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New Zealand in focus Talent shortages causing issues for employers
01 Construction
“While there are some significant challenges for New Zealand’s construction industry, there continues to be reasons to feel optimistic also. The sector as a whole is placing more focus on financial management practices – meaning this boom-and-bust cycle may play out a little differently, with more businesses in a stronger position financially – focussing on what they can control to move through the uncertainty. Risk remains a key issue, however just like with ESG, a more collaborative approach that doesn’t just focus on doing everything at the lowest possible cost, will be what strengthens New Zealand’s construction sector moving forward.”
Navigating the talent crisis 02 Employment growth
The construction sector is bouncing back following difficult years and heavy impact on profits 03 Gen Z Understanding what motivates the workforce of tomorrow 04 Closing the gap Aligning the construction industry with Gen Z’s aspirations 05 Proactively altering Gen Z’s perceptions Addressing the construction industry’s image problem 06 Refreshing the industry’s
The headlines below for New Zealand come from BDO New Zealand’s 2023 construction sector research ‘ Beyond Boom and Bust’ : ‘ A Construction Sector Taking Control of an Uncertain Future’ and its 2023 ‘ Construction Sector Well-being and Business Performance Index’.
Organisations investing in talent retention. Even with an uncertain work pipeline, forward- thinking organisations are investing in talent retention strategies. These include creating clear progression and development pathways for staff, create bonus schemes and incentives for staff to recognise their hard work, and introducing an employee share scheme or longer-term incentives for senior staff.
An uncertain pipeline of work ahead. Asked what the biggest adverse impacts on their business had been, access to labour (including local, international and subcontractors) was the most common factor cited by 79% of respondents in New Zealand, followed by increased costs eroding margins at 74%, materials availability (66%) and uncertainty of work pipeline (37%).
Environmental concerns rise up the agenda. Builders are under pressure to demonstrate their ESG credentials from customers, investors, and regulators alike. Construction organisations must ensure green planning from the get-go of every project and consider how to cut both the waste produced and energy used on every build.
approach to recruitment, retention and diversity
07 Conclusion
BDO’s message to Gen Z Practical lessons for construction executives Countries in focus
Nick Innes-Jones Construction Sector Leader, BDO in New Zealand
Australia Belgium Brazil Canada Latin America The Netherlands New Zealand Norway South Africa USA 09 About BDO’s research 10 How BDO can help
However, more understanding of ESG needed. Despite ESG requirements becoming more common in New Zealand, there is still a lack of understanding from many construction businesses about what they need to do. 22% of those surveyed by BDO say that they don’t have a clear understanding of what they should do differently. With a younger generation becoming increasing motivated by a desire to have a positive economic and social impact at work, this knowledge gap needs to be quickly addressed.
Staffing continues to cause issues. Like their global peers, construction businesses in New Zealand have a lot of work but not enough labour to do it, with 67% actively looking for additional staff. Over half of respondents in New Zealand indicated that immigration rules have had a negative impact on their ability to employ appropriately skilled staff, suggesting that New Zealand’s tight immigration rules continue to cause issues in the sector.
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