members hired, onboarded, trained, and ready to make a substantial impact from day one in 2024.
As we head into Quarter 4, I’m anticipating a busy year-end, and I’m sure my laptop will be twinkling beneath the Christmas tree once again.
For assistance in crafting your 2024 talent strategy and recruitment, email me at nicola@enlightentalent.co.nz or call Nicola on 029 770 7936.